Turbine-maker Vestas down 5% on ‘big, beautiful bill’ headwinds; Europe stocks retreat

Despite an upbeat start, the Stoxx 600 is trading just below the flatline in early afternoon deals. The worst performer on the index so far today has been Danish turbine-maker Vestas Wind, last down around 5.5%.

In a Monday note, analysts at Citi said the latest text of U.S. President Donald Trump’s “One Big Beautiful Bill” looked “incrementally negative for wind.”

That’s in part due to proposed changes to the rules surrounding tax credits for wind projects, which will become more restrictive, and a potential new tax on wind developments that have “material assistance” from foreign entities of concern.

While this would not technically apply to Vestas, “the complexity of supply chains could leave operators fearful” and “potentially prevent new orders being placed in the near term, even to western suppliers,” according to Citi.

However, they added that while the bill would provoke an initial negative reaction in Vestas shares, its scaling in offshore and European market growth story supported the stock longer-term.

Analysts at Sydbank meanwhile took a positive view on the stock in a Monday note, maintaining their “buy” recommendation.

“The Senate has submitted a bill with significant reductions in subsidies for onshore wind. This increases the risk of a significant and drastic decline in activity levels in the years after 2027, but may open up a very high order intake from the US in 2025 and 2026 for Vestas,” they wrote, according to a Google translation.

— Jenni Reid

The U.K.’s trade deal with the U.S. came into effect today, slashing tariffs on British-made autos and removing levies on Britain’s aerospace sector.

But while U.K. steel has also been given a preferential tariff rate of 25%, compared with 50% for other trade partners, questions remain over when — and by how much — tariffs on U.K. metals can be reduced further, as promised.

The U.K. government said Monday that it is still working with The Trump administration to bring tariffs on Britain’s core steel products down to 0%.

The regional Stoxx Automobiles and Parts index was last seen trading 1.3% lower, with French vehicle parts supplier Valeo leading losses on a 2.8% drop.

The Stoxx Aerospace and Defense index was 0.8% higher, meanwhile, with Britain’s QinetiQ and Rolls-Royce both gaining around 1.5%.

Read more on the trade deal here.

— Chloe Taylor

Speaking to CNBC’s “Squawk Box Europe” this morning, Atlanta Fed President Raphael Bostic emphasized how hard it has become for the Federal Reserve to make inflation forecasts amid fast-changing U.S. policy and foreign relations — citing Canada’s recent walk-back on its digital services tax as an example.

Bostic said he is therefore focusing on the inflation expectations of businesses and consumers and the actions they are taking, and where he sees risks to the outlook for taming price rises.

“The textbook story for economics is, if you do tariffs, it’s a one time shift. It happens quickly,” Bostic said.