Bayer $BAYN (+2,84 %) is considering a possible ban on the sale of glyphosate in the USA. Since the takeover of glyphosate developer Monsanto a few years ago, the company has had to contend with a wave of lawsuits that have cost it billions. Analysts at Jefferies report that Bayer is facing the decision to stop selling the controversial herbicide if there is no clear regulatory perspective. Since 2018, Bayer has been facing major challenges in the glyphosate business as the number of lawsuits has risen to around 181,000. In order to prepare for possible financial burdens, the Group has set aside provisions of 5.9 billion dollars. Sales of glyphosate products are forecast to fall by 7.5 percent to 2.6 billion euros in 2024. An exit from this business segment has not yet been officially addressed, but a realignment is being considered. The situation remains tense and it remains to be seen how Bayer will respond to the challenges.
In the USA, industry is surprisingly weaker than expected, although it has recently returned to growth. The Purchasing Managers' Index, an important indicator of economic health, fell from 50.9 to 50.3 points, below economists' expectations. Although this mark remains above the growth threshold, the slowdown is clearly noticeable. Costs for industrial companies have reached their highest level since summer 2022, highlighting the challenges in this sector. Experts assume that the US Federal Reserve will not be forced to ease monetary policy more quickly under these conditions, as the risks to price trends are on the upside. In addition, construction spending fell by 0.2% in January, further underlining the difficulties in the construction industry. The economic situation therefore remains tense and could prove challenging in the coming months.
Sources: