La catena delle opzioni mostra i dati chiave delle opzioni azionarie di Bayerische Motoren Werke AG ADR a vari prezzi di esercizio e date di scadenza. I trader utilizzano queste informazioni per analizzare potenziali operazioni e valutare il sentiment del mercato per Bayerische Motoren Werke AG ADR..

Bayerische Motoren Werke AG ADR (OTC:BMWYY) Azioni, Catena delle Opzioni

Bayerische Motoren Werke AG ADR

While U.S. markets remained closed Monday for Memorial Day, European equities surged after President Donald Trump agreed to delay a planned 50% tariff on European Union imports, easing investor concerns <a href="https://www.benzinga.com/25/05/45603240/trump-agrees-to-extend-50-tariffs-on-europe-until-july-9-it-was-my-privilege-to-do-so">and reviving risk appetite.</a>
In a Sunday phone call with European Commission President Ursula von der Leyen, Trump confirmed that the tariffs, which had been slated to take effect on June 1, will be pushed back to July. The decision opens a window for further negotiations aimed at avoiding a disruptive escalation in transatlantic trade tensions.
The Eurozone's STOXX 50 index, mirrored by the iShares MSCI Eurozone ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EZU#NYSE">EZU</a>), climbed 1.3% to close at 5,397. The broader STOXX 600 added 1% to finish at 550, with German autos leading the advance.
Shares of Germany's leading carmakers—Volkswagen AG (OTCPK: VWAGY), BMW AG (OTCPK: BMWYY), and Mercedes-Benz AG (OTCPK: MBGYY)—each rallied around 2%, clawing back losses from Friday's session. These companies are among the most exposed to potential U.S. tariffs, and their gains reflect growing optimism that a negotiated outcome may be reached.
The U.S. dollar remained under pressure as the euro extended its recent gains, nearing $1.14—its highest level in a month as currency markets appear to be pricing in a more stable outlook for the EU economy if the tariff threat is ultimately defused.
Gold prices slipped modestly in thin holiday trading, with bullion down 0.6% to $3,336 per ounce as the temporary U.S.-EU trade truce reduced safe-haven demand. 
Meanwhile, sentiment in crypto markets remains upbeat. Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) rose 1% to trade above $110,000, hovering near its all-time highs as digital asset demand continues to run hot.
<h3 class="wp-block-heading">Monday&#8217;s Market Snapshot</h3>
<figure class="wp-block-table is-style-stripes"> 
<table class="has-fixed-layout">
<thead>
<tr>
<th>Market</th>
<th>Price</th>
<th>% Chg</th>
</tr>
</thead>
<tbody>
<tr>
<td>STOXX 600</td>
<td>550.50</td>
<td>+0.99%</td>
</tr>
<tr>
<td>STOXX 50</td>
<td>5,365.00</td>
<td>+0.73%</td>
</tr>
<tr>
<td>CAC 40</td>
<td>7,822.60</td>
<td>+1.12%</td>
</tr>
<tr>
<td>DAX</td>
<td>24,030.00</td>
<td>+1.48%</td>
</tr>
<tr>
<td>FTSE MIB</td>
<td>39,938.75</td>
<td>+1.13%</td>
</tr>
<tr>
<td>EUR/USD</td>
<td>1.1378</td>
<td>+0.10%</td>
</tr>
<tr>
<td>Gold</td>
<td>$3,333/oz</td>
<td>–0.60%</td>
</tr>
<tr>
<td>Bitcoin</td>
<td>$110,190</td>
<td>+0.90%</td>
</tr>
</tbody>
</table>
</figure>
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</ul>
Image: Shutterstock/Giulio Benzin

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MERCEDES-BENZ UNSP / ADR by Mercedes Benz Group AG

MBGYY

VWAGY

European Stocks Rally After Trump's 50% Tariff Delay, Dollar Hits 1-Month Low: What's Driving Markets Monday?

President Donald Trump&#8217;s threat to impose a sweeping 50% tariff on all European Union imports starting June 1 sparked a broad selloff across European markets Friday, triggering fears of a transatlantic trade war just as global <a href="https://www.benzinga.com/topic/tariffs">growth faces renewed pressure.</a>
In a post on Truth Social, Trump said the EU&#8217;s "powerful Trade Barriers, VAT Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American Companies" were to blame for an annual trade deficit exceeding $250 billion, which he called "totally unacceptable."
The proposed tariff would exempt goods manufactured in the United States, potentially creating sharp distortions for EU-based exporters and global supply chains.
<h3 class="wp-block-heading">European Benchmarks Tumble</h3>
The fallout was immediate in markets. The Euro STOXX 50 index – as closely tracked by the iShares MSCI Eurozone ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EZU#NYSE">EZU</a>) – dropped 3%, Italy's FTSE MIB sank 2.9%, France's CAC 40 lost 2.6% and Spain's IBEX 35 fell 2.2%. 
Germany's DAX, as tracked by the iShares MSCI Germany Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWG#NYSE">EWG</a>), which is home to many export-heavy firms, slid 2.3%.
Financial stocks bore the brunt of the decline, with Deutsche Bank AG (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DB#NYSE">DB</a>) falling 6.1%, Société Générale SA (OTCPK: SCGLY) down 5.3% and Banco Bilbao Vizcaya Argentaria SA (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBVA#NYSE">BBVA</a>) sliding 5%.
 Industrial and luxury exporters also came under heavy pressure, including Bayerische Motoren Werke AG (OTCPK: BMWYY), or BMW (−4.5%), UniCredit SpA (OTCPK: UNCRY) (−4.5%) and EssilorLuxottica SA (OTCPK: ESLOY) (−4.2%).
<h3 class="wp-block-heading">Export Exposure To US Trade Is Key</h3>
The tariff threat has placed a spotlight on European companies heavily reliant on U.S. revenues.
In Germany, Adidas AG (OTCPK: ADDYY) derives roughly a third of its revenue from the United States, while SAP SE (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SAP#NYSE">SAP</a>) generates about 40% of its turnover from North America. 
Chipmaker Infineon Technologies AG (OTCPK: IFNNY) is also significantly exposed due to its automotive and electronics customers.
French luxury and tech firms are equally at risk. LVMH Moët Hennessy Louis Vuitton SE (OTCPK: LVMUY) earns close to 25% of its revenue in the U.S., while Dassault Systèmes SE (OTCPK: DASTY) has a strong footprint in North American enterprise software. Hermès International SA (OTCPK: HESAY) pulls about 20-25% of its sales from the American market.
Italian brands like Ferrari NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RACE#NYSE">RACE</a>), with over 30% of sales from the U.S., and EssilorLuxottica SA (OTCPK: ESLOY), which owns Oakley and Ray-Ban, are also vulnerable. 
In the Netherlands, tech heavyweight ASML Holding NV (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>) earns about 20-25% of revenue from the U.S., and Koninklijke Philips NV (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PHG#NYSE">PHG</a>) maintains a major healthcare business across North America.
<h3 class="wp-block-heading">EU Retaliation Risk Grows For US Stocks</h3>
For U.S. corporations with heavy exposure to Europe—particularly in tech, autos, agriculture and aviation—the economic consequences could be significant if the European Union responds in kind.
The 2018 EU countermeasures to Trump&#8217;s steel tariffs included duties on motorcycles, bourbon and orange juice—strategic hits on U.S. swing-state exports.
EU officials may also revisit tech taxation disputes, where U.S. firms like Apple Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) and Microsoft Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) are already under regulatory scrutiny.
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</ul>
Photo Courtesy: Joshua Sukoff On Shutterstock.com

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HESAY

IFNNY

LVMUY

MSFT

RACE

SCGLY

UNCRY

Trump Tariff Threat Hits Europe: Stocks Sink As 50% Duties Loom

Shares of Chinese electric vehicle battery giant Contemporary Amperex Technology Co. Ltd. (CATL) jumped 12.5% in their Hong Kong trading debut Tuesday after raising $4.6 billion in the world&#8217;s largest listing this year.
What Happened: The Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) supplier opened at HK$296 ($37.83) per share, significantly above its HK$263 ($33.61) subscription price, Reuters reported.
CATL&#8217;s institutional tranche was oversubscribed 15.2 times while retail investors oversubscribed by 151 times, demonstrating strong market confidence despite U.S.-China trade tensions.
&#8220;The Hong Kong stock listing means our wider integration into the global capital market and a new starting point for us to promote the global zero-carbon economy,&#8221; CATL Founder and Chairman Robin Zeng said at the listing ceremony.
See Also: <a href="https://www.benzinga.com/markets/25/05/45510198/scott-bessent-says-us-will-continue-trading-with-china-while-strategically-reshoring-semiconductors-steel-and-pharmaceuticals-to-protect-national-security">Scott Bessent Says US Will &#8216;Continue Trading With China&#8217; While Strategically Reshoring Semiconductors, Steel, and Pharmaceuticals To Protect National Security</a>
Why It Matters: CATL, which commands a 38% global EV battery market share, plans to use the proceeds primarily for constructing a factory in Hungary to supply European automakers, including Bayerische Motoren Werke AG ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), Stellantis (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/STLA#NYSE">STLA</a>), and Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>).
The company&#8217;s first quarter 2025 net profit rose 32.9% year-on-year to 14 billion yuan ($1.91 billion), its <a href="https://www.benzinga.com/markets/asia/25/02/43613949/tesla-supplier-catl-eyes-5-billion-hong-kong-listing-amid-us-sanctions-market-revival-report">fastest growth pace in nearly two years</a>.
U.S. investors with offshore accounts participated despite CATL&#8217;s January inclusion on a U.S. Defense Department list of companies allegedly working with China&#8217;s military, a designation CATL is contesting as &#8220;false.&#8221;
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Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Kittyfly / Shutterstock.com

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Tesla Supplier CATL Soars 12.5% In $4.6 Billion Hong Kong IPO

