Market Overview - Major indices experienced their third consecutive day of declines, with the Dow Jones Industrial Average down 0.3% to 46,121.28, the S&P 500 down 0.6% to 6,637.97, and the Nasdaq Composite down 0.9% to 22,497.86, attributed to profit-taking in the tech sector and concerns over high valuations [1][2] Automotive Industry - The Trump administration cut tariffs on EU automotive imports from 25% to 15%, effective August 1, leading to a rise in European automaker shares, with Porsche up 3.8% and other German manufacturers also seeing gains [3] - Earlier threats of a 25% tariff had negatively impacted shares of Volkswagen, BMW, and Porsche, which saw declines of 1.26%, 2.21%, and 2.51% respectively [3] Medical Device Sector - The U.S. Commerce Department announced new investigations into imports of medical devices, potentially leading to higher tariffs, which caused shares of major medical device manufacturers to drop, with Baxter International down 3.5%, GE HealthCare down 5.3%, and Integra LifeSciences down 5.3% [4] - Analysts described this situation as a new overhang for the medical device sector, with JPMorgan advising against panic [4] IT Sector - A new H-1B visa fee of $100,000 per visa has been implemented, significantly impacting Indian IT stocks, with the Nifty IT index falling over 6% this week and major firms like Tata Consultancy Services and Infosys experiencing declines of 2.7% and 2.58% respectively [5] - Analysts suggest a limited earnings impact for larger firms but highlight potential issues for U.S. health systems due to the upfront costs associated with the new visa fees [5] Pharmaceutical Industry - The threat of a 200% tariff on imported drugs has caused significant declines in global pharma shares, with U.S. companies like Amgen, AbbVie, and Pfizer dropping between 3% and 6% [6][7] - In response to tariff threats, major drugmakers are announcing substantial investments in U.S. production, with Johnson & Johnson committing $55 billion, Roche $50 billion, and GSK $30 billion [7] Geopolitical Developments - President Trump is expected to sign a deal allowing the sale of TikTok's U.S. operations to American investors, which has led to volatility in Oracle's stock, reflecting the market's interest in tech diplomacy [8] - Discussions with Turkish President Erdogan included the potential purchase of Boeing aircraft, with Boeing's stock having increased 46.5% over the last five years [9]

RT Wilfried Eckl-Dorna (@eckldorna)This week, @Porsche hit the brakes on EV investments. The sports-car maker isn't alone in having a hard time selling pricey luxury EVs. Our @Bloomberg story with @WillWilkesNews and @MonicaRaymunt explains how @MercedesBenz, @BMW and others are faring: https://t.co/D6q3urowtc ...

[Music] I'm here at IAA 2025, aka the Munich Auto Show, taking a look at what's next in transportation technology from around the globe. Now, there's a lot to see here at this show, from micromobility to mega mobility, a lot of which isn't necessarily relevant to the United States. So, with that in mind, I've sifted through the noise to find all of the coolest concept cars, debuts, and new technologies here at the Munich Auto Show that are relevant to you.Let's check it out. Okay, so the show's in Munich, s ...

Group 1 - Volkswagen AG's subsidiary, Porsche, has delayed its electric vehicle rollout due to weaker demand, challenges in China, and higher U.S. tariffs, leading to reduced profit forecasts for 2025 for both Porsche and Volkswagen [1][4] - The upcoming SUV above the Cayenne, initially planned as a fully electric model, will now launch with combustion engine and plug-in hybrid options, while the Panamera and Cayenne will continue to offer combustion and hybrid variants into the 2030s [2][3] - The delay in EV adoption means certain all-electric models will launch later than planned, and Porsche is rescheduling the development of its next-generation EV platform for the 2030s, reflecting slower-than-expected demand for high-end battery-electric vehicles [3][4] Group 2 - The rescheduling of the EV platform will incur depreciation and provisions that could impact 2025 operating profit by up to €1.8 billion, prompting Porsche to revise its outlook for a positive sales return of up to 2%, down from the previous estimate of 5-7% [4][8] - Porsche is now targeting a medium-term operating return on sales in the low double digits, with business growth expectations lowered to up to 15%, compared to the earlier guidance of 15-17%, and an automotive EBITDA margin of 10.5-12.5%, down from 14.5-16.5% [4][8] - Volkswagen has also lowered its profit margin forecast to 2-3%, compared to the previous guidance of 4-5% [4][8]

