JPM | Industrial Strength Morning Messages: Conference Feedback is Positive

Research evidence excerpt

JPM | Industrial Strength Morning Messages: Conference Feedback is Positive

er rates are likely needed to see the momentum maintained.

Knorr Bremse highlighted that ‘European road (trucks) is back - which makes it unsurprising that Jose’s DTG and Volvo

previews point to strong Q2 performance.

• Do let me know if I can dig out any specific feedback for you - or if you’d like to connect with the teams to go through their

view. We can though, for the Cap Goods, Building Materials and Aerospace sectors, head into pre close season with a

bit of a swing in our step. This is not the case for Autos and Chemicals however where there is a sense of trepidation

after BMW’s sizeable warning from Tuesday night.

Pan European Industrials Research

1. European Capital Goods - Feedback from J.P. Morgan European Industrials Conference- Phil Buller hereWe hosted 23

Capital Goods companies at our European Industrials Conference on the 16th and 17th June and share our headline takeaways

and detailed company feedback in this note. We came away even more bullish on the electricals subgroup, where end markets

are still strong if not accelerating, energy resilience/security/efficiency is of increasing importance to customers, and China

factory automation is also better than expected (as discussed in our feedback from Asia marketing + JPM China summit

note here). More broadly, price/cost appears to be well managed, demand commentary was reassuringly unchanged versus Q1

despite the onset of the conflict in the Middle East, with data centers and mining equipment the standout positives. A discrete

automation recovery is now underway, and there is little evidence of an inflection in non-DC construction end markets, for

now.

2. European Autos -Transfers of coverage- Jose M Asumendi here

3.