Renewables Surge, Bayer Beats Estimates, Munich Re Underperforms

On this episode of Stock Movers:

- Renewable energy stocks rally in Europe on Tuesday after US House Republicans proposed a phase-out of incentives to develop clean-energy projects that was better than feared, according to analysts.

- Bayer's shares surged after its earnings beat expectations, with robust demand for its new cancer and kidney medicines helping offset a decline in agricultural sales.

- Shares in Munich Re fall as much as 5.4%, making it the worst performer on the Stoxx 600 Insurance Index, after a 1Q profit slump caused by the Los Angeles wildfires. Analysts note, however, that solvency was ahead of consensus

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios podcasts, radio news, The.

Speaker 2 (00:08):
Stock Movers podcast, your roundup of companies making moves in
the stock market, harnessing the power of Bloomberg Data.

Speaker 3 (00:17):
Let's take a look at some stocks on the move
today here in Europe. I'm Caroline Hepget with Tom McKenzie
and we're joined by Bloomberg's Equities Report to Joe Easton.
Good morning, Really big day for renewable energy stocks. What's
driving the surge today?

Speaker 1 (00:31):
Yes, this is really interesting. So news out last night
that the US House Republicans proposing to eliminate a tax
credit for electric vehicles and also phase out incentives to
develop clean energy projects, so we're talking wind and also
solar as well. However, it wasn't as bad as some
people as feared. So some people did expect that to
be actually phased out within the next two years, but

(00:54):
in fact companies are going to have it until twenty
thirty one to continue getting these credits. It's seen better
than expected in terms of where the market was, and
we're seeing massive moves in the market in terms of
the renewable stocks. VE that's the best performing stock in
Europe today. It's up twelve percent at the moment, all
Stared rising around five percent, edp over in Portugal another

(01:16):
big one up around five percent. There's probably around a
dozen stocks on my screen at the moment jumping because
of this news. Kind of another case where Trump has
probably gone a bit hard in the terms of the
negotiations and then actually it hasn't been as extreme as
expected by the market.

Speaker 3 (01:31):
We're talking of the farmer industry buyer up double digits
right now that German chemicals make here, but also the
litigation story continues for them, doesn't it.

Speaker 1 (01:40):
Yeah, so by looking really strong as well, so kind
of catching us by surprise in terms of that move.
We're up ten percent at the moment, so I think
if I managed to pull that up on my screen
in terms of the size and scope live, we can
see that that is the biggest game since August. So
we're talking a good well coming up to around ten months.
So that one so BIA surge. The earnings been expectations

(02:02):
on robust demand for new cancer and kidney medicines. Now,
as you mentioned, the company has really been hit by
the litigation issues over the past year or so or
the past few years. In fact, more related to chemicals
but it looks like the farmer business is really strong
at the moment and that is the driver for the company.
So that was one of the best performers, pretty much

(02:24):
only beaten by Renewable, but by really having a good day,
up around ten percent of the moment.

Speaker 3 (02:29):
Interesting, then not such good news for the insurer munich Rea.
Of course they've got big insurance claims in the US.

Speaker 1 (02:38):
Yeah, so this was something that was kind of flagged
by the companies heading into results, and it's related to
the LA wild fires. So munich read today saying they're
going to take a one point one billion euro hit
from the fires over in the US and munich rebeing
one of the biggest reinsurers trading on the London Lloyd's
of London market doing all the down there and they

(03:01):
did have big exposure according to their statements day, and
that is actually more than an analysts were expecting some
munich Ree falling around five percent of the moment. It
does all seem to be due to that hit from
the fires over in Los Angeles were expected to cause
in total around sixty five billion dollars worth of economic

(03:21):
losses and up to forty billion in terms of insured losses.
Munich ree just taking a smidgeon of that, but therefore
seeing the stock declining today.

Speaker 2 (03:30):
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