On Thursday, Alibaba Group Holding (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>)&nbsp;cloud unit launched a new artificial intelligence model in <a target="_blank" href="https://www.benzinga.com/topic/alibaba" rel="noreferrer noopener">its &#8220;Qwen series.</a>&#8220;
The new &#8220;Qwen2.5-Omni-7B&#8221; is a multimodal model that can process inputs, including text, images, audio, and videos, while generating real-time text and natural speech responses, CNBC <a target="_blank" href="https://www.cnbc.com/2025/03/27/alibaba-launches-open-source-ai-model-for-cost-effective-ai-agents.html" rel="noreferrer noopener">cites</a> from Alibaba Cloud&#8217;s website.&nbsp;
The company can deploy the model on&nbsp;edge devices&nbsp;like mobile phones.&nbsp;Now, visually impaired people can navigate their environment through real-time audio descriptions.&nbsp;
Also Read: <a target="_blank" href="https://www.benzinga.com/25/03/44493961/nvidia-faces-17-billion-threat-in-china-as-chip-rules-tighten-and-huawei-gains-ground" rel="noreferrer noopener">In Geopolitical Chess, China&#8217;s Latest Energy Norms Block Nvidia&#8217;s Chip Strategy Amid US Sanctions</a>
Alibaba open-sourced the new model on the platforms Hugging Face and Github.&nbsp;
The emergence of <a target="_blank" href="https://www.benzinga.com/25/03/44254562/deepseek-stays-free-founder-rejects-monetization-plans-new-reasoning-model-amid-alibaba-talks" rel="noreferrer noopener">Chinese AI startup</a> DeepSeek and claims of affordable AI models led to&nbsp;Nvidia Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>)&nbsp;losing $600 billion in market cap in&nbsp;a single day. DeepSeek&#8217;s AI model fueled a $1 trillion market wipeout in the U.S. and also fueled a domestic price war, prompting Chinese Big Tech companies to roll out affordable AI models.
<a target="_blank" href="https://www.benzinga.com/markets/emerging-markets/25/01/43260751/not-just-deepseek-alibaba-unveils-ai-model-to-rival-openais-operator" rel="noreferrer noopener">Reports in January</a> indicated that Alibaba&#8217;s Qwen2.5-VL AI model surpasses GPT-4o and Claude 3.5 in video analysis, math and document parsing capabilities. Qwen2.5-VL can control devices, analyze charts, and book flights, showcasing advanced AI applications for practical use.
Last week, Baidu&nbsp;Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BIDU#NASDAQ">BIDU</a>) launched a new multimodal foundational model and its debut reasoning-focused model.&nbsp;
Alibaba has committed $53 billion in its cloud computing and AI infrastructure over the next three years.&nbsp;
Kai Wang of Morningstar told CNBC that large Chinese tech players like Alibaba are well-positioned to benefit from China&#8217;s post-DeepSeek AI boom.&nbsp;
On Wednesday, Alibaba and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) announced they <a target="_blank" href="https://www.benzinga.com/25/03/44492590/alibaba-and-bmw-team-up-to-bring-ai-powered-smart-assistant-to-next-gen-cars-in-china" rel="noreferrer noopener">expanded their collaboration</a> to co-develop an AI assistant using Qwen LLM for Neue Klasse models, which will launch in China in 2026.
In March, Alibaba Chair Joe Tsai&nbsp;told CNBC that <a target="_blank" href="https://www.benzinga.com/media/25/03/44274410/alibaba-chair-says-ai-total-addressable-market-is-10-trillion-expects-benefits-via-its-cloud-business" rel="noreferrer noopener">AI&#8217;s total addressable market</a> is at least $10 trillion, topping industries like transportation and healthcare insurance. Tsai expects Alibaba to benefit from this upsurge of AI courtesy of its cloud computing business.
Alibaba stock surged 85% in the last 12 months.
Price Action: BABA stock is up 1.29% at $133.95 premarket at last check Thursday.
Also Read:
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</ul>
Photo by Poetra.RH via Shutterstock

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Alibaba Strikes Back With New AI Model To Rival DeepSeek In China

On Friday, <a href="https://www.benzinga.com/topic/bmw" target="_blank" rel="noreferrer noopener">luxury carmaker</a> BMW — Bayerische Motoren Werke AG ADR (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) — posted a 2024 revenue decline of 8.4% to 142.38 billion euros.
The carmaker is <a href="https://www.benzinga.com/news/econ-s/25/03/44262286/tariff-uncertainty-poses-major-risk-to-us-automakers-how-much-could-ford-gm-earnings-fall" target="_blank" rel="noreferrer noopener">grappling with an</a> escalating trade war between the U.S. and the EU as President Donald Trump threatens higher tariffs on Europe&#8217;s car imports from April 2.
Here&#8217;s a breakdown of the report.
Also Read: <a href="https://www.benzinga.com/25/03/44283118/tesla-loses-ground-in-us-ev-market-while-rivals-accelerate-ahead-in-january-report" target="_blank" rel="noreferrer noopener">Tesla Loses Ground in US EV Market While Rivals Accelerate Ahead in January: Report</a>
<ul>
<li>Automotive revenue declined 5.6% to 124.92 billion euros. </li>
<li>Motorcycle revenue grew by 0.2% to <a href="https://www.bmwgroup.com/en/report/2024/downloads/index.html" target="_blank" rel="noreferrer noopener">3.22 billion euros</a>.</li>
<li>Automotive deliveries declined by 2.3% to 2.2 million; MINI decreased by 17.1% to 240,000; Rolls Royce reduced by 5.3% to 5,712.</li>
<li>Production declined by 4.8% to 2.23 million, MINI decreased by 11.5% to 0.28 million, and Rolls Royce reduced by 4.1% to 5,924.</li>
<li>Net profit declined 36.9% to 7.68 billion euros.</li>
<li>The Automobile EBIT margin declined from 9.8% to 6.3%. The Motorcycle EBIT margin decreased to 6.1% from 8.1%.</li>
<li>EPS of 11.62 euros declined from 17.67 euros a year ago.</li>
</ul>
BMW held 19.29 billion euros in cash and equivalents as of Dec. 31, 2024. The company also cut its dividend to 4.30 euros from 6 euros it paid out for 2023.
BMW chair Oliver Zipse told Reuters it expects trade tariffs to cost the carmaker 1 billion euros ($1.09 billion) this year.
The carmaker expects its earnings margin for cars to be 5-7% in 2025, below a consensus estimate of 7.3%.
BMW proposed an increased payout ratio of 36.7%, consisting of a dividend of 4.32 euros per preferred share for 2024. That&#8217;s down from 6.02 euros paid out for the previous year.
BMW cut its 2024 margin outlook to 6%-7% from 8-10% in September. The comapny blamed slumping China sales and <a href="https://www.benzinga.com/news/24/09/40793320/bmw-revises-2024-financial-outlook-amid-sales-slump-and-technical-issues-impacting-1-5m-vehicles" target="_blank" rel="noreferrer noopener">issues related to</a> the Integrated Braking System (IBS) supplied by a vendor. 
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<li><a href="https://www.benzinga.com/25/03/44306214/gm-and-pge-team-up-to-let-evs-power-homes-offer-up-to-4500-in-energy-incentives" target="_blank" rel="noreferrer noopener">GM And PG&amp;E Team Up To Let EVs Power Homes, Offer Up To $4,500 In Energy Incentives</a></li>
</ul>
Image: Shutterstock

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Guidance

BMW Warns Of $1 Billion Hit From Tariffs, Slashes Outlook Due To Supply Woes

German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) on Wednesday took down its <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42430368/bmw-calls-tesla-fsd-very-impressive-gary-black-says-automakers-will-eventually-license-it-one-deal-will-cause-others-to-follow">appreciation for</a> Tesla Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) full self-driving (FSD) driver assistance system without an explanation, merely hours after sharing it on social media platform X.
What Happened: BMW on Tuesday applauded the performance of version 13 of FSD in a post on social media platform X, terming it &#8220;very impressive.&#8221;
However, BMW has now taken it down. 
&#8220;Too bad, that was one of their best posts!&#8221; Tesla CEO Elon Musk responded to the deletion.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Too bad, that was one of their best posts!
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1866865120015684000?ref_src=twsrc%5Etfw">December 11, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The now-deleted comment had raised hopes among Tesla bulls that BMW could eventually license FSD for their vehicles.
"At some point $TSLA will sign an FSD licensing deal with another auto mnfr (manufacturer) who hasn&#8217;t developed an autonomous driving package to their liking. One deal will cause others to follow and then analysts will build licensing revs into their TSLA models and price targets. No one knows when the first one will hit, but there is at least one incoming," said the managing partner at The Future Fund and well-known Tesla bull, Gary Black, on Tuesday.
Why It Matters: Tesla CEO&nbsp;Elon Musk&nbsp;said earlier this year that the company would be &#8220;happy&#8221; to license its&nbsp;<a href="https://www.benzinga.com/news/24/04/38039926/not-an-april-fools-teslas-fsd-wows-ex-cruise-exec-who-calls-its-driving-eerily-natural" target="_blank" rel="noreferrer noopener">full self-driving (FSD) technology&nbsp;</a>to other car companies.
However, in January, the company said that it had&nbsp;<a href="https://www.benzinga.com/news/24/01/36772202/elon-musk-says-tesla-hasnt-received-any-fsd-licensing-agreements-from-rivals-i-think-they-dont-belie" target="_blank" rel="noreferrer noopener">not entered into a single FSD licensing agreement</a>.
Though the company had some tentative conversations, no agreement was entered into. "I think they (rival automakers) don't believe it's real quite yet," Musk then said."I do want to emphasize that if I were CEO of another car company, I would definitely be calling Tesla and asking to license Tesla&#8217;s full self-driving technology.&#8221;
Check out more of Benzinga's Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>
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</ul>
Photo courtesy: Shutterstock

BMW Takes Down Appreciation For Tesla FSD, Dashing Hopes Of A Licensing Deal With The EV Giant: Elon Musk Says 'Too Bad'

