As every Sunday, the most important news from the past week, as well as the dates for the coming week.
Also as a video:
https://youtube.com/shorts/m3JKFUrMVtY?si=1kbET0y7yhLVSg-y
Monday:
While car shares in particular fell last week following the announcement of tariffs on e-cars, China is reacting differently than expected. In response to the tariffs, it is not car manufacturers that are to be punished, but farmers. China is probably planning to increase tariffs on pork. China is probably aiming to hit France in particular, which campaigned for the tariffs. While Germany wanted to prevent the tariffs at EU level. The largest exporter of pork to China in the EU is Spain, followed by France. Germany no longer exports any pork to China.
Tuesday:
Warren Buffett invested in BYD years ago. Now the investor is selling his shares. The sale has already begun in 2022. Warren Buffett is therefore also acting anti-cyclically in this case.
https://www.instagram.com/p/C8WRNgftYV0/?igsh=cXlveXR0bDJxYm92
According to a study by the Swiss private university IMD, Germany is falling further behind in terms of competitiveness. Ten years ago, Germany was still in 6th place, but is now in 24th place out of 67 countries surveyed. Germany was particularly criticized for being inflexible and bad at picking up on new things. Here, Germany was ranked 64th out of 67. Productivity in Germany is also not improving any further. Rising productivity in particular is a prerequisite for real wage growth without losing competitiveness.
Wednesday:
Inflation in the UK 🇬🇧 reached the 2% level again. This means that for the first time in 3 years, inflation is back at the central bank's target inflation rate. However, prices for services such as overnight stays, haircuts and the like continue to rise too sharply.
https://amp.cnn.com/cnn/2024/06/19/economy/uk-inflation-target-interest-rate-cuts
Thursday:
The ifo Institute expects the ECB to make 2 further cuts this year. As a result, GDP is expected to grow by 0.4% in Germany this year (previously 0.2%) and by a significant 1.5% next year.
Javier Milei seems like a social experiment to many in Europe. However, the Argentinian president is currently delivering. Argentina has been chronically over-indebted for years. Now China is extending a loan, as is probably the IMF. Inflation in Argentina has been in double figures for months. - From month to month! Now Milei's tough austerity measures have also led to success here. Month-on-month inflation has fallen from 25% to 4%. It is clear that the austerity measures are currently hitting the poorest people in the country the hardest. However, Milei's radical reforms, which have now also passed through parliament, could lead to long-term growth, which would also benefit the poorest people in the country. As Argentina is a food exporter, the poorest are unlikely to go hungry for the time being. For Milei, it should now be important for both domestic and foreign investment to increase. Then even the poorest people will have prospects again.
As expected, the BoE is leaving the interest rate unchanged at 5.25%.
Friday:
The $KGX (-1,55%) Kion share falls significantly following a buy recommendation from UBS. Sounds absurd, and it is, but because the price target was lowered, the share falls by 7%, although the price target is more than 20% above the current value of the share.
Most important dates in the coming week:
Wednesday: 22:30 Info bank stress test (USA)
Thursday 14:30 GDP (USA)
Friday: 14:30 Consumer spending data (USA)