The latest Market Talks covering the Auto and Transport sector. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0816 GMT - Bollore's appeal of the French market regulator's demand for a public buyout offer for Vivendi shares within six months could dampen investors' hopes, AlphaValue analyst Alexandre Desprez writes. Vivendi shareholders might have expected the French conglomerate to comply with the market watchdog's decision so as to avoid a prolonged process, he says in a note. This development is slightly negative for Vivendi, the analyst adds. Bollore's move clearly signals its reluctance to take full control of Vivendi, he adds. Vivendi and Bollore shares are up 0.1% and 0.4%, respectively. ( najat.kantouar@wsj.com)

0716 GMT - European automakers--Porsche, Mercedes, BMW and Volkswagen--are likely the most significant beneficiaries of the EU-U.S. trade deal, with a greater share of exports from the EU into the U.S. versus Mexico and Canada, Morningstar analysts write in a note. The 15% U.S. import tariff under the deal is far less burdensome for EU automakers than the 27.5% currently being applied. Stellantis is unlikely to see meaningful upside from the deal as it exports single-digit share of its volumes from the EU for sale in the U.S. While Ferrari exports 100% of its vehicles sold in the U.S. from the EU, its financials were largely unaffected by tariffs, even at the maximum tariff burden, they add. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0715 GMT - South Korean auto manufacturers could gain as expectation for a tariff reduction grows, says HSBC's Will Cho in a note. U.S. tariffs affected 2Q earnings, hitting original equipment manufacturers harder than parts makers, but the impact was mitigated by stronger core margins and foreign exchange tailwinds. Auto maker Kia is likely to gain further U.S. market share in 2H on strong hybrid vehicle sales amid its peers' struggles. However, he prefers Hyundai Motor to Kia, as the former has a narrower valuation gap. HSBC has buy ratings on Kia and Hyundai, and keeps its targets at 135,000 won and 270,000 won, respectively. Kia's shares are 0.2% higher at 105,700 won, while Hyundai's shares are 0.2% lower at 218,000 won. (megan.cheah@wsj.com)

0714 GMT - Balkrishna Industries' headwinds are likely to persist in near term, HDFC Securities' analysts say in a research report. Demand continues to remain weak in Europe, while the U.S. market remains volatile on tariff uncertainties, the analysts say. Also, the Indian tire manufacturer hasn't been able to pass on the entire tariff increase to consumers, and has absorbed 40% of the impact. The brokerage remains cautious on Balkrishna Industries. One reason is the company's higher upfront investments in new tire segments which have fiercer competition and lower margins than its core business. Another is lack of visibility for business normalcy of its core business. The brokerage lowers its target price to INR2,102.00 from INR2,191.00 with an unchanged sell rating. Shares last quoted at INR2,734.55. (ronnie.harui@wsj.com)

0300 GMT - Singapore Airlines shares appear expensive, CGS International Raymond Yap says in a note. Profit-taking should kick in before the ex-dividend date on Aug. 8, given the weaker-than-expected core net profit in 1Q, Yap says. CGSI downgrades its recommendation on the stock to reduce from hold, trimming its target price to S$6.80 from S$6.88. While affiliate Air India's weak results for the quarter could have been due to one-off compensation provisions for the 787-8 crash in Ahmedabad, India, in June, it may need time for demand and pricing to fully recover, Yap says. Shares are down 7.1% at S$7.06. (kimberley.kao@wsj.com)

0242 GMT - Air India is likely to remain a near-term overhang for Singapore Airlines' earnings, DBS Group Research says in a note. The larger concern from its 1Q earnings is that Air India's losses were significantly deeper than expected, which is unlikely to ease in the near term given the "complex restructuring alongside reputational damage" after the June accident, the research team says. DBS notes that Air India's bookings have since declined by 20% across domestic and international routes, while average fares have dropped 8%-15%, and cancellations have increased among corporate and premium leisure travelers. Other factors that will continue to weigh on SIA include softening cargo demand due to inventory destocking and continuing trade disruptions, as well as moderating passenger yields resulting from strong competition and increasing industry-wide capacity, it says. (kimberley.kao@wsj.com)