Late last month, JPMorgan analysts stated that with other global regions struggling with various challenges, the U.S. will likely<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/11/42224850/2025-stock-playbook-tap-into-ais-1-trillion-potential-us-growth-opportunities"> remain the global growth leader</a>. Much of this bold assertion centers on artificial intelligence.
As Benzinga recently reported, AI "is sparking a capital expenditure boom that dwarfs anything seen in decades." Specifically, the companies that comprise the Magnificent 7 – Amazon.com Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>), Microsoft Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>), Meta Platforms Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/META#NASDAQ">META</a>), NVIDIA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>), Alphabet Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>), Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and Apple Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) – plan to invest over $500 billion in capital expenditures and research and development next year.
If so, the collective investments will represent roughly 25% of these tech juggernauts' combined sales. Furthermore, JPMorgan estimates that the wider AI landscape could see total spending breach the $1 trillion mark by the end of the year. This tally includes costs for infrastructure, engineering specialists and data center management.
In addition, the individual names that make up the ranks of the Magnificent 7 have been commanding the spotlight. Earlier this week, Google Quantum AI founder and head Hartmut Neven<a href="https://www.benzinga.com/24/12/42397333/google-quantum-ais-willow-chip-outsmarts-supercomputers-completing-tasks-in-minutes-that-would-take-10-septillion-years"> revealed its latest quantum chip</a> called Willow. Hailed as a major leap in computing technology, Willow can deliver blistering performance while exponentially reducing errors.
On the automotive front, German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) remarked on social media that Tesla's latest version of its full self-driving (FSD)<a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/12/42430368/bmw-calls-tesla-fsd-very-impressive-gary-black-says-automakers-will-eventually-license-it-one-deal-will-cause-others-to-follow"> driver assistance software</a> was "very impressive." Critically, Gary Black, Managing Partner at The Future Fund, noted the possibility that the electric vehicle manufacturer may license out its FSD tech to another automaker, echoing the sentiments of Tesla CEO Elon Musk.
The Direxion ETFs: Nevertheless, JPMorgan analysts warned that not everything about the Magnificent 7 is without concern. Notably, the experts stated that capital misallocation and lofty growth targets could invite investor skepticism by late next year. If so, the ability to extract returns from both positive and negative narratives forms the backbone of Direxion's innovation-focused exchange-traded funds.
The bulls may be attracted to the Direxion Daily Magnificent 7 Bull 2X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQU#NYSE">QQQU</a>). Anchored heaviest to Tesla, QQQU seeks to deliver 200% of the performance of the Indxx Magnificent 7 Index. On the other end, bears may consider the Direxion Daily Magnificent 7 Bear 1X Shares (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QQQD#NYSE">QQQD</a>), which seeks 100% of the inverse performance of the aforementioned index.
Fundamentally, the QQQU and QQQD offer convenient mechanisms for speculation. For one thing, tech's heavy hitters can be found under one roof. Second, investors can enjoy either leverage or a short position without resorting to options and their inherent complexities.
However, it's important to note that Direxion urges investors to not hold a position in either ETF for a period longer than one day. Doing so may result in value erosion due to the daily compounding of volatility.
The QQQU ETF: As expected, the QQQU 2x bull fund has been on a blistering ride since its market debut in March of this year, gaining 87%.
<ul>
<li>At the moment, the leveraged ETF stands firmly above its 20-day exponential and 50-day (simple) moving averages, suggesting sustained momentum.</li>
<li>Despite recent strong volume, QQQU printed a candlestick reminiscent of a "shooting star," which may suggest temporary overextension.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe4P6cPMEpTNjuJBcSs2ydqd2LucEFbfAZGMZYqyIxv11MQ3mWxLrxqLoy-ojlhPdfnToHEkR49LZF-h423JJED722YKhSk5PVJ3Z8y_TMgiGdgZfeM7-RdXZWSm9wQkD4ITeAX?key=E9CiGBgn4GpLBA34bQoWpAL8" alt="" /></figure>
The QQQD ETF: On the other side of the tracks, the QQQD ETF has incurred a rough outing since its March debut, losing approximately 31% of its value.
<ul>
<li>In a complete flipping of sentiment, the inverse fund sits well below its 20-day exponential moving average and 50 DMA, posing significant concerns.</li>
<li>However, the bear ETF also appears to have printed a "hammer" candlestick, which possibly suggests a temporary reprieve in the downward trend.</li>
</ul>
<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcRZOHfZaXWoAGriCv1V8xAQr_CjoHDDySfI1ratwJzGYsI19Girz5fcFE_CD-xz3UBKw2h9rTz4CXl4zEaNt0--hjC8emlcEtEiWxM2-sehtNYOWk8AbuvCffwPEqvEyl1wL9BVw?key=E9CiGBgn4GpLBA34bQoWpAL8" alt="" /></figure>
Featured photo by <a href="https://pixabay.com/users/deltaworks-37465/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=7662721">Kohji Asakawa</a> on <a href="https://pixabay.com/?utm_source=link-attribution&amp;utm_medium=referral&amp;utm_campaign=image&amp;utm_content=7662721">Pixabay</a>.

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German automaker BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) on Tuesday applauded American EV giant Tesla Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) full self-driving (FSD) driver assistance software&#8217;s latest version, terming it &#8220;very impressive.&#8221;
What Happened: BMW was responding to a video of a Tesla owner navigating through streets without their hands on the wheel using version 13 of the company&#8217;s FSD software.
&#8220;Wery impressive,&#8221; BMW wrote on social media platform X.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">very impressive
&mdash; BMW (@BMW) <a href="https://twitter.com/BMW/status/1866548798798844297?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Tesla responded to the comment with a cheeky &#8220;Hi BMW&#8221; and a grinning emoji. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Hi <a href="https://twitter.com/BMW?ref_src=twsrc%5Etfw">@BMW</a> &#x1f600;
&mdash; Tesla (@Tesla) <a href="https://twitter.com/Tesla/status/1866563548228309419?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
The comment has raised hopes among Tesla bulls that the company could eventually license the technology for their vehicles.
&#8220;At some point $TSLA will sign an FSD licensing deal with another auto mnfr (manufacturer) who hasn't developed an autonomous driving package to their liking. One deal will cause others to follow and then analysts will build licensing revs into their TSLA models and price targets. No one knows when the first one will hit, but there is at least one incoming,&#8221; Gary Black, Managing Partner at The Future Fund, said on Tuesday.
Black, however, added that he wouldn&#8217;t be accounting for a potential licensing deal while determining his price target for Tesla.
&#8220;There has to be real meat behind it or we don't count it,&#8221; Black said. The analyst has a 6-12 month <a href="https://www.benzinga.com/markets/equities/24/12/42404312/gary-black-boosts-tesla-price-target-by-27-to-380-citing-25k-hatchbacks-market-potential">price target of $380</a> on Tesla.
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"> 
<div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">At some point <a href="https://twitter.com/search?q=%24TSLA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$TSLA</a> will sign an FSD licensing deal with another auto mnfr who hasn't developed an autonomous driving package to their liking. One deal will cause others to follow and then analysts will build licensing revs into their TSLA models and price targets. No one knows… <a href="https://t.co/wb266zgyQc">https://t.co/wb266zgyQc</a>
&mdash; Gary Black (@garyblack00) <a href="https://twitter.com/garyblack00/status/1866586358224994504?ref_src=twsrc%5Etfw">December 10, 2024</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
</figure>
Why It Matters: Tesla CEO Elon Musk said earlier this year that the company would be "happy" to license its&nbsp;<a href="https://www.benzinga.com/news/24/04/38039926/not-an-april-fools-teslas-fsd-wows-ex-cruise-exec-who-calls-its-driving-eerily-natural" target="_blank" rel="noreferrer noopener">full self-driving (FSD) technology&nbsp;</a>to other car companies. 
However, in January, the company said that it had&nbsp;<a href="https://www.benzinga.com/news/24/01/36772202/elon-musk-says-tesla-hasnt-received-any-fsd-licensing-agreements-from-rivals-i-think-they-dont-belie" target="_blank" rel="noreferrer noopener">not entered into a single FSD licensing agreement</a>.
Though the company had some tentative conversations, no agreement was entered into. &#8220;I think they (rival automakers) don&#8217;t believe it&#8217;s real quite yet,&#8221; Musk then said.&#8221;I do want to emphasize that if I were CEO of another car company, I would definitely be calling Tesla and asking to license Tesla's full self-driving technology."
Check out more of Benzinga&#8217;s Future Of Mobility coverage by&nbsp;<a href="https://www.benzinga.com/topic/mobility" target="_blank" rel="noreferrer noopener">following this link.</a>
Read Next:
<ul class="wp-block-list">
<li><a href="https://www.benzinga.com/tech/24/12/42429588/gms-cruise-exit-draws-sharp-reaction-from-co-founder-kyle-vogt-tesla-ceo-elon-musk-says-autonomous-driving-is-a-very-hard-problem">GM&#8217;s Cruise Exit Draws Sharp Reaction From Co-Founder Kyle Vogt: Tesla CEO Elon Musk Says Autonomous Driving Is A &#8216;Very Hard Problem&#8217;</a></li>
</ul>
Photo courtesy: Shutterstock

BMW Calls Tesla FSD 'Very Impressive,' Gary Black Says Automakers Will Eventually License It: 'One Deal Will Cause Others To Follow'

