September could be key for markets, Live Nation under pressure over ticket pricing, Volkswagen weighs German plant closures

“Markets have shuffled into September, a month which could deliver the decisive moment of the year if the Fed follows through on its rumblings that a rate cut is nigh”comments Danni Hewson, AJ Bell Head of Financial Analysis.

“After last month’s early market meltdown there’s still a degree of restraint from investors waiting to see how the next set of earnings stack up after a number of Q2 disappointments from companies feeling the impact of consumer caution, political shenanigans and higher borrowing costs.

Live Nation

“There’s nothing quite as annoying as joining a queue expecting to pay one price for that prized concert ticket, feeling the joy of finally getting those Oasis dates in your basket, only to find that you’re going to have to fork out considerably more than you’d budgeted.

“Dynamic pricing might be unpopular but, although it might come under the scrutiny of the UK government, it’s become so engrained in our economic lives, no one doubts it’s here to stay.

“And even amidst all the angry social posts the one big takeaway must be that tickets for the gigs have sold out and the share price of Ticketmaster parent company Live Nation has edged up, adding millions to the company’s market value.

“But this debacle must lead to further questions about the size and dominance of Live Nation, something which is already under scrutiny in the US where 40 States are now part of an antitrust lawsuit which seeks to break up the entertainment giant.

“Live Nation has hit back at the suit saying it won’t solve the issues fans care about and that the company looks forward to sharing more facts as the case progresses.

“What’s certain is that regulators and music lovers alike will be watching developments with a great deal of interest.

Volkswagen

“Pressure on European automakers to compete with Chinese upstarts like BYD and Nio has forced tough decisions as they race to stay competitive as motorists transition to EVs.

“Prices are still too high for many drivers, and they are looking at what those new brands have to offer, especially as those carmakers set up shop closer to home.

“The game of tariff tit-for-tat aside, companies like Volkswagen know that the game is played on a global playing field and, if they’re to keep their position in the new line up, they need to deliver a cheaper product.

“In order to do that VW is now exploring previously unheard-of options, including shutting some of its factories in Germany.

“It would be a politically unpopular decision but one that investors seem likely to be in favour of, if today’s share price reaction is anything to go by.

“China accounts for a huge portion of VW’s sales and upping its manufacturing capacity in Asia would make a great deal of sense.

“With manufacturing in Europe stuck in a rut, even talk of such a move will be a blow.”

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