Bloomberg Daybreak: Mortgage Rates, Denmark Election, BYD Earnings

This is Bloomberg Daybreak Weekend, our global look at the
top stories in the coming week from our daybreak anchors
all around the world. Straight ahead on the program, A
look at what we can expect for US mortgage rates
in twenty twenty six. I'm Alexis Christophers in New York.
I'm Calain Hepkeahey in London, where we discussed the snap
election in Denmark shaped by the standoff with President Trump
over Greenland.
I'm Doug Krisner looking at earnings in the coming week
for the Chinese ev Maker byd.
That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg
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dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak Weekend, our global look at the
top stories in the coming week from our day break
anchors all around the world. Straight ahead on the program,
A look at what we can expect for US mortgage
rates in twenty twenty six. I'm Alexis Christophers in New York.
Good day to you. I'm Alexis Christophers. We begin today's
program with a look at US mortgage rates for more
on what we can expect this year. We're joined by
Erica Aidelberg, Bloomberg Intelligence Chief mortgage backed securities strategist.
Erica.
Great to have you here, So glad you're on the
show because this is a hot topic right now. Mortgage rates.
We saw them rise last week to the highest level
so far this year. Big drop in refinancings as well.
What's going on in the mortgage market.
Hi, thank you for having me on. A Good morning
to you. Yeah, mortgages, mortgage rates in particular, are right
at that interesting cusp where there's been so many barbers
who had to take out mortgage at a higher rates
over the past four years that we're told to we
like to say, date the rate, marry the house. So
a lot of these borrowers really had to stretched to
take out these mortgage rates. And at the same time,
since these were the highest mortgage rates in about twenty years,
they were acutely aware that they were locking in relatively
high mortgage rates, were hoping to be able to refinance,
and in fact, some of them were really hoping because
they'd really stretch to take out these mortgage rates. We
saw a thirty percent drop in refinancing applications just based
on this very small shift back upwards and rates, and
we could talk about what caused that as well, and
that what that really highlights is just the huge percentage
of borrowers who are right on that cuspoer refinancing, and
a thirty percent drop one way or or increase one
way or the other could really make or break a
year for like a mortgage banker.
For instance.
Sure, so what we're also saying is that mortgage bankers
themselves are really intent in getting as many of these
refinancings through the pipeline as quickly as possible as they can.
Before rates going before rates go higher for us, what
about fifteen year? Where is that sitting at the moment?
Which I know that's more popular with refinancers.
Yeah, it is more popular with a lot of refinancers. However,
it encurs quite a bit of higher payment. You know,
a lot of times when that is in fact a
popular item, it's because there's been enough home price appreciation
or enough seasoning in the mortgage loans that it makes
sense. You know. For instance, I even
refinanced into a fifteen year a few years ago because
we had a thirty year mortgage and if we'd refinanced
into another thirty year mortgage, our whole stream, but our
whole interest stream, would have been higher.
Sure, is this really all about the war with Iran,
what it's doing to the oil markets and how that
can be inflationary And we've seen how that has impacted
the ten year treasury, and the thirty year is very
closely tied to the ten year treasury, more so than
what the Federal Reserve does, of course with its overnight
interest rate. So is that what's behind this this rise,
this re rise in mortgage rates.
That's an excellent question. And just for the fun of it,
recently I was working on a note where I was
looking at the correlation between say, mortgage rates or mortgage
spreads and oil rates. Pretty much no correlation, ok, you know,
I mean, you know, you can see times, but what
really is driving this? As you said, the key here
is what it's doing to inflation expectations, and more importantly,
it's also creating a lot of uncertainty about what the
fen's going to be able to do, what direction rates
are going to be able to go. What does uncertainty mean.
Uncertainty means increases in volatility, both implied in actual rate volatility. Now,
volatility is a huge driver of mortgage spreads because mortgage
borrowers have the option is what it's called an option
to refinance or just not move any time they want.
