|Bid||387.30 x 0|
|Ask||388.00 x 0|
|Day's range||382.80 - 389.50|
|52-week range||311.20 - 714.80|
|Beta (5Y monthly)||1.40|
|PE ratio (TTM)||N/A|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||27 Sep 2019|
|1y target est||N/A|
(Bloomberg) -- Overseas borrowers have flocked to the dollar this year at a record pace, with sovereigns from Indonesia to Colombia and companies from Nissan Motor Co. to Manila’s water utility racking up sales of $1.29 trillion.It’s a key economic takeaway from the Covid-19 crisis: just as happened in the wake of the global financial meltdown of 2008, the dollar is cementing its role as the world’s dominant currency even as unilateralist policies from President Donald Trump rile allies and rivals alike.“Whenever there is a crisis, companies and countries rush to make sure they have all the funding they need,” said Jim O’Neill, the former Goldman Sachs Group Inc. chief economist who coined the BRIC acronym.“The dollar markets are the only real source available, so the whole situation builds on itself,” according to O’Neill, who is chair of the international policy group Chatham House.The ease of borrowing in dollars across the globe has been key in preventing the health and economic crisis spiraling into a financial one by providing companies and governments cheap access to funds. But it may also be sowing seeds for the next crisis: If the greenback sees a sustained appreciation trend, it will drive up debt-servicing costs, potentially creating, for some, repayment difficulties down the road.That’s a particular risk for emerging markets, where external debt including dollar borrowing is climbing at the fastest pace on record, with full-year issuance on track to eclipse $750 billion, according to Bloomberg Intelligence strategist Damian Sassower.For now, the dollar’s been moving in the right direction. The Bloomberg dollar index has plunged about 10.5% from its 2020 high reached on March 23.A lack of global alternatives helps explain some of the dollar’s role. The euro’s status as a reserve currency remains limited, and China’s currency is still subject to capital controls.It’s also a function of cost. With the Federal Reserve unleashing massive liquidity, and now expected to keep interest rates near zero for years to come, the greenback is all the more attractive as a funding source.Easier Fed policy helped the Philippines sell sovereign dollar debt at its lowest interest rate ever back in April. The dollar is the “universal currency” and the unit of global trade, according to Rosalia de Leon, treasurer of the Philippines, who says her country will continue to rely on the greenback to help fund its budget deficit.Philippine and Indonesian companies have each sold more dollar bonds in 2020 than in any past full year.“The domestic financial market is not yet deep” in Indonesia, said Deni Ridwan, director of sovereign bonds at the nation’s Finance Ministry. By selling debt in dollars, Indonesia’s government can avoid crowding out local rupiah issuers, he explained.For Nissan, the Japanese carmaker struggling to bounce back from both corporate scandals and the Covid crisis, the broad base of international investors was appealing when it turned to the dollar debt market for the first time in decades. It priced an $8 billion dollar offering in September, one of the largest corporate issues in Asia on record, as well as a 2 billion euro deal ($2.4 billion).The total issuance of $1.29 trillion from non-U.S. borrowers this year is up 21% from the same period of 2019, according to data compiled by Bloomberg.The record boom in offshore dollar bond sales has been echoed on the U.S. domestic front. Behind it all: the Fed not only cut its policy rate near zero in March, it introduced corporate-debt purchase programs that helped ensure the flow of credit even as coronavirus lockdowns walloped the economy.The Fed also enlarged and expanded swap lines with monetary authorities around the world to address a sudden shortage of dollars abroad.The critical role of the U.S. currency also has a downside, however -- it leaves emerging markets reliant on American policy settings. While it seems distant now, Fed tightening down the road could spur dollar appreciation.“The extensive dependence on the dollar leaves the international financial system hostage to the whims of U.S. policies, especially those of the Federal Reserve,” said Eswar Prasad, who once led the International Monetary Fund’s China team, and is now at Cornell University. “For emerging market economies, in particular, it can create whiplash effects on capital flows and exchange rates.”While other major bond markets are seeing a bumper year too -- Europe’s primary bond market has surpassed 1.5 trillion euros of annual sales for the first time -- when issuers do go offshore to borrow, it’s still likely to be in dollars.Even as the share of dollar funding relative to the size of the global economy remains below its peak of a decade ago, its slice of international borrowing has climbed to a two-decade high, Bank for International Settlements data show. “It is clearly the dominant international funding currency,” the BIS wrote in a June report.