Premarket: What you need to know before the bell

1. Daimler warning: Daimler (DDAIF), the German auto company that makes Mercedes-Benz, has slashed its 2019 profit expectations by hundreds of millions of euros.

The company said over the weekend that its profit for 2019 will be close to last year's level. Shares in the carmaker declined 4.7% in Frankfurt on Monday. The stock has dropped 20% from a recent high in April.

Daimler blamed the financial downgrade on continued fallout from the diesel emissions scandal that has for years weighed on the German auto industry.

But the warning goes beyond diesel. Flagging profits undercut Daimler's ability to plow money into the vehicles of the future at a time when such investment is crucial. The company is racing to offer 130 electric and hybrid models by 2022, in addition to electric vans, buses and trucks.

revive merger talks The need for new investment is forcing carmakers to join forces, either in the form of partnerships or mergers. The Wall Street Journal reported this weekend that and could revive merger talks that collapsed earlier this month after the French government intervened.

Source: CNN

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