So as a result, the higher volatility is, the harder
it is to hedge that borrower option, and the more
expense of the wider spreads need to be to both
in tract investors, but also for the rate the lenders
are willing to offer the primary rate. And on top
of that, you have added to that the fact that
if inflation is expected to increase, mortgage rates are probably
going to follow as quickly, which means long term rates
have also risen, as you pointed out, which includes ten
your treasury. So you have the actual base case rate,
the ten your Treasury rate rising, and you have mortgage
spreads widening because of this increase in volatility generated by
the uncertainty of what's going to have with oil and
the war in general.
Are you thinking we might see a thirty year back
at seven percent again sometime soon, especially if the war
drags on.
You know that that would be a really tough question.
I actually didn't see the beginning above seven percent in
the first place. You know, I don't think that's certainly
the long term equilibrium. I don't have a crystal ball,
but it does seem to me that the widening of
mortgage breads that we saw that contributed to how high
mortgage rates got in twenty two twenty three was mostly
because the Fed had just started running off its portfolio.
It was still in tightening mode, which is certainly not
my base case expectation.
Oh thanks to Erica Aidelberg, Bloomberg Intelligence Chief Mortgage backed
security strategist. Let's take a look now at some stocks
making news in the week ahead. I'm Alexis Christoffers with
Tatiana dari a Bloomberg strategist for Markets Live. Tatiana, you
brought three names with you. Let's begin with if you're
a pet owner, you know them well.
Chewy Chewey exactly. Chewey will report fourth quarter earnings and
next week, and analysts are expecting a solid profit increase
versus the year ahead. And that may come to how
the stock revive some of that momentum because it has
come under pressure this year on concerns over growth and
the profitability outlook for this year and next year. And
analysted Morgan Stanley expect this print to set the tone
for the year ahead, and they expect full year guidance
of about seven to seven and a half of revenue growth.
So remember that number because anything less than that could
come to pressure the stock again. The company you know
has named the new CFO in February reaffirmed its financial outlook,
so it has tailwinds in place. Its revenue has been
steadily climbing through the years, even as we've seen consumers
come under pressure from all prices rising elsewhere. Basically, so
it has it has a momentum there. It's just that
when people are looking ahead, they're concerned about consumers pulling
back now with high oil prices, So we sort of
need to see revenue outlook and that guidance be lifted
so that the stock investors feel more reassured.
That was interesting when you talk about consumer spending, because
sometimes we'll pull back on things for ourselves, but I
think history has shown people don't necessarily pull back for
their pets. They're still going to pay for their pets. Also,
they have their Chewy Vet clinics that I guess are
in stores. I understand that's going to be a bigger
part of the Chewy story, I guess in twenty twenty six.
Yes, exactly a push there. And they also have their
sort of revenue or their online platform or you can
schedule deliveries, and that's also been a big focus for
the company and for the stock. But yet again, as
those growth concerns have been battering the stock, it will
be very important for them to go back to what
analysts have been saying to a beat and raise cadence right,
which they have not had in recent quarters. We have
a great function on the terminal where you could see
how results have been coming in pitted against expectations, and
five or four of the past five have not really
been great. The last one was better, which sets up
hopes that this one will come in also better than expiring.
And just want to add Morgan Stanley kept its overweight
rating on Chewy, trimming its price target to fifty dollars
from fifty one, saying the stock is offering a quote
compelling entry point following its recent decline, So Chewy on
the move here in the coming week. Also beyond Meat,
which I know is dropping the name meat from its
from its official title, right, tell us what we can
expect there.
Well, the maker of alternative meat product is also did
to report, but expectations here are much lower because they've
already reported preliminary revenue and it came below expectations. With that,
they also said that they will delay the filing of
their ten K annual report because the company requires additional
time to complete a review and analysis related to its
inventory balances. And you know when you get messages like that,
that always books the market. And this is something that
this company did not need because if you look at
the long term chart, the stock has fallen dramatically since
it's much talked IPO in twenty nineteen. It's lost more
than ninety percent of its value since then. So it
really doesn't have a good story. It keeps getting worse,
and it doesn't have a good track record when it
comes to earnings either. Four of the past five quarters
have seen earnings really disappoint expectations and shares fall as
a result. So the bar is pretty high here for
a surprise.
