Di Yi Cai Jing·2025-05-08 10:41Group 1 - The long-term rebound of the euro is expected to squeeze profits and revenues for European companies, particularly exporters facing challenges from the strong euro and U.S. tariffs [1][4][5] - Major European companies such as SAP, Porsche, Heineken, and Schneider Electric have warned investors about the potential impact of the strong euro on their earnings [1][4][5] - The euro has appreciated over 9% against the dollar, reaching a three-year high, which raises concerns about further euro appreciation and its effects on European export competitiveness [1][4][6] Group 2 - Analysts predict that the strong euro could lead to a significant reduction in profit expectations for major European exporters, with HSBC lowering profit growth forecasts for the FTSE Europe Index companies to 2.9% [4][5] - SAP's CFO indicated that a 0.01 USD increase in the euro to dollar exchange rate could reduce the company's annual revenue by 30 million euros, highlighting the direct financial impact of currency fluctuations [5] - Heineken and Schneider Electric also reported potential profit reductions due to the strong euro, with estimates of 180 million euros and 1.25 billion euros respectively [5][6] Group 3 - The strong euro is seen as a double-edged sword for European trade, benefiting imports but posing challenges for exports, particularly in the context of the current international economic environment [2][4] - The euro's rise is partly attributed to the weakening of the dollar, as investors seek alternative safe-haven assets amid uncertainties surrounding U.S. economic policies [7] - The overall performance of European stocks has been negatively affected by the euro's strength, with key companies underperforming compared to the broader European market [6][7]