[ad_1]
The facade of the BASF factory in Schweizerhalle near Basel. Photography: Christian Hartmann / REUTERS
Hello and welcome to our slippery coverage of the global economy, financial markets, the eurozone and businesses.
The largest chemical company in the world, BASF, runs this morning after it became the latest victim of Donald Trump's trade war with China.
Last night, the German chemical giant hit investors with a nasty warning about its profits. BASF has cut its profit forecast for 2019 by 30%, warning that profits will be halved in the second quarter of 2019.
Sales are now expected to decrease slightly in 2019, down from an earlier growth forecast of 1% to 5%, meaning the company continues with 6,000 job cuts.
BASF manufactures a wide range of chemicals, plastics and foams used in many sectors, from the pharmaceutical industry to the automotive, construction and textiles industries.
He blamed profit warnings on the slowdown in the global economy and the damage caused by trade conflicts between America and other major economies, stating:
"To date, conflicts between the United States and its trading partners, especially China, have not abated.
"In fact, the G20 summit at the end of June showed that one should not expect rapid détente in the second half of 2019. Overall, uncertainties remain high. "
Investors are concerned and are lowering the price of BASF shares by 6% at the start of negotiations in Frankfurt.
This is another blow for Deutschland PLC, in addition to the problems of the banking giant Deutsche Bank, which eliminates 18,000 jobs in a desperate bid for recovery.
Reaction to follow ….
Also coming soon
Two central bankers could move the markets today.
Fed Chairman Jerome Powell will discuss the Fed's stress tests at a conference hosted by the Boston Federal Reserve. However, investors will want to know about monetary policy and whether a rate cut is still likely in July.
They will also like to hear the new chief economist of the European Central Bank, Philip Lane, who is answering questions on Twitter today. Lane's view of the state of the eurozone economy will be crucial as the ECB questions whether to take further stimulus measures.
The online grocery group Ocado and the builder Bovis both record results. Ocado recorded a half-year loss of £ 142.8 million after being hit by a fire in a warehouse earlier this year.
L & # 39; s calendar
- 11am BST: Marks & Spencer AGM
- 1:45 pm: HST: Jerome Powell, President of the US Federal Reserve
- 3:15 pm: HST: ECB chief economist Philip R. Lane holds a Q & A session online
Source link
