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APAC and European equity markets closed higher across those
regions today, while US markets were higher for most of the day
before sharply reversing course in the afternoon on California's
announcement that it will be rolling back its reopening plans and
instituting targeted business closures to slow the spread of
COVID-19. The news triggered an immediate sell-off in risk assets,
with CDX IG/HY, equities, and oil ending the day lower. The market
is expecting the current Q2 earnings season to be particularly
weak, with most investors generally more focused on companies'
outlooks for the remaining quarters of 2020 and the rapid growth of
new COVID-19 cases in the US is could shift that outlook during the
course of this earnings season.
Americas
Monday afternoon, California Gov. Gavin Newsom rolled back the
state's reopening and ordered an immediate halt to indoor
activities in restaurants, bars, museums, zoos and movie theaters,
sending businesses hurrying to close up after they had just begun
reopening in recent weeks. The Los Angeles Unified School District,
the nation's second largest after New York City, and the San Diego
Unified School District said they would start the school year
online for about 800,000 students combined on Aug. 18 for Los
Angeles and Aug. 31 for San Diego. (WSJ)
US equity markets were higher for most of the day, before
shifting course at 1:40pm EST after California's announcement;
Nasdaq -2.1%, Russell 2000 -1.3%, S&P 500 -0.9%, and DJIA
flat.
S&P 500 companies are expected to unveil an overall 45%
plunge in quarterly profits, according to data provider FactSet
— the biggest drop since the 69% fall of the fourth quarter of
2008. All 11 of the US benchmark's sectors are forecast to post
declines. (FT)
10yr US govt bonds closed -3bps/0.62% yield.
The charts below indicate that number of daily unique quotes
from the 10 largest municipal bond dealers have been increasing for
>5yr maturity AAA and AA rated municipal bonds since
early-April, while activity for all other rating categories for the
same maturities has been relatively flat (top charts). However, the
number of $1MM+ sized trades has been flat to slightly lower since
volumes peaked in late-March (bottom charts).
Like US equities, CDX was higher most of the day before
widening on California's announcement and closing lower on the day
across IG/high yield; CDX-NAIG closed +1bp/75bps and CDX-NAHY
+7bps/507bps.
Crude oil closed -1.1%/$40.10 per barrel.
Electric vehicle (EV) startup Rivian has raised USD2.5 billion
in a fresh investment round led by T. Rowe Price Associates,
according to a company press release. (IHS Markit
AutoIntelligence's Jamal Amir)
Rivian's latest fundraising was joined by Soros Fund Management
LLC, Coatue, Fidelity Management and Research Company, and Baron
Capital Group. Existing shareholders Amazon and funds managed by
BlackRock also joined the round.
No new board seats have been added and additional details about
this investment are not being disclosed at this time.
The latest funding round follows an active 2019 for the
company, which brought in USD2.85 billion in funds through four
rounds of investments.
Rivian in February 2019 announced a USD700-million funding
round led by Amazon, followed by a USD500-million investment from
Ford in April 2019 and the two companies will collaborate on a new
EV program.
In September 2019, Rivian announced a USD350-million investment
by Cox Automotive.
Rivian closed the year with an investment round of USD1.3
billion led by T. Rowe Price Associates with additional
participation from Amazon, Ford, and funds managed by
BlackRock.
