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.

1457 GMT - The impact of Europe's wildfires depends not only on the severity of the hazard itself, but also on industries in its path, Oxford Economics senior economist Daniel Parker says. Around Bordeaux, Gironde's wine industry, agrifood production and logistics networks mean local disruption quickly ripples through supply chains and exports, he says. In Spain, Valencia's concentration of manufacturing, tourism, agriculture and logistics leaves much of its economy dependent on physical assets and transport infrastructure. Near Madrid, fires create impacts beyond the immediate hazard zones on agriculture and transport. "As wildfire seasons become longer and more intense, the effects are increasingly felt through disruptions to production, tourism flows, transport, and supply-chain bottlenecks that extend far beyond the areas directly affected." (edward.frankl@wsj.com)

1054 GMT - Kuehne + Nagel is delivering the benefits of artificial intelligence, but shares trade at an elevated level, Deutsche Bank analyst Harishankar Ramamoorthy writes. The company's second-quarter EBIT beat consensus by around 8% and full-year guidance was upgraded. Management also highlighted 100 million-150 million Swiss francs of AI-driven productivity benefits by the end of 2027. However, markets treated this as slightly underwhelming, given the AI benefits are gross, not net of costs, and it was unclear how costs could evolve in the future, the bank says. Management also mentioned the benefits could be passed on to clients to gain market share. Deutsche Bank lifts its target price for the stock to 196 francs from 183 francs and reiterates its hold rating. Shares rise 0.5% to 202.70 francs. (dominic.chopping@wsj.com)

1037 GMT - Volkswagen is fully embracing fixed-cost reductions to address production inefficiencies, as uncertainty remains elevated across the automotive sector, Berenberg analysts Romain Gourvil and Tommy Whitfield write. Aside from the much improved recent track record for cash conversion, these efforts are visibly supporting margins at the company's "core" brands with further initiatives yet to come, they add. "China remains challenging, but we think downside risk relative to German peers has reduced, as China expectations are already somewhat derisked for 2026-27." The launch of locally designed products is accelerating in late 2026 and into 2027, which should also help, the bank says. Berenberg lowers its price target for the stock to 100 euros from 113 euros and maintains its buy rating. Shares rise 2.6% to 74.30 euros. (dominic.chopping@wsj.com)

0903 GMT - Consensus expectations for Mercedes-Benz's adjusted earnings could rise by a mid-to-high single-digit percentage after the German carmaker reported a second-quarter beat, UBS analyst Patrick Hummel writes. Adjusted EBIT beat by 40%, with all segments contributing, he says. The cars unit beat with a 4% clean margin, above consensus at 3.5%, while the vans adjusted EBIT margin of 10.2% is slightly above the upper end of the 8%-10% guidance corridor. Financial services also delivered a solid beat, he adds. Mercedes confirmed the 3%-5% cars and vans EBIT margin corridors. While investors will likely remain cautious on the cars EBIT margin in the second half due to China, UBS thinks expectations for the company drifted substantially lower following last month's warning from BMW. Shares rise 2.5%. (dominic.chopping@wsj.com)

0823 GMT - Michelin's half-year results show greater resilience than feared, Equita analyst Martino De Ambroggi says in a research note. The French tire maker's operating profit came in line with expectations, while free cash flow improved, the analyst says. Taking into account comments by management on, for example, original equipment trucks rising in North America in the second half of the year, and assuming that the macro environment doesn't deteriorate, Equita adjusts its estimates by improving free cash flow by 200 million euros to around 1.6 billion euros, De Ambroggi says. Shares trade 1.9% lower at 34.27 euros. (nina.kienle@wsj.com)

0810 GMT - Mercedes-Benz posted second-quarter results that are better than expected overall, with guidance largely maintained and free cash flow boosted by the sale of Daimler Truck shares, Jefferies analyst Philippe Houchois writes. The company mostly confirmed guidance as results beat across metrics, including a car margin of 4% that landed in the middle of the full-year range. The vans margin of 10.2% is above the full-year guidance range, Houchois adds. There was a net negative contribution of 560 million euros from China joint ventures, but industrial free cash flow of 1.1 billion euros is better-than-expected after the company received 417 million euros of proceeds from selling Daimler Truck shares. Shares rise 5%. (dominic.chopping@wsj.com)

