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Self-Driving Cars Are Good For Some, But…

27 June 2017 by lberuti

Except CDXHY in the US which benefitted from the strength of oil and finished unchanged, the credit market was weak across the board after Mr Draghi’s change in language. The president of the ECB hinted at tapering for the first time today, and said that “deflationary forces have been replaced by reflationary ones”. The comment took the market slightly off guard mid-morning. SHAEFF ( Schaeffler AG ) also surprised investors and was under pressure long before Mr Draghi’s comments. The German auto-parts maker cut its 2017 profitability forecast, citing price pressure and rising investments to keep up with the industry’s accelerating switch to electronics. The profit warning stoked concerns about parts manufacturers’ ability to support the industry shift to electric, self-driving vehicles that do not require clutches or other transmission parts. The main casualty was SHAEFF’s stock which was marked down almost 15%, but the company’s 5-year risk premium was not spared either and finished the day 6bps wider at 85bps.