International News 12/08
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Hybrid cars to account for half of China's car sales by July 2024
China has reached a significant milestone in the adoption of electric vehicles, with hybrid cars accounting for half of all car sales in July. This represents a faster rate of adoption of electric vehicles than in Western countries. According to data from the China Passenger Car Association, new energy vehicle sales increased by 37% in May, exceeding the previous record set by hybrid car sales. This growth continued in June, with sales increasing by 28.6%. Furthermore, sales of pure electric vehicles increased by 14.3% in July. However, there was a 3.1% decline in overall domestic car sales in China, marking four consecutive months of decline. In order to stimulate market growth, China's state planning agency has doubled the cash subsidies available for vehicle purchases. In addition, certain cities, including Beijing, have eased restrictions on car purchases and are increasing the quota for new energy vehicle licences.
Germany overtakes China in trade value with the US
In the first half of 2024, the United States (US) became Germany's largest trading partner, overtaking China. This aligns with Germany's efforts to reduce its dependence on China. According to data from the German Federal Statistics Office, German imports and exports with the US amounted to €127 billion, while trade with China reached €122 billion. Germany's objective to reduce its exposure to China is driven by differences in political views and allegations of unfair trade practices. Lola Machleid, a foreign trade expert at the German Chamber of Commerce and Industry (DIHK), attributed the shift in trade to the resilience of the US economy, which has bolstered German exports. During this period, German exports to the US increased by 3.3% to €81 billion, while exports to China decreased by 3%.
https://internasional.kontan.co.id/news/nilai-perdagangan-jerman-dengan-as-salip-dengan-china
Purchasing Power Suppresses Company Performance
Those investing in large consumer goods companies should exercise caution when selecting stocks, given the decline in post-pandemic shopping trends and increased price sensitivity among buyers. Consequently, companies are unable to set prices freely, which is resulting in a slowdown in profits for luxury goods, food, and airline sectors. The prospect of a slowdown has prompted a sell-off in global stock markets, with approximately $4.8 trillion drained from the market over a three-day period. During the pandemic, consumers were willing to accept price increases when savings were high. However, this is no longer the case. The slowing of consumption and efforts to reduce prices were evident in the second quarter's financial performance. Companies in the US and Europe are encountering challenges in raising prices, leading to a decline in corporate earnings and a reduction in consumer spending. A number of companies, including Nestle, Ryanair and McDonald's, have experienced a decline in revenue, resulting in a record number of performance target revisions in Europe. According to Bank of America, the majority of companies cited weakening demand as the reason for these revisions.
https://internasional.kontan.co.id/news/daya-beli-menekan-kinerja-perusahaan