Oct 27, 2022

BASF, Michelin Warnings Lay Bare Crippling Energy Woes

(Bloomberg) — European industrial leaders from French tiremaker Michelin to German chemical giant BASF SE are starting to crack under the weight of record energy and raw material prices, sending an ominous signal to the region’s broader economy.

Luxury-car maker Mercedes-Benz AG added to Michelin and BASF’s warnings on Wednesday about the outlook for Europe and the US, cutting its sales outlook for those regions as consumers face high inflation and rising interest rates.

“Investors have been worried about inflation effects for a long time but now this is really starting to come through in the numbers,” said Matteo Brancolini, a fund manager at BPER Banca in Milan. “It spells trouble for many companies in Europe …

Source: Bloomberg

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