<h3 class="wp-block-heading">New On The Block</h3>
<ul>
<li>Starbucks (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SBUX#NASDAQ">SBUX</a>) is looking to sell a stake in its Chinese operations. Same-store sales in China fell 14% last quarter, with the Seattle-based coffee retailer seeking partnerships to adapt to tough <a href="https://www.benzinga.com/news/asset-sales/24/11/42117962/starbucks-eyes-stake-sale-in-china-amid-fierce-competition-and-falling-sales">economic and competitive pressures</a>.</li>
</ul>
<h3 class="wp-block-heading">Bankruptcy Block</h3>
<ul>
<li>Snack producer Hearthside Food Solutions went bankrupt. The private equity-owned company looks to offload the $1.9 billion in debt accumulated under the ownership of Partners Group Holding AG and Charlesbank Capital Partners. The two firms bought Hearthside for more than $2.4 billion. Assets and liabilities hover between $1 billion and $10 billion. Last year, bankrupt private equity portfolio companies in the U.S. <a href="https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/private-equity-portfolio-companies-on-track-for-most-bankruptcies-since-2020-74886821">outpaced</a> the number of <a href="https://www.benzinga.com/news/20/10/17861269/bankruptcy-update-ruby-tuesday-files-chapter-11-while-progress-slows-for-jcpenney">bankruptcies in 2020</a>. It remains to be seen whether 2024 will be worse.</li>
</ul>
<ul>
<li>Northvolt <a href="https://northvolt.com/articles/peter-carlsson-steps-aside/">filed</a> for bankruptcy with debt of $5.8 billion. Recall how the Swedish battery maker, which supplies Volkswagen AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) and&nbsp;Bayerische Motoren Werke AG&nbsp;(OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), bargained with banks to <a href="https://www.benzinga.com/news/23/03/31506581/volkswagen-bmw-battery-supplier-northvolt-eyes-raising-5b-via-debt">raise debt last year</a>. Now, it&#8217;s hoping to restructure under U.S. Chapter 11.</li>
</ul>
See Also: <a href="https://www.benzinga.com/trading-ideas/long-ideas/24/11/42024210/benzinga-bulls-and-bears-tesla-disney-gold-and-hedge-funds-project-bitcoin-to-hit-100k-150k">Benzinga Bulls And Bears: Tesla, Disney, Gold — And Hedge Funds Project Bitcoin To Hit $100K-$150K</a>
<h3 class="wp-block-heading">Updates From The Block</h3>
<ul>
<li>Google&#8216;s $2-billion <a href="https://www.benzinga.com/news/large-cap/23/10/35474706/googles-ai-ambitions-grow-with-major-investment-in-openai-rival-anthropic">investment</a> in Anthropic is in jeopardy, according to <a href="https://www.bloomberg.com/news/articles/2024-11-21/us-justice-department-seeks-to-unwind-google-s-anthropic-deal">Bloomberg</a>. Anthropic is a Jeff Bezos-backed rival to artificial intelligence (AI) innovator OpenAI. The U.S. Department of Justice (DOJ) recommended in <a href="https://www.benzinga.com/tech/24/11/42105079/googles-unlawful-behavior-stifles-market-entry-for-rivals-doj-says-alphabet-must-sell-chrome-to-end-search-monopoly">a court filing Wednesday</a> that Alphabet Inc&#8216;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google divest its Chrome browser to dismantle its monopoly on online search. It doesn&#8217;t end there. Google should be barred from doing any deals with companies that control where consumers search for information, regulators say. <a href="https://www.benzinga.com/tech/24/11/42123646/google-anthropic-deal-in-jeopardy-as-us-justice-department-looks-to-snap-online-search-monopoly">That includes AI products</a>.</li>
</ul>
<ul>
<li>Ricky Williams&#8216; Highsman merges with hemp brand Frozen Fields, forming Top Seed Inc. The partnership blends cannabis and hemp sectors, leveraging R&amp;D to enhance products <a href="https://www.benzinga.com/markets/cannabis/24/11/42097662/ricky-williams-highsman-merges-with-hemp-brand-frozen-fields">and control supply chains</a>.</li>
</ul>
<ul>
<li>MakeMyTrip acquires Happay from CRED. The deal is expected to enhance corporate travel and expense management solutions in India. Happay&#8217;s team will integrate with MakeMyTrip, supporting <a href="https://www.benzinga.com/general/travel/24/11/42039458/makemytrip-agrees-to-acquire-happay-bolstering-its-arsenal-for-corporate-travel-solutions">over 900 clients post-acquisition</a>.</li>
</ul>
<ul>
<li>Amcor plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMCR#NYSE">AMCR</a>) and Berry Global Group, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BERY#NYSE">BERY</a>) agreed to merge in an all-stock transaction, with the deal valuing Berry stock <a href="https://www.benzinga.com/news/large-cap/24/11/42069248/amcor-and-berry-seal-the-deal-73-59-per-share-merger-to-forge-packaging-powerhouse">at $73.59 per share</a>.</li>
</ul>
<ul>
<li>Nippon Steel (OTC:<a class="ticker" href="https://www.benzinga.com/stock/NISTF#OTC">NISTF</a>) executives have traveled to Pennsylvania to garner support for their $15 billion acquisition bid for U.S. Steel (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/X#NYSE">X</a>). The Japanese steel giant is encountering political resistance in Washington. Takahiro Mori, vice-chair of Nippon Steel, arrived in Pittsburgh on Saturday to advocate for the acquisition. The deal faces opposition from both President Joe Biden and President-elect Donald Trump, who prefer U.S. Steel to <a href="https://www.benzinga.com/markets/24/11/42056111/nippon-steel-execs-rally-support-in-pennsylvania-amid-pushback-on-us-steel-takeover">remain under American ownership</a>.</li>
</ul>
<h3 class="wp-block-heading">Notes From The Block</h3>
Joshua Robinson, co-founder of Darwin Financial Company, announced a $55-million financing deal with INYOAG LLC. The funds will help develop a solar-powered mine in Inyo County, California where there are proven reserves of silver, lead, zinc, tungsten, and copper. Here&#8217;s our conversation with Robinson:
<h4 class="wp-block-heading">BZ: What is the deal structure between Darwin Financial and base metals miner INYOAG? </h4>
Robinson: The deal structure is a $55M project financing package split into three components: $17.5 million and $12.5 million in six-year notes tied to sulfide and oxide production respectively, plus a $20-million conditional equity commitment that only triggers if the mine hits $10 million in monthly revenue. We get 17% of gross revenues from both production tracks, structured through secure lockbox arrangements. It&#8217;s not a straight equity investment, we specifically designed it this way to provide further upside exposure.
<h4 class="wp-block-heading">Are you looking for additional investors/joint venture partners? </h4>
Yes, we&#8217;ve deliberately structured this to create multiple layers of upside potential, which is pretty unique in the mining space. We&#8217;ve created a hybrid model that offers both near-term cash flow from production and significant expansion potential. We&#8217;re already seeing interest from established mining players, but we&#8217;re particularly excited about bringing new investors into the space who understand the strategic value of critical minerals.
<h4 class="wp-block-heading">What are the downsides to depending on foreign sources of critical minerals?</h4>
China&#8217;s recent actions really highlight the urgency here. They&#8217;ve already implemented export controls on germanium and gallium, and just added antimony to that list. This isn&#8217;t theoretical anymore, it&#8217;s actively happening. We need to build regional resilience in our supply chains, particularly for these minerals that are crucial for defense and technology. The Darwin Mine gives us a unique opportunity to establish a domestic source for multiple critical minerals in a single asset, which is rare to find.
<h4 class="wp-block-heading">Will the mine be powered by solar? </h4>
The 100MW facility wouldn&#8217;t just power the mine. It would generate significant excess clean energy that we can sell back to the grid. What&#8217;s particularly interesting is that we can develop utility-scale energy storage systems using minerals we&#8217;re already producing. It creates a virtuous cycle where our mining operations directly support clean energy deployment
<h4 class="wp-block-heading">What are your 2025 goals?</h4>
For 2025, our key goals are reaching 300 tons per day on sulfide production within six months and 200 tons per day on oxide within nine months of funding. That puts us at $ 10 million in monthly revenue, which then triggers the deeper mine development program.
For last week&#8217;s Deal Dispatch, <a href="https://www.benzinga.com/ma/24/11/42025534/deal-dispatch-shell-unilever-and-more-are-on-the-sell-side-the-onion-makes-alex-jones-cry-foul">click here</a>.
Now Read: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/11/41699259/nvidia-rides-ai-wave-to-replace-intel-on-dow-jones-industrial-average-ending-its-25-year-run">Nvidia Rides AI Wave To Replace Intel On Dow Jones Industrial Average, Ending Its 25-Year Run</a></li>
</ul>
Image: Benzinga

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Deal Dispatch: Starbucks Considers China Sale, Private Equity Bankrupts Snack Company, Darwin Financial Talks Mining

BMW Group Q3 2024 Deliveries 540,881 Vs 621,699 YoY

BMW Group Q3 2024 Revenue €32.4B Vs €38.46B YoY

Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is having its Robotaxi Day this week. The &lsquo;We, Robot&rsquo; event will be held on October 10th&nbsp;in Hollywood as Tesla booked the massive&nbsp;Warner Bros. Discovery Inc. Studios to unveil its latest model. Considering the impressive venue and the fact&nbsp;that Tesla had delayed this&nbsp;event in order to make some important changes, expectations are high and there are many speculations of what the EV king plans to unveil, the day promises to be &quot;one&nbsp;for the history books&quot;.
Optimizing the charging process.&nbsp;
Yet, the week got kicked off by Nissan Motor Co Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/nsany#OTC">NSANY</a>)&nbsp;deciding to join Bayerische Motoren Werke Aktiengesellschaft (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>), Ford Motor (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>), and Honda Motor Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hmc#NYSE">HMC</a>), or more precisely the trio&rsquo;s EV integration joint venture.&nbsp;Through its investment, Nissan revealed it will become an equal 25% investor&nbsp;in ChargeScape. BMW and Honda had presented ChargeScape&rsquo;s software that optimizes charging. Through ChargeScape, BMW, Honda, Ford and now Nissan, will provide bidirectional charging, allowing EVs to send power back to the grid when needed, while optimizing the charging process by coordinating with real-time grid demands. Also, BMW, Ford, Honda and Nissan will be providing financial incentives to EV owners to reduce energy use during peak times.&nbsp;
Bringing more clean energy to the EV table.
Having already established a reputation for its &lsquo;made-in-the-USA&rsquo; hybrid and clean energy solutions for light trucks, Worksport Ltd. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wksp#NASDAQ">WKSP</a>) is preparing for a market release of its solar-powered tonneau cover, SOLIS&nbsp;&nbsp;and the COR portable energy system. This clean energy power duo that promises off-grid power on the go has the potential to propel Worksport&rsquo;s mid to long-term revenues. Worksport already has an ongoing collaboration with Hyundai who secured access to these groundbreaking accessories. Also, Worksport will be releasing one of the most in-demand tonneau cover models, AL4 premium tonneau Cover, in the fourth quarter, with innovative four-fold design that offers enhanced functionality and ease of the use. By launching three new product lines, Worksport is aiming to strengthen its positioning and expand market reach. In the fourth quarter, Worksport will also be implementing cost-saving measures to&nbsp;enhance margins and&nbsp;lower operational overhead&nbsp;without compromising growth. With these key strategic advances that will undoubtedly accelerate revenue growth and boost margings, Worksport is aiming for&nbsp;cash flow positivity un 2025.&nbsp;
While Tesla still holds the EV crown, long gone are the days it had the EV throne to itself. Besides already sharing the crown with BYD Company Limited (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>) on some fronts, both traditional automakers and newcomers are also shaping the EV landscape that is in the making, such as Worksport whose SOLIS and COR off-grid clean power duo promises to revolutionize the pickup experience altogether.&nbsp;
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

