Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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February 28, 2024

EV market under pressure

Macro

US durable goods orders were down 6.1% MoM in January, weaker than expected and sharply lower than the prior month.

US Q4, QoQ GDP data will be released later today, where growth should slow to 3.3% versus the unsustainable 4.9% Q3 print.

January PCE core inflation out tomorrow will indicate an increase from 0.2% MoM to between 0.3% and 0.4%. As the fed’s favourite inflation measure, this print will be looked at carefully for clues of re-emerging inflationary pressure.

There has been a spate of negative EV news in recent days. The FT reports that the UK is looking into concerns of China “dumping” cheap imports, Apple is to close its secretive EV project, which it has been funding for ten years and employs 2,000 people, and UK-listed Saietta, a specialist e-drive supplier to various EV markets is fighting for financial survival.

UK Companies

Warehouse landlord Segro has raised £900m of equity to acquire more sites.

Halfords has issued another profit warning saying that retail cycling and motor markets have been impacted by a combination of continued weak customer confidence and unusually mild and very wet weather. It continues to see good growth in its auto servicing centres.

Taylor Wimpey reported that its FY23 results were mainly as previously guided. Completions were 10,848, down from 14,154 last year. Its sales rate moved to 0.67 per week vs 0.62 previously. It plans to build 9,500-10,000 homes in the UK, with a 55% weighting towards 2H, in the current year.

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