Novo Nordisk shares plunge 17% after Wegovy-creater cuts full-year guidance
Danish pharmaceutical giant Novo Nordisk has cut its full-year sales and profit guidance, citing weaker growth expectations for its Wegovy obesity drug in the key U.S. market.
Shares were down 17% at 12:30 p.m. London time (7:30 a.m. ET), shortly after the announcement.
What EU leaders create of the U.S. trade deal
Several European leaders have been critical of the EU’s trade deal with the U.S., with French Prime Minister François Bayrou describing it as a “submission.” Irish Minister of State Neale Richmond declared the export-reliant countest was “not exactly celebrating.”
The bloc has agreed to pay a 15% tariff on most exports to the U.S., alongside creating large investments in American energy products and military equipment, avoiding a 30% tariff rate which would have come into place on August 1.
Analyst reaction has been similarly underwhelmed. Bank of America called the deal “bad for the economy,” but conceded it “pares tail risks and reduces uncertainty” over relations between the two economies. However, Wolfe Research called it “bullish,” stateing it had expected the U.S. side “would be reluctant to reduce’ tariffs on autos.”
— Michael Considine, Jordan Butt
Euro extfinishs losses against U.S. dollar
Euro/U.S. dollar.
Mohamad Al-Saraf, associate in resolveed income and FX research at Danske Bank, declared the outline deal “appears more favourable for the U.S. relative to the euro area.”
“Recent price action suggests the USD sell-off may have stalled, with investors cautious of being caught wrong-footed, as broad USD positioning remains stretched on the short side,” Al-Saraf added.
However, some analysts see support for the euro seeing ahead, in part becautilize of monetary policy. Deutsche Bank on Tuesday updated its call and now sees the European Central Bank holding interest rates at the current 2%, with further easing “now a risk scenario rather than baseline.”
While the Federal Reserve is expected to keep rates on hold at its meeting this week, analysts at UBS state that U.S. tariff deals wrapping up with several key trading partners and a shaky economic outsee could give the central bank more confidence to cut in the months ahead.
— Jenni Reid
European markets buoyed by earnings
European markets are shaking off their EU-U.S. trade deal blues as a series of better-than-expected earnings dominate the picture. The Stoxx 600 index is 0.57% higher, with both France’s CAC 40 and Germany’s DAX up by around 1%.
Stoxx 600 index.
Philips is still leading gains, up 10%, after the consumer health tech group declared it now expects a lower tariff hit than previously forecast.
“Overall, we have momentum, we see that we can take that momentum into the second half and we that have the clarity on tariffs now also to further mitigate what is out there,” CEO Roy Jakobs informed CNBC’s “Squawk Box Europe” on Tuesday.
EssilorLuxottica is another top performer, up 6%, after reporting 7.3% revenue growth in the second quarter as well as the first half, as demand for artificial ininformigence glasses surged. Sales of its Ray-Ban Meta glasses more than tripled in the first six months of the year.
Drugcreater AstraZeneca ticked 1.75% higher after its own second-quarter earnings beat.
Shares of Sinformantis are down 2.1%, despite the troubled automotive giant reinstating its financial guidance and stateing it expects a gradual recovery over the coming months.
— Jenni Reid, Jonathan Stayton, Karen Gilchrist
Philips jumps on improved tariff outsee
Shares of Philips soared nearly 14% at the market open, after the Dutch consumer healthcare group raised its full-year margin outsee, stateing it now expects a hit of 150 to 200 million euros ($230.1 million) from tariffs, down from the 250 to 300 million euros it had previously estimated.
Sales in the second quarter came in at 4.3 billion euros, in-line with expectations.
Philips share price.
— Matt Ward-Perkins, Jenni Reid
Barclays beats Q2 profit estimates
British bank Barclays beat profit expectations and announced a £1 billion ($1.33 billion) share acquireback as market volatility boosted investment banking revenues.
Pre-tax profit beat estimates at £2.5 billion ($3.34 billion) in the second quarter, compared with a mean LSEG forecast of £2.23 billion. Group revenues met analyst projections of £7.2 billion.
— Jenni Reid
AstraZeneca posts better-than-expected second quarter results
A view of the AstraZeneca office in Mölndal, Sweden, on September 12, 2024.
Nurphoto | Getty Images
AstraZeneca on Tuesday posted better-than-expected second quarter earnings, driven by demand for key cancers and biopharmaceutical products, and reiterated its commitment to expanding the business in the U.S.
The Anglo-Swedish pharma firm posted revenues of $14.46 billion over the three-month period to June 30, ahead of the $14.07 billion estimated by analysts in an LSEG poll.
Quarterly adjusted core operating profit came in at $4.58 billion versus $4.48 billion anticipated.
The FTSE 100 company maintained its full-year forecast for revenues to rise by a high single-digit percentage, despite geopolitical challenges, and cited its ambitions to grow its U.S. footprint to deliver $80 billion revenue by 2030.
AstraZeneca declared last week it plans to invest $50 billion in bolstering its U.S. manufacturing and research capabilities by 2030, becoming the latest pharmaceutical firm to ramp up its stateside spfinishing in the wake of U.S. trade tariffs.
— Karen Gilchrist
Opening calls
Good morning from London.
European stock markets are heading for a higher open today, according to IG data, with major bourses heading for gains of around 0.2%.
On Monday, initial optimism over the EU-U.S. framework trade deal faded by the finish of the session to leave the Stoxx 600 index at a 0.23% loss. Investors will continue to hunt for any clarity on the outsee today — particularly as uncertainty remains for sectors including pharmaceuticals, and key products like spirits.
“We see the tentative trade deal with the EU as pretty much completing the run of good trade news that has lifted global confidence and equity markets, and weakened the [U.S. dollar],” Standard Chartered macro strategist Steve Englander declared in a Monday note.
“The deals are a negative from a global growth perspective but appear to be something that US trading partners can live with.”
Earnings are also in focus, with British bank Barclays reporting shortly. Results are also out from L’Oréal, AstraZeneca and Ferrovial, along with Boeing, Starbucks, Visa, PayPal and more Stateside.
— Jenni Reid
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