Rno is testing some support - has been weak because of emerging exposure, Asia is tradin higher this morning and Iran & Russia fears are overdone...
Few positives points Highlighted during l ast week BofA-ML conf :
- Solid message emphasizing the strong competitive position of the entry range and Nissan saving opportunities
- Underlying Russian demand has been solid YTD and RNO outperforming. Issue for RNO will in fact become lack of capacity.
- Brazilian exposure also carrying FX headwinds as is clear given FX moves. Less local content for RNO in this market means a slightly higher headwind on FX is likely, but also some price increases achieved.
- Turkey is providing a partial offset to FX as export hub into EU for products such as the Clio.
- EU market is looking more solid, expecting 1-2% growth for the year.
- Credit rating progress to investment grade is becoming possible. Fitch has already moved, could see Moody’s and S&P consider stance in coming 18 months or so.
