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Summary
Tesla UK sales fell sharply in November, echoing wider European declines
Germany and France saw particularly steep drops in Tesla registrations
Competition from Chinese automakers, especially BYD, intensified
UK EV buyers increasingly favour plug-in hybrids over full BEVs
The data point to structural challenges rather than a one-off dip
Sales of Tesla continued to weaken across Europe in November, with the UK joining a broader regional slowdown that has highlighted growing competitive pressures and shifting consumer preferences in the electric-vehicle market.
In the UK, Tesla registrations, a proxy for sales, fell sharply year on year. Preliminary data from industry tracker New AutoMotive showed registrations down 19% to around 3,800 vehicles, while figures from the Society of Motor Manufacturers and Traders pointed to a similar decline of more than 17%. While the two datasets differ slightly due to methodology, both underscore a clear loss of momentum for Tesla in one of Europe’s most important EV markets.
The UK weakness mirrors an even steeper downturn elsewhere in Europe:
declines that were only partly offset by stronger demand in Norway. Taken together, the figures suggest Tesla’s European performance is under sustained pressure rather than experiencing a one-off monthly setback.
A key factor has been intensifying competition, particularly from Chinese manufacturers. In the UK, registrations of BYD more than tripled in November, reflecting the growing appeal of lower-priced electric and plug-in hybrid models. British consumers now have access to more than 150 electric vehicle models, sharply reducing Tesla’s first-mover advantage.
Tesla has also been grappling with an aging product lineup in Europe, even as it begins rolling out updated versions of its best-selling Model Y. At the same time, broader brand sentiment has softened in recent months, adding another headwind in an already crowded market.
The wider UK auto market also showed signs of cooling. Total new car registrations declined in November, while battery-electric vehicle sales edged lower. In contrast, plug-in hybrid registrations rose, suggesting some consumers are opting for transitional technologies rather than committing fully to battery-electric vehicles amid concerns over costs, incentives and charging infrastructure.
Taken together, the November data reinforce the view that Europe and the UK, has become a tougher operating environment for Tesla. Slowing demand growth, fierce competition from Chinese rivals and a more discerning consumer base are increasingly weighing on sales performance across the region.
This article was written by Eamonn Sheridan at investinglive.com.
The People’s Bank of China is due to set the daily USD/CNY reference rate at around 0115 GMT (2115 US Eastern time), a fixing that remains one of the most closely watched signals in Asian foreign exchange markets.
China operates a managed floating exchange rate system, under which the renminbi (yuan) is allowed to trade within a prescribed band around a central reference rate, or midpoint, set each trading day by the PBOC. The current trading band permits the currency to move plus or minus 2% from the official midpoint during onshore trading hours.
Each morning, the PBOC determines the midpoint based on a range of inputs. These include the previous day’s closing price, movements in major currencies, particularly the US dollar, broader international FX conditions, and domestic economic considerations such as capital flows, growth momentum and financial stability objectives. The midpoint is not a purely mechanical calculation, allowing policymakers discretion to guide market expectations.
Once the midpoint is announced, onshore USD/CNY is free to trade within the allowable band. If market pressures push the yuan toward either edge of that range, the central bank may step in to smooth volatility. Intervention can take the form of direct buying or selling of yuan, adjustments to liquidity conditions, or guidance through state-owned banks.
As a result, the daily fixing is often interpreted as a policy signal rather than just a technical reference point. A stronger-than-expected CNY midpoint is typically read as a sign the PBOC is leaning against depreciation pressure, while a weaker fixing for the CNY can indicate tolerance for a softer currency, often in response to dollar strength or domestic economic headwinds.
In periods of heightened global volatility, such as shifts in US rate expectations, trade tensions or capital flow pressures, the fixing takes on added significance. For investors, it provides insight into Beijing’s currency priorities, balancing competitiveness, capital stability and financial market confidence.
This article was written by Eamonn Sheridan at investinglive.com.
I posted earlier on why this doesn’t rally matter too much, the meeting pre-dates December’s much more consequential rate hike and the subsequent swings in the yen:
Anyway, for good order, here’s a summary article.
Summary
BOJ October minutes reflect broadly stable global and domestic conditions at the time
U.S. growth seen as solid, supported by AI investment and resilient consumption
China identified as a growing downside risk amid tariff pressures and property weakness
Japan’s financial conditions remained highly accommodative, with real estate risks noted
Core inflation around 3%, driven largely by food prices and wage pass-through
Minutes from the Bank of Japan October policy meeting (full text is here if you are interested) show policymakers broadly comfortable with the prevailing economic and financial backdrop at the time, while remaining alert to risks stemming from global trade policy, inflation dynamics and asset-price developments.
