Chinese electric vehicle companies could be at risk of a big reversal as competition and the ongoing price wars start to dent their profits, which happened to BYD Last week. This crisis may hurt top companies like Li Auto (LI), XPeng (XPEV), and Nio (NIO) stocks.

BYD earnings pose a risk to Li Auto, XPeng, and Nio stocks

Tesla and BYD are the biggest players in the electric vehicle industry, and their performance often signals what happens to other smaller player in the sector. 

Recent data showed that the two companies are not doing well. Tesla’s unit sales, revenue, and profitability dropped in the second quarter, a trend that may continue this year. Its automotive revenue plunged by 16% to $16.6 billion, while the total figure fell by 12% to $22.49 billion. This decline resulted in a 16% profit crash.

BYD, its biggest competitor, also published weak financial results last week as the ongoing competition dented its performance. The net income fell by 30% to $892 million, while its revenue of 200.9 billion yuan was also lower than expected.

The company sold 2.15 million vehicles in the first half of the year, a 33% increase from the same period last year. While impressive, the delivery growth was also lower than the expected 40%.

This slowdown happened even as the company offered some steep discounts during the first half of the year. Indeed, the management cited the ongoing ‘industry malpractices’ and excessive marketing for its woes.

Smaller EV companies at risk

BYD’s weak financial results will likely hurt its smaller competitors like Li Auto, XPeng, and Nio. Indeed, Li published a mixed report last week.

In it, the company said that its revenue dropped by 4.5% from last year to 30.25 billion yuan, much lower than the 33.04 billion that analyst were expecting. It unit sales in the third quarter were also lower than what analysts were expecting. 

Li Auto stock price has already crashed by over 27% from its highest point this year. Its performance, too, will likely hurt those of its competitors like Nio and XPeng because it is often considered as one of the most successful EV companies in China. 

XPeng and Nio have all reported strong results recently, pushing their shares higher. Nio stock has surged by 110% from its lowest level this year. This growth is partly because of its new vehicle launches. 

While XPeng stock has pulled back, it still remains 90% above the lowest level this year.

The risk is that these companies will also go through the challenges that the bigger players like Tesla and BYD are facing. Besides, the industry is being highly saturated, with all these companies, and newer ones like Xiaomi pumping thousands of cars to the market. 

Read more: Nio stock surges 11% as Morgan Stanley reaffirms bullish view after ES8 launch

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Rolls-Royce share price had another successful month in April as it jumped to a record high of 1,111 GBX. It then pulled back to the current 1,070p as some investors started to book profits. This article explores whether the stock has more room to run in September. 

Top Rolls-Royce news in August

Rolls-Royce Holdings had major news in August this year. The most notable one was its first-half financial results, which demonstrated its strong growth was continuing, helped by its three divisions: civil aviation, power, and defence. 

Rolls-Royce’s underlying revenue rose to £9 billion in the first half, up from £8.1 billion in the same period last year. Its profit before tax rose to £1.69 billion, while the free cash flow jumped to £1.58 billion. 

The civil aviation division revenue rose by 17% to £4.78 billion, while the defence and power systems rose to £2.2 billion and £2.04 billion. These numbers were much better than its guidance and what analysts were expecting. 

Most importantly, the company also boosted its mid-term targets. It now expects that its underlying profit it 2028 will be between £3.6 billion and £3.9 billion. The operating margin will be between 15% and 17%, while the free cash flow will be between £4.2 billion and £4.5 billion. 

The other notable news that happened was a report by the FT that the company was considering fundraising for its small nuclear reactor business. In its report, which cited people with knowledge on the issue, the FT noted that an IPO was also under consideration.

While the company has denied the reporting, it is likely that it will ultimately launch an IPO for the business as the SMR business booms. In the United States, companies in the space have surged in the past 12 months. Oklo stock has soared by 1,000% in the last 12 months, while NuScale Power has jumped by 330%. 

In a statement to the BBC, Tufan Erginbilgic, said that the nuclear business has a chance of making it the biggest company in the UK as the world will need 400 SMRs by 2050, with each costing about £3 billion. He said:

“There is no private company in the world with the nuclear capability we have. If we are not market leader globally, we did something wrong.”

Looking ahead, Rolls-Royce stock price will react to its investor roadshow in the United States, where the management will speak to its biggest investors and make the case for its share. It will happen on Tuesday, Wednesday, and Thursday this week.