Yeah, and you know, I know they're trying to expand
beyond fake meat. They're rebranding as Beyond the Plant Protein Company.
They're introducing these new products like high protein sparkling drinks
and what they call simplified plant protein foods. We'll see
if it's you know, that's what it takes to turn
things around. All right, let's squeeze Carnival in here, the
cruise line. How are they doing or how are they
expected to do?
Carnival of reports before the ball in March twenty seven.
What the street wants to know here is how much
will higher oil prices impact it's your head outlook. This
is sort of the big question when it comes to
earning forecasts just overall. In the S and P. Five hundred,
but specifically to Carnival, Morgan Stanley identified the name as
the most exposed among cruise liners to oil prices because
it does not hedge, which they reckon that this would
translate into about a forty five hit hit to its
EPs outlook, or that's about a twenty percent hit to
its overall guidance if you want to think in percentage terms. Okay, well,
if you look at the stock, that's about how much
it has fallen since the war has started. So basically
you could argue that the market has baked that in already. Okay,
But although this is an estimate, not a confirmation from
the company, so we'll have to see if that comes
in a sort of a higher or lower than expected.
But the point is that the market has already baked
in some bad news. Now we have to see how
bad will the news actually be.
And Carnival will have to see whether or not they
pass those higher fuel costs on to consumers in the
way that some of the airlines are doing that. I
know some international airlines are charging fuel surcharges, but some
American airlines, US based airlines, i should say, are adding
it to the ticket price, to higher ticket prices. And
whether or not that's going to i mean, a slower
summer travel season. Right now, it doesn't look like it's
going to be lots to look forward to on the
earnings front in the weeks ahead. We're going to leave
it there are thanks to Tatiana Darier, Bloomberg strategist for
Markets Live. Coming up on Bloomberg Daybreak weekend, there is
an election in Denmark. This week we bring you a preview.
I'm Alexis CHRISTOPHERUS and this is Bloomberg. This is Bloomberg
Daybreak weekend, our global look ahead at the top stories
for investors in the coming week. I'm Alexis CHRISTOPHERUS. This
week brings us an election in Denmark, and Daybreak Europe
anchor Caroline Hepger is here with a preview.
Caroline Alexis Metafriedrickson's party was polling at historically low numbers,
but barely a month ago the Danish Prime Minister called
a general election.
Now.
Proportional representation means that there are more than a dozen
political parties running in this vote, with governments in Denmark
usually formed from parties within two main blocks, either the
blue block on the right or the red block on
the left. Denmark also faces many of the same issues
in this election as in many other European countries, from
housing costs to food prices, welfare inequality and immigration. But
it is President Trump's efforts to control Greenland that have
created a major foreign polity crisis. As we head into
Denmark's twenty twenty six election, and joining me now to
discuss is our reporter in Copenhagen, sanah Vas great to
speak to you, Sanna. I just want to ask you
how important you think these elections are now for Denmark.
They're very important. Denmark is in the middle.
Of a diplomatic conflict with Donald Trump over Greenland, which
is part of the Danish Kingdom. Denmark is currently negotiating
with the US to find a solution to Trump's desire
for more control over this island, and the next government
in Denmark will have to deal with the next steps.
So our Prime Minister Matiflis and she's framed.
This vote as a decisive election because Danes in the
next election term will have to define the relationship with
the US but also the future of.
The Danish Kingdom. So it's a very important election.
Yes indeed. But then why was the election called quite
a few months early?
Yes, that's right.
I mean in Denmark it's the prime minister who decides
when to call an election. There is a four year
constitutional deadline, but it is quite comment to call the
election early when the.