Rivian is in the later stages of preparing for production. The
company introduced its R1T electric truck and R1S electric sport
utility vehicle (SUV) in November 2018 and plans to begin
production at its plant in Normal, Illinois, in 2021, delayed by a
few months because of the COVID-19 pandemic
Karma Automotive has partnered with China-based intelligent
vehicle company PATEO to improve its vehicle's connectivity. Under
this partnership, Karma will integrate the PATEO Qing Mobile
solution to its Revero GT vehicles. In addition, the companies are
looking for opportunities to jointly develop digital cockpit
solutions. Dr Lance Zhou, CEO of Karma Automotive, said, "PATEO has
been an innovative leader in connected vehicle, intelligent
navigation and comprehensive telematics services for over two
decades. We have been investing in product innovation and working
to leverage new technology applications for Karma vehicles that
improves connectivity. PATEO Qing Mobile is our new solution and we
are excited to be working with the PATEO team to bring this new
advanced technology to market". (IHS Markit Automotive Mobility's
Surabhi Rajpal)
Air Liquide says it plans to invest over $100 million in a new
air separation unit (ASU) on its Gulf Coast pipeline network at
Ingleside, Texas. The move follows the signing of a long-term
agreement with Steel Dynamics (SDI), one of the largest steel
producers and metals recyclers in the US, to supply gaseous oxygen,
nitrogen, and argon to SDI's steel mill at Sinton, Texas. The ASU
will have the capacity to produce over 770 metric tons/day of
oxygen, as well as nitrogen and argon to supply SDI's planned
3-million metric tons/year steel mill starting up in 2021. Air
Liquide will also add 45 kilometers of pipeline connecting SDI to
its Gulf Coast pipeline system, strengthening the company's
position in the US Gulf Coast region and in the growing industrial
basin of Corpus Christi where it has been present since the
mid-1930s. Air Liquide's ability to provide large volumes of oxygen
and nitrogen from Corpus Christi, Texas, to New Orleans, Louisiana,
via its integrated production and supply pipeline network provides
its customers with an enhanced competitiveness over the long term,
the company says. The project will strengthen the US steel industry
through the establishment of the largest steel mill in Texas, says
Michael Graff, executive vice president and executive committee
member at Air Liquide.
Brazil's consumer price index (CPI) increased 0.26% in June
following two months of declines. In the first half of the year
inflation amounted to 0.1%. Economic activity is still depressed
and, thus, inflationary pressures are limited. (IHS Markit
Economist Rafael Amiel)
Inflation in June was driven by higher gasoline prices (up
3.2%) which accounted for more than half of the monthly inflation.
It contributed 14 basis points out of the total 26 (i.e. the 0.26%
inflation reported). In the previous four months, gasoline prices
had declined, driven by low international oil prices.
In addition to transport, two sectors in which inflation was
relatively high were Food and Beverages and Household Items: the
first one strictly related to excess demand pushed by COVID-19
virus-induced behavior and the second one by the depreciation of
the exchange rate, which make imported goods more expensive. Food
inflation in the first half of the year amounted to 4.1%
In the 12-month period ended June 2020, core inflation - which
excludes items with volatile prices mainly related to energy and
food - amounted to 1.4%, and in June the core price index actually
declined.
Annual inflation at 2.13%, at the end of June, and deflation in
the core price index show that the recession still prevails and
keeps inflationary pressures at bay. We expect a significant but
still partial rebound in economic activity and demand during the
third quarter; this will not be enough push up inflation.
An upsurge in Panama's COVID-19 cases will continue to delay
reopening of the economy through July and August. The government
has recently halted reopening plans based on a 145% increase in the
number of COVID-19 cases in the last month, with the country's
intensive care unit (ICU) bed utilization rate almost at capacity,
a critical indicator for the reopening the economy, according to
Minister of Industry and Commerce Ramón Martínez. (IHS Markit
Economists Paula Diosquez-Rice and Veronica Burford)
A slow execution of COVID-19-related funding for businesses and
delays in reopening will increase job losses. Some of the
government measures to help businesses include a moratorium on
taxes and the establishment of a fund for small and medium-sized
enterprises (SMEs) and agro-producers financed through a
USD300-million loan from Inter-American Development Bank (IDB).
Business associations have warned about the need for funds obtained
through the IDB to reach companies quickly. The national union of
SMEs (Unpyme) has anticipated that up to 40,000 SMEs would go
bankrupt due to the COVID-19 virus. In July, the government
announced further support for SMEs via USD20 million in soft loans,
which are expected to start in August 2020.
