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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CAPITAL GOODS
- Industrial spreads fared in-line with the index over the week, with plenty of single name movers to digest. Imerys and Heidelberg Materials posted results that were broadly neutral. We saw mixed messages with Imerys more upbeat; expecting European residential to improve and China boosted by government measures in a rare snippet of optimism there https://marketnews.com/basic-industries-imerys-nk-baa3-bbb-nr-2q24-results.
- AGCO (+11) results revealed even worse conditions for Agri Machinery than feared, with South America particularly severe. FCF guidance was cut by a third https://marketnews.com/capital-goods-agco-agco-baa2-bbb-p-nr-2q24-results. That didn’t bode well for CNH Industrial (+10) who cut FCF guidance by a similar margin https://marketnews.com/capital-goods-cnh-industrial-baa2-bbb-bbb-2q24-results.
- Chemicals is another sector that has been under the spotlight. Results from Solvay (guidance upgraded) https://marketnews.com/basic-industries-solvay-solbbb-nr-bbb-nr-2q24-results, Covestro and DSM-Firmenich struck a cautiously optimistic tone with volumes picking up from trough levels, but pricing remains pressured so far.
- Rolls-Royce (-13) bucked the trend with a move tighter following results. Following a beat & raise, with FCF guidance upgraded 20% we see no barriers to Moody’s upgrading to IG; with S&P and Fitch already there but on positive outlook, momentum remains strong https://marketnews.com/capital-goods-rolls-royce-rolls-ba1-p-bbb-p-bbb-p-tighter-post-results.
- Saint-Gobain (+9) demonstrated the perils of summer issuance with spreads pressured by their dual-tranche issuance.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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