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BCN-41
GERMANY-US-AUTOMOBILE-TRADE-VW
‘New phase’ in EU-US trade lifts BMW, VW shares
FRANKFURT AM MAIN, July 26, 2018 (BSS/AFP) – Shares in German carmakers
BMW and Volkswagen surged more than 4.0 percent Thursday morning before
falling back, as investors welcomed an EU-US agreement to smooth over trade
differences that could have harmed the industry.
Volkswagen stock was up 3.0 percent at 150.32 euros ($176.28) by 0750 GMT,
while BMW had gained 2.4 percent to trade at 81.81 euros, against a DAX index
of blue-chip German shares up 1.35 percent.
But Mercedes-Benz Daimler lost out, shedding 0.5 percent to trade at 57.58
euros after reporting disappointing second-quarter results.
US President Donald Trump and EU Commission President Jean-Claude Juncker
said Wednesday they would launch a “new phase” in the transatlantic trading
relationship.
Juncker had travelled to the White House for last-ditch talks to fend off
American tariffs on car imports.
Trump had previously ordered the Department of Commerce to look into
charging border taxes of up to 25 percent on vehicles from the EU.
Washington and Brussels will “work together towards zero tariffs, zero
non-tariff barriers, and zero subsidies on non-auto industrial goods,” Trump
said.
In addition, the EU has made a commitment to buy US soybeans and natural
gas.
“Obviously the European Union, as represented by @JunckerEU and the United
States, as represented by yours truly, love each other!” Trump tweeted, along
with a picture of him and Juncker embracing.
German Economy Minister Peter Altmaier tweeted: “Congrats to @JunckerEU,
@realDonaldTrump: Breakthrough achieved that can avoid trade war & save
millions of jobs! Great for global economy!”
BSS/AFP/HR/1428