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<a href="https://europeancapitalinsights.substack.com/p/german-recession-fears-rise-after?r=3nmatg">German recession concerns</a> increased after factory orders declined more than expected in August, adding concerns about Europe's largest economy.
New orders dropped 5.8% month-on-month in August, the Federal Statistical Office (Destatis) said today. Economists had forecast a decline of 2%, making it the steepest fall since January, according to<a href="https://www.bloomberg.com/news/articles/2024-10-07/german-factory-orders-drop-in-yet-another-sign-of-industry-woe?utm_source=website&amp;utm_medium=share&amp;utm_campaign=twitter?sref=R17xFhjo"> Bloomberg</a>.
Factory orders dropped after "<a href="https://www.destatis.de/EN/Press/2024/10/PE24_381_421.html">very large orders" for aircraft, ships, trains</a>, and military vehicles&nbsp;were placed in July, Destatis said. When large-scale orders are excluded, new orders in August fell 3.4% lower than in July 2024, it said.
<a href="https://www.benzinga.com/topic/germany">Germany&#8217;s economy</a> ministry<a href="https://www.dw.com/en/germany-reckons-with-another-recession-in-2024-report/a-70416091#:~:text=The%20German%20Economy%20Ministry%20expects,major%20newspaper%20reported%20on%20Sunday."> will downgrade its 2024 economic forecast</a>, expecting gross domestic product (GDP) to shrink by 0.2%, newspaper Sueddeutsche Zeitung reported.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="922" height="410" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2.png" alt="" class="wp-image-2013" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2.png 922w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2-300x133.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124517/Germany3-2-768x342.png 768w" sizes="(max-width: 922px) 100vw, 922px" /></figure>
A recovery in the industrial economy in the second half&nbsp; "is unlikely," the ministry said in a statement. It pointed to "<a href="https://insiderpaper.com/recession-fears-mount-as-german-factory-orders-plunge/">persistently weak demand</a> and continued deterioration in corporate sentiment."
DAX fell 170 points following the news, finding its footing around the 19,000 level. The index remained down 0.3% at 12 PM CET. However, as the price failed to reach lows from Friday, the technical thesis of a short-term pullback at the beginning of Q4 remains intact.
<h3 class="wp-block-heading">German Recession Appears More Likely </h3>
Germany is facing an increasing number of economic headwinds.&nbsp;
The country may feel the <a href="https://europeancapitalinsights.substack.com/p/europe-carmakers-criticize-eus-chinese">impact of trade tensions</a> after the European Union <a href="https://europeancapitalinsights.substack.com/p/european-tariffs-on-chinas-ev-makers">imposed tariffs against China's electric vehicle makers</a>. Germany vetoed the decision after pressure from Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) and BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>).
Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) warned that<a href="https://europeancapitalinsights.substack.com/p/volkswagen-considers-first-ever-closure"> it is considering closing factories</a> amid increased competition with rival Chinese car makers. 
The recessionary outlook adds to <a href="https://open.substack.com/pub/europeancapitalinsights/p/confidence-in-german-economy-plunges?r=3nmatg&amp;utm_campaign=post&amp;utm_medium=web">growing concerns about the German economy</a>. GDP shrank by 0.1% in the second quarter of this year.
<a href="https://www.zew.de/en/zew/news/stagnation-expected-for-the-german-economy">Experts are now signaling economic stagnation</a> this year, the ZEW Institute said on September 23. They lowered their 2024 growth forecast by 0.1 percentage points to just 0.1%.
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="768" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-1024x768.jpg" alt="" class="wp-image-2011" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-1024x768.jpg 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-300x225.jpg 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309-768x576.jpg 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124350/csm_Konjunkturtableau_Sep2024_DE_en_285a520309.jpg 1200w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Germany is falling behind the rest of the eurozone in terms of &#8220;both actual growth and growth expectations," ZEW said.
Germany <a href="https://www.destatis.de/EN/Press/2024/09/PE24_337_421.html">releases industrial production data</a> on Tuesday, which is <a href="https://tradingeconomics.com/germany/industrial-production-mom">forecast to increase by 1%</a>. 
In July, industrial production declined by 2.4%, with the automotive industry having "a particularly negative impact," Destatis said.
New orders in the capital and intermediate goods sectors in Germany fell 8.6% and 2.2%, respectively, Destatis said. New orders for consumer goods declined by 0.9%.&nbsp;
<h3 class="wp-block-heading">German Business, Consumer Sentiment Sours</h3>
Business and consumer sentiment in Germany has soured as well.&nbsp;
The ifo Institute's expectations gauge fell in September to 86.3, the lowest since February.
The Ifo expectation index for German retail "clouded over" in September. <a href="https://www.ifo.de/en/facts/2024-10-07/business-climate-german-retail-clouds-over">It fell to -25.6 points, down from -23.1 points</a> in August. Retailers assessed their current situation as slightly worse and have become more pessimistic about the coming months, ifo said today.
<figure class="wp-block-image size-large is-resized"><img loading="lazy" decoding="async" width="1024" height="567" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-1024x567.png" alt="" class="wp-image-2012" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-1024x567.png 1024w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-300x166.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1-768x425.png 768w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/07124450/German2-1.png 1033w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
"Consumers are unsettled about the economic policy environment,"&nbsp; ifo expert Patrick Höppner, said. "No further dynamic growth in private consumer spending can be expected for the rest of 2024."
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.&nbsp;
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

MERCEDES BENZ GROUP AG by Mercedes Benz Group AG

MBGAF

German Recession Fears Rise After Factory Orders Drop

Germany is poised to vote against the European Union&#8217;s <a href="https://www.benzinga.com/news/24/09/40810974/us-ally-urges-eu-to-reconsider-tariffs-on-chinese-evs-we-dont-need-another-war">proposed tariffs on Chinese electric vehicles this Friday</a>. This decision comes after significant pressure from industry leaders on German Chancellor Olaf Scholz.
What Happened: Germany had previously abstained from a non-binding vote in July concerning the European Commission&#8217;s tariff proposal. The Commission&#8217;s plan requires a qualified majority of 15 EU member states, representing 65% of the EU population, to be implemented, Reuters reported on Friday, citing people with knowledge of the matter. 
France, Greece, Italy, and Poland are reportedly in favor of the tariffs, which could push the measure through.
The Commission argues that the tariffs are necessary to counteract subsidies such as cheap loans and raw materials, aiming for a level playing field rather than excluding Chinese manufacturers. 
However, German carmakers, who derive a significant portion of their sales from China, oppose the tariffs due to fears of retaliatory actions and potential trade conflicts.
The influential German labor union IG Metall and employee representatives from major car manufacturers have issued a joint statement urging Germany to vote against the tariffs, stating, &#8220;tariffs are the wrong approach because they will not improve the competitiveness of the European automotive industry.&#8221;
Tesla Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) has been granted provisional approval by <a href="https://www.benzinga.com/news/24/07/39640029/teslas-giga-berlin-expansion-gets-environmental-authority-approval-after-chancellor-scholz-voiced-ai">German authorities to expand its Gigafactory</a> near Berlin, a key move that underscores Tesla&#8217;s growing presence in Europe&#8217;s EV market. 
The German Automotive Industry Association (VDA) reports that 1.27 million battery electric and plug-in hybrid vehicles were manufactured in Germany in 2023, making it the second-largest EV producer globally, behind China. 
Although China dominates global EV output, most of its vehicles are sold domestically, whereas 76% of German EVs are exported, highlighting Germany&#8217;s pivotal role in the international EV market.
Germany&#8217;s carmakers are renowned for their engineering excellence, with brands like Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), which owns ŠKODA, SEAT, CUPRA, Audi, Lamborghini, Bentley, and Porsche; Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>); and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>), which owns BMW, MINI, and Rolls-Royce. 
See Also: <a href="https://www.benzinga.com/news/24/10/41161763/european-telecom-giants-threaten-legal-action-against-elon-musks-starlink-over-potential-fcc-rule-ch?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">European Telecom Giants Threaten Legal Action Against Elon Musk&#8217;s Starlink Over Potential FCC Rule Changes</a>
Why It Matters: The European Union&#8217;s decision on tariffs for Chinese electric vehicles has been a contentious issue, with potential repercussions for international trade. The EU aims to protect its automobile industry from the influx of cheaper Chinese EVs, which <a href="https://www.benzinga.com/news/24/10/41143690/european-tariffs-on-chinas-ev-makers-could-backfire">accounted for 54% of total EV imports</a> to the EU in 2023.
However, this protectionist stance could spark a broader trade war with China, jeopardizing the EU&#8217;s export-dependent companies and its EV targets.
China has already approached the World Trade Organization regarding similar tariffs imposed by Canada, highlighting the potential for <a href="https://www.benzinga.com/news/24/09/40914629/china-warns-eu-tariffs-on-evs-will-harm-trade-with-germany">escalating trade tensions</a>. China&#8217;s commerce minister has warned that the EU&#8217;s tariffs could significantly disrupt trade, particularly with Germany. 
Additionally, Spain&#8217;s Prime Minister Pedro Sánchez has called for a <a href="https://www.benzinga.com/news/24/09/40810974/us-ally-urges-eu-to-reconsider-tariffs-on-chinese-evs-we-dont-need-another-war">reevaluation of the EU&#8217;s stance</a>, emphasizing the need for compromise to avoid further trade disputes.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/10/41169516/tesla-recalls-27-185-cybertruck-vehicles-over-rearview-camera-delay?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Tesla Recalls 27,185 Cybertruck Vehicles Over Rearview Camera Delay</a></li>
</ul>
Image Via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Germany, Home To Mercedes And BMW, Set To Oppose EU Tariffs On Chinese EVs: Report

