AUTOMOTIVE
- Stellantis came out with comments on its plans to address inventory overhang, while also potentially signalling a profit warning. Spreads were slow to react but did underperform ultimately.
- Forvia announced a guidance cut which spreads widen before paring much of the move (thought still wider on the day as of writing) while the equity rallied with the cut likely expected and the market largely assured by the mostly unchanged deleveraging path and increased Hella synergies.
- Exor reported 1H results, with credit metrics remaining strong.
- Supply came from relatively defensive autoparts businesses Continental and Knorr-Bremse. Continental had to pay a 20bp NIC with negative overhang from the BMW brake problems and potential separation. Rare issuer Knorr-Bremse on the other hand priced slightly through our FV.
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