Russia urges Azerbaijan to repair ties with Moscow amid diplomatic crisis
On Wednesday, Russia's Foreign Ministry called on Azerbaijan to return bilateral relations to the level of "strategic cooperation", warning that certa...
Barclays downgraded the U.S. autos and mobility sector to "negative" on Tuesday, warning that persistent tariffs under President Donald Trump’s trade policy could weigh heavily on automaker earnings and investment strategies.
Barclays on Tuesday downgraded its outlook on the U.S. autos and mobility sector from "neutral" to "negative," citing concerns that President Donald Trump's tariff policies could place significant pressure on automakers’ earnings and hinder future investments.
The assessment echoes similar warnings from Goldman Sachs, which last week lowered its 2024 forecast for U.S. auto sales by nearly one million units. While President Trump has paused certain levies and provided temporary exemptions for some Chinese products, tariffs on automobiles, steel, and aluminum remain in effect.
"In an increasingly difficult macroeconomic and regulatory environment, making a near-term investment case for the autos sector is becoming more challenging," Barclays analyst Dan Levy stated. "Auto tariffs appear to be persistent, and current valuations do not fully reflect the associated risks."
Stock Downgrades and Sector Impacts
Barclays downgraded General Motors (GM) from "overweight" to "equal weight," noting that nearly half of GM’s vehicles sold in the U.S. are assembled outside the country, including its entry-level electric vehicles (EVs) produced in Mexico. In contrast, Barclays expressed a "modest" preference for Ford (F), due to a larger share of its vehicles being manufactured domestically.
Several auto technology firms were also downgraded, with Barclays citing potential delays in the adoption of advanced technologies due to pricing pressures. Companies affected include Aptiv (APTV), Mobileye Global (MBLY), and Visteon Corp (VC).
In premarket trading, shares of GM, Aptiv, Mobileye, and Visteon declined between 1% and 3%, while Ford shares slipped 0.31%.
Revised Ratings and Price Targets
Barclays updated its ratings and price targets for several major firms in the sector:
Barclays' revised outlook reflects broader market unease over the durability of tariff policies and their long-term implications for the U.S. automotive industry.
The U.S. economy faces a 40% risk of recession in the second half of 2025, JP Morgan analysts said on Wednesday, citing rising tariffs and stagflation concerns.
China has ramped up efforts to protect communities impacted by flood control measures, introducing stronger compensation policies and direct aid from the central government.
Severe rain in Venezuela has caused rivers to overflow and triggered landslides, sweeping away homes and collapsing a highway bridge, with five states affected and no casualties reported so far.
A malfunction in the radar transmission system at the Area Control Center in Milan suspended more than 300 flights at the weekend, across northwest Italy since Saturday evening according to Italy's air traffic controller Enav (National Agency for Flight Assistance).
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
Poland will invest nearly $665 million in building three ammunition factories, aiming to boost defence readiness amid growing regional tensions.
Belarusian President Alexander Lukashenko has pardoned 16 individuals convicted of various offences, including charges of "extremism", ahead of the country's Independence Day, state media reported on Wednesday.
Germany and the United Kingdom are set to sign a defence treaty on 17 July that includes a mutual assistance clause, according to Politico.
On Wednesday, Russia's Foreign Ministry called on Azerbaijan to return bilateral relations to the level of "strategic cooperation", warning that certain elements were attempting to undermine the long-standing partnership between the two nations.
Vietnamese Deputy Minister of National Defence, Senior Lieutenant General Hoang Xuan Chien, and Italian Undersecretary of State for Defence, Matteo Perego di Cremnago, co-chaired the 5th Vietnam–Italy Defence Policy Dialogue in Hanoi on July 2, as reported by VNA.
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