The European Union is set to <a href="https://www.france24.com/en/live-news/20240930-eu-states-plan-friday-vote-on-chinese-ev-tariffs">vote on Friday</a> on whether to back final tariffs on China's electric vehicle (EV) makers.&nbsp;
The EU <a href="https://europeancapitalinsights.substack.com/p/european-tariffs-on-chinas-ev-makers?r=3nmatg">wants to protect its automobile makers</a> against the increasing number of less expensive Chinese EVs entering the market. Of the total <a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">EV imports to the EU in 2023</a>, 54%&nbsp;originate from China.
But the 27-member bloc's protectionist stance could cause a wider trade war with China. That could hurt the EU's export-dependent companies, its EV targets and threaten critical raw material supplies.&nbsp;
The European Commission (EC)<a href="https://www.nytimes.com/2024/07/04/business/european-union-china-ev-tariffs.html"> imposed provisional tariffs on China's EVs</a> in July <a href="https://asia.nikkei.com/Economy/Trade/China-Europe-in-EV-tariff-stare-down-as-Beijing-drops-retaliation-hints">despite Beijing's previous warning</a> that it would retaliate.
Beijing has denied that it improperly subsidizes EV companies, arguing that its leading role in EVs results from efficient manufacturing.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="805" height="448" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart.png" alt="" class="wp-image-1771" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart.png 805w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart-300x167.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142904/ING_chart-768x427.png 768w" sizes="(max-width: 805px) 100vw, 805px" /></figure>
<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">Source</a>: JATO Dynamics, BNEF, ING Research
<h3 class="wp-block-heading">Europe-China EV Talks Stall</h3>
So far, both sides have been unable to compromise on their EV trade differences.&nbsp;
The EU's Commissioner for Trade, Valdis Dombrovskis, and China's Minister of Commerce, Wang Wentao, <a href="https://policy.trade.ec.europa.eu/news/readout-meeting-between-evp-dombrovskis-and-chinese-commerce-minister-wang-2024-09-20_en">held unsuccessful talks</a> on September 19.&nbsp;
"Both sides <a href="https://x.com/VDombrovskis/status/1836795726308708712">agreed to intensify efforts</a> to find an effective, enforceable and WTO compatible solution," Dombrovskis said.&nbsp;
The EC then told EU member countries t<a href="https://www.reuters.com/business/autos-transportation/eu-continue-china-electric-vehicle-talks-even-after-final-vote-say-sources-2024-09-30/#:~:text=BRUSSELS%2C%20Sept%2030%20(Reuters),EU%20official%20said%20on%20Monday.">hat it would continue negotiations with China</a> after the October vote, Reuters reported.&nbsp;
 EU members are split on whether to levy European tariffs for the next five years, adding a further complication. Spain has called on th<a href="https://www.france24.com/en/live-news/20240911-spain-pm-urges-eu-to-reconsider-china-ev-tariffs-plan">e EU to &#8220;rethink&#8221; the duties, aligning</a> with Germany, while France supports them.&nbsp;
<h3 class="wp-block-heading">Automakers Warn Against European Tariffs</h3>
Automobile industry leaders in Europe have pushed back against the tariffs.&nbsp;
Executives from BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) have warned that imposing tariffs on Chinese EVs was a bad idea.
&#8220;Protectionism risks starting a spiral," <a href="https://europe.autonews.com/automakers/german-automakers-slam-eus-high-tariffs-chinese-ev-exports">BMW CEO Oliver Zipse said</a> in June. "Tariffs lead to new tariffs, to isolation rather than cooperation."&nbsp;
<a href="http://www.bmw-brilliance.cn/cn/en/news/news/2024-1-09.html#:~:text=Munich%2FBeijing.,mainland%20market%20(%2B4.2%25).">China is a core sales market for BMW</a>. It delivered 824,932 BMW and MINI vehicles in the Chinese mainland market in 2023.
<a href="https://europeancapitalinsights.substack.com/p/volkswagen-considers-first-ever-closure?r=3nmatg">Former Volkswagen AG CEO</a> Herbert Diess reiterated a similar message. "An <a href="https://x.com/economics/status/1799352437800612022">escalating trade spat</a> between China and the West would fuel inflation," he said in June.&nbsp;
Would European tariffs actually slow China's EV expansion into the region? The Rhodium Group, a New York-based independent research provider, doubts their impact.&nbsp;
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="855" height="431" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2.png" alt="" class="wp-image-1772" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2.png 855w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2-300x151.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02142956/ing2-768x387.png 768w" sizes="(max-width: 855px) 100vw, 855px" /></figure>
<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">Source</a>: ITC Trade Map, BNEF, ING Research
"<a href="https://rhg.com/research/aint-no-duty-high-enough/">Duties in the 40-50% range</a> would probably be necessary to make the European market unattractive for Chinese EV exporters," it said in April.
<h3 class="wp-block-heading">Provisional European Tariffs On China</h3>
The EC launched its <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3231">anti-subsidy investigation against Chinese EVs</a> last year.
The investigation concluded that China's value chain of battery electric vehicles (BEV) benefited from unfair subsidization. This caused a "threat of economic injury to EU BEV producers," the EC said.
The <a href="https://www.bloomberg.com/news/articles/2024-08-21/saic-motor-blames-impending-eu-duties-for-slumping-sales">highest tariffs were imposed</a> on Chinese state-owned automobile manufacturer SAIC Motor (Shanghai:<a href="https://finance.yahoo.com/quote/600104.SS/">600104.SS</a>) at 36.3%. BYD (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BYDDY#OTC">BYDDY</a>) and Volvo's (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VOLAF#OTC">VOLAF</a>) parent, Geely (OTC:<a class="ticker" href="https://www.benzinga.com/stock/GELYF#OTC">GELYF</a>), received lower tariffs of 17.4% and 19.9%.
The EC then cut<a href="https://ec.europa.eu/commission/presscorner/detail/en/qanda_24_4302"> European tariffs marginally</a> at the end of August. It considered submissions and technical corrections by EV companies operating in China.
<h3 class="wp-block-heading">European Tariff Trade Spat With China</h3>
In response to the threat of tariffs, China has accused the EU of violating World Trade Organization (WTO) rules.&nbsp;
"Judgment in the EU's provisional conclusion lacks factual and legal foundation," a Chinese ministry spokesperson said on August 9.&nbsp; "It severely<a href="https://www.bloomberg.com/news/articles/2024-08-09/china-takes-europe-s-ev-tariffs-to-wto-as-trade-tensions-rise?utm_medium=cpc_search&amp;utm_campaign=NB_ENG_DSAXX_DSAXXXXXXXXXX_EVG_XXXX_XXX_COUSA_EN_EN_X_BLOM_GO_SE_XXX_XXXXXXXXXX&amp;gad_source=1&amp;gclid=Cj0KCQjwo8S3BhDeARIsAFRmkOMKaKYs36uGBlOIi64HxfnrIRqjbZv_QwFuVa65JaDuGzVZtWJDcKYaAmA4EALw_wcB&amp;gclsrc=aw.ds"> violated WTO rules</a>."
It then brought the case to the <a href="https://www.wto.org/english/news_e/news24_e/ds626rfc_14aug24_e.htm#:~:text=WTO%20%7C%202024%20News%20items%20%2D%20China,subsidy%20duties%20on%20electric%20vehicles">WTO's rules dispute settlement mechanism</a> on August 14 to "safeguard the development rights and interests" of the EV industry.
A week later, China initiated an anti-subsidy investigation targeting EU milk, cream, and cheese products.
The <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_4821">EC challenged China</a> in September at the WTO against China&#8217;s investigation into EU dairy products. <a href="https://x.com/VDombrovskis">China's investigation</a> "is based on questionable allegations and insufficient evidence," Valdis said on <a href="https://x.com/VDombrovskis">X</a>.&nbsp;&nbsp;
<h3 class="wp-block-heading">Europe Depends On China For Raw Materials</h3>
But a trade war with China would likely hurt European companies and the broader economy.
China imports 22% of its <a href="https://www.reuters.com/breakingviews/eus-china-trade-weak-spots-hide-plain-sight-2024-07-09/#:~:text=Methodological%20complexities%20and%20statistical%20revisions,the%20world's%20second%2Dlargest%20economy">consumer goods from Europe</a>. This puts <a href="https://europeancapitalinsights.substack.com/p/european-luxury-brands-feel-pinch?r=3nmatg">luxury groups</a> like LVMH (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LVMHA#OTC">LVMHA</a>) and Kering (OTC:<a class="ticker" href="https://www.benzinga.com/stock/PPRUY#OTC">PPRUY</a>) at risk.
European tariffs could increase the cost of EVs for consumers as Europe moves to phase out n<a href="https://think.ing.com/articles/what-the-eus-tariffs-on-chinese-electric-vehicles-could-mean-for-energy-transition/">ew gasoline and diesel cars by 2035</a>, according to ING.
The bloc remains highly <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/european-critical-raw-materials-act_en#:~:text=The%20EU%20is%20heavily%20dependent%20on%20imports%20of,is%20extracted%20in%20the%20Democratic%20Republic%20of%20Congo">dependent on China</a> for critical raw materials. It sources 97% of its magnesium and 100% of its rare earths for permanent magnets from China.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="830" height="418" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3.png" alt="" class="wp-image-1774" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3.png 830w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3-300x151.png 300w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/10/02143051/ing3-768x387.png 768w" sizes="(max-width: 830px) 100vw, 830px" /></figure>
"Europe will not be self-sufficient in EV production or the EV supply chain any time soon," ING wrote on June 19. "It needs to act carefully, considering any further retaliation from China."
Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga&#8217;s reporting and has not been edited for content or accuracy.

