BASF Warns Profit Could Fall 30% on U.S.-China Trade War

BASF, the world's largest chemical company, issued a profit warning, expecting earnings to fall by up to 30% compared to last year, with sales also likely to decline. This significant downgrade from previous expectations has raised concerns about the global economy, as BASF is seen as an economic bellwether. The company faces challenges in the automotive sector and industrial production, along with issues in the US market due to heavy rainfall affecting agriculture. These factors have led to a 5% drop in BASF's shares, impacting other chemical makers and raising questions about the future of large companies exposed to global trade.

In what way is BASF considered a bellwether for the global economy?

What was the market reaction to BASF's announcement regarding their earnings?