Wildfires ravaging France and Spain are going to be a headwind for publicly listed companies and Europe's economy, a Jefferies strategist said on Tuesday.
The extreme weather will lead to "higher insurance losses, transport and supply chain disruptions, and weaker consumer spending during the peak summer tourism season," wrote Luke Sussams, who focuses on climate, sustainability, and energy transition.
Sussams found that mentions of extreme heat in Stoxx 600 company transcripts and filings had already surpassed 2025's total, even though there are more than five months left in this year.
German shipping giant Hapag-Lloyd and French poultry processor L.D.C. are two of the European companies that have warned the extreme weather could have a negative impact on business.
One in five European workers is exposed to high temperatures, and companies may have to respond by investing more money in cooling and HVAC systems, Sussams said.
Firefighters have been struggling to contain wildfires over the past week, after record-breaking heat waves. On Tuesday, one fire was within 10 miles of the French city of Bordeaux. which is known worldwide for its Bordeaux wine.
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