Carmaker Stellantis sees half-year net loss of $2.68 billion, hit by tariffs
The group also sees net revenue of 74.3 billion euros, down 12.6% year-on-year, as overall second-quarter shipments fell by 6% compared to last year, to an estimated 1.4 million vehicles, it said in a statement.
($1 = 0.8595 euros)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
22 minutes ago
- The Independent
Europe's central bank to hold off on another rate cut until it knows how bad the tariff blow will be
The European Central Bank will likely hold off on making another interest rate cut Thursday, choosing to wait until it can measure the size of any economic blow from higher U.S. tariffs. The ECB has already cut rates eight times since June of last year and President Christine Lagarde said after the last policy meeting June 5 that the central bank is 'getting to the end of a monetary policy cycle." The monetary authority for the 20 countries that use the euro currency has been lowering rates to support growth after raising them in 2022-2023 to snuff out inflation caused by Russia's invasion of Ukraine and the rebound after the pandemic. With the bench mark rate now at 2%, down from a record high of 4%, analyst think there could be one more rate cut coming, but only in September. The reason, say analysts: The ECB's policymakers simply don't know the outcome of talks between the EU's executive commission and the Trump administration. Trump first set a 20% tariff for EU goods, then threatened 50% after expressing displeasure at the pace of talks, then sent the EU a letter informing officials of a potential 30% tariff. EU officials earlier held out hope of winning at least the 10% baseline that applies to almost all trade partners, and analysts think that the actual rate may be lower than Trump's tariff threats. The talks are up against an Aug. 1 deadline, but earlier deadlines have slipped as the sides kept talking. The decision to hold rates unchanged will be 'uncontroversial' among members of the bank's rate-setting council, said analysts at UniCredit's Investment Institute. 'In light of recent events, the risk of an adverse tariff scenario has increased since the June ECB meeting. The 30% tariff on EU goods threatened by the US is much higher than generally expected,' the UniCredit analysts wrote. "However, the response of financial markets to US President Donald Trump's letter to the EU has been muted, and this seems to reflect expectations that the landing point for tariffs on EU goods will be materially below 30%. With signs of economic activity holding up reasonably well, 'the ECB can afford to wait and see what the outcome of trade negotiations will be.' The ECB's rate cuts have helped support economic activity by lowering the cost of credit for consumers and businesses to purchase goods. Higher rates have the opposite effect and are used to cool of inflation by reducing demand for goods. Growth in the eurozone was relatively strong at 0.6% in the first quarter - though that was partly due to rushed shipments of goods trying to beat the tariffs. Inflation has fallen from double digits in late 2022 to 2% in June, in line with the ECB's target. A stronger euro, which lowers the price of imports, and softer global prices for oil have helped keep inflation moderate. The stronger euro, up 13% this year at $1.17, has attracted attention as a potential damper on growth and ECB Vice President Luis de Guindos said any rapid moves over $1.20 could be 'much more complicated.' But the ECB typically does not target the exchange rate, and the euro's rise is considered to be less the result of Europe 's strength and more the result of a weaker dollar weighed down by investor uncertainty about the future path of inflation, growth and government debt in the US.
Reuters
23 minutes ago
- Reuters
Trump to visit Fed on Thursday, ramping up pressure on Powell
July 23 (Reuters) - U.S. President Donald Trump, a robust critic of Federal Reserve Chair Jerome Powell, will visit the central bank on Thursday, the White House said, a surprise move that escalates tension between the central bank and the administration. Trump has lambasted Powell repeatedly for not cutting U.S. interest rates more aggressively, calling him a "numbskull" on Tuesday and musing publicly about firing him. The Republican president nominated Powell to be Fed chair during his first term but has soured on his pick over disagreements about interest rates and the economy. Between Trump's stints in office, Democratic President Joe Biden nominated Powell for a second term. Adding fuel to Trump's ire, White House officials have accused the Fed of mismanaging the renovation of two historic buildings in Washington, D.C., suggesting poor oversight and potential fraud. White House deputy chief of staff James Blair said this week that administration officials would be visiting the Fed on Thursday but did not say the president would join. In a schedule released to the media on Wednesday night, the White House said Trump would visit the Federal Reserve at 4 p.m. (2000 GMT) on Thursday. It did not say whether Trump would be meeting with Powell. A Federal Reserve official did not immediately respond to a request for comment. Initial market reaction was subdued, with the yield on benchmark 10-year Treasury bonds steady at 4.387% in Asian hours and the dollar weakening slightly. Trump's public criticism of Powell and flirtation with firing him have previously upset financial markets and threatened a key underpinning of the global financial system - that central banks are independent and free from political meddling. Typically U.S. presidents refrain from commenting on Fed policy altogether in deference to the bank's autonomy, but Trump, whose governing style blasts through political norms, has not followed that example. Since returning to office in January, Trump has attacked institutions from law firms to universities to media organizations in an effort to reshape U.S. society in line with his vision. He has used the same verbal sledgehammer against the Fed, pressuring Powell to cut rates and blaming him for not stimulating the economy further. Trump has said he would like the Fed to cut its benchmark interest rate as low as 1% from the current 4.25%-4.50% target range to reduce government borrowing costs. This would allow the administration to finance rising deficits expected from his spending and tax-cut bill. But a Fed policy rate that low is typically a sign of a country in economic trouble.
