Swatch Profit Plunges Almost 75%, Hit by Weakness in China
Swatch Group AG profit fell sharply in 2024 thanks to a drop in sales led by a slump in Chinese consumer demand.
Operating profit fell to 304 million Swiss francs ($335 million), below analyst estimates and almost 75% lower compared with the previous year. Sales dropped 12.2%, it said in a statement Thursday.
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17 minutes ago
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One in 10 cars sold in Britain are Chinese
Nearly one in 10 cars sold in Britain are now Chinese-made as drivers turn away from Tesla and embrace newer manufacturers such as BYD. Chinese-owned brands had a 9.4pc share of Britain's new car market last month, according to the Society for Motor Manufacturers and Traders (SMMT), up from 7.7pc in April. The surge saw BYD's sales alone quintuple to 3,025 cars – about 1,000 more than US rival Tesla sold. BYD recently launched its Dolphin Surf car in the UK with a starting price of £16,000, compared to an average of about £49,000 for new EVs. Some analysts have speculated that Chinese brands could still cut prices further, with the Dolphin Surf – known as the Seagull in Asia – selling for just 56,800 yuan (£5,800) in its home market. Other Chinese carmakers saw similarly strong growth. Geely-owned Polestar increased sales by more than 270pc to 1,174 vehicles, while Chery's Omoda and Jaecoo brands sold a combined 3,000 cars, having not been in the market a year ago. SAIC Motor-owned MG remained the biggest-selling Chinese brand, shifting 6,625 cars in May, but its sales were down 8.3pc compared to the same month in 2024. Chinese brands have made major inroads in recent years, particularly in the electric segment where they have launched some of the cheapest models available. Manufacturers have undercut Western rivals including Tesla, which has struggled to stem a steep sales decline in Europe partly driven by a political backlash linked to Elon Musk's support of Donald Trump. Tesla sales in the UK fell by 36pc in May compared to a year earlier. It came as the overall market returned to growth, with sales rising 1.6pc to 150,070 in May, SMMT said. Sales of EVs surged 25.8pc to 32,738 in May, with electric vehicles (EV) taking a 21.8pc market share overall. However, the SMMT warned that the EV market was gripped by 'unsustainable' discounting as manufacturers scramble to hit the Government's ZEV mandate sales targets. Under the mandate, 28pc of cars sold must be electric this year, a target that rises steadily to 80pc by 2030, although the real requirement is lower in reality because of 'flexibilities' afforded to companies under the scheme. Sales of petrol and diesel cars tumbled 12.5pc and 15.5pc respectively last month. Carmakers are calling on the Government to boost demand for EVs through tax breaks or grants for drivers. Mike Hawes, the chief executive of the SMMT, said: 'A return to growth for new car registrations in May is welcome but manufacturer discounting on new products continues to underpin the market, notably for electric vehicles. 'This cannot be sustained indefinitely as it undermines the ability of companies to invest in new product development – investments which are integral to the decarbonisation of all road transport. 'Next week's spending review is the opportunity for Government to double-down on its commitments to net zero by driving demand through fiscal measures that boost the market and shore up our competitiveness.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21 minutes ago
- Yahoo
Factbox-UK Market Exodus: Companies that have moved away from a London listing
(Reuters) -British money transfer firm Wise became the latest UK listed firm on Thursday to say that it intends to move its primary listing to the U.S. from London. A growing number of companies have shelved or shifted plans to list in London, due to investor pushback and Brexit-related challenges that have pressured UK market valuations. Instead, they have opted for the U.S. and other markets, where they see stronger appetite and higher valuations. Cobalt: The Glencore-backed metals investor scrapped its plans for a London IPO on Wednesday, which, according to one source, was driven by a lack of demand. The company, valued at around $230 million, would have seen London's largest market debut since Air Astana's listing in February 2024. Indivior: The drugmaker said on Monday it will cancel its secondary listing on the London Stock Exchange effective July 25, citing cost savings and a desire to align more closely with its U.S.