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On The Road Again?

13 October 2015 by lberuti

The automotive sector had a tough month of August because of emerging markets related worries. This wobble was actually made look like a walk in the park by the rollercoaster that followed the emissions scandal which begun a month later with VW ( Volkswagen AG ) and eventually affected all the car manufacturers. Investors are still licking their wounds and the sector looked like it could stage a recovery, as risk premia steadly came back down since the beginning of October. But today the negative newsflow resumed, with disappointing statistics out of China, where, despite some tax breaks, car sales only rose modestly in September against the backdrop of a slowing economy. PEUG ( Peugeot SA ) was one of the most affected and saw its 5 year CDS widened by 11bps at 336bps, but RENAU ( Renault SA ), TTMTIN (Jaguar Land Rover Automotive Plc), and FIAT ( Fiat Chrysler Automobiles NV ) all suffered.