Barclays' Cau Says European Stocks Cushioned for Mild Downgrades
European equities are pricing in lackluster earnings and economic stagnation, which could help the market maneuver through reporting-season adversity, according to strategists at Barclays Plc.
The team led by Emmanuel Cau said equity valuations indicate no earnings growth while consensus estimates forecast a 6% rise in corporate profits in 2025. This mismatch will 'cushion against mild downgrades, but valuations and earnings have downside in case of recession,' the strategists wrote in a note on Wednesday.
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Associated Press
32 minutes ago
- Associated Press
Canada plans to hit NATO spending target early and reduce US defense reliance, Carney says
TORONTO (AP) — Canada will meet NATO's military spending guideline by early next year and diversify defense spending away from the United States, Prime Minister Mark Carney said Monday. Carney said Canada will achieve NATO's spending target of 2% of gross domestic product five years earlier than it had previously planned. 'Our military infrastructure and equipment have aged, hindering our military preparedness,' Carney said. 'Only one of our four submarines is seaworthy. Less than half of our maritime fleet and land vehicles are operational. More broadly we are too reliant on the United States.' According to NATO figures, Canada was estimated to be spending 1.33% of GDP on its military budget in 2023, below the 2% target that NATO countries have set for themselves. Canada previously said it was on track to meet NATO's spending target by the end of the decade. 'Our goal is to protect Canadians, not to satisfy NATO accountants,' Carney said. The announcement of increased spending came as Canada is about to host a summit of the Group of Seven leading industrialized nations in Alberta on June 15-17, and before the NATO summit in Europe. It also comes as NATO allies are poised to increase the commitment well beyond the 2% target. NATO Secretary-General Mark Rutte said last week that most U.S. allies at NATO endorse U.S. President Donald Trump's demand that they invest 5% of gross domestic product on their defense needs and are ready to ramp up security spending even more. Carney has said that he intends to diversify Canada's procurement and enhance the country's relationship with the EU. 'We should no longer send three quarters of our defense capital spending to America,' Carney said in a speech at the University of Toronto. 'We will invest in new submarines, aircraft, ships, armed vehicles and artillery, as well as new radar, drones and sensors to monitor the seafloor and the Arctic.' Canada has been in discussions with the European Union to join an EU drive to break its security dependency on the United States , with a focus on buying more defense equipment, including fighter jets, in Europe. Carney's government is reviewing the purchase of U.S. F-35 fighter jets to see if there are other options. Carney said that the U.S. 'is beginning to monetize its hegemony: charging for access to its markets and reducing its (relative) contributions to our collective security.' 'Middle powers compete for interests and attention, knowing that if they are not at the table, they will be on the menu,' Carney said. Trump's calls to make Canada the 51st U.S. state have infuriated Canadians, and Carney won the job of prime minister after promising to confront the increased aggression shown by Trump. Carney said that the long-held view that Canada's geographic location will protect Canadians is becoming increasingly archaic. European allies and Canada have already been investing heavily in their armed forces, as well as on weapons and ammunition, since Russia launched a full-scale invasion of Ukraine on Feb. 24, 2022.