Protests and strikes are likely by year-end as welfare support
programs are unlikely to be maintained indefinitely. There is a
high likelihood that labor strikes will increase across sectors in
the 12-month outlook, particularly in the public and construction
sectors, because of high job insecurity and likely salary caps,
with previous strikes by powerful construction sector union
SUNTRACS in May 2019 and April 2018 causing significant disruptions
lasting for weeks at a time.
Peru's central bank maintained its expansionary policy stance
during its 9 July monthly meeting. Lima's annual inflation rate
stands below the 2% target rate. (IHS Markit Economist Claudia
Wehbe)
The Central Reserve Bank of Peru (Banco Central de Reserva del
Perú: BCRP) decided to maintain its policy rate unchanged at 0.25%
for the third consecutive month, following a rate cut by 100 basis
points earlier in April during its monthly meeting.
To further support liquidity injection operations, annual
interest rates on the BCRP's window facility operations in domestic
currency with financial entities were left unchanged at 0.15% for
overnight deposits and at 0.50% for direct security/currency repo
and rediscount operations.
Consumer price inflation decelerated to 1.6% in June, down from
1.8% in May, while GDP fell by 40.49% year on year in April,
deepening economic activity loss - April was the first full month
under mandatory quarantine and multiple non-essential business
closures set by Peru's government.
Europe/Middle East/ Africa
European equity markets closed higher across the region; France
+1.7%, Spain +1.5%, Germany/UK +1.3%, and Italy +1.2%.
European govt bonds closed lower across the region;
France/Germany +5bps, Spain +4bps, UK +3bps, and Italy +2bps.
iTraxx-Europe closed -2bps/61bps and iTraxx-Xover
-8bps/369bps.
Brent crude closed -1.2%/$42.72 per barrel.
After extending record supply cuts into July, the OPEC+ group
appears set to formally signal it will start easing production
restraints in August at the virtual JMMC meeting on 15 July. (IHS
Markit Energy Advisory's Roger Diwan, Karim Fawaz, Justin Jacobs,
Edward Moe, and Sean Karst)
Assuming the group sticks to their pre-agreed schedule, this
next phase will entail an easing of aggregate cuts from 9.6 MMb/d
to 7.7 MMb/d for a duration of six months, a 1.9 MMb/d
month-on-month increase in supply beginning in August.
Commitments by countries that under-complied in past months to
compensate with larger cuts through September will likely be used
to allay market fears of a sharp surge, but the reality remains
that the sequential increase will be sizeable and marks the first
real test of the resilience of the demand recovery.
Brent opened the pivotal week flat at around $43/bbl, where it
has been rangebound for several weeks.
The market will now have to gauge the ongoing balance between
recovering global oil demand, amid a slowdown in Chinese crude
buying, and the combination of returning OPEC+ volumes and easing
US and Canada shut-ins, all of which are swinging on an
unprecedented scale.
Demand is still facing a formidable foe, and mobility
indicators have started to point to a deceleration in the activity
recovery rate worldwide, partly from renewed outbreaks and partly
from sectoral trends.
Worsening outbreaks throughout the Southern US, Latin America
and localized shutdowns in India go to show that the road back will
be far from smooth. OPEC+ may have its hands on the steering wheel,
but the road ahead could well entail some swerving.
The Financial Stability Board (FSB) and the Basel Committee on
Banking Supervision (BCBS) on 9 July jointly published a report
titled 'Supervisory issues associated with benchmark transition'.
Three main policy priorities were suggested. (IHS Markit Economist
Brian Lawson)
National bodies are requested to promote awareness of the
transition and undertake regular surveys and inquiries to monitor
progress.
Authorities are urged to establish formal strategies for the
transition and increase the "intensity of supervisory actions"
where bank preparations appear inadequate.
Authorities should promote a co-ordinated approach, both across
the banking sector and between different regulatory bodies on best
practices and challenges.
