Volkswagen revenue soars to almost 14% despite war concerns

Volkswagen

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Volkswagen’s (VOWG p) preliminary first-quarter operational return on sales increased to 13.5 percent from 7.7% in the same period in 2021, but the impact of the Ukraine conflict and supply chain constraints remained unknown.

The German automaker, which said in March that Russia’s invasion of Ukraine has thrown its revenue forecast of an 8-13 percent increase in 2022 into doubt, said that the war could have a further detrimental impact on its operations.

Increased enforcement of antidiscrimination and antitrust laws, as well as an increase in the federal minimum wage and higher unionization rates, could all help the United States expand faster.

The Council of Economic Advisers’ annual Economic Report urges the restoration of the public sector as a long-term growth partner. And the implementation of legislation aiming at reducing corporations’ and employers’ disproportionate market power, which hinders economic equality.

The paper digs into the influence of non-competitive labor markets, employers’ and monopolies’ market strength in sustaining pay inequality, and discriminatory hiring practices, all of which stifle overall economic growth.

Increased implementation of present labor protection and anti-discrimination legislation could help to control these market tendencies.

On Thursday, Taiwan Semiconductor announced first-quarter results that above analysts’ projections and sales that exceeded predictions.

Stock markets rose little on Thursday ahead of a European Central Bank meeting that might signal tighter policy, while U.S. Treasury yields fell and the dollar fell on speculation that inflation was nearing its peak.

Traders were looking for signs of a clearer plan for unwinding the European Central Bank’s unprecedented stimulus at a meeting of the European Central Bank, as concerns about record-high inflation trumped fears of a war-related recession.

As they strive to control spiraling inflation, a number of central banks throughout the world have tightened policy. The Bank of Korea startled markets by raising interest rates on Thursday, while the Monetary Authority of Singapore tightened policy as well.

Still, market participants were split on how hawkish the ECB would be. Some speculated that it would signify a tightening of policy without necessarily adopting drastic measures.
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