Bank of America: Easing emission standards boosts European car manufacturers.

Analysts at Bank of America wrote that with regulatory restrictions easing, especially those related to carbon dioxide emissions, the automotive industry will gain much-needed flexibility. These analysts stated that the United States has been leading this trend and may even completely eliminate carbon dioxide regulations. The bank also added that Europe may not go as far, but could potentially delay a ban on internal combustion engine vehicles until after 2040. "We believe that the cheapest stocks will benefit the most from regulatory relaxation, but ultimately, the discounted cash flow prospects of all car manufacturers - from Renault to Ferrari - will improve." The bank raised its rating on Renault and Porsche stocks from "neutral" to "buy" for valuation reasons, and upgraded the rating on Mercedes-Benz from "underperforming the market" to "neutral". Stocks for Porsche, Volkswagen, BMW, Mercedes-Benz, Ferrari, Renault, Volvo and Porsche all rose by 3.5% to 5%.