Market Overview - After a record-breaking day, stocks are expected to have a muted start to the week [2][3] - Gold prices have surged to a new record above $3,700, continuing a five-week upward trend [3] - Bullion-backed ETFs are performing well due to expectations of further Federal Reserve easing [4] Visa Policy Impact - President Trump's announcement of a $100,000 fee on H1B visas could disrupt the tech workforce, heavily reliant on Indian and Chinese workers [5][6] - Indian tech stocks experienced a sharp decline following the announcement, while major US tech firms showed minimal movement [6][7] Corporate Earnings and Index Changes - The S&P 500 will see new additions, including Encore, Robinhood, and Apploven, replacing Market Access Holdings, Caesar's Entertainment, and Nphase Energy [9] - Costco is expected to report fourth-quarter results, with analysts predicting mid to high single-digit sales growth in the US and Canada, but a slowdown in international sales [10] Federal Reserve Insights - The Federal Reserve cut interest rates by 25 basis points, with expectations of two more cuts in 2025 [11][13] - The upcoming release of the personal consumption expenditures index (PCE) is anticipated, with economists forecasting a 0.3% rise in headline PCE for August [12][19] TikTok Deal Developments - President Trump has indicated potential involvement of major figures in a TikTok deal, following a productive call with China's President Xi [7][24] - The ongoing negotiations around TikTok are seen as a complex issue, with no concrete outcomes expected soon [25][30] Pharmaceutical Acquisition - Pfizer is set to acquire Metsera, an anti-obesity drug maker, for $4.9 billion, with an initial payment of $47.50 per share and potential performance-based increases [31][32] - Metsera's shares have soared following the acquisition announcement, and Pfizer's shares are also rising [31] BYD and Berkshire Hathaway - Shares of BYD fell over 3% after Berkshire Hathaway exited its stake in the Chinese EV maker, which it held for over 15 years [44][45] - Berkshire's offloading of shares began in mid-2022, with its holding dropping below 5% last year [45] Market Sentiment and Future Outlook - Goldman Sachs has raised its year-end target for the S&P 500 to 6,800, citing a dovish Fed and resilient corporate earnings [59] - The market is expected to open with a muted sentiment, influenced by recent profit warnings from car manufacturers like Porsche and Volkswagen [58]

Group 1 - Volkswagen Group anticipates a €5.1bn ($5.98bn) impact on its operating profit for 2025 due to Porsche's postponement of new all-electric models [1] - Porsche has revised its medium-term profit targets for Volkswagen Group, lowering the expected return on sales from 15-17% to 10-15% [2] - The launch of certain all-electric vehicle models has been delayed, with a new platform for electric vehicles in the 2030s being rescheduled [3] Group 2 - Porsche's changes, including write-downs on capitalized project costs, will lead Volkswagen Group to revise its operating return on sales forecast for 2025 [4] - Volkswagen Group will incur a non-cash impairment charge of approximately €3bn on goodwill allocated to Porsche, affecting the current year's operating result [5] - The operating return on sales expectations for Volkswagen Group in 2025 has been adjusted to 2-3%, down from 4-5%, with net cash flow in the automotive division now expected to be around €0bn [6]

Five things to know ahead of today's opening bill. Senate Democratic leader Chuck Schumer now urging President Trump to meet with Democrats as a government shutdown draws closer. On Friday, the Senate voted to block dueling Republican and Democratic proposals to keep the government funded on a short-term basis.Now, funding expires at the end of the month. And the parent company of Saxith Avenue now reportedly in talks to sell 49% of Burgdorf Goodman for about $1 billion. The Wall Street Journal reporting th ...

Five things to know ahead of today's opening bill. Senate Democratic leader Chuck Schumer now urging President Trump to meet with Democrats as a government shutdown draws closer. On Friday, the Senate voted to block dueling Republican and Democratic proposals to keep the government funded on a short-term basis.Now, funding expires at the end of the month. And the parent company of Saxith Avenue now reportedly in talks to sell 49% of Burgdorf Goodman for about $1 billion. The Wall Street Journal reporting th ...

Porsche's luxury image is looking threadbare after its fourth profit warning in quick succession, writes @chrismbryant (via @opinion) https://t.co/SAZEMH0Rcw ...

Core Viewpoint - Porsche's shares dropped by 6.2% in early Frankfurt trading due to a reduction in the rollout of electric models, attributed to weak demand, and a lowered profitability outlook for 2025 [1] Company Summary - The German luxury sports carmaker has decided to slow down the introduction of its electric vehicle lineup [1] - The company has revised its profitability expectations for 2025, indicating a more cautious financial outlook [1] Industry Summary - The decision to scale back electric model rollouts reflects broader challenges in the automotive industry regarding consumer demand for electric vehicles [1]