Barclays downgrades European auto sector to Negative from Neutral

Barclays analyst Henning Cosman downgraded the firm’s European autos and auto parts industry view to Negative from Neutral. The analyst has a cautious macro view, with inflation, interest rates and list prices "all representing risks to affordability and consequently volumes." The Q1 results "should still be fine," with a robust European order backlog and resilient U.S. consumer demand, but soft year-to-date volumes in China, a price war amid Tesla’s price cuts, and a looming recessions "are beginning to concern us," the firm contends.