The FSB will seek a global perspective to monitor the progress
of the transition and report to the G20, for which LIBOR transition
is a priority.
Data from Statistics Denmark show that in June 2020, consumer
price inflation increased by 0.3% year on year (y/y) or 0.1% month
on month (m/m). This comes after two months of annual inflation at
0%. (IHS Markit Economist Daniel Kral)
Overall in June, prices of goods decreased by 0.6% y/y, while
services were up by 0.9% y/y. Core inflation, which excludes food
and energy, came in at 0.9% y/y, slightly above the 0.7% average in
the preceding 12 months (Chart 1).
On an annual basis, the largest drag on headline inflation was
in transport, which subtracted 0.2 percentage points (pp), down
from 0.5pp in May. Restaurants and hotels subtracted 0.13pp in
June, likely reflecting discounting to stimulate activity.
On a monthly basis, the largest increases were in food and
non-alcoholic beverages, up 0.4% m/m, and alcoholic beverages and
tobacco, up 0.3% m/m. Transport rebounded by 1.6% m/m, reflecting a
partial recovery in global oil prices, although the subcomponent
still remains the largest drag in annual terms.
Although the Danish government has eased many COVID-19
virus-related restrictions, sufficient activity to pose overall
upward price pressures will take some time. We expect headline and
core inflation to remain subdued.
The Bank of Italy estimates that the impact of the COVID-19
virus pandemic on the economy during the second quarter of 2020 was
severe. (IHS Markit Economist Raj Badiani)
The containment measures implemented from 22 March shut
non-essential activities for the whole of April, which account for
about one-third of total value added. The central bank observed the
steady reopening of suspended activities from May to being complete
during June.
The central bank believes the Italian economy shrunk by 'around
10% quarter on quarter (q/q)' in the second quarter, according to
its July economic bulletin, after a 5.3% q/q drop in the first.
This implies Italy remains in a technical recession (defined as two
successive quarters of q/q decline) after contracting by 0.3%q/q in
the fourth quarter of 2019.
According to IHS Markit's June forecast, we estimate that real
GDP shrunk by 13.7% q/q in the second quarter.
Slovakia's seasonally adjusted industrial output surged by
19.7% m/m in May, but this figure is far from sufficient to make up
for the steep March-April declines. Working-day-adjusted industrial
production plunged by 33.5% y/y. (IHS Markit Economist Sharon
Fisher)
While the y/y declines in the mining and utilities sectors
remained in single digits, manufacturing was the driving force
behind the poor May results. Slovakia's automotive plants have
gradually restarted production, but transport equipment
manufacturing continued to fall sharply (down by 56.9% y/y; worse
than the 45.2% drop reported in neighboring Czechia).
The poor May manufacturing results translated into a continued
weak export performance, falling by 33.9% y/y in euro terms.
Imports fell even faster (down by 35.8% y/y), contributing to an
improvement in the monthly trade balance.
Other recent releases have been more favorable. Although
construction activity fell by 12.4% y/y in May, seasonally adjusted
construction activity rose by 2.0% m/m, signaling that a recovery
is under way.
Real, seasonally adjusted domestic trade data for May showed
mixed results, with a m/m improvement in restaurant services (up by
26.1%), motor vehicles (up by 16.7%), and retail sales (up by 2.8%)
matched by an 8.5% drop in accommodation services. In real,
unadjusted terms, retail sales fell by 8.9% y/y, while automotive,
restaurant, and hotel sales dropped considerably faster.
Asia-Pacific
APAC equity markets closed higher across the region; Nikkei
+2.2%, China +1.8%, South Korea +1.7%, Australia +1.0%, and Hong
Kong +0.2%.
China's new aggregate financing, the widest measure of net new
financing to the real economy, increased by CNY3.43 trillion in
June 2020, up by CNY240 billion from the previous month, according
to a release by the People's Bank of China. Stock total social
financing (TSF) increased by 12.8% year on year (y/y), 0.3
percentage point up from May. (IHS Markit Economist Yating Xu)
Bank loans increased by CNY1.81 trillion in June and loans
injected to the real economy increased by CNY1.9 trillion.
