Long

DAX: Sector Rotation, Watch VW, now.

Updated

The DJIA is ready to cross the 20k. The last up move is caused by industrials taking the lead from financials.

On Monday have a look for same at Germany´s automaker Volkswagen for a spike to the upside pushing Grermany´s DAX unexpectedly higher.

This Rotation could cause another spike for the DAX to the upside. The DAX is now closing in for 2015th All Time High.

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Quote:

VW in advanced talks for multi-billion settlement on U.S. criminal probe

Volkswagen and the Justice Department are nearing a deal to resolve criminal and civil allegations over the German automaker's diesel cheating

while it won long-awaited approval from the Environmental Protection Agency to fix about 70,000 diesel vehicles, crucial steps toward moving past a scandal that has cost it billions of dollars and its reputation.

A successful settlement is critical to the automaker's goal of rebuilding its business in the United States, a market key to its long-term growth plans and where VW brand sales were down 8 percent last year. Volkswagen will show off a new gas powered SUV Sunday ahead of the Detroit auto show and will start selling a new larger U.S. built gas powered SUV later this year.

The deal with the Justice Department could cost more than $4 billion and could be announced as early as next week, according to several people familiar with the matter.

Source: cnbc.com/2017/01/07/volkswagen-close-to-settlement-with-us-justice-department-on-emissions-scandal.html

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GM: 52 week high
90efcf5696fb6d91896e-62c980cafddf9881bf167fdfb702406c.ssl.cf1.rackcdn.com/data/tvc_09c1213e7a54d6163e51953997c46f09.png

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GM: 52 week high, impressive weekly chart
90efcf5696fb6d91896e-62c980cafddf9881bf167fdfb702406c.ssl.cf1.rackcdn.com/data/tvc_180a8b05cb602d8f5991fa0dcad5c9cc.png

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Sector Rotation: GM Descending Broadening Wedge

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According to CNBC there is a VW DOJ Settlement out now: VW will pay 4,3 B US-Dollar.
This number is much lower than expected in the month before.

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GM EPS guidance for 2017: 6,00 - 6,50 USD.

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VW is saying that the DOJ settlement is going to afecct the 2016 earnings. What VW did ---> not saying is: This settlement is going to affect the 2017, 2018 or 2019 earnings.

Quote:

Volkswagen confirms $4.3 billion U.S. settlement over diesel emissions

By David Shepardson

DETROIT (Reuters) - Volkswagen AG (DE:VOWG_p) confirmed Tuesday it has negotiated a $4.3 billion concrete draft settlement with U.S. regulators to resolve its diesel emissions issues and plans to plead guilty to criminal misconduct as part of the civil and criminal settlement.

Volkswagen said with the addition of the fine, the automaker's diesel costs are now set to exceed the nearly 18.2 billion euros ($19.2 billion) it has set aside to handle the problem. VW also said it will face oversight by an independent monitor over the next three years.

Reuters reported earlier the company's supervisory board is set to meet on Wednesday to approve a civil and criminal settlement with the U.S. Justice Department over the automaker's diesel emissions scandal. VW said the supervisory board and the management board would meet Tuesday or possibly Wednesday to approve the deal.

Source: investing.com/news/economy-news/volkswagen-board-to-meet-to-approve-u.s.-diesel-settlement:-sources-452214

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Comment: Investors "intelligence"
.
mobile.reuters.com/article/idUSKBN14Z0XY

99,99% of all reports to this issue today explaining what Trump ---> said he wants to do. Non of those reports is asking, if he is allowed to do this. Trump is not. The WTO regulations are clear: The United Staates can not implement border tax to BMW. Also clear is the US Constitutional Law. US Presidents are not allowed to do this as well (by themsels). Investors believe, he can do and they sold today german Automakers.

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Donald Trumps vs. "one way street"

Donald Trump might believe, that international trade is a one way street. It is not. Trump is now fighting against Mexiko, Canada, Germany, Japan, China and the European Union as well.

Donald Trump until now is US-President elect "only" but with the European Union, Canada, Mexiko, Japan and China he made countires good for allmost 50% (!) of global GDP to his own and privat "enemies". Donald Trump never will be able to win any trade war or "war of populism" against the rest of the world.

Quote:
Chinese president to defend globalization in Davos
Economy4 hours ago (Jan 17, 2017 05:14AM ET)

By Noah Barkin

DAVOS, Switzerland (Reuters) - Chinese President Xi Jinping will defend globalization in the face of mounting public hostility in the West on Tuesday in a speech at the World Economic Forum that will underline Beijing's growing global role. Xi's appearance, a first for a Chinese leader at the annual meeting of political leaders, CEOs and bankers in Davos, comes as the part the United States plays as a force for multilateral cooperation on issues like trade and climate change is in doubt following the election of Donald Trump.