(Adds details on the Bloomberg dollar index’s move this year in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Renault SA’s promotional blitz for its growing electric lineup may be too late for the maker of Europe’s best-selling EV to stay atop the region’s expanding market for battery-powered cars.The French manufacturer and its partner Nissan Motor Co. have long enjoyed a first-mover advantage in the market. But their alliance has seen its share of Europe’s EV market shrink by almost half during the past four years. Tesla Inc. took over the pole position in 2019, and Volkswagen AG is now closing in fast.Fighting back is now among the top priorities for new Chief Executive Officer Luca de Meo, who in July took over a company still reeling from the 2018 arrest of former leader Carlos Ghosn. On Thursday, he previewed two new electric models: the Dacia Spring crossover coming next year and a show car called the Megane eVision planned for 2022 and based off a platform shared with Nissan and its other alliance partner, Mitsubishi Motors Corp.The reinforcements are sorely needed.VW’s 22% slice of Europe’s battery-electric vehicle sales was just short of the 24% held by Renault and its alliance partners Nissan and Mitsubishi Motors Corp. in the first eight months of the year, Credit Suisse analysts said in a report last week, citing data from EV-Volumes.com.Much of the focus of car companies in Europe has shifted to electrics, even as their share of sales remains relatively small at about 6.5% of the region’s total. Government incentives in the biggest markets of France and Germany have fueled an 85% rise in unit sales and boosted the segment’s share of the market by 3.5 percentage points from a year ago.The top-selling electric model in Europe in the first eight months of the year was Renault’s Zoe subcompact, followed by Tesla’s Model 3 and VW’s e-Golf, according to Credit Suisse.Read more: The EV Atop Europe’s Sales Charts Isn’t a Tesla or VWThe Zoe helped Renault and Nissan retake the lead in battery-electric vehicle sales through the first eight months of this year, but that position is vulnerable now that VW’s ID.3 hatchback has arrived. The German carmaker will soon follow that model up with the ID.4 crossover. French rival PSA Group’s Peugeot e-208 also is making steady gains.While the Zoe may fall behind, Renault’s new models could compete well with the ID.3 and Model 3, said Michael Dean, a Bloomberg Intelligence auto analyst. “2021 will be a big year for battery-electric vehicles, with a further jump in market share as more BEV models are made available,” he said.The planned Megane eVision hatchback signals Renault will electrify the flagship of its compact range that’s been around for a quarter century. It will have the thinnest battery on the market and rival the roominess of a mid-size vehicles, de Meo said in a statement, calling it a “masterpiece of packaging.” The French carmaker is also expanding its range of hybrids and plug-ins with the Arkana, Captur and Megane models.The focus on electric cars is part of de Meo’s project to overhaul Renault’s entire product range -- which he deems roughly 30% too broad -- and cut costs after a record 7.3 billion-euro ($8.6 billion) first-half loss.The carmaker is freshening its electric lineup after relying on the Zoe for years. After the latest of several makeovers, the model has enjoyed surprising sales success this year, though it’s largely been a French phenomenon. Nissan’s Leaf has had better traction internationally and was the world’s best-selling electric model before being overtaken by Tesla.An electric car costing less than 20,000 euros is key to safeguarding the alliance’s early advantage, according to de Meo, who has said Renault should focus on developing a profitable range of models built in France.“We are pioneers in the area,” he said in a memo to employees last month. Calling Renault’s electric-vehicle platform a “weapon against Volkswagen,” he said Renault would not “give up our advantage and fall on the first offensive from a competitor.”(Updates with details on new models from the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In recent years, Nidec's founder Shigenobu Nagamori has turned his attention to autos, and a technology which turns electricity stored in the battery into propulsion power. This technology, called an e-axle or e-drive, is emerging as a new competitive front as the auto industry shifts to electric vehicles. By 2030, Nagamori says he wants a 35% slice of a global e-axle market that is forecast to be worth $20-30 billion a year by then, up from an estimated $2.8-$3 billion now.