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General Motors has reduced its forecast for this year, leaving evidence that Donald Trump's protectionist policy is taking its toll. After the news, and amid a climate of nervousness by the United States meeting with the European Union, companies related to the auto industry have dragged the European stock markets.
GM reported that its quarterly profits were $ 2,390 million in the United States, compared to $ 2,430 million in the same period last year. In addition, the auto company has trimmed its earnings guidance for 2018, citing rising prices for aluminum and steel.
With the news, the company's shares fell from 6.86% to $ 36.00 US. 19659002] Impacts in Europe
The results of General Motors have shown that the protectionist policy of the United States is making its first victims. In fact, to mitigate the impact, Trump will meet with European Commission President Jean-Claude Juncker and the bloc's Trade Commissioner Cecilia Malmström.
The EU aims to prevent the United States from specifying its threat to impose tariffs on imports of cars from Europe.
"We hope that this will not happen and that we will be able to find a solution, otherwise the European Commission is preparing a long list of many American products." Malmstrom told reporters
uncertainty surrounding the outcome of the negotiations, and following the signals sent by General Motors, the main European stock markets closed in red, They observe that the climate of nervousness among investors for the Trump meeting with Juncker and Malmström has took over the day and damaged the stock markets of the Old Continent. To this is added the warning of General Motors on the effects of tariffs on aluminum and steel, which show that the trade war leaves its first victims in the auto industry . Stoxx 50 dropped 0.43% and the main pressure for the indicator was Volkswagen. In Germany, the DAX closed the day with a contraction of 0.87%, and the biggest loss of the day was led by Infineon Technologies AG with a 3.47% retracement. % The company focuses on manufacturing and marketing of technology products for the automotive industry.
Following the trend, the CAC 40 in France fell by 0.14% and the list of setbacks was led by automotive component manufacturers. , STMicroelectronics and Valeo, with a decrease of 8.60% and 2.95% respectively.
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