KUALA LUMPUR, July 30 (Bernama) -- Bursa Malaysia's key index closed at an intraday high today, supported by continued buying interest even as renewed geopolitical tensions and a weaker overnight lead from Wall Street following the US Federal Reserve's (Fed) decision to stand pat on interest rates weighed on broader sentiment. The Fed has decided to hold rates steady for the fifth consecutive meeting, with the Federal Funds Rate unchanged between 3.50 per cent and 3.75 per cent. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.84 points to 1,720.40 from yesterday’s close of 1,715.56. The benchmark index, which opened 1.14 points lower at 1,714.42, hit its lowest level of 1,710.69 in early trade before gaining momentum for the rest of the day. However, the broader market was negative with losers outpacing gainers 581 to 411, while 612 counters were unchanged, 1,173 untraded, and 87 suspended. Turnover declined to 2.49 billion units valued at RM2.25 billion from ...
Mercedes-Benz Group AG has lowered the upper range of its key margin forecast amidst a challenging market environment, particularly due to subdued demand in China and intense competition.
Key Points:
- Margin Forecast: Mercedes-Benz now expects returns in the range of 10% to 11% from its core automaking business, down from a previous high of 12%.
- Profit Decline: The company reported a sharp decline in profit for the second quarter, with earnings falling 19% to €4.04 billion.
- Stock Performance: Shares fell as much as 3.1% in Frankfurt on Friday and are roughly flat for the year.
- Industry Challenges: The auto industry has faced a tough week, with disappointing reports from Stellantis NV, Nissan Motor Co, and Ford Motor Co. Factors include weaker demand in China and reduced financial incentives for battery-powered cars in Europe.
- China Market: CEO Ola Källenius noted cautious consumer behavior in China, leading to careful price management. Global sales of Mercedes passenger cars declined 3.7% to around 496,700 vehicles, with fully electric vehicle sales dropping by a quarter.
- US Market Concerns: RBC analyst Tom Narayan expressed worries about the pricing environment in the US and the macroeconomic situation in China.
- Model Changes: Sales of top-end models fell 17%, attributed to model changes and subdued demand in China.
- Electrification Plans: Mercedes has adjusted its electrification strategy, scaling back battery ambitions and focusing more on combustion-engine cars. The company plans to roll out new all-electric models, despite the first generation of battery-powered cars not meeting expectations.
Mercedes-Benz's revised outlook and strategy adjustments reflect the broader challenges facing the auto industry, with shifting market dynamics and evolving consumer preferences impacting profitability and growth plans.
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