EU AUTOMOTIVE: Magna (MGCN A3[N]/A-[N]/NR): Moody’s Outlook Negative
Apr-30 15:54
We flagged Magna as tariff exposed back in November https://mni.marketnews.com/4lUzia4. Downgrades aren’t a given, but risk has clearly grown depending on how OEM volumes adjust to tariffs.
- Moody’s put Magna on outlook negative overnight.
- It expects deleveraging to 1.5x post M&A to be achieved by FY26, two years behind schedule.
- It also mentions EBIT margins towards 6.5%. There is no sign of that in the next two years and has been below since covid.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
NORWAY: Union Wage Negotiations Look In Keeping With NB Forecasts
Mar-31 15:53
- Some colour for this month's 2025 union wage negotiations, which look in keeping with broader wage growth projections for the year and shouldn't move the needle too much in Norges Bank forecasts:
“*NORWAY UNIONS, EMPLOYERS REACH DEAL ON 4.4% WAGE RISE
*NORWAY LO UNION ORGANIZATION COMMENTS ON WAGE DEAL ON WEBSITE” - bbg
- The Norges Bank MPR from last week saw wage growth declining to 4.5% in 2025, raised 0.3pp from the December projection, after 5.6% in 2024.
- Separately, its Regional Network Survey from Mar 20 saw wage growth expectations for 2025 trimmed a touch from 4.5% to 4.4%, whilst its Expectations Survey showed social partners expecting 4.1%.
STIR: ECB Spillover Sees Fed Rate Path Continue Intraday Lift
Mar-31 15:39
- Fed Funds implied rates have been nudged a little higher following a hawkish adjustment in ECB pricing on Bloomberg sources suggesting April is a closer decision than markets were pricing.
- Implied rates are a little above where they were prior to today’s mfg surveys, limiting the day’s decline having opened notably lower after the weekend.
- Cumulative cuts from 4.33% effective: 5bp May, 21.5bp Jun, 37.5bp Jul, 53.5bp Sep and 75bp Dec.
- May and June meeting implied rates are now 0.5bp from Friday’s close whilst Dec is 2bp lower vs 7bp lower as US desks filtered in this morning.
- The 75bp of cuts for 2025 still compares with 64bp prior to Friday’s PCE report and subsequent further ratcheting lower in the Atlanta Fed’s GDPNow – see the below table for a broader comparison.
- The MNI Chicago PMI was higher than expected at 47.6 (cons 45.0). Its prices paid index edged lower but was otherwise at its second highest reading since Aug 2022 whilst the new orders index technically increased to its highest since Nov 2023 but remained sub-50.
FED: US TSY 13W BILL AUCTION: HIGH 4.205%(ALLOT 90.20%)
Mar-31 15:32
- US TSY 13W BILL AUCTION: HIGH 4.205%(ALLOT 90.20%)
- US TSY 13W BILL AUCTION: DEALERS TAKE 38.39% OF COMPETITIVES
- US TSY 13W BILL AUCTION: DIRECTS TAKE 5.74% OF COMPETITIVES
- US TSY 13W BILL AUCTION: INDIRECTS TAKE 55.87% OF COMPETITIVES
- US TSY 13W BILL AUCTION: BID/CVR 2.74
