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.

0222 GMT - Bumi Armada's 1Q earnings are expected to be supported by stable operations across its floating assets, Maybank Investment Bank analyst Jeremie Yap says in a note. However, profits may taper from 2Q as its floating-production-storage-and-offloading vessel, Kraken, enters a lease extension period with lower charter rates, he says. Yet, Bumi Armada's balance sheet is set to improve further, backed by strong operating cash flow, which could lower finance costs and create room for future ventures, he says. Maybank maintains a buy rating on Bumi Armada and keeps its target price at MYR0.78, adding that shares may rise if Bumi Armada secures a new lease-and-operate FPSO job. Shares are unchanged at MYR0.46. (yingxian.wong@wsj.com)

2217 GMT - Tesla is well on its way to delivering fully autonomous cars, CEO Elon Musk says on a call with analysts. The electric-vehicle maker plans to launch its paid, fully automated ride-hailing service in Austin, Texas, in June, he says. The company plans to later expand the service to other cities by the end of the year. "There will be millions of Teslas operating fully autonomously in the second half of next year," Musk says. Shares rise 3.8%. (connor.hart@wsj.com)

2204 GMT - Tesla has been working to localize its supply chains for several years, CEO Elon Musk says on a call with analysts. He adds that the electric-vehicle maker is the least affected car company with respect to tariffs. "I just want to emphasize that this tariff decision is entirely up to the president of the United States," Musk says. "I've been on the record many times saying that I believe lower tariffs are generally a good idea." Shares rise 3.9%. (connor.hart@wsj.com)

2031 GMT - Tesla isn't issuing an outlook, stating that "it is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services." The electric-vehicle maker says it will continue investing to grow its vehicle and energy businesses, though it notes the rate of growth will depend on factors including production ramp ups at its factories and the broader macroeconomic environment. "We will revisit our 2025 guidance in our Q2 update," the company says. Shares edge 0.4% higher after hours. (connor.hart@wsj.com)

2018 GMT - Rapidly changing trade policies are hurting automakers' supply chains and cost structures, Tesla says. As a result, uncertainty in the auto and energy markets continues to increase. "This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term," the electric-vehicle maker says. In the first quarter, the company's profit falls 71% year over year to $409 million, or 12 cents a share. Sales sink 9% to $19.34 billion. (connor.hart@wsj.com)

1658 GMT - Brazilian exporters failed to ship nearly 640,000 bags of coffee in March, says Cecafe in a note. The firm, which represents coffee exporters in the country, says that exporters were 'unable to ship' 637,767 bags of the product, which is the equivalent of 1,932 containers worth of coffee. This generated large losses , which Cecafe attributes to outdated port infrastructure. However, investments into modernizing this infrastructure are expected soon from the Brazilian government, Cecafe says. Coffee futures on the ICE are trading up 2.6% through midday. (kirk.maltais@wsj.com)

1645 GMT - The U.S. airline market is reporting weaker-than-expected demand trends, especially for domestic travel, S&P Global Ratings says. "It's early days, but demand for air travel to, from, and within the U.S. appears weaker," according to S&P. "We think downside risks have materially increased for the wider sector as softer global economic growth could weigh on consumer confidence and cut down demand for air travel," S&P Global Ratings credit analyst Rachel Gerrish says. According to S&P, reports of U.S. domestic demand being emerging in late February, when several U.S. airlines lowered earnings expectations for 1Q. S&P says airline industry trends in early 2025 show a divergence geographically, with U.S. market trends weaker than elsewhere. (stephen.nakrosis@wsj.com)

1348 GMT - Market fluctuations quickly affect the earnings per share of Italian asset managers due to their lower assets under management balances, Jefferies says in a research note cutting its estimates for companies in its coverage after the market selloff triggered by the announcement of U.S. tariffs. The sector is relatively insulated from potential asset-quality deterioration thanks to their moderate levels of lending and the nature of its customers, analysts Marco Nicolai and Joseph Dickerson write. "We now favor Fineco in this group due to underappreciated brokerage revenue growth, more moderate sensitivity to equity markets, and the absence of performance fees," they note. They also like Poste Italiane for diversified business model but cut Banco Mediolanum to hold--joining Mediobanca and Banca Generali--due to its downside risks to consensus earnings. (elena.vardon@wsj.com)

0837 GMT - Horizon Robotics may benefit from demand driven by Chinese car companies' autonomous-driving push, says Deutsche Bank Research analyst Bin Wang in commentary. A number of Chinese automakers, such as BYD and Geely, have been pushing for the democratization of autonomous-driving features by rolling out the tech to their entry-level models, Wang says. These automakers have chosen Horizon Robotics' chips as either their primary or secondary sources, a positive factor for the company, Wang says. The analyst keeps a buy rating on the stock with a target price of HK$9.00. Shares closed 3.3% lower at Hk$5.29. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

April 23, 2025 04:20 ET (08:20 GMT)

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