VW LOOKS INTO THE VALLEY OF DEATH
The disruptive threats Herbert Diess saw coming for big, incumbent automakers soon after he took over the top job at Volkswagen Group are playing out as predicted -- only faster and in more dramatic fashion
"What really has changed -- and what I had not expected to this extent -- is the view of capital markets on our industry”
This is more than just a matter of bragging rights
The $5 billion that Tesla raised was equivalent to about half of VW's annual net cash flow
Some analysts are warning the trend is overdone
“This leads to a grave disadvantage for us in terms of access to required resources”
Earnings at several peers proved more resilient
"The overhaul is still progressing too slowly," he said
More from JPR007
More from Finance
Inflation is coming, inflation is coming!
Last month I wrote about the distinction between long-term secular inflation and shorter-term cyclical inflation
It has been clear for several months that we are in the middle of a cyclical rise in
The full thread can be reviewed here:
Today's PPI report should have been expected to surprise to the upside as the leading indicators of inflation have been screaming to the upside for months!
Here is the ISM prices paid index, cumulated into a growth rate
3/
Industrial commodity prices have also seen a major acceleration for months.
4/
So today's PPI report was in line with the leads, suggesting that we have a cyclical upturn in inflation that is * primarily concentrated in the manufacturing sector *
This is a key point.
5/
Last month I wrote about the distinction between long-term secular inflation and shorter-term cyclical inflation
It has been clear for several months that we are in the middle of a cyclical rise in
Now, in the short-term, the manufacturing sector is red hot, driven by a pent-up demand rebound in goods consumption.
— Eric Basmajian (@EPBResearch) January 4, 2021
Commodity prices are screaming which gives legs to "goods" inflation in the short-term.
8) pic.twitter.com/rQcqHf1OD0
The full thread can be reviewed here:
Consensus continues to conflate the inflation story, mixing and matching long-term and short-term charts to fit what is generally a secular inflation narrative.
— Eric Basmajian (@EPBResearch) January 4, 2021
Here are my two cents to make the distinction clear.
1)
Today's PPI report should have been expected to surprise to the upside as the leading indicators of inflation have been screaming to the upside for months!
Here is the ISM prices paid index, cumulated into a growth rate
3/
Industrial commodity prices have also seen a major acceleration for months.
4/
So today's PPI report was in line with the leads, suggesting that we have a cyclical upturn in inflation that is * primarily concentrated in the manufacturing sector *
This is a key point.
5/
