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Let's take a look at some of the stocks on the move today in Europe. I'm tea Added Bay with Stephen Carroll and we're joined by Bloomberg reporter Chloe Meley Chloe. Siemens Energy it says it expects the AI data center boom to bolster its sales in the year to come. This CUFO was pretty bullish about that when speaking to our colleague Lizzie Burgen this morning. Has it been good news for their share price?
Well, not so much. Actually, the share price is done a little bit. But let's start with the positive first. So, as you say, it has said that this surging demand for energy infrastructure thanks to both AI and electrification, was really really boosting sales. So it said it would be accelerating its buyer back this year thanks to those strong orders from data center customers in Particula. And this comes just a few weeks after it had already raised its
outlook for the year. So Semen's Energy is part of this crop of companies like Schneider Electric, abb Logan, all of those companies really benefiting from the billions are being poured into AI and that visibility is now great. The
outlook is very bright. But the reason why Chaz did for this morning is because some analysts had actually noted some weaker margins in the gas business, and they also said that they were actually quite There were actually quite few updates apart from the buyback being celebrated in this release compared to the release from just a few weeks back, and usually when expectations are also that high for a company, those really small disappointments tend to trigger quite a lot
of weakness. So that's why. But the outlook is genuinely very bright for the Semen's Energy. Okay, well, let's stay in Germany and go to buy our next earning's topping estimates there as well.
At Science also to the Forefrontier.
Yeah, so it reported better an expected profit, a very strong performance saying the crop science business and within that what did particularly well where soybeans. Actually cells doubled in that segment thanks to a licensing payment that was tied to a seed technology dispute, so quite specific, but that really boosted the cells. Bayer also confirmed its outlook. It said that the conflict in the Middle East doesn't have
any material impact on the guidance currently. And this is all coming at quite a critical time for that company, given that is still dealing with this litigation issues around its roundup weed killer. So investors are really closely watching a US Supreme Court decision that's expected by the end of June that could potentially undercut the legal argument that's underpinning most of those round up claims. And so those really strong earnings are being received quite well this morning.
Perhaps there is some kind of relief while that legal uncertainty continues to hang over that stock.
Okay, So those are the moves from Bayer moving to the banking sector now and Barclay's is down. That's after JP Moore, an analyst, said UK banks could face higher taxes in the event of a leadership change in Downing Street. Of course, we're awaiting news of Kirs Starmer's decision this morning. What's the story there? Is it moving markets?
Yeah, it definitely is. Barclay's, Lloyd's Networks. We're all in the red this morning. On the back of that. JP Morgan a note and so the risks of those high bank taxes have been calculated by the analysts based on a previously reported leaked memo from Angela Rayner, and then also what we know about Andy Burnham's stance on tax With those two names being of cause the names that keep coming up when talking about who is potentially going
to replace Kiss Starmer. Sarma has been trying to hold onto his job, but he's really losing that fight at the moment. After the major losses for labor that we saw in the local elections last week, he's now facing a really growing pressure to step down. As you say, we are waiting for further developments there, but if a leadership change does happen and someone more left leaning that Starma takes over, that's essentially when banks need to maybe
start worrying about those higher taxes. According to those JP Morgan analysts, they said that higher bank taxes could result in an EPs hit of about three percent f Lloyd's in twenty twenty seven, two percent for Networks, and one percent for Berkley. So that's not negligible and therefore we are seeing those banks weaker this morning on the back of that.
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