BreakingNews.ie
23 minutes ago
- BreakingNews.ie
Tesla profit plunges in latest quarter as Musk's turn to politics repels buyers
The fallout from Elon Musk's plunge into politics a year ago is still hammering his Tesla business as both sales and profits dropped sharply again in the latest quarter. The car company that has faced boycotts for months said on Wednesday that revenue dropped 12% and profits slumped 16% in the three months through June as buyers continued to stay away. Advertisement 'The perception of Elon Musk, its chief executive, has rubbed the sheen right out of what once was a darling and soaring automotive brand,' wrote Forrester analyst Dipanjan Chatterjee in an email. Tesla is 'a toxic brand that is inseparable from its leader'. Quarterly profits at the electric vehicle, battery and robotics company fell to 1.17 billion dollars (£865.8 million), or 33 cents a share, from 1.4 billion (£1.03 billion), or 40 cents a share. That was the third quarter in a row that profit dropped. On an adjusted basis, the company said it earned 40 cents a share, matching Wall Street estimates. Advertisement Revenue fell from 25.5 billion (£18.8 billion) to 22.5 billion (£16.6 billion) in the April through June period, slightly above Wall Street's forecast. Tesla shares fell 3% in after-hours trading. Mr Musk spent the company's earnings conference call talking less about car sales and more about robotaxis, automated driving software and robotics, which he says is the future of the company. But those businesses are yet to take off, and the gap between promise and profit was apparent in the second quarter. 'It appears management's focus will now shift to robotaxis and away from deliveries growth,' said Morningstar analyst Seth Goldstein, referring to car sales. Advertisement A big challenge is that potential buyers, not just in the US but in Europe, are still baulking at buying Teslas. Mr Musk alienated many in the market for cars in Great Britain, France, Germany and elsewhere by embracing far-right candidates for office on the continent. And rival electric vehicle makers such as China's BYD and Germany's Volkswagen have pounced on the weakness, stealing market share. Tesla began a rollout of its paid pickup robotaxi service in Austin, Texas, and hopes to introduce the driverless cabs in several other cities soon. Mr Musk has said he expects to have hundreds of thousands of the cabs on US roads by the end of next year. In the post-earnings call, Mr Musk said the service will be available to probably 'half of the population of the US by the end of the year — that's at least our goal, subject to regulatory approvals'. Advertisement He added: 'We are being very cautious. We don't want to take any chances.' The test run in Austin has mostly gone off without a hitch, though there have been a few alarming incidents, such as when a robotaxi went down a lane meant for opposing traffic. Elon Musk with US President Donald Trump (Evan Vucci/AP) With autonomous taxis, though, the billionaire who upended the space race and electric vehicle manufacturing faces tough competition. The dominant provider now, Waymo, is already in several cities and recently logged its ten-millionth paid trip. Meanwhile, other threats loom. The new federal budget just passed by Congress eliminates a credit worth as much as 7,500 dollars (£5,522) for buying an electric car. Advertisement It also wipes out penalties for car makers for exceeding carbon emission standards. That threatens Tesla's business of selling its 'carbon credits' to traditional car companies that regularly fall short of emission standards. Tesla generated 439 million (£328 million) from credit sales, down sharply from 890 million (658 million) a year ago. 'We're in this weird transition period where we'll lose a lot of incentives in the US,' Mr Musk said, predicting several rough months possibly through June of next year. He added, though: 'Once you get to autonomy at scale in the second half of next year, certainly by the end of next year, I would be surprised if Tesla's economics are not very compelling.' The company is now planning to introduce a cheaper model to the market in the last three months of the year. Tesla had previously said that it was going to happen by June this year. Mr Musk also said he expected regulatory approval to introduce its so-called Full Self-Driving software in some parts of Europe by the end of the year. He had previously expected that to happen by March of this year. The feature, which is available in the US, is a misnomer because it is only a driver assistance feature. India's first Tesla showroom to be inaugurated in Mumbai (AP/Rafiq Maqbool) In the robot business, Mr Musk said he expects explosive growth as Tesla ramps up production of its humanoid Optimus helpers to 100,000 a month in five years. 'We'll go from a world where robots are rare to where they're so common that you don't even look up,' he said. Asked about whether he would want more than his current 13% stake in Tesla to keep control, Mr Musk said he did want more but not too much. 'I think my control over Tesla should be enough to ensure that it goes in a good direction,' he said, 'but not so much control that I can't be thrown out if I go crazy'. Gross margins for the quarter, a measure of earnings for each dollar of revenue, fell to 17.2% from 18% a year earlier. A highlight from the quarter was from something far removed from cars and robots: the company's investment in bitcoin. That bet generated a 284 million (£210 million) paper gain, compared with a loss in the previous quarter.
