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.
0734 GMT - Lufthansa's eight-day labor strike earlier this year is expected to add around 200 million euros in cost, AlphaValue analyst Yi Zhong says in a research note. The German airline's 2025 pretax profit was broadly in line with expectations despite slightly weaker operating profit due to higher costs, but a higher tax rate reduced net profit more than expected, Zhong says. Forecasts for 2026 and 2027 have been lowered because of higher fuel costs, increased disruption from the Iran conflict, and the impact of the strike, she adds. While strong ticket pricing and premium travel demand continue to support revenues, fuel prices are likely to remain elevated for some time due to ongoing supply constraints, she adds. Shares trade 1% lower at 8.19 euros.(nina.kienle@wsj.com)
0010 GMT - Bell Potter cuts dividend expectations for Eagers Automotive through 2028, but keeps a buy call on the stock while signaling the car dealership could beat its forecasts for 1H and 2H this year. It now assumes a dividend of 74 Australian cents a share in 2026, down 7.5% on its prior forecast. Analyst Chris Savage says this reflects a desire for "more clarity on the payout ratio policy going forward post the investment in CanadaOne and the balance between further M&A activity--particularly in Canada--and paying out a dividend." It expects Eagers's dividend to be A$0.80/share and A$0.86/share in FY27 and FY28, respectively. Bell Potter says its 1H and 2H forecasts for this year may turn out to be too low because of continued strong BYD sales and a strong rebound in Toyota sales in 2H.(david.winning@wsj.com; @dwinningWSJ)
1522 GMT - Uber's partnership with Nvidia addresses one of the biggest bottlenecks left for scaling autonomous-vehicle commercialization, Deutsche Bank analysts say in a research note. The ride-hailing company doesn't want to become the self-driving vehicle manufacturer or software developer, it just wants to handle the logistics and day-to-day operations, the analysts say. Nvidia meanwhile can be the standardized technology backbone for autonomous vehicles that Uber can utilize and monetize, they say. That pairing can give carmakers and fleet owners confidence that their self-driving vehicles will be seeing demand from day one, the analysts say. (dean.seal@wsj.com)
1445 GMT - Canada says it will make financing available to the country's air carriers to deal with higher airline fuel stemming from the conflict in the Middle East. Finance Minister François-Philippe Champagne says under a new loan program, Canadian airlines facing "significant financial pressures" from higher fuel prices could access up to C$150 million in financing to alleviate the balance-sheet squeeze. This is the latest effort by Canada to soften the blow from higher energy costs. In April, Canada waived vehicle-fuel taxes on a temporary basis, until Labor Day. (Paul.Vieira@wsj.com; @paulvieira)
1334 GMT - - U.A.E. and Qatar stocks close lower after the first exchange of fire between Iran and Israel since an April ceasefire and as Yemen's Houthi rebels threaten to block Israeli shipping in the Red Sea. The renewed escalation and disruption to regional trade flows are weighing on investor sentiment, says Chiro Ghosh of Bahrain-based SICO Bank. Qatar's QE index falls 2%, Abu Dhabi's benchmark index drops 1.4% and Dubai's DFM General Index declines 0.6%, while Saudi Arabia's main index ends up 0.4%. (farhan.rafid@wsj.com)
1259 GMT - Porsche's return to strength is a multi-year effort, but now is the time to buy the stock as the turnaround is becoming visible, UBS says. Wrong decisions around EVs have been rectified, new top-end products with combustion and hybrid powertrains are lined up, and management is focusing on product quality, UBS's Patrick Hummel writes. The bank expects a leaner Porsche to emerge after years of half-hearted efficiency measures. "We expect restructuring to be announced with Q2 results." The October investor day will bring it all together, UBS adds. By 2030, UBS expects the German automobile manufacturer to return to a 13% operating profit margin. The Swiss bank upgrades Porsche's stock to buy from neutral and lifts its price target to 60 euros from 40 euros. Shares rise 3% to 48.27 euros. (dominic.chopping@wsj.com)
1243 GMT - Porsche SE offers a basket of Volkswagen and Porsche AG at an attractive discount, with an attractive yield and dividend upside, Bank of American Securities writes. Porsche SE shares are down 23% year-to-date, reflecting the decline in its core Volkswagen holding, in which it owns a 53.1% stake. The bank says Porsche SE is the cheapest auto stock in Europe, and its view on Volkswagen remains positive. In addition, the bank expects the Porsche SE to continue paying a decent dividend despite expecting around 200 million euros a year of debt reduction. "We think the dividend could have upside if VW sells assets and realizes book gains." BofA lowers its price objective on the stock to 38 euros from 45 euros and keeps buy rating. Shares rise 1.3% to 30.97 euros. (dominic.chopping@wsj.com)
0830 GMT - OPEC+ could begin unwinding the 2 million barrels per day of official cuts agreed to in October 2022 once voluntary reductions are fully reversed, though market dynamics might complicate that path, Rystad Energy says. Once the Strait of Hormuz reopens and flows normalize, the market is expected to see the return of OPEC+ supply, stronger U.S. shale production, and weaker demand after a prolonged period of elevated prices, says Rystad's Jorge Leon. In the near term, that excess supply could be absorbed through rebuilding strategic and commercial inventories. But once restocking is complete, a structural surplus may re-emerge, potentially forcing OPEC+ back into coordinated production cuts. The key challenge will be maintaining cohesion: discipline is easier in tight markets than when rising supply forces members to decide who shoulders the burden of restraint, says Leon. (giulia.petroni@wsj.com)
0824 GMT - Markets' pricing of three interest-rate hikes by the European Central is "stretched," ING rates strategists say in a note. However, they argue that now isn't the time to push back against it. "In fact, we even believe Thursday's meeting could leave us with a hawkish aftertaste," they say. A 25-basis-point rate hike is fully priced for Thursday, with further two raises expected by February 2027, according to LSEG. As oil remains at elevated levels for longer, potentially even creeping back to $100 on the recent intensification of the conflict, "we think markets will continue to add to the hawkish narrative," the strategists say. They expect a more dovish market turn only if second-round effects prove to be relatively benign later this year. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
June 09, 2026 04:20 ET (08:20 GMT)
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