GELYF

LVMHA

PPRUY

VOLAF

European Tariffs On China's EV Makers Could Backfire

Gains in European equities may falter on geopolitical and economic fears after receiving a boost from China's stimulus plans and slowing inflation.
The Euro Area Stoxx 600 gained 2.69% in the week ending September 27 to a record, extending its year-to-date climb to 10.1%. Germany's DAX40 closed the week at a record level, gaining 4% after increasing 1.22% on Friday.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="613" height="402" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28.png" alt="" class="wp-image-1608" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28.png 613w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154001/Image-1-Sept.-28-300x197.png 300w" sizes="(max-width: 613px) 100vw, 613px" /></figure>
Source: <a href="https://tradingeconomics.com/germany/stock-market">TradingEconomics</a>
Slow economic growth, volatile natural gas prices, and inflation have hurt European economic sentiment. GDP is projected to end 2024 at <a href="https://www.ecb.europa.eu/press/projections/html/ecb.projections202409_ecbstaff~9c88364c57.en.html#:~:text=Overall%2C%20annual%20average%20real%20GDP,year%20of%20the%20projection%20horizon.">0.8%</a>.
Geopolitical developments, including the war in Ukraine and the upcoming U.S. elections, have curbed European stock optimism.&nbsp;European policymakers have expressed concerns about issues from climate change, security and trade if Trump wins a second term.
Fears about a wider Middle East war escalated after Israel <a href="https://www.nytimes.com/live/2024/world/israel-lebanon-hezbollah-hamas">killed</a> Hezbollah's leader Hassan Nasrallah in airstrikes Friday in Beirut.&nbsp;
The EU &#8220;is extremely concerned&#8221; about the confrontation between Israel and Hezbollah,&#8221; Josep Borrell, EU&#8217;s High Representative for Foreign Affairs and Security Policy, <a href="https://www.consilium.europa.eu/en/press/press-releases/">said</a>. 
&#8220;Any further escalation would have dramatic consequences for the region and beyond.&#8221;&nbsp;
<h3 class="wp-block-heading">European Investors Welcome China's ‘Stimulus Blitz</h3>
Despite the ongoing headwinds, investors welcomed the People's Bank of China (PBOC) "<a href="https://www.home.saxo/en-mena/content/articles/macro/chinas-bold-stimulus-measures-what-it-means-for-markets-25092024">stimulus blitz</a>"&nbsp; to tackle the country's economic headwinds.&nbsp;
China announced&nbsp; "a series of bold moves aimed at stabilizing both the economy and the stock market,"&nbsp; Charu Chanana, Head of FX Strategy at Saxo, <a href="https://www.home.saxo/en-mena/insights/news-and-research/authors/charu-chanana">wrote</a> on September 25<a href="https://www.home.saxo/en-mena/insights/news-and-research/authors/charu-chanana">.</a>
The <a href="http://www.pbc.gov.cn/en/3688110/3688172/5188125/5469326/index.html">package included</a> a 50-basis-point cut to banks' required reserve ratios (RRR) and a 20-basis-point cut to the seven-day reverse repurchase rate.&nbsp;&nbsp;&nbsp;
The PBOC announced a 500 billion yuan ($71.3 billion) liquidity support for stock buybacks.
<h3 class="wp-block-heading">European Fashion, Automobile Stocks See Most Gains</h3>
Although European equities rose immediately on the PBOC news, fashion and automobile stocks climbed the most.
France's LVMH (OTC:<a class="ticker" href="https://www.benzinga.com/stock/LVMHF#OTC">LVMHF</a>) jumped 19.2% ,and Hermes (OTC:<a class="ticker" href="https://www.benzinga.com/stock/HESAY#OTC">HESAY</a>) rose 16.5% for the week. 
German automobile makers also clocked gains. Volkswagen (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>) rose by 7%, Mercedes-Benz Group (OTC:<a class="ticker" href="https://www.benzinga.com/stock/MBGAF#OTC">MBGAF</a>) by 6.55 and BMW (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) by 6.6%.
Germany's automobile index rose 8.70% for the week.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="565" height="252" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054.png" alt="" class="wp-image-1609" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054.png 565w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154104/Image-2-2024-09-28-180054-300x134.png 300w" sizes="(max-width: 565px) 100vw, 565px" /></figure>
Source: <a href="https://www.boerse-frankfurt.de/indices/daxsector-all-automobile-performance">Boerse-Frankfurt</a>
European companies operating in <a href="https://europeancapitalinsights.substack.com/p/european-luxury-brands-feel-pinch">China have worried</a> that the slowdown in the world&#8217;s second-largest economy may hurt profitability.
The Chinese economy grew 4.7% in the second quarter from April to June. This is the slowest pace since the first quarter of 2023 and below forecasts of 5% to 5.3%.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="742" height="399" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124.png" alt="" class="wp-image-1610" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124.png 742w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154155/Image-3-2024-09-28-180124-300x161.png 300w" sizes="(max-width: 742px) 100vw, 742px" /></figure>
Source: <a href="https://www.statista.com/statistics/1102691/china-estimated-coronavirus-covid-19-impact-on-gdp-growth/">Statista</a>

The stimulus package "can help to repair some of the confidence levels in the economy and policymakers," Chanana wrote.
<h3 class="wp-block-heading">European Equities Helped by Inflation Data</h3>
European equities received an added boost this week from inflation data.&nbsp;
German preliminary data showed inflation slowing to1.6% in September, compared to 1.9% in August, the country&#8217;s Federal Statistical Office <a href="https://www.destatis.de/EN/Home/_node.html">said </a>on Monday. France and Spain reported on September 27 that inflation <a href="https://europeancapitalinsights.substack.com/publish/posts/detail/149487004?referrer=%2Fpublish%2Fposts">slowed below 2%</a>, beating analysts expectations.
Investors now give the European Central Bank (ECB) a 70% chance of cutting rates<a href="https://www.euronews.com/business/2024/09/27/french-and-spanish-inflation-dips-below-2-fueling-rate-cuts-hopes"> next month</a>.
<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="596" height="412" src="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157.png" alt="" class="wp-image-1611" style="width:624px" srcset="https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157.png 596w,https://contributor-assets.benzinga.com/wp-content/uploads/2024/09/28154255/Image-4-2024-09-28-180157-300x207.png 300w" sizes="(max-width: 596px) 100vw, 596px" /></figure>
Source: <a href="https://tradingeconomics.com/france/inflation-cpi#">Tradingeconomics</a>
Although the latest economic data has buoyed confidence, some investors have expressed caution.
Data is "looking quite shaky," Anwiti Bahuguna, Northern Trust Asset Management&#8217;s chief investment officer of global allocation, told<a href="https://www.bnnbloomberg.ca/business/international/2024/09/28/goldman-blackrock-warn-europes-stock-rally-faces-tough-hurdles/"> </a>Bloomberg TV.&nbsp;
"Inflation is coming down, but not fast enough to think there would be very sharp relief on the rates front."
<h3 class="wp-block-heading">European Consumer Sentiment Improves</h3>
Despite these concerns, European consumer sentiment has started to improve. It rose 0.5 points in the Euro Area in September to -12.9, which was in line with <a href="https://tradingeconomics.com/euro-area/consumer-confidence">preliminary estimates</a>.&nbsp;
"Consumers were markedly more optimistic about their households' expected financial situation," the European Commission <a href="https://economy-finance.ec.europa.eu/document/download/8bdf8526-c9cf-4163-a2ef-88481f6430ab_en?filename=bcs_2024_09_en_0.pdf">said</a> on September 27.&nbsp;
In <a href="https://www.gfk.com/press/moderate-recovery-in-consumer-climate">Germany</a>, France and Italy, Europe's three largest economies, consumer confidence rose moderately, according to monthly surveys.
However, the Nuremberg Institute for Market Decisions (NIM) warned on September 26 that it was too early to conclude German consumer confidence had improved.
The improvement in Germany "can be interpreted more as a stabilization at a low level," Rolf Bürkl, an expert at NIM, said.&nbsp;
"The slight increase cannot be interpreted as the beginning of a noticeable recovery."

Disclaimer:
Any opinions expressed in this article are not to be considered investment advice and are solely those of the authors. European Capital Insights is not responsible for any financial decisions made based on the contents of this article. Readers may use this article for information and educational purposes only.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

LVMHF

European Stock Gains May Falter On Geopolitical, Economic Fears

Toyota Motor Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TM#NYSE">TM</a>), Volkswagen AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/VWAGY#OTC">VWAGY</a>), and General Motors Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GM#NYSE">GM</a>) are lagging behind Tesla Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) and several Chinese competitors regarding critical software needed to power electric vehicles (EVs), the Financial Times <a target="_blank" href="https://www.ft.com/content/7e5677b8-87fa-41fa-8648-9009ac7f14fc" rel="noreferrer noopener">reports</a>.
Only three legacy automakers—Ford Motor Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>), General Motors, and Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>)—made the top 10 in their &#8220;digital automaker index,&#8221; the Financial Times cites a Gartner report. Tesla, Chinese companies like Nio Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NIO#NYSE">NIO</a>) and Xpeng Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XPEV#NYSE">XPEV</a>), and startups such as Rivian Automotive, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RIVN#NASDAQ">RIVN</a>) and Lucid Group, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LCID#NASDAQ">LCID</a>) dominated the list.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39880027/should-elon-musk-be-worried-toyota-hyundai-and-ford-challenge-tesla-on-home-turf-with-more-evs-on-us" rel="noreferrer noopener">Should Elon Musk Be Worried? Toyota, Hyundai, And Ford Challenge Tesla On Home Turf With More EVs On US Roads As Billionaire&#8217;s Auto Giant Faces Sales Slump</a>
The automotive industry transition to software development proved challenging for major players like Toyota and Volkswagen, who need help to keep pace with changes focused on software controlling EV batteries, safety systems, and self-driving technology.
However, Chinese EV stocks are also facing <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">a challenging year</a>, as the domestic economic slowdown led to a price war. The stocks are down 31%- 42% in the last 12 months.
The U.S. sanctions on advanced artificial intelligence chips further affected the industry. Tesla is up 0.80% in the last 12 months.
Meanwhile, another U.S. embargo on the auto industry posed <a target="_blank" href="https://www.benzinga.com/markets/asia/24/09/40981254/chinese-vehicle-tech-faces-biden-administration-ban-over-national-security-concerns-china-ev-stocks" rel="noreferrer noopener">an additional problem</a>. The U.S. Commerce Department is considering restricting importing and selling Chinese-made vehicles that contain critical communications and automated driving systems, citing national security concerns.
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Disclaimer: This content was partially produced using AI tools and reviewed and published by Benzinga editors.
Image via Shutterstock