-focused operations. The 1.25 billion pound ($1.70 billion) pharmaceutical firm will retain its primary listing on the Nasdaq. BHP: The world's largest miner by market value ($125.10 billion) made Australia its primary stock market when it ended its dual-listing structure in 2021. The company was the second largest by market value in London when it left the stock market. Unilever: The Ben & Jerry's maker in February picked Amsterdam as the primary listing for its ice cream business. The business, which generated a turnover of 8.3 billion euros ($9.47 billion) in 2024, will have secondary listings in London and New York. Glencore: The Swiss miner said in February it was considering moving its primary listing from London. The company, with a market value of 34.5 billion pounds, said New York was at the top of the list under consideration. Shein: The online fast fashion retailer is working towards a listing in Hong Kong after its proposed initial public offering (IPO) in London failed to secure the green light from Chinese regulators, three sources with knowledge of the matter told Reuters in May. However, before its attempt to list in London, Shein had pursued a listing in New York, as part of its efforts to gain legitimacy as a global, rather than a Chinese company, and access to a wide pool of large Western investors. Ashtead: The second-largest equipment rental company in the U.S. said in December it plans to shift its listing to New York. With a market value of 18.3 billion pounds, Ashtead has been listed in London since 1986, and transformed into a major U.S. player in the early 2000s. Just Eat Takeaway: The Amsterdam-listed food delivery company delisted from the London Stock Exchange in December, citing efforts to reduce administrative and regulatory costs. The company has a market value of 4.05 billion euros. Flutter Entertainment: The FanDuel-owner in 2024 moved its primary listing to the New York Stock Exchange (NYSE), just a few months after it added a secondary listing in the US. CRH: The building materials solutions provider, which has $61.29 billion in market value, switched its primary listing to the NYSE in 2023, while maintaining a standard listing on the London Stock Exchange. Arm Holdings: The UK-based chip designer chose Nasdaq over London for its 2023 IPO — the largest of that year. The company, now valued at just over $138 billion, was previously listed in London for 18 years till 2016, when it was taken private by SoftBank in a $32 billion acquisition. ($1 = 0.8763 euros) ($1 = 0.7355 pounds) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
26 minutes ago
- Yahoo
Fed's Kugler looks to hold rates steady as she warns of higher inflation from Trump's tariffs
Federal Reserve governor Adriana Kugler warned Thursday she sees the risk of higher inflation from tariffs, and supports keeping interest rates steady for now. "I see greater upside risks to inflation at this juncture and potential downside risks to employment and output growth down the road, and this leads me to continue to support maintaining the FOMC's policy rate at its current setting if upside risks to inflation remain," Kugler said in a speech at the Economic Club of New York. The Fed next meets on June 17-18, and is not expected to make any changes to monetary policy. It has not altered its benchmark rates so far in 2025 after reducing them by a full percentage point at the end of 2024, citing uncertainties about President Trump's policies. "I view our current stance of monetary policy as well-positioned for any changes in the macroeconomic environment," Kugler added Thursday. Kugler said she expects higher tariffs this year will continue to push up inflation over 2025. She referenced research from the Federal Reserve staff, which estimates that 20% tariffs on Chinese imports earlier in the year raised overall inflation as measured by the 'core' Personal Consumption Expenditures Index, by 0.2%. But since tariffs on China are higher than 20%, and tariffs have increased for other countries, she added, 'these results tell me, first, that the pass-through of tariffs into prices is relatively quick, and, second, should elevated tariffs persist, even just in the short run, larger effects may be coming soon." She added a surge in imports to get ahead of higher tariffs earlier this year has delayed the price effects associated with those tariffs, and the reversal in that surge that she expects in the next few months will likely signal larger price increases. Kugler is also eyeing three channels through which tariffs could lead to longer-lasting inflation. She warned an increase in short-term inflation expectations could give businesses leeway to raise prices, increasing the persistence of inflation. Companies could also take advantage of price increases on goods impacted by tariffs to raise prices on items not impacted by the levies. As well, Kugler cautioned that tariffs on parts used to make final products could lead to second-round effects on inflation. And the possibility of lower productivity, Kugler said, could also push up prices. Meanwhile Kugler says so-called soft data — surveys of businesses and consumers — suggest that price increases are coming. Kugler pointed to surveys for May showing indexes for inputs and selling prices being elevated relative to the beginning of the year, and that probably reflects the effects from higher tariffs. On the consumer side, she pointed to a handful of recent surveys including one from the University of Michigan that have shown short-term inflation expectations rising. Michigan's survey also revealed a pop up in longer-term inflation expectation. But she noted that she still sees stability in most measures of longer-run inflation expectations. Right now, Kugler says the job market remains resilient, but warned that trade and other policy changes could raise the unemployment rate. And while the economy looks to be on solid footing based on official data measures, she noted that the Fed's May Beige Book showed stagnation, suggesting the economy might be starting to slow. Click here for in-depth analysis of the latest stock market news and events moving stock prices