Prime minister sees that the timing.
Looks politically favorable. And that is the case right now
for metaphy X now Prime Minister, and it's all tied
to Trump, and she performed very poorly in the polls
in December, and then she got this massive boost when
Trump he started making new threats over Greenland in early January,
and this spat it just really reinforced her image as
a disciplined and steady leader during periods of national crisis,
and that is something that she's hoping to capsulize on
with this vote.
So then the US and President Trump looming over this election.
What are people saying in Denmark and also in Greenland?
And you might explain also that there are some seats
in the parliament in Denmark, correct for Greenlandic representatives.
Yeah, Greenland elects two representatives for the Danish parliament and
and and they could definitely play a very important role
in defining uh the future Danish government and and.
For sure the future relationship with the US.
And and the future of Greenland will play it an
important will be an important question in those negotiations generally
for for both Denmark and Greenland, it's the first time
and in their modern history where geopolitics, geopolitics is really
top of mind for voters. And we've seen the topic
feature and national party.
Leader debates and and that's quite unusual.
We also saw a poll earlier in the campaign that
found that foreign and defense policy that was the number
one concern for Danes and and and and so in
a way, Trump, he really turned.
Foreign policy into a domestic issue.
And and voters are they're likely to assess politicians on
their leadership skills and and their capacity to handle the areknown,
and that is favoring especially the governing parties and the
Prime minister.
So then tell me a bit more about who is
favored to win. According to the polls.
The Prime Minister Medphals and.
Her Social Democratic Party looks set to become the biggest
party by far and that will give her the first
shot at forming at government. And looking at the polls,
she is the most likely candidate to secure my majority
backing to make her Prime Minister again. The biggest outstanding question,
I'd say is whether she will return to a traditional
left leaning red block government or look to renew the
or expand the quite unusual centrist kind of cross block
coalition that we have.
At the moment.
And one of the biggest challenges for going with renewal
of this government is that if midflex And has proposed
to introduce a wealth tax, and it's something that's drawn
sharp criticism and especially from wealthy people in Denmark.
Some are threatening to leave the country.
But also from the liberal parties who will really struggle
to enter a coalition on those terms.
But remember Denmark has.
A very fragmented political system or political landscape, and there's
twelve parties.
In the running.
That leaves the outcome very open to kind of late
shifts and alliances and policies once coalition negotiations start, and
that could really reshape the balance of power. So we
are preparing ourselves for potential surprises once talks begin.
Hm.
Hm, that'll be interesting. What about other issues? Though the
Danish Prime Minister is known for her tough stance on immigration,
how could the outcome of this election shape Denmark's directional
mats front?
Yeah, that's right if Felexon she originally in twenty nineteen
rose to power in Denmark because she managed to steer
her Social Democratic Party towards a tougher stance on immigration,
and she in that way reclaimed working class voters who
had drifted to the right.
She's also been very outspoken.
In the EU pushing for stricter border controls and tougher
immigration policies, and the election could really shape Denmark's direction
on this topic in the future, especially if Felexon were
to pivot to the left to create a more kind
of left leaning majority, it could complicate her ability to
maintain this stract approach to immigration. So that's definitely something
that not just the Danes of following, but for sure
also across Europe.
So then what role do you think that Denmark wants
to play then or will all want to play in
conversations around the EU and the US.
I think it striking comment that Prime Minister Metaphlags made
in a debate on TV quite recently was that the
US is no longer Denmark's closest ally. Instead, she's called
for closer collaboration in the EU but also with other
like minded nations such as Canada for example. And we
are seeing also various ways in which sentiment in Denmark,
especially on defense and EU collaboration, it's really changing as
Denmark is adapting to new global order, I mean Denmark.
It's a very good example is the Denmark earlier this
month entered into an agreement with France and nuclear deterrence,
and that is quite a dramatic move for a country
that has long been opposed to atomic weapons. But it's
also an example of the changes that Denmark is now
seeing necessary as it realizes it can't rely on the
US for security and it needs to build deeper alliances elsewhere.
