MNI China Daily Summary: Friday, February 7

MNI: GERMANY DEC INDUSTRIAL PRODUCTION -2.4% M/M

MNI: GERMANY DEC TRADE BALANCE E20.7BLN

MNI BRIEF: Mexico Inflation Down To 3.59% In January

MNI BRIEF: Tariffs Force CBRT To Hike 2025 Inflation Forecast

MNI: PBOC Net Drains CNY100.3 Bln via OMO Friday

MNI JAPAN DEC HOUSEHOLD SPENDING +2.7% Y/Y; NOV -0.4%

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -174 BCF TO 2,397 BCF JAN 31 WK

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

HEALTHCARE: Bayer (BAYNGR: Baa2 neg/BBB/BBB): Crop Science Competition

HEALTHCARE
Credit BulletsCEEMEAEurozoneGermanyBullet

Bayer may be facing more competition from Corteva

  • Corteva - a DowDuPont AgChem spin-off - is a significant competitor for Bayer
  • JPM note recently that US farmers are switching from 100% Dicamba corn seeds (Bayer) to 75% Pioneer (Corteva). In soybeans, Corteva's Enlist product seems favoured over that from Bayer.
  • Q3 saw a poor showing from Bayer's Crop Science due to low acreage in LatAm
  • Typically Q1 sees 35% of Agri sales. Corn acreage is up in the US but will only help Bayer if they can capitalise on the increase.
  • 2025 is hoped to see a turn-around for Bayer's fortunes. The company (and also S&P) are expecting to see a 0.5x fall in leverage. Bayer is targeting a return to Single A eventually.
  • Bayer Perps currently trade with a Sub_Sen spread around 195-210 which would fall to 150a if they can stabilise.
  • Positive catalysts would be product launches for Acoramidis and Elinzanetant in Pharma (both in 2025). Combined with continued growth in Nubeqa & Kerendia. A phase III trial for Bemdaneprocel (Parkinson's) will also be watched.
170 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

Bayer may be facing more competition from Corteva

  • Corteva - a DowDuPont AgChem spin-off - is a significant competitor for Bayer
  • JPM note recently that US farmers are switching from 100% Dicamba corn seeds (Bayer) to 75% Pioneer (Corteva). In soybeans, Corteva's Enlist product seems favoured over that from Bayer.
  • Q3 saw a poor showing from Bayer's Crop Science due to low acreage in LatAm
  • Typically Q1 sees 35% of Agri sales. Corn acreage is up in the US but will only help Bayer if they can capitalise on the increase.
  • 2025 is hoped to see a turn-around for Bayer's fortunes. The company (and also S&P) are expecting to see a 0.5x fall in leverage. Bayer is targeting a return to Single A eventually.
  • Bayer Perps currently trade with a Sub_Sen spread around 195-210 which would fall to 150a if they can stabilise.
  • Positive catalysts would be product launches for Acoramidis and Elinzanetant in Pharma (both in 2025). Combined with continued growth in Nubeqa & Kerendia. A phase III trial for Bemdaneprocel (Parkinson's) will also be watched.