Board members judged global financial markets to be in a relatively constructive mood, noting that U.S. equity markets had continued to post record highs. This was attributed to easing uncertainty around the economic impact of tariff policies, alongside rising optimism surrounding artificial intelligence investment and potential productivity gains. At the same time, some members cautioned that equity markets could become vulnerable if AI-related revenue failed to meet elevated expectations.
Overseas economic conditions were assessed as generally stable, though uneven. The U.S. economy was seen as maintaining solid growth, supported by resilient consumption and robust AI-driven capital spending, even as some weakness emerged in employment growth. Members noted growing divergence in consumption patterns across income groups, with higher asset prices supporting spending among wealthier households while price pressures weighed on consumption of necessities. While tariff-related cost pressures had so far been absorbed by firms, several members warned that these costs could eventually be passed on to consumers with a lag.
Europe was described as relatively weak, partly reflecting a pullback following earlier export front-loading, while China’s economy was seen as decelerating amid higher tariffs, fading policy support and ongoing property-sector adjustment. Some members highlighted China as an increasingly important downside risk for the global outlook.
Domestically, members agreed that Japan’s financial conditions remained highly accommodative, with signs of credit expansion, particularly in real estate and merger-and-acquisition activity. Several policymakers flagged rising urban property prices, attributing them partly to deeply negative real interest rates, yen depreciation and overseas capital inflows, as well as supply-side constraints.
Japan’s economy was judged to be recovering moderately overall. While U.S. tariffs had weighed on corporate profits, members saw little evidence that these effects had spilled over meaningfully into investment, employment or wage trends. Business investment was viewed as on a moderate upward trajectory, supported by favourable sentiment and resilient corporate earnings. Private consumption was seen as holding up, aided by improving employment and income conditions, though rising prices were prompting greater consumer thrift, particularly for everyday goods.
On prices, members agreed that core inflation had been running around 3% year-on-year, driven largely by food prices and ongoing pass-through of wage increases. Inflation expectations were seen as edging higher, though debate persisted over how much of the recent inflation reflected cost-push factors versus demand-driven pressures, and how durable these trends would prove.
On policy:
Summary
Gradual normalisation bias: Policymakers agreed that real interest rates remained significantly low and that, if the economic and inflation outlook were realised, the BOJ would continue raising rates and reducing monetary accommodation over time.
Hold for now, assess further:
Most members supported keeping the policy rate around 0.5% at the October meeting, arguing more time was needed to confirm the durability of wage growth amid global and trade-policy uncertainty.
Growing internal divide:
A minority of members favoured an immediate hike toward 0.75%, citing upside inflation risks, yen depreciation and concerns that policy could remain too accommodative for too long.
Wages as the key trigger:
The board repeatedly stressed that sustained wage-setting behaviour — particularly ahead of the 2026 spring negotiations — would be central to decisions on further rate increases.
Emphasis on communication and flexibility:
Members highlighted the need for clear communication and a flexible reaction function to avoid market instability while continuing the gradual path toward policy normalisation.
The minutes show a policy board increasingly confident that the conditions for further normalisation were falling into place, while still divided over the appropriate timing and pace of rate increases amid elevated global uncertainty.
Members broadly agreed that real interest rates remained significantly low and that, if the outlook for economic activity and prices were realised, the Bank would continue to raise the policy interest rate and adjust the degree of monetary accommodation. At the same time, policymakers emphasised the need to proceed without preconceptions, given ongoing uncertainties around global trade policy, foreign economic conditions and financial market developments.
For the intermeeting period, most members judged it appropriate to maintain the existing guideline targeting the uncollateralised overnight call rate at around 0.5%. While confidence in the baseline outlook was seen as gradually improving, many argued that more time was needed to confirm whether firms’ wage-setting behaviour would remain robust, particularly against the backdrop of lingering uncertainty over U.S. tariff policy and the direction of economic policy under Japan’s new administration.
That said, the minutes reveal a clear debate within the board. A few members favoured raising the policy rate to around 0.75% at the October meeting, citing upside risks to prices, especially from yen depreciation and the possibility that inflation pressures could intensify if policy remained too accommodative for too long. Others acknowledged that conditions for further normalisation were close to being met but stressed the importance of confirming that underlying inflation had become sufficiently entrenched.
Looking ahead, members placed particular emphasis on wage dynamics as the key determinant of future policy moves. Several highlighted the importance of monitoring firms’ profit projections, developments ahead of the 2026 spring wage negotiations, and anecdotal evidence on wage-setting behaviour. Policymakers also flagged the need to watch global trade developments, U.S. monetary policy, exchange-rate moves and domestic price trends.
Overall, the discussion underscored a shared commitment to gradual normalisation, careful communication and flexibility, with the Bank seeking to avoid both premature tightening and the risk of falling behind the inflation curve.
This article was written by Eamonn Sheridan at investinglive.com.
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