Whoever leads Denmark next though, yes they'll be thinking about
the EU, but surely front and center will be any
possibility of a clash with the US. You've been reporting
about the idea that there were actually deeper preparations by
Copenhagen for some kind of the possibility of some kind
of military confrontation with America.
We've seen new information come out this week. A Danish
broadcast that R reported quite extensively on some of the
preparations that Copenhagen had been undertaking earlier this year. In
the event of a potential US attack on Greenland, for example,
Denmark deployed troops with live and ammunition. They were prepared
to blow up airport runways in Greenland to prevent US
forces from landing if Trump chose to take the island
by force. Dr also reported that Denmark dispatched blood supplies
to treat the wounded if if fighting were to break out.
It really shows how worried Copenhagen were back in January,
when Trump was most vocal in his threats. Denmark was
extremely worried, and as Danish Prime Minister made flags and
said just this week, negotiations underway. We hope for an agreement.
But Trump's desire to take over Greenland remains intact, so
clearly that nervousness has not gone away, and a future
government may well have to have to deal with the
outcome of no deal or potential deal with Trump.
So then finally, this vote is also going to be
very into seeing tests about whether campaigning on an anti
TARP message can work. Perhaps a lot of other countries
will be watching this. What do you think that they're
going to be thinking about and looking at when it
comes to the Danish example, Yeah.
I think the Danish example is very interesting because even
though foreign security policy has taken on greater urgency, it's
unclear whether it will move votes really to swing the election.
I think in Denmark generally parties are very aligned on
foreign policy, and so it leaves little opportunity for candidates
to differentiate themselves. So parties are still they are instead
directing their energy towards more domestic issues like taxes and
pension reform and agriculture. That's where party device are clearer.
But so far Pole suggests the vote preferences have not
shifted very much during the campaign. Of course, there is
also another element of unpredictability still, and that is that
the election is very vulnerable to outside attempts to influence it.
Denmark's intelligence service warn recently that foreign powers, including Russia
but even also the US, may seek to interfere in
the vote. And there is especially a worry amongst lawmakers
running for election in Denmark that Donald Trump at any
time could post something on social media and that could
really shape the election more than he already has. So
that's for sure something that we are watching for and
that across Europe will be looking at.
Okay, Sanah, thank you so much for being with us. Yes, well,
we look forward to hearing more from you and understanding
the outcome of the Danish vote in the next few days.
That is Sannah vas Our, reporter in Copenhagen. My thanks.
I'm Kline Hebger here in London. Catch us every weekday
morning for BlueBag Daybreak Cube. That's beginning at six Am
in London. That's one Am or Wall Street Alexis.
Thanks Caroline, and coming up on Bloomberg Daybreak weekend, we
preview Chinese ev maker BYD's earnings. I'm Alexis Christophers and
this is Bloomberg. I'm Alexis Kristophers with your global look
ahead at the top stories for investors. In the coming week,
Chinese ev maker BYD will report earnings. For a preview,
let's go to Bloomberg's Doug Chrisner, host of the Daybreak
Asia podcast.
Thanks Alexis. Last month mark the first time BYD sold
more cars abroad than in China, and the company is
now the world's top seller of evs. Its manufacturing operations
have expanded outside of China. BYD has a new facility
in Brazil and a joint venture in Uzbekistan. For a
closer look at BYD and what we're likely to see
when the company delivers earnings, I'm joined by Bloomberg's Linda Liu.
Linda is China Car's reporter. She joins us from our
studios in Hong Kong. Thank you for being here. Can
we start with the domestic side of BYD's business. Most
brands in China have been facing struggles, and I know
weak domestic demand on the mainland has obviously been a
major factor for quite some time. Give me your sense
of BYD's business in China.
BYD and other Chinese EV brands in China have been
facing a number of challenges. To start with, the Chinese
economy has been slowing, so you have a weak demand.
