Newscasts - Europe Today: European automakers falter after Trump's tariff pledges

BMW Industries

26/11/2024 11:00

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Source: 'Reuters - Business videos'

Description: Fears of a potential global trade war were fuelled after
President-elect Donald Trump pledged big tariffs on Canada, Mexico and China.
Stocks of European car makers fell heavily in early trade.
Short Link: https://refini.tv/3COECtS

Video Transcript:

European car makers see their shares stumble as Trump pledges tariffs. Welcome
to Europe Today. I'm Ramzan Karmali. Well fears of a potential global trade
war were fuelled after president-elect Donald Trump pledged big tariffs on
Canada, Mexico and China. Car makers in particular will be hard hit by these
proposals, and so it's not a surprise that a basket of European auto stocks
was the worst performer among sectors shortly after the open. On an individual
basis, Stellantis was the biggest faller, down over 5% at one point. But
German manufacturers weren't immune. Both Volkswagen and BMW were down
sharply. Well, let's turn to the wider market now, and Europe's main
benchmark, the STOXX 600 ended in positive territory on Monday for a third
straight session. But Donald Trump's plans to impose an additional 10% tariff
above any other tariff on China and 25% tariffs on imports from Canada and
Mexico have seen it, and all the main benchmarks across the continent falter
in early trade today. Some corporate news now and another British retailer has
warned about the extra costs it will face due to announcements from last
month’s UK budget. Halfords said that higher employer Social Security
contributions will add up to GBP23 million. The British bicycle and car
products retailer also reported half-year underlying profits were down 1.4%.
Its share price though, rose sharply in early trade, as a result of the
performance at its fusion motor garages. Topps Tiles has posted an almost 50%
slump in annual profits. The British tile retailer has been hurt by weak
demand in the home repair and maintenance sector. However, Topps Tiles share
price was up almost 4% this morning as the firm also revealed sales growth at
the start of its new financial year. AO World has raised its annual profit
outlook and posted a 30% rise in first half profits. The British online
electrical retailer added that customers were also reacting positively to its
Black Friday deals this week. But it too said that the UK budget plans will
cost it GBP8 million next year. Its shares rose initially this morning, but
are now firmly in the red. And a bit of deal making now, Switzerland's Roche
is set to buy US collaboration partner Poseida Therapeutics. The cash deal for
the cell therapy maker is worth up to $1.5 billion and is expected to close in
the first quarter of 2025. Roche shares were down over 1% this morning. And
finally, Eurozone government bond yields edged up from the previous sessions
multi week lows in early trade. Investors are waiting for inflation data this
week that could offer hints on the ECB's policy path. Meanwhile, the mood in
Germany's export industry improved slightly in November. And that's it from
Europe Today