Trump Trade: Offshore wind seen with no future in the U.S. under Trump

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump with this daily recap compiled by The Fly:

OFFSHORE WIND: Offshore wind has no future as a source of electricity generation in the United States under the Trump administration, Interior Secretary Doug Burgum said at an energy conference in Italy this week, according to CNBC‘s Spencer Kimball. “Under this administration, there is not a future for offshore wind because it is too expensive and not reliable enough,” Burgum told an audience at the Gastech conference in Milan on Wednesday.

President Donald Trump barred new leases for offshore wind farms on his first day in office through an executive order that was framed as “temporary,” the author notes. Trump also ordered a review of permits, but the industry had hoped projects under construction would be allowed to move forward. But Interior is “taking a deep look” at five offshore wind farms that are already under construction in the U.S., Burgum said Wednesday without naming the projects. The offshore wind farms under construction are Revolution Wind off Rhode Island; Vineyard Wind 1 off Massachusetts; Coastal Virginia Offshore Wind; Sunrise Wind off New York; and Empire Wind also off New York, the publication notes. Companies with exposure to wind energy include Eversource (ES), NextEra Energy (NEE), GE Vernova (GEV) and Brookfield Renewable Partners (BEP).

PHARMA ADS: Shares of Omnicom (OMC) and WPP (WPP) were under pressure on Wednesday after President Trump signed a memorandum mandating pharma ads provide more information on risks. The move could potentially disrupt billions of dollars in ad spending, which in turn could affect major advertising agencies like Omnicom, Interpublic (IPG) and WPP. “The Secretary of Health and Human Services shall therefore take appropriate action to ensure transparency and accuracy in direct-to-consumer prescription drug advertising, including by increasing the amount of information regarding any risks associated with the use of any such prescription drug required to be provided in prescription drug advertisements, to the extent permitted by applicable law,” the memorandum reads.

CHINA RISK: In a research note to investors, BTIG analyst Justin Zelin pointed out that I-Mab (IMAB) shares have fallen about 20% following a New York Times article highlighting the Trump administration’s potential consideration of restrictions on Chinese produced medicines under CFIUS review. However, the firm believes the market is “misinterpreting the situation as applying to I-Mab” and views the selloff as “an unwarranted mispricing and not a fundamental risk.” BTIG, which reminds investors that I-Mab is not a Chinese drugmaker, but a U.S.-based biotech company and that it has no China licensing risk for givastomig, calls the weakness “an overreaction to a mischaracterization” and would be buyers amid the weakness. The firm reiterates a Buy rating and $7 price target on I-Mab shares.