The government has been trying to stimulate retail sales in
the form of subsidies and cars had a trade in
subsidy that really promoted EV purchases, but that has started
to be scale back starting from this year. A tax
break that previously exempted about ten percent in sales taxes
has slowly to come back, starting with five percent this year.
And subsidies that had previously gone to a lot of
mass market models affordable models that which BID is really
strong and has also been reduced. So demand has really
been hard hits. In the first two months of this
year in China, you're seeing sales falling compared to last year,
so BID has a really tough time. Not to mention competition,
You've got rivals like Jili that is really chasing its tail,
essentially coming up with models that's exactly targeted at the
models that BID has offered. So I think BID is
really trying to shake off this stalemate with a launch
of new technologies such as innovations and charging as well
as battery technology.
Over the last few years, I know there have been
some pretty intense price wars among the ev makers on
the mainland. What is the situation with that right now?
The price will has been raging now for a number
of years, coming into its third year. It's a really
tough situation in China because there's an over capacity. Essentially,
the country's carmakers are producing more cost than customers can buy,
so they really need to get sales rolling by slashing
prices keep the factories operating. But in the long term
they are really hurting themselves in margins and revenues, so
financially it's not sustainable. And actually you've seen a number
of effects on China's auto supply chain where carmakers demand
really heavy price cuts, essentially slashing prices of components from
its suppliers, so in turn they can pass some of
that price cuts onto customers. But that really is just
a lot of pressure on the entire supply chain. So
the government really is trying to reign in the price war.
They've told carmakers they need to pay their suppliers on time.
They really shouldn't be selling vehicles at a price that's
below the cost to make them, and we're starting to
see some of the carmakers start to raise prices. But
I think we're still waiting to see exactly how that's
going to play out, because the overcapacity situation hasn't changed.
And BYD has been using foreign markets as a way
to deal with that excess inventory stemming obviously from the
over capacity issue. I'm thinking of Europe in particular. Is
that still the case?
Yes, and Europe is a very attractive market for BID
as well as Chinese EV makers because the European market,
they will be able to afford more expensive Emmy models,
and the EV adoption rates in Europe, especially when you
look at countries like Norway, is very high. So Europe
is a very to market for Chinese evs. But at
the same time, Europe has its own domestic industries that
it needs to protect. So that's why you see the
European Union levying this tariff against Chinese evs to try
to slow this wave of EV exports to Europe so far,
actually it hasn't really slowed down the Chinese EV exports
that much because we're still seeing a very healthy growth.
But I think the thinking for the European Union is
that they hope the Chinese companies will consider investing and
forming joint ventures with local European partners. So the jobs
at least will you remain in Europe and maybe there'll
be job creation and technology know how transfer to really
help Europe's domestic EV making industry.
So speaking of joint ventures, as I mentioned earlier, there
is a JV in Uzbekistan, and we know that by
ideas expanding manufacturing to include Brazil. What's it work here
in terms of the strategy.
Localizing production is quite an important step for automakers as
they expand globally. We've seen that with the Japanese automakers
like Toyota, Honda, Nissan, as well as the Korean So
I think it's very natural for the Chinese automakers like
BID to start bringing production overseas to markets where they
can see a very sizeable volumes. That would make sense
to have localized production, And in a sense it's also
one way for these brands to really build local recognition
and goodwill. You know, if you're bringing a lot of
jobs with the factory you're building in the new market,
I think that will build you know, that would really
help propel your brand, not just among the local consumers,
but with the local governments.
Whereas b ID when it comes to autonomous driving.
Autonomous driving is a technology that automakers are really trying
to stay on top of, especially when you look at
Tesla and Elon Musk's vision for robotaxis and autonomous driving,
because if this technology manages to reach a mass adoption stage,
that's going to change the entire consumption pattern when it
comes to cars. You know, if the vehicles can drive themselves,
does it even still make sense for an individual to
own cars anymore? Maybe you can just have a robotaxi
fleet that serves the community or that serves a city.
