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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.
CONSUMER CYCLICALS
- Sector headwinds have been bubbling for some time, but it feels like reality is starting to bite. Early this year OEMs were calling for a 2H recovery; now they are all trying to take action to weather the storm. This morning’s softer Industrial Production data for France and Germany showed weakness in transport manufacturing. North American truck orders were also sluggish.
- Volkswagen announced it’s looking at plant closures in Germany for the first time ever despite immense political hurdles. With intense external pressures VW is accepting that it cannot maintain internal inefficiencies if it is to meet profitability targets, even if the upfront costs are large. That revelation came off the back of a reported €2-3bn cost savings shortfall which may have been timed to set the scene.
- Highly ambitious BYD shelved a potential Mexican plant until at least after the US election, while Volvo Car downgraded medium-term margin targets, blaming tariffs and global trade uncertainty.
- The Swedish EV leader also dialled back electrification goals slightly; Toyota was reported to be taking a more drastic 30% cut to its 2026 EV production guidelines, which it denied.
Crossover names JLR and Schaeffler were weak, otherwise spreads were in quite a narrow range with Ford and Volkswagen underperforming slightly (chart).
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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