Europe, meanwhile, is pre-occupied with its own troubles, from Brexit and militant attacks to the string of elections this year in which anti-globalization populists could score gains.
This has left a vacuum that China seems eager to fill.
"It is no coincidence that Xi chose this year to make the trip up the magic mountain," said Ian Bremmer, president of Eurasia Group, a U.S.-based political risk consultancy.
More than half a dozen senior Chinese government figures will be in Davos this week, far more than in past years. And a large number of sessions are focused on Asia, including one entitled "Asia Takes the Lead".
Source: investing.com/news/economy-news/chinese-president-to-defend-globalization-in-davos-453462

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Donald Trump is still not President of the USA. But he allready lost Asia to China (Cancelling the Trans Atlanic Partnerchip). Today in Davos China graps another chance to take global leadership. Trumps "border tax plans" will fail.

reuters.com/article/us-davos-meeting-china-idUSKBN15118V

Quote:

Davos | Tue Jan 17, 2017 | 1:30pm EST
In Davos, Xi makes case for Chinese leadership role

By Noah Barkin and Elizabeth Piper | DAVOS, Switzerland

Chinese President Xi Jinping offered a vigorous defense of free trade at the World Economic Forum in Davos on Tuesday in a speech that underscored Beijing's desire to play a greater global role as the United States turns inward.
In the first appearance by a Chinese leader at the annual meeting of political leaders, CEOs and bankers in the Swiss Alps, Xi also cautioned other countries against blindly pursuing their national interests, in an apparent reference to the "America first" policies of Donald Trump.
Real estate mogul and former reality TV star Trump, who will be inaugurated as U.S. president on Friday, campaigned on a promise to confront China more aggressively on trade.

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Quote:

Renault reports record 2016 sales, expects further growth

Gilles Guillaume
Reuters
January 17, 2017 12:35 CET

PARIS -- Renault Group reported record sales for 2016 thanks to growth in Europe and in overseas markets such as India and Iran, and it expected more progress this year.

Sales rose 13 percent last year and vehicles sold in 2016 topped 3.18 million vehicles - a sales record, the automaker said.

"Our strategy of product range renewal and geographic expansion, under way for several years now, has proven to be successful. It enables the Groupe Renault to progress significantly in terms of volume and market share in every region," said Thierry Koskas, member of Renault's executive committee, in a statement.
Renault's figures painted a similar picture to that of rival PSA Group which last week also reported higher sales, with the lifting of international sanctions against Iran boosting PSA's sales there.
Source: europe.autonews.com/article/20170117/ANE/170119812/renault-reports-record-2016-sales-expects-further-growth

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Jan 30 2017

Volkswagen defies Dieselgate to top the world car sales league

Volkswagen on Monday won the annual race to become the world’s biggest car-maker for the first time, stealing the crown from Toyota despite the German firm’s embarrassing, multi-million-dollar diesel emissions scandal.
VW sold 10.3 million vehicles last year, with sales of Audis, Porsches, Skodas and Bentleys as well as its eponymous Volkswagens rising 3.8%, boosted by strong sales in China. Source: standard.co.uk/business/volkswagen-defies-dieselgate-to-top-the-world-car-sales-league-a3453141.html

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FEB 21 2017 Border tax hits political reality, and only Trump can save it

John Harwood | @johnjharwood
6 Mins Ago
Quote: So, Sen. David Perdue of Georgia, a former retail executive, has pronounced border adjustment an economic threat. Sen. Tom Cotton of Arkansas, home base of Wal-Mart, has vowed to fight it. John Cornyn of Texas, who worries about the effect on oil prices and serves as the Senate's second-ranking Republican, last week pronounced border adjustment "on life support." Those three Republicans alone — if they hold firm — could be enough to sink the idea in a Senate where Republicans control just 52 seats. Source: cnbc.com/2017/02/21/border-tax-hits-political-reality-and-only-trump-can-save-it.html

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FEB 24 2017: Fears about VW`s 2016 profits are well overdone

Shaking off dieselgate, Volkswagen races back into profit

"While the past fiscal year posed major challenges for us, despite the crisis the group's operating business gave its best-ever performance," chief executive Matthias Mueller said in a statement. Source: Shaking off dieselgate, Volkswagen races back into profit
"While the past fiscal year posed major challenges for us, despite the crisis the group's operating business gave its best-ever performance," chief executive Matthias Mueller said in a statement.

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FEB 24 2017 VW eyes stable 2017 earnings after underlying profit hits recordsource
VW) forecast broadly stable earnings this year after record sales of luxury Audi and Porsche cars helped it post its highest annual underlying operating profit ever. Source: cnbc.com/2017/02/24/vw-eyes-stable-2017-earnings-after-underlying-profit-hits-record.html

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MAR 01 2017: Perfect set up for VW invst.ly/3d6kd

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APR 18 2017 Volkswagen delivers surprise surge in profit as it puts 'dieselgate' scandal behind it
Source: telegraph.co.uk/business/2017/04/18/volkswagen-delivers-surprise-surge-profit-puts-dieselgate-scandal/

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Trump reportedly calls Germans ‘very bad,’ threatens to end German car sales
cnbc.com/2017/05/26/trump-calls-germans-very-bad-threatens-to-end-german-car-sales-reports.html

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White House denies Trump threatened German automakers
The White House has pushed back on German media reports that President Donald Trump threatened to stop the sales of German cars in the United States.
Still, the administration is complaining about the U.S. trade deficit with Germany.
But major German automakers like BMW, Audi and Mercedes-Benz house plants in the Southern U.S.
cnbc.com/2017/05/26/donald-trump-german-automakers-trade-deficit-car-imports.html

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