The German auto industry is expected to eliminate nearly 100,000 jobs by 2030.
Carmakers and their suppliers are struggling w/waning demand, high labor & energy costs & intensifying competition from Chinese manufacturers. Overall, Germany’s auto sector has lost roughly 55,000 jobs over the past 2yrs. Tens of thousands of additional positions are set to disappear by 2030, in an industry that employs more than 700,000 people. Source: HolgerZ, Bloomberg
In Germany, the short-lived rally at the start of the year has already fizzled out.
The country is losing ground on the global stage: German stocks now make up just 2.1% of global market capitalization, down from 2.4% only three months ago. Source: Bloomberg, HolgerZ
Germany versus Nvidia
The German stock market keeps lagging in the AI era. The entire German market is valued at ~$3tn, well below Nvidia’s nearly $4.5tn market cap. Germany-to-Nvidia now stands at 0.67, near an all-time low. Source: HolgerZ, Bloomberg
EU economy troubles summarized in once cartoon
Source: @WallStreetMav
Big Tech groups are losing a political battle in Brussels to gain access to the EU’s financial data market
This was despite Donald Trump’s threats to punish countries that “discriminate” against US companies with higher tariffs. With the support of Germany, the EU is moving to exclude Meta, Apple, Google and Amazon from a new system for sharing financial data that is designed to enable development of digital finance products for consumers. Such a decision would hand a significant boost to banks in their efforts to fight off a competitive threat from Big Tech groups, which they fear will use their data to disintermediate them from their customers while extracting much of the value of knowing people’s spending and saving behaviour. After more than two years, negotiations on the Financial Data Access (FiDA) regulation are entering the final stages in coming weeks, with Big Tech groups facing almost certain defeat, according to diplomats. Source: FT https://lnkd.in/eMfM2QFb
Yesterday’s FOMC statement, interpreted through a large language model, was the most dovish since 2021.
Source: Augur Infinity @AugurInfinity
Activist investor Cevian Capital has said it is “not viable” to run a large international bank from Switzerland due to new strict capital proposals
Unless the position changes UBS would have “no other realistic option” but to leave the country. Cevian is Europe’s largest dedicated activist investor and holds about 1.4 per cent of UBS’s shares. It added that the government proposals, which would force the bank to have as much as $26bn in extra capital, could not be meaningfully changed through lobbying efforts. “The board has the responsibility to ensure that UBS protects its competitiveness,” Lars Förberg, Cevian’s co-founder, told the Financial Times. “Under the current proposals, it is not viable to run a big international bank from Switzerland. We therefore see no other realistic option but to leave.” He added: “The message from the Federal Council is clear: UBS is too big for Switzerland . . . I respect the Federal Council’s decision, but I do not understand it. It cannot be undone. Lobbyists cannot change that either. That effort can be spared.” Link to article: https://lnkd.in/ekU4KnUE
From yesterday's Financial Times article, “EU economy falls behind global rivals due to complacency.”
“One year on, Europe is . . . in a harder place,” Draghi told a news conference on Tuesday. “Our growth model is fading. Vulnerabilities are mounting . . . and we have been reminded, painfully, that inaction threatens not only our competitiveness but our sovereignty itself.” “Too often, excuses are made for this slowness. We say it is simply how the EU is built. Sometimes inertia is even presented as respect for the rule of law,” Draghi added. “That is complacency.” https://lnkd.in/e3facfZk
