Quarterly Outlook
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
John J. Hardy
Chief Macro Strategist
Chief Investment Strategist
Summary: The competition in battery electric vehicles continue to increase this year with Tesla introducing new price cuts in China on Friday and the Munich Motor Show over the weekend showing new exciting EV line-ups from BMW and Mercedes. For Tesla shareholders the key things to watch over the coming quarters are the operating margin and the global market share. In Europe, Ferrari will join the prestigious EURO STOXX 50 Index on 18 September and Novo Nordisk has become the most valuable European company.
The global car industry is in constant change these years with carmakers rushing to catch up to Tesla’s lead in battery electric vehicles. Recently price cuts in China have been the key focus and on Friday Tesla’s share price declined 5% on news that it had cut EV prices again for the second time in two weeks suggesting increased competition from local carmakers. China’s passenger car sales is still below the highs made in late 2017 and early 2018 suggesting the market has matured and the 30-40 year rapid growth in cars is over.
Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?
China Outlook: The choice between retaliation or de-escalation
Commodity Outlook: A bumpy road ahead calls for diversification