EU AUTOMOTIVE: Nissan (NSANY Ba1[N]/BB[N]/BB+[N]): Profit Warning
Apr-24 10:13
A potential resumption of merger talks with Honda under the new CEO remains a key driver. Fundamentals continue to deteriorate which could expedite that.
- FY24 revenue guidance increased marginally.
- EBIT guidance reduced by 30% to Y85bn, implying margins below 1%. That follows a cut from Y150bn to Y120bn in February. It did Y570bn for FY23. The latest revision was on blamed deterioration in sales performance, presumably with heavy discounting or incentives given revenue is holding up, as it tries to move its dated inventory.
- It has Y2.2tn in cash and equivalents, versus Y1.6tn expected.
- Restructuring costs are expected to exceed Y60bn for the year. This was previously guided to Y100bn, possibly implying some delays on that into FY25.
- Net income guidance was revised heavily with impairments on production assets.
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GILT AUCTION RESULTS: Reasonably Soft 20-year Gilt Auction
Mar-25 10:12
The 0.5bp tail at today’s 4.75% Oct-43 Gilt auction was the widest of the eight re-openings for this line (previous range 0.1-0.4bps). Meanwhile, this was the first auction for this line that saw a bid-to-cover of below 3.00x (2.97x at today’s auction, average across the seven prior re-openings: 3.42x).
The secondary market price of the Gilt has fallen to 94.212 since the auction results were published (vs a lowest accepted price of 94.263 and a pre-auction mid-price of 94.230).
US: SOFR FIX - 25/03/25
Mar-25 10:07
SOFR FIX - Source BBG/CME
- 1M 4.32163 -0.00003
- 3M 4.30281 0.00697
- 6M 4.21567 0.02118
- 12M 4.05632 0.05253
EURIBOR: EURIBOR FIX - 25/03/25
Mar-25 10:06
EURIBOR FIX - EMMI/Bloomberg
- EUR001W 2.4080 0.0220
- EUR001M 2.3490 0.0090
- EUR003M 2.3650 -0.0020
- EUR006M 2.3860 -0.0130
- EUR012M 2.3540 -0.0120