Rolls-Royce share price technical analysis

RR stock chart | Source: TradingView

The daily chart shows that the Rolls-Royce stock price has been in a strong bull run this year. It jumped to a high of 1,111p in August and then pulled back to 1,070p. 

Rolls-Royce remains above the 50-day and 100-day Exponential Moving Averages (EMA). However, it has formed a bearish divergence pattern as the MACD and the Relative Strength Index (RSI) have continued moving downwards. 

The stock has also formed an island reversal pattern as it has consolidated after ut gap-up after earnings. Therefore, the stock will likely pull back and possibly retest the support at 1,000p. A move above the resistance point at 1,111p will invalidate the bearish forecast.

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Silver price continued its strong bull run, reaching its highest level in over a decade as investors piled into precious and industrial metals. XAG jumped to 40.4 on Monday morning, crossing the important resistance level at $39.51, its highest point in June.

Why silver price is soaring

Silver price jumped as investors rotated back to industrial and precious metals. Copper, often seen as a bellwether for the global economy, jumped to $10,000 a ton, continuing a trend that started a few months ago. 

Similarly, gold price has risen in the past five consecutive days, reaching a high of $3,478, its highest level since April and a few points below the all-time high of $3,496. 

Silver price jumped as investors boost their bets that the Federal Reserve will start cutting interest rates this month. Jerome Powell, the Fed Chair, has already hinted that the bank will cut in September, citing the worsening labor market. 

The most recent numbers showed that the economy added 73,000 jobs in July. This increase led to a jump in the unemployment rate, which rose to 4.2%.

The labor market has deteriorated in the past few months, with job additions averaging 35,000 in May and June, marking the worst performance since the COVID-19 pandemic. 

Gold and precious metals like silver do well when the Fed is slashing interest rates as this lowers the performance of the US dollar index (DXY).

Silver has also jumped as demand from American investors rise. Data shows that the iShare Silver Trust (SLV) had inflows in the last three consecutive week. 

It added $25.6 million last week after adding $263 million the week before. Its total inflows jumped to $1.2 billion this year, bringing its total assets to over $18.7 billion. 

Most importantly, as an industrial metal, silver also benefited from the recent Chinese data. A report released on Sunday showed that the manufacturing PMI rose to 49.5 in August, up from 49.4 in the previous month. 

While the PMI remained at the contraction zone, it has made some improvement in the past few months. This is happening at a time when the industry is in the fifth year of supply deficits.

Silver price technical analysis 

The daily chart shows that silver has been in a strong bull run in the past few months. Its rally has accelerated after soaring in the last three consecutive days.

Silver price has moved above the key resistance level at $39.52, its highest level on July 23rd this year.

It has moved above all moving averages and tested the strong pivot reverse point of the Murrey Math Lines at $40.62. 

Top oscillators like the Relative Strength Index (RSI) and the MACD indicators have continued soaring, a sign of strong momentum.

Therefore, silver will likely continue rising, with the next key resistance level to watch being at $46.87, the extreme overshoot level, which is 16% above the current level. A drop below the support at $39.5 will invalidate the bullish forecast.

Read more: July PCE inflation climbs to 5-month high levels: will the Fed still cut rates?

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The FTSE 100 Index has pulled back in the past few days, falling from a high of £9,358 on August 22 to £9,187 today. Still, the blue-chip index has performed well this year as it jumped by over 21% from its lowest point in April. This article looks at the most notable performers this year and what to expect in September.

Top FTSE 100 gainers in 2025

Many companies in the FTSE 100 Index have done well by gaining by over 20% this year, mirroring the performance of the broader financial market. 

Fresnillo’s stock price has jumped by over 186% this year, making it the best-performing company in the index. Its performance is mostly because of the strong performance of silver. 

Silver, a top precious and industrial metal, has jumped to $40, the highest level in over a decade, driven by strong demand and a supply deficit. This is important for Fresnillo because it is one of the biggest players in the silver market.

Babcock International’s share price has soared by over 102% this year, making it the second-best-performing company in the FTSE 100 Index. It has jumped because of the ongoing demand for military equipment as it is a key manufacturer of warships, land systems, and aviation. 

European defense companies have surged this year as most countries have boosted their spending. Most of them are focusing their procurement on European companies amid the ongoing trade war with the US.

Airtel Africa’s share price has jumped by 94% this year as the telecom giant has continued to gain market share in the region. The most recent results showed that its customer base jumped by 9% to 169.4 million in the last quarter, with data one jumping by 17.4%.

