🧵 1. Wall Street remains optimistic about potential UAW strikes, seeing investment opportunities and believing Detroit automakers can handle labor cost increases. #business
🧵 1. Wall Street remains optimistic about potential UAW strikes, seeing investment opportunities and believing Detroit automakers can handle labor cost increases. #business
🧵 2. RBC Capital analyst estimates manageable margin impacts for D-3 automakers due to potential raises for union workers. Short-term low inventories may support prices.
🧵 3. Jefferies analyst stresses the importance of strike duration, estimating potential earnings impact for each week of a strike at Ford, GM, and Stellantis.
🧵 4. Simultaneous national strikes by UAW would be unprecedented, causing significant ripple effects on the supply chain, economy, and manufacturers' losses.
🧵 5. Despite uncertainties, Morgan Stanley analyst sees buying opportunities during contract negotiations, emphasizing that labor costs are a small portion of Detroit automakers' global revenues.
🧵 Read more at: https://www.cnbc.com/2023/09/12/wall-street-sees-potential-upsides-of-uaw-auto-strikes.html