So the automakers, I think are also you know, trying
to have their own autonomous driving technology and thinking about
what the business model is going to look like in
the future. And now they're doing a lot of exploration.
BID is the valid ping its own smart driving technology
in house, but it's also working with external suppliers such
as Momenta. This week, we've also seen a number of
Chinese EV makers join up with Nvidia onto Invidia's latest
smart driving platform. So they trying different routes and hoping
that in the future that they will be part of
this transport disruption and won't be left behind.
You mentioned Tesla. I'm curious when you look at the
rivalry between Tesla and BYD and China, how do they compare.
The dynamics just keep changing all the time. Tesla, for
a very long time was seen as the pioneer for
the EV industry. It was really the brand that kick started,
you know, everyday consumers kind of acceptance of EV's with
these really technological Leyden evs, you know that actually drive
for arrange without charging. You know, that's more useful for
daily lives. BYD for quite a what, for quite a
number of years was playing catch up to Tesla, but
last year it finally became the world's biggest brand in
selling EV's and Tesla, as we know, was hit by
a backlash against Elon Musk's uh you know, political views
and activities. And now I think going forward, the competition
dynamics is going to change again. Because we're seeing by
D bringing out all of these new EV charging and
EV battery technology that we I have to be honest,
I haven't really seen from Tesla so far. It seems
like Tesla and Elon Musk's priorities have shifted to robotics.
They're trying to really get their humanoid robot off the
ground as well as robot taxis. Uh So, the focus
has changed so much for Tesla that I'm not sure
if their heart is really in the game anymore. Just
to be an EV company.
It seems like you're describing the rate at which you
can charge a Chinese EV and how that compares with
other manufacturers.
Right.
Yes, So BYD had a product launch recently in which
they claim the latest generation of their EV platform and
EV batteries allows you to charge from ten percent to
seventy percent, from ten percent to seventy percent in five
minutes and nearly full charge in just under ten minutes. Now,
with a charging time like that, it really changes the
whole paradigm when you come when you're thinking about EV's
as well as petrol powered cars. Essentially, now you probably
will be able to get get rid of range anxiety
if you can power up in ev in the same
amount of time you would have been able to fill
up your car with petrol. So that's BYD's goal is
to essentially make evs as easy and convenient to use
as petrol cars.
So we have earnings from BYD in the week ahead.
Give me your sense of what the market is expecting,
what to look for and when we view the stock,
how has the stock been performing and what is it
reflecting right now?
Earnings is going to be tough for BYD. They've had
a couple of quarters of falls in their net income,
so looking forward to the four year results, they may
actually have a first annual decline in profits, probably since
the pandemic days. This is largely due to this whole
erosion of margins and profits in China's ultra competitive market
where you've had this price will go on, as well
as regularly scrutiny that basically forced BYD to really clean
up its balance sheets. These sales growth has also slowed
a lot, so it's facing all of these pressures for
its upcoming earnings, and in terms of stock price, it's
come down from a high, but it's still actually doing
a lot better than its rivals. Such as Julie. I
think people still see BYD as the technology pioneer in
the EV industry. But in the short term, I think
there's going to be pressures on the stock price as
the whole autos and EV industry in China is facing
a lot of challenges with demand in the near future.
Linda, thank you so very much for helping us preview
earnings in the week ahead from Chinese EV Maker byd
Bloomberg's Linda lu. She is China Carr's reporter, joining from
our studios in Hong Kong. I'm Doug Krisner. You can
catch us weekdays for the Daybreak Asia podcast. It's available
wherever you get your podcast. Alexis.
Thanks Doug, and that does it for this edition of
Bloomberg Daybreak Weekend. Join us again Monday morning at five
am Wall Street Time for the latest on markets overseas
and the news you need to start your day. I'm
Alexis Kristoffers. Stay with us. Top stories and global business
headlines are coming up right now.