Airtel is also benefiting from the money transfer business as the number of customers soaring to 45.9 million. Consequently, revenue jumped by 24.9% to $1.42 billion. 

Rolls-Royce share price has jumped by 88% this year as its three segments have continued thriving. Other top gainers in the index include BAE Systems, BT Group, St. James Place, Lloyds Banking Group, BAT, Standard Chartered, and Aviva. 

Top laggards in the Footsie Index

Not all companies in the FTSE 100 Index have done well this year. WPP stock price has dropped by 52% this year as the advertising industry has faced a major challenge. This is notable since WPP is the biggest advertising agency group globally. 

The most recent results showed that WPP Group’s revenue dropped by 7.8% in the first half to £6.6 billion, while the operating proit rose to £221 million.

Croda International stock price has dropped by 26% this year, making it the second-worst performing company in the FTSE 100 Index. Its recent results showed that the sales rose by 4.9% in the first half of the year to £855 million, while its profit plunged 20% to £85 million.

The other notable laggards in the FTSE 100 Index are companies like Bunzl, Taylor Wimpey, Diageo, Barratt Redrow, and the London Stock Exchange (LSE).

FTSE 100 Index analysis 

The daily timeframe chart shows that the FTSE 100 Index has pulled back in the past few days, moving from a high of £9,358 on August 22 to the current £9,187. 

On the positive side, the index remains above all moving averages, a sign that the bullish momentum is continuing. It has moved slightly below the weak, stop & reverse point of the Murrey Math Lines tool. 

Therefore, the most likely scenario is where the index rebounds and possibly hits the extreme overshoot point at £9,687, up by 5.60% from the current level. 

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The CAC 40 Index has slumped in the past few days as concerns about the country’s political crisis has continued. It has slumped to a low of €7,740, down by 3.28% from its highest point this month. This article explores what to expect now that bond yields have jumped.

Why French stocks have plunged

The CAC 40 Index has plunged in the past few days, moving from a high of €8,000 in August to a low of €7,740. The crash happened as investors reacted to the ongoing political crisis that could see the Prime Minister, Francois Bayrou, lose his job in the near term. 

Bayrou is the country’s fifth prime minister since 2020. He took over from Michel Barnier, who was the prime minister between September and December last year. Gabriel Attal was the premier between January and September last year, while Elisabeth Borne lasted for two years. 

The ongoing political crisis is primarily driven by the country’s fiscal situation as the debt pile continues rising. As a result, the government has attempted to implement some reforms that will help it to reduce spending. 

Like Italy, it has attempted to implement fiscal discipline, which has led to substantial protests. As a result, with no end in sight, borrowing costs have surged even as the European Central Bank has slashed interest rates in the past two years.

Read more: Top CAC 40 shares to watch: LVMH, BNP Paribas, Vivendi and more

Data shows that the 10-year bond yields has jumped to 3.56%, its highest level since March 17. Similarly, the five-year yield has risen to 2.85%. In contrast, the German 10 year yield has risen to 2.7% and the five-year has risen to  2.30%.

The rising government bond yields have made stocks less attractive, with many investors rotating to the bond market.

Meanwhile, the index has been affected by the ongoing performance of the Chinese market. French stocks are more exposed to the Chinese market because most of them do a lot of business there. 

Some of the most exposed firms are luxury brand firms like LVMH, Kering, and Hermes. Kering’s stock has dropped by 4% this year and 53% in the last three years.

Hermes, often seen as the gold standard of the industry, has dropped by 10% this year, while LVMH has slumped by 20% this year. 

Other companies exposed to China like Pernod Ricard and Accor have also slumped. Capgemini’s stock price has plunged by 23% this year as demand for tech consulting has waned. 

Some of the top laggards in the CAC 40 Index are companies like Carrefour, Renault, Stellantis, and Publicis Groupe. 

On the other hand, the top gainers in the index are companies like Legrand, Safran, Thales, Vinci, Société Générale, and BNP Paribas.

CAC 40 Index technical analysis 

The daily chart shows that the CAC 40 Index has pulled back in the past few days, moving below the 50-day and 25-day moving averages. It formed a triple-top pattern at €7,956 and a neckline at €7,500. 

The most likely scenario is where the stock drops further ahead of the vote of no confidence. If this happens, the next point to watch will be at €7,500. A move above the resistance point at €7,956 will invalidate the bearish outlook.

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