0211 GMT - Singapore Airlines will likely remain under pressure from competition, an uncertain cargo outlook and rising non-fuel costs, Maybank Research analyst Eric Ong writes in a note. 1Q earnings missed expectations, with the bottom line dragged by Air India losses, and passenger yields narrowed further due to increased capacity in the industry, Ong says. There is some opportunity from Jetstar's closure due to the service gap to various Asian destinations, Ong adds. Still, the cargo business outlook remains uncertain due to U.S. trade policies, Ong says. Maybank Research downgrades its rating to sell from hold, and trims its target price to S$6.75 from S$6.85 as it cut its core earnings per share estimates by 25%-29% for FY 2026-28. (kimberley.kao@wsj.com)

1506 GMT - For European industry, and Germany in particular, the U.S.-EU trade agreement is important for future planning, Nord/LB analysts say in a note. The threat of escalation from Aug. 1 is off the table for now, even if some uncertainties remain and residual uncertainty persists, they say. Nevertheless, it marks an important step toward stabilizing transatlantic relations. While 50% tariffs on steel and aluminum remain in place, the agreement means the car industry--now subject to 15% rather than 25% tariffs--will not fall further behind international rivals like Japan, the analysts say. (edward.frankl@wsj.com)

1357 GMT - European auto stocks reversed earlier gains to trade in the red during the afternoon session. Shares in the sector had started the day on the front foot after the U.S. and EU agreed a trade deal that averted an escalation in trade tensions. Barclays analysts Henning Cosman and Erwann Dagorne said in a note they think consensus earnings should have broadly reflected 15% already. They add that, with growth difficult to achieve for most car manufacturers, there may not be meaningful positive consensus revisions at all with this deal. In addition, the Stoxx Europe 600 automobiles & parts index now looks vulnerable, as upside risk now is removed, they say. Porsche and Volkswagen shares both trade over 2.9% lower with Mercedes-Benz down 2.3%, Stellantis down 1.6% and BMW down 1.4%. (dominic.chopping@wsj.com)

1201 GMT - The EU-U.S. trade deal means car tariffs for imports to the U.S. get lowered to 15% from 27.5%, which is a relief but no real surprise following the recent U.S.-Japan deal, Bank of America says. More relevant than the agreement, which the bank says has been widely expected, is if there is any further relief for the auto industry. BMW's CEO has suggested the EU should reduce its import tariff for U.S.-made vehicles to 0% from 10%, which would be a significant advantage for BMW and Mercedes, who both produce some vehicles in the U.S for export to Europe. VW's CEO is aiming for a specific agreement that takes into account investments the company is considering in the U.S. (dominic.chopping@wsj.com)

1136 GMT - Euro-denominated and sterling-denominated credit spreads tighten following U.S. trade agreements with Japan and with the European Union, CreditSights analysts say in a note. The trade deals have renewed market optimism ahead of the U.S. tariffs deadline on Friday. Euro high-yield credit spreads tightened by 17 basis points to 278bps over the last week, while euro investment grade spreads tightened by 4bps to 79bps, CreditSights says. Euro investment-grade utility hybrids credit and autos credit tightened by 9 basis points and 7bps respectively, performing better than other sectors, the analysts say. Within sterling-denominated investment-grade credit, insurance subordinate bonds and bank subordinate bonds outperformed. (miriam.mukuru@wsj.com)

0914 GMT - Porsche, Mercedes, BMW, and Volkswagen, in that order, will benefit most from the U.S.-EU trade deal as they have a greater share of imports from Europe into the U.S. versus from Mexico and/or Canada, Rella Suskin, equity analyst at Morningstar, says. Stellantis imports a single-digit share of its volumes from the EU for sale in the U.S., and thus shouldn't have meaningful upside, Suskin says. While Ferrari imports 100% of its vehicles sold in the U.S. from Europe, its financials were largely unaffected by tariffs. The market had probably priced in a lower tariff burden for BMW, Volkswagen, and Ferrari, particularly after the Japan-U.S. trade deal last week. Mercedes, Porsche, and Stellantis share prices lag on company-specific strategic matters, Suskin says. (dominic.chopping@wsj.com)

(END) Dow Jones Newswires

July 29, 2025 04:20 ET (08:20 GMT)

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