adplus-dvertising
Connect with us

Investment

Carmaker Stellantis slashes forecasts as it faces industry slump and Chinese competition

Published

 on

 

MILAN (AP) — Carmaker Stellantis, the world’s fourth largest carmaker, slashed its earnings forecast on Monday, citing investments to turn around its U.S. operations amid a wider industry slump and increased Chinese competition.

Stellantis said it was accelerating efforts to turn around North America, including bringing dealer inventory levels to no more than 300,000 vehicles by the end of the year, instead of the first quarter of 2025 as previously planned.

The action is in the back of a decrease in shipments of 200,000 vehicles in the second half of this year compared with a year earlier, twice as many as the company had forecast. The company will offer higher incentives on 2024 and older models.

In its profit warning, Stellantis said it expected to finish the year with a negative cash flow of 5 billion euros to 10 billion euros, ($5.6 billion to $11.2 billion) instead of positive.

The carmaker, which was created in 2021 from the merger of PSA Peugeot with Fiat Chrysler Automobiles, also dropped its operating profit margin guidance to 5.5% to 7.0%, instead of double digits.

Stellantis shares were down 14.45%, trading on midday Monday in Milan at 12.45 euros.

The struggling maker of Jeep and Ram is looking for a new CEO to succeed Carlos Taveres, who is under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance. The company has portrayed the search as a normal leadership succession plan.

UAW leadership met last week to review contract violations and what they called illegal behavior by Stellantis. UAW President Shawn Fain advised Stellantis in a letter that the union is moving toward a strike. An autoworkers’ strike last year cost the company 3 billion euros ($3.2 billion) in revenues.

Stellantis is also under pressure in Italy, home to one of the main shareholders, due to production cuts. Autoworkers announced a one-day strike on Oct. 18.

The company reported that first-half net profits were down 48% compared with the same period last year. First-half sales in the United States were down nearly 16%, even though overall new vehicle sales rose 2.4%.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

Stock market today: Wall Street drifts lower as oil prices continue to climb

Published

 on

 

NEW YORK (AP) — U.S. stocks are drifting lower, as crude oil prices continue to climb. The S&P 500 was down 0.2% in early trading Thursday following a shaky run where worries about worsening tensions in the Middle East knocked the index off its record. The Dow Jones Industrial Average was down 192 points, or 0.4%, and the Nasdaq composite was off 0.2%. Oil prices rose about another 2% as the world continues to wait to see how Israel will respond to Iran’s missile attack from Tuesday. Treasury yields rose after a report suggested the number of layoffs across the country remain relatively low.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Wall Street tipped toward small losses early Thursday ahead of some labor market reports that will be closely analyzed by the Federal Reserve as it shifts its focus from inflation toward supporting the broader economy.

Futures for the S&P 500 were 0.1% lower before the bell, while futures for the Dow Jones Industrial Average slipped 0.2%.

The dominant question hanging over Wall Street has been whether the job market can keep holding up after the Federal Reserve earlier kept interest rates at a two-decade high. The Fed was trying to press the brakes hard enough on the economy to stamp out high inflation.

Stocks are near records in large part on the belief that the U.S. economy will continue to grow now that the Federal Reserve has begun cutting interest rates. The Fed last month lowered its main interest rate for the first time in more than four years and indicated more cuts will arrive through next year.

Coming later Thursday is the Labor Department’s unemployment benefits report, which broadly represents the number of U.S. layoffs in a given week. Layoffs have remained historically low, though started ticking higher beginning in May.

Treasury yields rose after a report Wednesday by ADP Research indicated that hiring by U.S. employers outside the government may have been stronger last month than expected.

That could auger well for the government’s more comprehensive report on the U.S. job market due out Friday, the first since the Fed cut its benchmark lending rate by half a point last month.

Levi shares tumbled 12% in premarket trading after the maker of blue jeans came up short on sales projections and trimmed its fourth-quarter outlook. CEO Michelle Gass said the company was working to address areas of underperformance, including “strategic alternatives” for its Dockers brand.

In German at midday, Germany’s DAX shed 0.3% while the CAC 40 in Paris gave up 0.5%. In London, the FTSE 100 gained 0.4%.

The U.S. dollar gained against the Japanese yen as officials indicated that conditions were not conducive for an interest rate hike.

That helped push Tokyo’s Nikkei 225 index higher. It gained 2% to 38,552.06, while the dollar traded at 146.67 Japanese yen, up from 146.41 yen late Wednesday.

A weaker yen is an advantage for major export manufacturers like Toyota Motor Corp. and Sony Corp.

The dollar had been trading around 142 yen after the ruling Liberal Democrats chose Shigeru Ishiba to head the party and succeed Fumio Kishida as prime minister. Ishiba, who took office on Tuesday, had expressed support for the central bank’s recent moves to raise its near-zero benchmark interest rate, which stands at around 0.25%. That led traders to bet that the yen would gain in value.