Household loans registered the largest monthly increase since the
beginning of this year as new short-term loans rose, with recovery
in private consumption and a booming real-estate market continuing
to boost medium- and long-term term loans.
Acceleration in infrastructure investment led new corporate
medium- and long-term loans to rise by 95.8% y/y, following 96.5%
y/y and a 110.2% y/y expansion in April and May, respectively,
while receipt financing declined further.
Off-balance-sheet financing, including entrusted loans, trust
loans, and undiscounted bankers' acceptance, increased by CNY85.3
billion in June, compared with a CNY212.3-billion decline a year
ago. Government bond financing rose as CNY210 billion worth of
special national bonds were issued in June.
Broad money supply (M2) growth remained at 11.1% y/y for a
third consecutive month with the expansion in credit and financing,
while M1 growth fell due to a high-base effect. Fiscal deposit
declined by more than CNY110 billion compared with the same period
last year, reflecting the acceleration of fiscal stimulus.
Meanwhile, household deposits continued to rise.
TSF increased by CNY20.8 trillion in the first half of the
year, with new bank loans reaching a historic record of CNY12.1
trillion.
CNY780 billion worth of special national bonds will be issued
in July and are expected to support government bond financing
accordingly.
China's Dalian Commodity Exchange (DCE) on July 6 officially
launched polypropylene (PP), PVC and linear-low density
polyethylene (LLDPE) options, marking the first time that three
options in the same industry are simultaneously launched, the
exchange said in a statement. There are 10 options series (July
2020-May 2021) launched for each of the three chemicals, with a
total of 1,174 contracts. September series is the benchmark, with
trading volume for PP, PVC and PE accounting for 77%, 85% and 79%
of total lots traded respectively. Fang Xinghai, vice-chairman of
the China Securities Regulatory Commission (CSRC), said in his
speech that to accelerate the listing of options products was a
concrete measure taken by the CSRC to follow through the
instructions of the CPC Central Committee and the State Council on
accelerating the development of the capital market. This is to
ensure stability on six fronts -- employment, the financial sector,
foreign trade, foreign investment, domestic investment, and
expectations -- and security in six areas -- job security, basic
living needs, operations of market entities, food and energy
security, stable industrial and supply chains, and the normal
functioning of primary-level governments.
The Chinese vehicle market experienced a strong month in June.
New vehicle sales on a wholesale basis increased by 11.6% year on
year (y/y) to 2.3 million units during the month, while production
rose by 6.3% y/y to 2.325 million units, according to preliminary
data from the China Association of Automobile Manufacturers (CAAM).
(IHS Markit AutoIntelligence's Nitin Budhiraja)
In the YTD for June, China's new vehicle sales are down 16.9%
y/y at 10.257 million units, while production volumes have fallen
by 16.8% y/y to 10.112 million units.
The passenger vehicle (PV) market posted an increase of 1.8%
y/y to 1.764 million units last month, while PV production
increased by 12.5% y/y to 1.798 million units.
The CAAM definition of passenger vehicles includes sedans,
sport utility vehicles (SUVs), multi-purpose vehicles (MPVs), and
minivans. In the YTD, sales of PVs are down 22.4% y/y at 7.873
million units, while production of PVs has fallen 22.5% y/y to
7.754 million units.
Sedan sales in the YTD declined by 26% y/y, SUV sales fell by
14.9% y/y, MPV sales dropped by 45.7% y/y, and microvan sales fell
by 19.8% y/y.
Commercial vehicle sales surged 63.1% y/y to 536,000 units
during June, contributing to the strong rebound in new vehicle
sales. Commercial vehicle production increased 77.9% y/y to 527,000
units.
In the YTD, sales of commercial vehicles are up by 8.6% y/y at
2.384 million units, while production of commercial vehicles has
increased by 9.5% y/y to 2.359 million units.
