Sara Germano explains Nike's stock decline, Europe's struggles in the battery industry, and tensions at the NATO summit. Topics include challenges for NATO, electric vehicle manufacturers, and Nike's recovery strategies.
NATO leaders face domestic turmoil affecting unity and Ukraine support.
Europe's battery industry struggles from low EV sales and Chinese competition.
Deep dives
Challenges Facing World Leaders at the NATO Summit
As leaders gather for the 75th NATO summit in Washington, DC, they face significant domestic challenges back home. Countries like France, Germany, and Spain are dealing with political instability, affecting their focus on discussions about supporting Ukraine. Additionally, concerns about President Biden's reelection campaign and the US's commitment to NATO raise uncertainties about the alliance's future unity and ability to defend Europe.
European Battery Makers Struggling With Demand and Competition
European battery manufacturers are facing difficulties due to low consumer demand for electric vehicles in Europe and fierce competition from Chinese battery companies. This has led to a decrease in orders and production by European car makers, risking the underutilization of approximately half of the continent's battery plants by 2030.
Nike's Declining Popularity and Stock Performance
Nike, once a dominant force in sportswear, is experiencing a decline in sales and consumer demand, reflected in a significant drop of 31% in its stock value this year. Factors contributing to Nike's challenges include increased competition from brands like Hoka and New Balance, saturation of iconic models like Air Jordans, and management strategies focusing on shifting towards direct-to-consumer sales during the pandemic, causing inventory issues and loss of market share.
Nato leaders are meeting for its 75th anniversary summit amid tensions within their countries, and Europe’s battery industry is feeling the impact of the global slowdown in electric car sales. Plus, the FT’s Sara Germano explains the reasons behind Nike’s worst single-day performance on the stock market since 1980.
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