0739 GMT - Mercedes-Benz results are ahead of expectations, with the 4% cars adjusted margin beating the 3.5% consensus and well within the 3%-5% 2026 guidance range, Bernstein analysts write. A 704 million-euro impairment in the Chinese joint ventures reduced the reported cars unit EBIT to 49 million euros in the second quarter versus consensus at 654 million euros. "Mercedes share of the equity result of BBAC, the main China JV, swung to a negative 560 million euros in 2Q26 from a positive 115 million euros in 1Q26, reflecting the impact of the impairment." The other noteworthy aspect was the 417 million-euro boost to free cash flow from the partial stake sale in Daimler Truck, which realized a 160 million-euro gain, Bernstein adds. Shares rise 5.5%. (dominic.chopping@wsj.com)

0658 GMT - Oil prices extend losses as a lull in U.S.-Iran hostilities spurred diplomatic efforts, with Iran and Oman seeking an agreement to reopen the Strait of Hormuz. The front-month Brent crude contract slides 2.3% to $86.31 a barrel after settling 8.7% lower in the previous session, while WTI falls 2% to $80.93 a barrel. Prices were also weighed down by reports that the Caspian Pipeline Consortium terminal resumed pipeline loading operations following a week-long suspension. Despite the selloff, supply risks remain elevated. Saudi Arabia said it intercepted drones launched by Iran-backed militias in Iraq targeting oil facilities. Meanwhile, Persian Gulf oil flows have dropped to 41% of prewar levels, while Red Sea shipments fell by more than 3 million barrels a day over the past week as Saudi Arabia rerouted some exports via the Suez Canal and Russia sharply reduced Red Sea shipments, according to Goldman Sachs. (giulia.petroni@wsj.com)

0553 GMT - Michelin's first-half results offered no surprises, but also little to be positive about, and might not be enough to lift its shares after recent outperformance relative to peers, Bernstein analysts say. The French tire maker beat consensus expectations for first-half adjusted earnings by a narrow margin, the analysts say in a research note. It reiterated its forecast of earnings growth this year despite lower expectations for car production, they add. Michelin's shares have outperformed those of peers Continental and Pirelli, and the results might not be enough to trigger a positive market reaction, according to Bernstein. "Our view remains that [full-year] guidance is conservative and consensus is beatable--but the upgrade cycle may need to wait," the analysts say. Michelin shares are up 23% year-to-date. (adria.calatayud@wsj.com)

0104 GMT - MISC's growth outlook is expected to be supported by a $4 billion-$5 billion capital expenditure plan through 2030 to fund fleet renewal, offshore expansion and new energy projects, CIMB Securities analyst Muhammad Afif Bin Zulkaplly says in a note. He expects earnings and cash flow contributions from new vessel deliveries and offshore projects to come onstream gradually through 2030, supporting steady dividend growth over the longer term. He expects MISC to prioritize preserving shareholder payouts and avoid materially increasing borrowings. CIMB raises MISC's target price to 9.25 ringgit from 9.19 ringgit, citing the impact of new vessel deliveries, and maintains a buy rating on the stock. Shares are 1.2% lower at 8.02 ringgit. (yingxian.wong@wsj.com)

1752 GMT - As AI upends established industries, Piper Sandler is optimistic about companies that are building next-generation machines--like robotaxis, reusable rockets and humanoid robots--using in-house expertise. Analysts Alexander Potter and Ben Johnson point in particular to Rivian and Mobileye, whose vertically integrated models allow them to build next-generation models without relying on suppliers or supply chains that don't exist yet. The analysts upgrade both to overweight from neutral, and raise the price target to $20 from $18 for Rivian, and to $12 from $10 for Mobileye. (kelly.cloonan@wsj.com)

1637 GMT - CN Rail is operating in an improving freight environment, and 2H may still hold some opportunity for extra growth. In an RBC report, Walter Spracklin says that the magnitude of the recent raise came in higher than expected, and notes that "if we assume the EPS guide equates to 7% y/y growth, this implies EPS of $8.16, well above consensus of $7.94 and our $8.05." Spracklin says the low-single-digit volume guide implies no acceleration in growth in 2H, but "giving further potential upside if conditions continue to improve (which we believe they will)." Spracklin adds that CN Rail is achieving this growth without increasing its capital spending, as past investments created enough capacity to support higher volumes which could boost free cash flow.