The German company Daimler, parent company of Mercedes-Benz, cut its profit forecast for the fourth time in the past 13 months. It set aside a large budget to regulate diesel emissions and the Takata airbag recalls. Daimler said it would post a second quarter operating loss, and they said their 2019 profit margin would be "significantly" lower than last year.
Daimler joins a growing number of blue-chip firms to issue a profit warning this week. Many of these firms are based in China, where corporate confidence has been struck by a trade war. Daimler is taking the initial steps to prepare for a recession.
While Daimler and many analysts seem to be anticipating a global recession, the Wall Street Journal had a take on whether it may just be a German event. Many large German companies have experienced a period of change or cutbacks in the past year. This does not bode well for the German economy.