Broken down by vehicle type, heavy-truck sales increased 63.3%
y/y to 169,000 units in June, while sales of light trucks grew by
81.5% y/y to 237,000 units.
Sales of new energy vehicles (NEVs), which include battery
electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs),
and fuel-cell vehicles (FCVs), declined 33.1% y/y to 104,000 units
in June, while NEV production fell by 25.0% y/y to 102,000
units.
Sales of BEVs fell by 37.6% y/y to 82,000 units in June, while
production of BEVs dropped 31.9% y/y to 79,000 units.
Sales of PHEVs totaled 21,000 units, down 6.0% y/y, in June,
while production of PHEVs increased 17.0% y/y to 23,000 units.
In the YTD, sales of NEVs are reported at 393,000 units, down
37.4% y/y, while NEV production volumes are down 36.5% y/y to
397,000 units.
NIO has secured CNY10.4 billion (USD1.4 billion) in credit
limit from six Chinese banks including Bank of China and China
Construction Bank, according to China Daily. According to a
statement by the automaker, "Nio China will work with the banks
extensively in corporate account system building, supply chain
financing and auto financing to other business". The deal, which is
expected to improve NIO's financial strength, came around two
months after NIO entered into definitive agreements for investments
with a group of investors led by Hefei City Construction and
Investment Holding (Group), CMG-SDIC Capital, and Anhui Provincial
Emerging Industry Investment. (IHS Markit AutoIntelligence's Nitin
Budhiraja)
Chinese city of Shanghai has opened a 30.6-kilometre downtown
road for autonomous vehicle (AV) testing, reports Xinhua News
Agency. This is the first open road for AV testing in the downtown
area located in the city's Pudong New Area. Shanghai previously
opened test roads in the Fengxian, Jiading, and Lingang areas in
the city's suburbs. Shanghai opened its first road section for
testing of intelligent connected vehicles (ICVs) in March 2018. By
2019, the city had allocated 53.6 km of road for AV testing,
covering 1,580 different scenarios. In 2019, a total of 11
companies received permits for AV testing from the Shanghai
authorities. In August 2019, the port town of Lingang in Shanghai's
free trade zone opened a testing zone for ICVs, called Future LAIV.
(IHS Markit Automotive Mobility's Surabhi Rajpal)
Honda Motor will buy a 1% stake in Chinese battery maker
Contemporary Amperex Technology Company Limited (CATL) to jointly
develop batteries for electric vehicles (EVs), according to
Reuters. The companies will also research a battery recycling
business. The Japanese automaker further plans to launch its first
EV with CATL's battery in China in 2022. CATL is a leading battery
supplier in China, supplying batteries to global automakers
including BMW, Honda, Nissan, Volkswagen, and many others. CATL
will help Honda to integrate resource advantages in the EV industry
and accelerate electrification. (IHS Markit AutoIntelligence's
Nitin Budhiraja)
Japan's National Veterinary Assay Laboratory (NVAL) has
revealed the latest sales figures of antibiotic and synthetic
antibacterials by species. In 2018, the most recent year for this
information, ¥16,876 million ($157 million) of antibiotics were
sold. Of this total, ¥6,568m was for pigs (39%) and ¥4,008m was for
dogs and cats (24%). ¥3,824m was used for cattle (23%), ¥1,609m for
aquaculture (9%), ¥861m for poultry (5%) and ¥12m used for horses.
