What happened? On Monday, February 21, Russian President Vladimir Putin signed decrees recognizing the sovereignty of the Donetsk and Lugansk People's Republics…
VW: German car manufacturers have 50:50 likelihood of facing Detroit's fate
There’s a 50% probability of surviving as major players in the automotive industry for German car makers unless they have their businesses reformed to meet new rules and adapt supply chains. That’s what Volkswagen's chief executive uncovered on Tuesday.
German car makers have already complained about fresh rules, including bans on older diesel cars in German cities as well as broader EU measures to reduce car emissions, telling that they will affect Europe's automotive industry as well as cost jobs.
Tougher regulations could push some car manufactures out of business due to the extremely high tempo of reforms needed to shift output to electric vehicles and also to respond to new geopolitical threats.
European Union lawmakers have made up their mind to seek a 35% trim in car emissions by 2030. That’s definitely a higher level than Germany had previously counted on. EU lawmakers were forced to come up with this initiative after a UN report called for radical steps to have global warming speeded down.
Germany's Audi, Mercedes, and BMW brands hold approximately 90% market share in the premium car segment. An escalating push to reduce emissions affects high horsepower cars and German brands in particular.
To reduce average fleet emissions of carbon dioxide in the European Union by nearly 30% by 2030, German car maker Volkswagen has to ramp up its share of electric cars to nearly 30% of fresh car sales.
It’s apparent that a reduction of nearly 40% CO2 fleet emissions would require about half of the new vehicles sold to be 100% electric.
The push to reduce car carbon dioxide emissions, which are the number one greenhouse gas blamed for global warming, would undoubtedly provoke a jump in CO2 pollution in Germany, considering the country's traditional dependence on generating electricity from coal.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
The Kansas City Federal Reserve announced Friday the annual Jackson Hole symposium will be held virtually, a reversal from prior plans that saw a modified, in-person program…
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.