Bloomberg Daybreak: Asia Edition Traders Pare Back Risk; Toyota, Honda Earnings Preview
Aug 4, 2025
Asian stocks stumble as soft US jobs data spooks investors and fuels hopes for a Federal Reserve rate cut. Oil prices dip with OPEC+ wrapping major output hikes. Essential discussions highlight the mixed earnings outlook for Toyota and Honda, impacted by a stronger yen and US tariffs. Despite resilient sales, both automakers face profit challenges. Experts weigh in on the implications of U.S.-China trade tensions and the shifting landscape of global trade alliances, showcasing the automotive sector's strategic responses.
AI Snips
Chapters
Transcript
Episode notes
Tariff Impact on Japanese Automakers
- Japanese automakers face about a 2 trillion yen negative impact from U.S. tariffs, less than the feared 3.5 trillion yen.
- They are mitigating losses through price hikes and competition in other markets to maintain margin.
Hybrid Vehicle Sales Momentum
- Hybrid vehicle sales in the U.S. are expected to accelerate supported by milder environmental regulations.
- This benefits Japanese automakers due to their strong hybrid portfolio amid slower battery electric vehicle sales.
Raising Prices to Offset Tariffs
- Automakers will likely raise U.S. vehicle prices in September to offset tariffs and inflation pressures.
- Consumers may accept these increases, as a 4.5% price hike earlier did not significantly dent sales.