LCID

RIVN

XPEV

Tesla And Chinese EV Startups Outpace Toyota, Volkswagen In Critical Software Race: Report

Europe&rsquo;s biggest automaker, Volkswagen (OTC: <a class="ticker" href="https://www.benzinga.com/stock/vwagy#OTC">VWAGY</a>) is considering plant closures for the first time in its 87-year-old history. But Volkswagen is merely a reflection of a struggling European auto industry that is currently challenged on many fronts, with its struggles being both the global competition and its declining appeal.&nbsp;
Europe&rsquo;s automotive industry is struggling with many issues simultaneously.&nbsp;
According to&nbsp;Bloomberg Intelligence, one in three European factories of carmaking behemoths, namely Volkswagen, Bayerische Motoren Werke Aktiengesellschaft (OTC: <a class="ticker" href="https://www.benzinga.com/stock/bmwyy#OTC">BMWYY</a>), Mercedes-Benz Group AG (OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgaf#OTC">MBGAF</a>)(OTC: <a class="ticker" href="https://www.benzinga.com/stock/mbgyy#OTC">MBGYY</a>), Stellantis N.V. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stla#NYSE">STLA</a>) and Renault (OTC: <a class="ticker" href="https://www.benzinga.com/stock/rnlsy#OTC">RNLSY</a>) is underutilized.&nbsp;Meanwhile, Chinese automakers such as BYD (OTC: <a class="ticker" href="https://www.benzinga.com/stock/byddy#OTC">BYDDY</a>) are off to conquer Europe. To avoid tarrifs on China-made EVs, they are planning to make their own factories on the European continent.&nbsp;
Volkswagen is only one of the first victims.
Volkswagen Group CEO Oliver Blume&nbsp;openly spoke of the serious situation that Europe&rsquo;s automotive industry is facing with Germany in particular falling from grace as a competitive manufacturing location. Volkswagen has also fallen from grace in China, its single biggest market. During the first half of 2024, Volkswagen&rsquo;s deliveries in China dropped 7%&nbsp;YoY with group operating profit tumbling 11.4%&nbsp;to $11.2 billion. Volkswagen is losing out to local brands in China like BYD and those brands are now going for its home market.&nbsp;&nbsp;
Stellantis has also been hit by slowing demand in Europe.
In Italy, Stellantis is hitting the brakes. In response to the sales crisis, Stellantis halted production of its electric Fiat 500e for a month at its Mirafiori facility that is located near Turin. Stellantis also revealed that the site will be undergoing a significant transformation that will involve an investment worth&nbsp;&euro;100 million. Stellantis is expected to start making a hybrid version of the Fiat 500&nbsp;sometimes next year.&nbsp;
In addition to its European struggles, Stellantis is also facing a shrinking share in North America. During the first half of 2024, net revenues dropped 14% YoY while net profit took a 48% YoY plunge.
With Chinese EV makers navigating new roads, determined to conquer the world, simple cost-cutting measures won&rsquo;t do.&nbsp;
European automakers are having a hard time keeping up with Chinese EV makers. The increased tariffs that the EU imposed on Chinese EV makers led to significant backlash and concerns that this will make it more difficult for the EU to achieve its net-zero goals as Chinese EVs are more popular with consumers, both due to their more favorable pricing and greater features. Moreover, tarrifs are seen as&nbsp;a minor speed bump for an EV powerhouse like BYD.&nbsp;Regardless of their legacy, European automakers who fail to adapt quickly enough will be left on the sidelines as Chinese EV makers like BYD threaten to leave them in the dust.
DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.
This article is from an unpaid external contributor. It does not represent Benzinga&#39;s reporting and has not been edited for content or accuracy.

RNLSY

Volkswagen's Crisis Is The Reflection Of Europe's Automotive Struggles

Ford Motor Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/F#NYSE">F</a>) shares are trading higher on Wednesday. Ford, Bayerische Motoren Werke AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) and, Honda Motor Company, Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HMC#NYSE">HMC</a>) launched operations for the joint venture, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/n40917799/bmw-ford-and-honda-begin-operations-of-vehicle-grid-integration-joint-venture-chargescape-name-jos" rel="noreferrer noopener">ChargeScape, that was announced last year</a>.
ChargeScape, the vehicle-grid integration joint venture, is a software platform that connects electric vehicles (EVs) to the power grid, helping to stabilize the grid and reduce charging costs for drivers.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/09/40906726/us-port-strike-in-october-could-lead-to-major-supply-chain-disruptions-says-container-trade-expert" rel="noreferrer noopener">US Port Strike In October Could Lead To Major Supply-Chain Disruptions, Says Container Trade Expert</a>
The companies disclosed the appointment of Joseph Vellone as ChargeScape&#8217;s first CEO and Kalidindi Raju as its Chief Technology Officer (CTO).
Vellone said, &#8220;The U.S. has set ambitious targets for renewable energy deployment and EV adoption, and ChargeScape is here to bridge that gap between supply and demand of electricity.&#8221;&nbsp;
&#8220;We want to transform EVs from a liability into an asset for the power grid and help deliver a clean transportation future for our country.&#8221;
Raju said, &#8220;Although the vehicle-grid integration market is expected to be highly competitive, our partnerships with the world&#8217;s largest automakers gives us a significant edge. With direct access to the vehicles, we enable utilities to optimize EV charging securely and reliably.&#8221;
ChargeScape&#8217;s technology wirelessly connects to electric vehicles and collaborates with utilities to manage energy flow based on real-time grid conditions.
EV drivers can be financially rewarded for their flexibility, while ensuring their vehicles are charged by the specified time.
This month, Ford sold 8,944 electric vehicles in August in the U.S., marking a jump of 29% from the<a target="_blank" href="https://www.benzinga.com/news/24/09/40745466/fords-august-ev-sales-surge-29-driven-by-cybertruck-rival-f-150-lightning-despite-its-slowing-future" rel="noreferrer noopener"> corresponding month last year</a>.
This week, the company said that it is looking to start production of a high-performance race car variant of the&nbsp;Mustang&nbsp;for street <a target="_blank" href="https://www.benzinga.com/news/24/09/40895791/ford-to-roll-out-limited-edition-street-legal-race-car-variant-of-mustang-as-early-as-this-year" rel="noreferrer noopener">use as early as this year</a>.
Investors can gain exposure to the stock via&nbsp;First Trust Nasdaq Transportation ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FTXR#NASDAQ">FTXR</a>) and&nbsp;Invesco Exchange-Traded Fund Trust II Invesco S&amp;P Ultra Dividend Revenue ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RDIV#NYSE">RDIV</a>).
Price Action: F shares are trading higher by 1.01% at $11.01 at the last check Wednesday.
Image via Shutterstock
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FTXR

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ChargeScape Powers Up: Ford, BMW, Honda Launch Vehicle-Grid Joint Venture

In a recent development, German automaker BMW AG (OTC:<a class="ticker" href="https://www.benzinga.com/stock/BMWYY#OTC">BMWYY</a>) has adjusted its financial guidance for 2024 due to a slump in global sales.
What Happened: As per a press release from BMW on Tuesday, the company&#8217;s Board of Management has revised the 2024 financial year guidance. The decision was influenced by several factors, including delivery stops and technical issues related to the Integrated Braking System (IBS) supplied by a vendor. These problems are expected to negatively affect sales in the latter half of the year.
The IBS-related technical issues impact over 1.5 million vehicles, leading to additional warranty costs in the third quarter. Moreover, despite government stimulus measures, the company is facing subdued demand in China.
Consequently, BMW now expects a slight decrease in deliveries compared to the previous year, an EBIT margin between 6% and 7%, and a Return on Capital Employed (RoCE) between 11% and 13% for 2024. The Free-Cash-Flow in the Automotive Segment is anticipated to be above €4 billion ($4.41 billion) for the financial year.
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40758803/did-a-potential-stock-sale-by-elon-musk-lead-to-fall-in-tesla-shares-top-analyst-sa?itm_source=parsely-api" target="_blank" rel="noreferrer noopener">Did A Potential Stock Sale By Elon Musk Lead To Fall In Tesla Shares? Top Analyst Says It Could Instead Because Of Broader Selloff In AI Stocks</a>
The revised earnings and additional inventory are expected to impact the third quarter more than the fourth. The full quarterly results and the adjusted outlook report will be published on Nov. 6, 2024.
Why It Matters: The revision in BMW&#8217;s financial outlook comes on the heels of a series of events that have impacted the company&#8217;s performance. In September, BMW had to recall over <a href="https://www.benzinga.com/markets/equities/24/09/40682126/bmw-recalls-over-140k-mini-cooper-se-electric-vehicles-globally-due-to-battery-overheating-risks">140,000 Mini Cooper SE</a> electric vehicles globally due to battery overheating problems. 
This followed a significant achievement in August, when <a href="https://www.benzinga.com/news/24/08/40521564/bmw-outpaces-tesla-with-more-bev-registrations-in-europe-in-july-than-elon-musks-ev-giant-for-the-fi">BMW outpaced Tesla</a> with more BEV registrations in Europe for the first time. The recent technical issues and the recall have, however, dampened the company&#8217;s momentum, leading to the revised financial outlook.
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Image by Studio on Shutterstock
This story was generated using <a href="https://www.benzinga.com/author/benzinga-neuro">Benzinga Neuro</a> and edited by <a href="https://www.benzinga.com/topic/Pooja-Rajkumari" target="_blank" rel="noreferrer noopener">Pooja Rajkumari</a>

BMW Revises 2024 Financial Outlook Amid Sales Slump And Technical Issues Impacting 1.5M Vehicles

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