BMW, on Wednesday reported a 61% drop in its third-quarter profit, missing analyst expectations because of slumping China sales and brake problems and sending its shares to their lowest level in more than 2-1/2 years.
Shares in the premium carmaker and its German rivals Volkswagen, Mercedes-Benz and Porsche were all down 3%-5%, with traders citing a potential U.S. presidential election victory by Donald Trump, who has threatened broad tariffs on imports.
Juergen Molnar, investment strategist at brokerage RoboMarkets, said that while BMW mostly blamed a weak Chinese business for its quarterly profit drop "the punitive tariffs threatened by Trump are likely to become a further negative factor on the already long list of car manufacturers".
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