Metals is already weak, with structural challenges.
In energy we find significant risk ahead for U.S. Lockdowns will hit sales badly in non-food retail and squeeze margins of already vulnerable companies. The impact in the electronics sector is most felt in APAC, with low value-added players at risk across all regions. In automotive, the strong dependency on the top three markets is aggravating ongoing structural challenges. Here are the main findings by sector: The lockdown of one third of world population is wreaking havoc on transportation, especially the air transport segment, which could receive public support. However, North America is not immune with three downgrades in the U.S. The bulk of downgrades occurred in Western Europe (52) – the region with the highest number of countries (17) ahead of Asia and Central & Eastern Europe (29 and 14, respectively). Overall, Western Europe and Asia are the hardest hit. And within the retail sector, Asia-Pacific discretionary retailers have been hurt badly by prolonged store closures and the collapse of Chinese tourist flows. The electronics sector is battling a demand-driven deterioration in Europe, with expectations of much weaker electronics sales to local industries. Retailers/ wholesalers are on the front line, but suppliers are not immune, in particular to cross-country supply-chain risks. The global market is facing a slump of over -10% in 2020 (after -4% in 2019). Meanwhile, the pandemic is exacerbating problems for the automotive sector, already struggling with existing structural challenges. Collapsing stock prices are also jeopardizing indebted and unprofitable (low-cost) airlines. Global lockdowns are wreaking havoc on airlines, with the RPK or Revenue Passenger Kilometers for top air carriers plummeting by -40% since last December. Which global sectors are most at risk? Transportation, automotive, electronics and retail.
0 kommentar(er)