Yahoo
37 minutes ago
- Yahoo
China's rare earth exports increase 23% in May, reaching yearly high
China, the world's largest producer of rare earth minerals, reported a significant 23% increase in exports in May compared with April, despite the implementation of export curbs on certain critical minerals, according to a Reuters report. This surge brought the total to 5,864 tonnes (t), the highest monthly figure in a year. The rise in exports comes amidst global manufacturing disruptions due to shortages caused by China's export restrictions. The export curbs, introduced in April, did not affect all types of rare earth products that China exports. Detailed data on the impact of these restrictions is expected to be released on 20 June, the report said. Last month's data indicated that magnet exports halved in April, leading to production halts in several European auto parts plants and semiconductor companies warning of imminent production disruptions. In the first five months of 2025, exports of the group of 17 minerals saw a slight increase to 24,827t from 24,266.5t in the previous year, according to customs data. This marginal growth occurred even as China's coal industry grapples with an oversupply issue, resulting in a 42% year-on-year increase in mine stockpiles and a 25% annual rise in inventories at northern Bohai area ports. The oversupply in coal is attributed to a significant expansion in production, which was a response to the energy shortages and blackouts experienced in 2021. With China housing the world's largest thermal power fleet, the country is producing more coal than it can consume. Power plants are now being urged to purchase coal from these northern ports to alleviate the high stockpile levels and support miners, as informed by three sources familiar with the matter. "China's rare earth exports increase 23% in May, reaching yearly high" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
an hour ago
- Yahoo
Tesla sales plunge in key European markets with one shocking exception
Tesla sales plunge in key European markets with one shocking exception originally appeared on TheStreet. Tesla () is preparing for a historic event, as it gears up to launch its first fleet of autonomous robotaxis in Austin, Texas. But so far this week, other events have sparked negative momentum, pushing shares down. The company's plan to venture into the self-driving car market is currently being overshadowed by CEO Elon Musk's disagreement with Donald Trump over the new budget bill, which he has described as a 'disgusting abomination.' 💵💰💰💵 As of this writing, TSLA stock is down more than 20% for the past week and isn't showing any signs of slowing down. But these declines likely aren't due strictly to Musk and Trump's argument. Tesla's sales are falling steadily across many European markets, including the United Kingdom, France, and Spain. While this may seem discouraging to investors, there remains one outlier among European countries where Tesla sentiment has been declining. For months, European citizens have been making it clear that they won't be standing behind Musk. Protests erupted across the continent in response to his affiliations with Trump, and even as growth in the electric vehicle (EV) market rose, Tesla sales steadily trended declined in both the U.S. and China as well, highlighting the global aspect of the anti-Tesla backlash. Even the widespread availability of the popular Tesla Model Y and significant discounts haven't been enough to boost sales. Recent data reveals that while Tesla's deliveries for May 2025 were down significantly from where they were one year ago in most European markets, one country saw Tesla sales surge. Norway has reported that Tesla sales are up 213% from May 2024, reaching 2,600 in total. Its Scandinavian neighbors reported different statistics, with Tesla sales falling steadily in both Sweden and Finland. But part of the reason why they didn't dip in Norway may be due to the country's strong push toward accelerating EV adoption. 'Nine out of 10 new cars sold in Norway last year were fully electric vehicles, and the EV share of sales year-to-date stands at 92.7%, the Norwegian Road Federation said, bringing it close to a goal of phasing out diesel and petrol automobiles,' Reuters reports. Additionally, it should be noted that Tesla also reported concerningly low sales in Norway for May 2024. In this case, the contrast is important, as it suggests that Tesla's popularity in that specific market may not be as high as it appears at first glance. More Tesla News: Analyst says Tesla faces one big beautiful hit from Trump bill Elon Musk, Tesla finally get some good news out of China Analyst sets eye-popping Tesla stock price target As Electrek notes, 'It's clear that the anomaly was more with May 2024 than incredible performance in May 2025, even though there's no doubt that Tesla's sales have recovered in Norway last month. That's partly due to Tesla offering record discounts, including zero-interest financing on the new Model Y.' While Tesla has not issued any statements on its plunging sales across Europe, it did post on X celebrating its 213% growth in Norway. That statistic is certainly an anomaly, given how much Tesla's sales have fallen in similar markets, but it doesn't mean the company's problems in Europe are Electrek's analysis also notes, '2,500 Norwegians buying Tesla vehicles in May isn't compensating for the declines in other markets,' speculating that recent success in Norway may not be sustainable in the second half of 2025. For that to happen, the company will need to reverse the current consumer sentiment that has spread across Europe. Experts have told TheStreet that they believe Europe's stance against Musk will negatively impact the company. 'When Europe turns on your brand, a lot of the world follows,' states Galileo FX CEO David Materazzi. 'Lose Europe, lose your edge. Musk built it, and now he's sinking it.' Additionally, Norway is only one part of Europe's market, and Tesla is also dealing with declining sales in both China and the U.S., larger markets that stand to impact it more than anywhere in sales plunge in key European markets with one shocking exception first appeared on TheStreet on Jun 6, 2025 This story was originally reported by TheStreet on Jun 6, 2025, where it first appeared.
