German Auto Suppliers Pessimistic on Trade War Outlook

May 9, 2019 Share Print 0

German automotive suppliers Continental and Bosch do not expect a speedy recovery of the global auto market, as an escalating trade conflict between the United States and China threatens to compound already weak car demand.

Automakers and their suppliers are grappling with a downturn in vehicle demand, particularly in China, the world’s largest car market, which saw sales slow down for the ninth month in a row in April.

Continental said on Thursday it was not expecting a market upturn until the second half of this year as it reported a 22 percent slump in first-quarter net profit, while Bosch said it expected sales to stagnate this year.

The outlook could darken further after U.S. President Donald Trump ratcheted up the stakes ahead of a visit by Chinese Vice Premier Liu He to Washington for two days of trade talks, saying China “broke the deal” and vowing not to back down on imposing new tariffs on Chinese imports.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.