Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 18 September 2014 at 8:16 GMT

Equity on the move: Bayer jumps 5% on Material-Science spin-off

Head of Equity Strategy / Saxo Bank
  • German healthcare giant Bayer jumps 5% in early morning trading
  • Spike follows statement to spin off its plastic unit
  • Quant model more positive than consensus prior to statement

By Peter Garnry

Bayer is the fourth most traded stock in Europe in early trading up 5% as the German producer of healthcare, agricultural products and polymers, announces plans to spin off its plastic unit. 

The move accelerates management's plan to retreat from the chemicals industry to focus on the more lucrative and higher ROIC life-sciences businesses.

Most traded European stocks

Our quant model was more positive than consensus prior to the news and the announced plans to further underpin the positive outlook for Bayer.


One of Bayer's product lines is healthcare. Photo: Thinkstock

-- Edited by Martin O'Rourke

Peter Garnry is head of equity strategy at Saxo Bank
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