The main synthetic antibacterials were fluoroquinolones (¥4,402m or
56%), florfenicols (¥2,544m or 32%) and sulfonamides (¥975m or
12%). Of the ¥7,921m in total synthetic antibacterials, ¥2,482m was
used for pigs (31%), ¥2,351m for cattle (30%), ¥1,645m for dogs and
cats (21%), ¥1,210m for poultry (15%), ¥198m for aquaculture (3%)
and ¥31m for horses. According to the NVAL and the Japanese
Ministry of Agriculture, Forestry and Fisheries, sales of
antibiotics and anthelmintics have been slowly increasing in recent
years. (IHS Markit Animal Health's Dr Atsuo Hata)
As lockdown restrictions on India industrial production were
eased on 22 April and again in early May, the pace of contraction
in industrial production moderated to 34.7% year on year (y/y) in
May compared with a 57.6% y/y decline in April. Manufacturing
output, which accounts for 77.6% of the total industrial production
index, declined by 39.3% y/y in May, compared with a contraction of
67.1% in April. (IHS Markit Economist Rajiv Biswas)
Despite the improvement in May, many manufacturing sectors of
continued to record severe declines in output on a y/y basis. Among
the worst-affected sectors in which production was still at very
low levels were the motor vehicles and other transport equipment,
electrical equipment, computers, electronic and optical products,
fabricated metal products, leather products, textiles, and tobacco
sectors.
Sectors that continued to produce a significant proportion of
their normal production capacity included food products, refined
petroleum products, and chemicals.
The pharmaceuticals sector was the only manufacturing industry
to record growth in May, growing by 2.5% y/y owing to the COVID-19
pandemic-related rise in demand for pharmaceutical products from
the domestic market as well as for export abroad. Many countries
had requested for Indian exports of pharmaceutical products
required for treating COVID-19 patients, thus boosting export
orders.
Among the major industry sector groups, production of consumer
non-durables, such as essential food products, was the most
resilient, contracting by 11.7% y/y, much improved compared with
the 48.7% y/y decline in April. Production of consumer durable
goods such as automobiles contracted by 68.5% y/y in May, much
improved on April, when output came to almost a complete halt,
resulting in output falling by 96.0% y/y.
Production of capital goods fell by 64.3% y/y in May, which -
although still a severe decline - is an improvement from the 92.6%
y/y contraction in April.
Production of infrastructure/construction goods declined by 42%
y/y in May, also improving on the 84.7% y/y drop in April.
Tata Motors, including Jaguar Land Rover (JLR), recorded a 64%
year-on-year (y/y) decline in global wholesale deliveries to 91,594
units during April-June, according to a filing with the Bombay
Stock Exchange (BSE). (IHS Markit AutoIntelligence's Isha Sharma)
Global wholesale deliveries of its commercial vehicles (CVs)
and Tata Daewoo range declined 89% y/y to 11,598 units during the
second quarter, while its passenger vehicle sales fell 49% y/y to
79,996 units.
Global vehicle shipments by the JLR division accounted for
65,425 units, including volumes from CJLR, a joint venture (JV)
between JLR and China's Chery.
Sales of Jaguar-brand vehicles stood at 17,971 units during the
second quarter, while Land Rover brand's sales totaled 47,454
units.
Indian company Sharda Cropchem (Mumbai) recorded a 19.3% rise
in agrochemical revenues to Rs 8,223 million ($110.2 million at the
current rate) in its fourth quarter ended March 31st, 2020.
Agrochemicals made up an increased share of total sales at 93.9%
against 90.3% the previous year. Total sales were up 14.7% at Rs
8,756 million ($117.3 million). Agrochemical business was up in all
regions. It grew by 23.1% in Europe, 13.8% in the NAFTA region, 10%
in Latin America excluding Mexico, and by 25.4% in the rest of the
world. There was a strong switch to sales of formulations from
active ingredients. The former grew from 85.9% of agrochemical
business to 95.8%. Profit before tax on all business increased by
10.4% to Rs 1,381.3 million. Earnings before interest, tax,
depreciation and amortization jumped by 48.2% to Rs 2,336 million.
The EBITDA margin rose by six percentage points to 26.7%. (IHS
Markit Crop Science's Robert Birkett)
Posted 13 July 2020 by Chris Fenske, Head of Capital Markets Research, Global Markets Group, S&P Global Market Intelligence
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