But after a meeting between Ishiba and Bank of Japan Gov. Kazuo Ueda, both officials indicated that the central bank did not view further rate hikes as suitable for the economy at this time. That prompted a flurry of selling of yen, which benefits big export manufacturers.

Elsewhere in Asia, Hong Kong’s Hang Seng dropped 1.5% to 22,113.51 as investors sold shares to lock in profits after the benchmark roared 6.2% higher a day earlier on a wave of investor enthusiasm over recent announcements from Beijing about measures to rev up the slowing Chinese economy.

With Shanghai and other markets in China closed for a weeklong holiday, trading has crowded into Hong Kong. Markets in South Korea and Taiwan also were closed on Thursday. India’s Sensex fell 2.1%.

Oil prices rose again as the world waited to see how Israel will respond to Tuesday’s missile attack from Iran.

U.S. benchmark crude oil gained $1.09 to $71.19 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, was up $1 to $74.90 per barrel.

Israel is not a major producer of oil, but Iran is, and a worry is that a broadening war could affect neighboring countries that are also integral to the flow of crude.

Also early Thursday, the euro fell to $1.1042 from $1.1047.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite rises, U.S. markets also make gains Monday

Published

 on

 

TORONTO – Canada’s main stock index posted modest gains Monday, while U.S. markets also rose near the end of the day to kick off the week in the green.

Stocks were down earlier in the afternoon in part because of comments from U.S. Federal Reserve chair Jerome Powell, said Anish Chopra, managing director at Portfolio Management Corp.

Powell said Monday that more interest rate cuts are coming, but not quickly.

“We’re looking at it as a process that will play out over some time,” he said at a conference in Nashville, Tenn.

“It’ll depend on the data, the speed at which we actually go.”

The Fed isn’t in a hurry to cut its key interest rate, said Chopra, as it weighs the upside risks to inflation and the downside risks to the job market.

“Inflation could go up, it could go down, but they believe that if the data remains consistent with what they’ve seen, there will be two more rate cuts coming, but they will be smaller,” said Chopra.

Though the central bank has already signalled it expects to make two more quarter-percentage-point cuts this year, market watchers had been hoping for another outsized cut before the end of the year, he said.

“So I think Powell’s comments from this afternoon disappointed the markets and investors in the sense that if they were anticipating bigger rate cuts, that’s not the news they got.”

In New York, the Dow Jones industrial average was up 17.15 points at 42,330.15. The S&P 500 index was up 24.31 points at 5,762.48, while the Nasdaq composite was up 69.58 points at 18,189.17.

The S&P/TSX composite index closed up 41.31 points at 23,998.13.

At the end of this week, markets will get the latest report on the U.S. labour market, perhaps the most closely watched economic data right now after a couple of softer-than-expected reports prompted fears that higher rates were having too hard an impact on jobs.

If the report is weaker than expected this time, that could change the Fed’s thinking around its interest rate trajectory, said Chopra.

However, the Fed’s next rate decision is in November, he noted, so there’s still another labour report after this week’s release for the central bank to weigh.

Overseas, Asian markets had a frenzied start to the week, with Japanese markets down 4.8 per cent while stocks in China saw their best day in almost 16 years.

Japanese markets sank because investors are questioning whether the new government will be supportive of higher interest rates, said Chopra.

Meanwhile, Chinese markets rallied on the news of more stimulus to the country’s economy, he said.

The Canadian dollar traded for 73.93 cents US, according to XE.com, compared with 74.08 cents US on Friday.

The November crude oil contract was down a penny at US$68.17 per barrel and the November natural gas contract was up two cents at US$2.92 per mmBTU.

The December gold contract was down US$8.70 at US$2,659.40 an ounceand the December copper contract was down five cents at US$4.55 a pound.

— With files from The Associated Press

This report by The Canadian Press was first published Sept. 30, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite down as base metal stocks fall, U.S. stock markets mixed

Published

 on

 

TORONTO – Canada’s main stock index fell in late-morning trading, weighed down by losses in base metal stocks, while U.S. stock markets were mixed to start the trading week.

The S&P/TSX composite index was down 44.33 points at 23,912.49.

In New York, the Dow Jones industrial average was down 101.56 points at 42,211.44. The S&P 500 index was down 0.67 points at 5,737.50, while the Nasdaq composite was up 3.97 points at 18,123.56.

The Canadian dollar traded for 74.04 cents US compared with 74.08 cents US on Friday.

The November crude oil contract was up 66 cents at US$68.84 per barrel and the November natural gas contract was up two cents at US$2.93 per mmBTU.

The December gold contract was down US$14.90 at US$2,653.20 an ounce and the December copper contract was down seven cents at US$4.53 a pound.

This report by The Canadian Press was first published Sept. 30, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending