BRIEF-Fitch Ratings Says EU Tariffs On Chinese Evs Will Not Affect Market, Potential Retaliation Is Key

BY Reuters | CORPORATE | 06/14/24 04:50 AM EDT

June 14 (Reuters) -

* FITCH RATINGS: EU TARIFFS ON CHINESE EVS WILL NOT AFFECT MARKET, POTENTIAL RETALIATION IS KEY

* FITCH: IF CHINA RETALIATES WITH MEASURES COVERING OTHER TYPES OF VEHICLES OR OTHER INDUSTRIAL SECTORS, GERMAN AUTOMAKERS WOULD BE MOST AFFECTED.

* FITCH- WE EXPECT GERMAN AUTOMAKERS' EXISTING HEADROOM TO HELP ABSORB THESE PRESSURES WITHOUT THEIR RATINGS BEING AFFECTED

* FITCH RATINGS- IMPACT OF POTENTIAL BROADER MEASURES WOULD WEIGH ON GERMAN AUTOMAKERS' MARGINS AND CASH FLOW GENERATION Source text for Eikon:

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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