Daimler expects lower 2018 earnings due to new tariffs

Mercedes-Benz's profits will be probably lower this year because of trade tensions over tariffs with China parent company Daimler warned

In a tit-for-tat response to the U.S. moves, Beijing announced 25% import tariffs on $50bn of USA products last week, including cars, which kick in on 6 July, following a similar move from Donald Trump. UBS Group set a €92.00 ($106.98) price objective on Daimler and gave the company a "buy" rating in a research note on Thursday.

He is separately promising to impose tariffs on up to $200 billion of Chinese goods.

Mercedes has a plant in Vance, Alabama. Cars manufactured in North America were up until recently sold on the Chinese market at lower tariffs.

Stocks in a wide range of companies have see-sawed in recent weeks as investors tried to assess the risk to corporate profits from the Trump administration's trade policy. The German industrial firm's revised forecast came on the same day as reports that German automakers backed a proposal that the European Union drop tariffs on vehicles to defuse trade tensions.

Daimler said its profits would be affected by new Chinese tariffs imposed on USA imports.

Egypt's Mohamed Salah becomes 'honorary citizen of Chechnya'
Mohamed Salah enjoys the adulation of millions of fans at home and is a role model of children aspiring to be footballers. Recently, he came under pressure when widespread reports surfaced of a broad crackdown on gays in his region.

First lady's 'don't care' jacket is a gift to memers online
But it wasn't long before the first lady's controversial jacket threatened to overshadow the entire goodwill junket to the border. During a 1996 visit to Japan, first lady Hillary Clinton "baffled" her host nation by wearing several all-black ensembles.

Swiss stars facing punishment for controversial Serbia celebrations
Switzerland's coach, Vladimir Petkovic, said: " You should never mix politics and football ". Shaqiri, Xhaka and Behrami were Kosovar; 200,000 of them live in Switzerland today.

Daimler said late Wednesday that it now sees fewer SUV sales and higher costs at its Mercedes-Benz Cars division than previously expected because of the tariffs, and "this effect can not be fully compensated by the reallocation of vehicles to other markets". The Mercedes-Benz Cars segment offers premium vehicles of the Mercedes-Benz brand, including the Mercedes-AMG and Mercedes-Maybach brands; and small cars under the smart and Mercedes me brands, as well as electric mobility products under the EQ brand.

It also said there would be a further negative effect on earnings in the second half of the year in connection with the new certification process WLTP (Worldwide Harmonised Light Vehicles Test Procedure). Daimler has said it will appeal the decision. It operates through Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services segments.

This effect, Daimler said, can not be fully compensated by the reallocation of vehicles to other markets.

"South Koreans have higher portions of vehicle imports in the U.S. than peers, making them vulnerable to United States potential tariffs", Kwon Soon-woo, an analyst at SK Securities, said.

In late morning trading in Frankfurt, Volkswagen was down 2.4%, while Daimler was more than 4% lower.



Latest news

Ready Your Wallets! The Steam Summer Sale Is Here!
The annual Steam Summer Sale is now live and, as usual, there's a new mini-game for people to play while they empty their wallets. That means that games you added through Humble Bundle and other services are not calculated into the total figure.

#WC2018: Hernandez nets as Mexico sees off South Korea
Coming off an opening loss to Mexico, Germany fell behind again when Kroos' early mistake led to Ola Toivonen's goal in the 32nd minute.

Exhilarating Belgium smash five past Tunisia
Belgium go into the second half with a narrow 2-1 lead, despite dominating for large spells of the first 45 minutes. Roberto Martinez's side stormed their way to a 5-2 victory and are now on the verge of reaching the last-16 stage.

Melania Trump doubles-down with "I really don't care" jacket
At the facility the first lady talked with staff about how the children were being treated and asked how she could help. Hours later, President Trump offered another view on Twitter, saying that it was directed at the "fake news media ".

Kit Harington, Rose Leslie Get Married in Scotland
The couple met while filming the fantasy series in 2012, in which they played on-screen lovers Jon Snow and wildling Ygritte . Kit , also 31, said: "The country is attractive ... the Northern Lights are magical ... it was there that I fell in love".

Melania Trump's controversial jacket inspires 'I care' fashion
The first lady planned her trip to the border on Tuesday and that it was "100% her idea", her spokeswoman Stephanie Grisham said. He says staff have "a tremendous passion for working with these children" and the center is "their home".

Anti-Brexit campaigners descend on London to demand second referendum
Foreign Secretary Boris Johnson said Prime Minister Theresa May must deliver the "full British Brexit" that voters were seeking. Would you like to get published on Standard Media websites? "The British people deserve a lot more than a no deal Brexit".

Download Android 8.0 Oreo Update for AT&T Galaxy S7, Galaxy S7 Edge
Reports also claim that the phone might be able to achieve a screen to body ration of 93% with the help of sound emitting display. The Bell reports that Samsung is teaming up with Synaptics, Qualcomm and Aegis Tech to bring the technology to the S10.

Kim Kardashian Responds To Braided Hair Backlash: ‘I’m Not Tone Deaf’
As far as the robbery in concerned, Kim said she "truly put the experience behind me, and have learned and grown from it". She went on: "Feel it, go through it and move on" has always been how I try to live my life.

Nick Phipps and Lukhan Tui in for Australia's decider with Ireland
There were further changes among Ireland's reserves , with John Cooney and Joey Carbery replaced by Kieran Marmion and Ross Byrne. Andrew Conway, Garry Ringrose and Dan Leavy drop out due to injury, while Cian Healy and Niall Scannell drop to the bench.

Dettori's golden 60th as Stradivarius wins Gold Cup
The horse widely regarded as Order Of St George's biggest threat is Stradivarius . "It was brilliant. Full credit to the horse - he was fearless as a lion".

Arkansas eliminates Florida, advances to College World Series Finals
OMAHA, Neb. (AP ) - It has been decades since an offense at the College World Series has been as prolific as Oregon State's. They play extremely well. "They're playing at a very high level right now". "I'm definitely getting the hang of things".

Zimbabwe's President Emmerson Mnangagwa uninjured in 'assassination attempt' explosion
An attacker threw a grenade towards the stage where he was sitting - killing one person and injuring at least 83 others. "There has been an incident at Bulawayo where the president was addressing a rally".

NASA's Mars Curiosity rover takes images of Haze from Martian Dust Storm
This storm is also different from the massive storms observed by Mariner 9 (1971-1972) and Mars Global Surveyor (2001). The little Opportunity rover is still snoozing through it thanks to a lack of light, but Curiosity is still active.

‘Game Of Thrones’ Stars Kit Harrington And Rose Leslie Are Married!
Traditionally, the weddings on Game of Thrones have been bloody affairs filled with stabbings, poisonings, and betrayal. Groom Kit arrived at the Church of Scotland chapel first, in a people carried accompanied by his best man and ushers.

Other news