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U.S. high-yield credit in the autos, aerospace, and energy sectors are likely to underperform if Kamala Harris wins the U.S. election, UBS Global Research strategists say in a note. "We see autos again underperforming, ditto aerospace or defense on a less supportive agenda for defense spending, and energy on a more constrained agenda around production and regulation," they say. The autos sector is likely to be impacted by the shift to "less profitable" electric vehicles, the strategists say. Meanwhile, U.S. investment-grade basic industry, capital goods and utilities bonds are expected to outperform if Harris wins the election, likely on the preservation of the Inflation Reduction Act and other Biden-era stimulus policies, UBS says. ([email protected])
China's decision to temporarily pause dumping measures against brandy imported from the European Union comes as a relief, but European spirits companies aren't out of the woods yet, Stifel analyst Cedric Lecasble writes in a note. On Thursday, the Chinese commerce ministry halted punitive measures but said the probe showed that brandy imports from the bloc had hurt local competitors. "The investigation is still ongoing and the risk of seeing tariffs applied is still very real," the analyst says. The probe, launched in January, could take up to a year and a final decision is expected by early 2025 at the latest, Stifel adds. Shares in Pernod Ricard and Remy Cointreau were up 2.8% and 4.2%, respectively, while those in Davide Campari-Milano and Diageo traded 1.3% higher and 0.3% higher, respectively. ([email protected])
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