How South Korean Exports Are Affected By China’s Slowing Economy | Before & After | Refinitiv

TL;DR

ThyssenKrupp faces an existential crisis with declining stock prices and a lack of positive prospects, while South Korea's export orders continue to decline, impacting the country's equity market.

Transcript

Welcome. This is before and after the twice weekly markets show from Refinitiv. In this episode's before section, we will discuss ThyssenKrupp's, upcoming earnings reports and the pending South Korea exports announcements as they try to avoid a 12th straight decline. The after segment looks at the stronger than expected U.S. retail sales reports an... Read More

Key Insights

• 🤨 ThyssenKrupp's declining stock prices and lack of a clear survival plan raise concerns about the company's future prospects.
• 🌸 The manufacturing sector slowdown has had a significant impact on ThyssenKrupp and the German government, causing cash losses.
• 🇰🇷 South Korea's declining export orders, particularly in the semiconductor sector, affect the country's equity market, but there may be opportunities for bottom fishing on a potential rebound.
• 💪 October's stronger-than-expected retail sales, driven by auto and internet sales, indicate positive performance for companies like Walmart.
• 🇰🇷 Investments in South Korea's equity market, through ETFs like EWY, may be balanced with shorts in Taiwanese ETFs like EWT, which is exposed to semiconductors.
• 🪡 Ford experienced a positive market response to the retail sales report, but sustained buying volume is needed to confirm its impact.
• ❓ Internet sales continue to show significant growth, with even traditional retailers like Walmart reporting robust performance.

Questions & Answers

Q: Why has ThyssenKrupp's stock price declined, and what actions have they taken to address their financial situation?

ThyssenKrupp's stock price has fallen due to an unsustainable business model and concerns about their lack of a survival plan. The company has resorted to selling valuable assets to cover losses and pensions.

Q: How has the decline in the manufacturing sector affected ThyssenKrupp?

The manufacturing sector slowdown has greatly impacted ThyssenKrupp, placing the company at the center of this decline. Their earnings are expected to reflect this, potentially leading to a significant decline in stock prices.

Q: Why have Korean export orders been declining, and how does it affect the country's equity market?

Korean export orders have been declining due to the economic slowdown in China, which is Korea's largest trade partner. This decline has negatively impacted the country's equity market, making it an attractive option for bottom fishing on a potential rebound in global trade.

Q: How has October's retail sales performed, and what does it mean for companies like Walmart?

October's retail sales came in stronger than expected, driven by a rise in auto sales and double-digit growth in internet sales. This positive performance bodes well for companies like Walmart, which reported a significant increase in online sales.

Summary & Key Takeaways

• ThyssenKrupp, a German multinational conglomerate, is struggling with a decline in stock prices and has resorted to selling assets to cover losses, causing concern in the German government.

• The manufacturing sector slowdown has affected ThyssenKrupp, leading to uncertainty about the company's future prospects.

• South Korea's export orders have been consistently declining, with the semiconductor sector being particularly affected. However, the country's equity market may see a rebound due to the potential influx of funds from Asia ex China investments.