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.

0838 GMT - Deutsche Post shares should do well after fourth-quarter EBIT beat expectations by 4% while cash returns have been increased, Morgan Stanley analysts write. Guidance for 2025 EBIT of at least 6 billion euros compares with Morgan Stanley's expectation of 6.17 billion euros. Company consensus is at 6.3 billion euros. "No scope for upgrades today, but encouraging fourth quarter especially in express." The upsized cash return and new cost cutting program are also positive, the bank adds. Shares rise 11.5%. (dominic.chopping@wsj.com)

0836 GMT - Deutsche Post's report shows that management has listened to market feedback so its results and actions will rightly be taken positively, Deutsche Bank analysts write. Fourth quarter EBIT was 4% ahead of company consensus and 9% ahead of Deutsche Bank's expectations. The 2025 guidance of at least 6 billion euros is in line with Deutsche Bank but slightly below company consensus at 6.3 billion euros. In the bank's view, the guidance has been set at a level that is more achievable. The flat 1.85 euro dividend is as expected and the company has expanded its share buyback program by 2 billion euros and extended it to 2026 which implies up to 2 billion euros in 2025 and 2026. Shares rise 8.7%. (dominic.chopping@wsj.com)

0825 GMT - Deutsche Post's update is positive, given that management is taking action to deliver EBIT improvement amid a muted macro backdrop, JPMorgan analysts write. The increase of the share buyback should also be taken well, they add. The company's fourth-quarter group EBIT came in 4% ahead of a company-compiled consensus, driven by a strong performance in the express business, where it benefited from demand surcharges despite still muted volumes. Management guided for 2025 EBIT of at least 6 billion euros, while the company consensus is at 6.3 billion euros, and launched a 1 billion-euro cost program. The bank doesn't expect major changes to consensus. "Despite a strong share price performance year to date we think the market will view this update positively this morning." Shares rise 8.9%. (dominic.chopping@wsj.com)

0744 GMT - The dollar falls to a four-month low after President Trump announced a one-month tariff reprieve for auto imports from Mexico and Canada. The announcement came a day after the U.S. imposed a 25% tariff on Canadian and Mexican goods. This chaos in U.S. trade policy creates uncertainty and makes decisions for investments and durable consumption difficult, Commerzbank currency analyst Ulrich Leuchtmann says in a note. That is "rather dollar negative," he says. The DXY dollar index falls to a low of 104.061. (renae.dyer@wsj.com)

0709 GMT - America's carmakers are still in line for major disruption from planned tariffs on imports, Capital Economics' Paul Ashworth says, even with the one-month stay of execution granted by Commerce Secretary Howard Lutnick. The reprieve came at the request of big beasts Ford, General Motors and Stellantis, the White House said Wednesday, and applies to auto companies that comply with free-trade agreements with Canada and Mexico, the object of President Trump's much-trumpeted tariffs. But the industry remains at risk from the tariffs after that month, when European and Asian imports will also be liable for steep duties, Ashworth notes. Firms may be hoping the reprieve could be extended, he says. "Domestic manufacturers are only being offered a short temporary relief until Trump can bring the tariff hammer down on everyone else too," Ashworth says. (joshua.kirby@wsj.com; @joshualeokirby)

0652 GMT - Investors are likely overlooking Jasa Marga (Persero)'s current free cash flow position, CGS International analysts say in a research report as they maintain the stock's add rating. The Indonesian company's estimated 2025-2027 free cash flow of IDR1.2 trillion-IDR5.1 trillion looks solid amid the government's declining infrastructure appetite, the analysts say. After considering factors including the company's latest interest-cost situation, the brokerage raises its 2025 and 2026 core EPS forecasts for the toll road operator by 6.8% and 8.6%, respectively. However, the brokerage lowers the target price to IDR5,250.00 from IDR6,350.00 to partly reflect new capital-expenditure forecasts. Shares are 6.1% higher at IDR3,840.00. (ronnie.harui@wsj.com)

2357 GMT - Slowing new car sales in Australia costs ARB Corp its bull at Citi. Analyst Sam Teeger cuts his recommendation on the vehicle-accessory maker and retailer to neutral from buy, citing increased near-term caution from accelerating decline in Australian motor sales. New vehicle sales fell 8% in February, compared with January's 2% decline. Teeger tells clients in a note that the trend is negative for ARB's June-half aftermarket sales. He sees the weakness persisting through the rest of the calendar year, although there is upside risk given Citi's expectation that the Reserve Bank of Australia cuts the cash rate twice more in 2025. Target price falls by 23% to A$39.54. Shares are down 3.4% at A$34.01. (stuart.condie@wsj.com)

2024 GMT - The one-month pause on tariffs for the automotive industry gives car-makers a little more time to build up inventory, but most won't be able to make many changes in that timeframe, CarGurus director of economic and market intelligence Kevin Roberts said. Auto companies didn't build up inventories much in February, and Roberts said the supply chain is so complex and international it will be difficult to rearrange quickly. "I don't believe you're going to be able to do that in a month," he said. Stellantis and Ford have especially large inventories built up, giving them more time before they might have to raise consumer prices. (katherine.hamilton@wsj.com)

1927 GMT - Mexico's auto and other manufacturing companies face the most risk from U.S. tariffs and the increasing likelihood of a domestic recession, Fitch Ratings says. The tariffs and uncertainty over trade relations "significantly worsen the business environment for Mexico's corporates," while threatening nearshoring prospects, the firm says. Manufacturers have highest exposure to tariffs, while "for other Mexican corporate sectors, direct exposure to U.S. tariffs is moderate to low, mitigated by product and geographical diversification or access to alternative markets." Construction and building materials companies are also seen highly vulnerable to a recession, while consumer, energy and telecommunications sectors are the least at risk to both tariffs and an economic downturn. (anthony.harrup@wsj.com)

1834 GMT - Auto stocks are reacting to President Trump's one-month tariff exemption for automakers. The exemption comes a day after Trump's administration implemented 25% tariffs on Mexico and Canada. General Motors climbs 7% to $48.35, Ford rises 5.3% to $9.60 and Stellantis N.V. is up 9.2% to $12.89. (sabela.ojea@wsj.com; @sabelaojeaguix)

1816 GMT - It would take about two years for the automotive industry to adapt to tariffs and prices to stabilize, CarGurus estimates. In a report, the online auto marketplace says it expects the effect on car prices will be minimal if tariffs last for three months or less because there was a roughly 84-day supply of inventory at the end of February, "and consumers are likely to have access to a solid selection of pre-tariff vehicles," CarGurus says. But the longer tariffs drag on, the larger the dent in new sales will be. If they continue past four months, car makers will have to start finding ways to adjust, potentially moving more automotive production to the U.S., CarGurus says. (katherine.hamilton@wsj.com)

1810 GMT - The tariffs enacted Tuesday are expected to increase the average list price of new vehicles in the U.S. by 7% to $52,500, car marketplace CarGurus says in a report. Tariffs are likely to drive up new vehicle prices first, but used car prices could also rise if consumers turn to that market amid higher prices for new cars and trucks, the report says. Even for cars built in the U.S., prices are likely to increase due to an expected 25% tariff on steel and aluminum imports. Auto parts often cross borders multiple times before being assembled into a final product, and pricier parts could make car ownership and car insurance more expensive, CarGurus says. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

March 06, 2025 04:20 ET (09:20 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.