The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1030 GMT - U.K. banks will grow their earnings faster than the broader sector over the next three years, Berenberg analysts write. The outsized earnings potential isn't yet reflected in U.K. banks' share prices, with stocks remaining cheap despite a recent rally, they say. Barclays, Lloyds Banking Group and NatWest "are as attractive as ever, offering sustainably improving returns underpinned by robust balance sheets." Earnings growth will be driven by banks swapping out floating deposit income--assets that fluctuate with changing interest rates--for fixed-rate assets, smoothing their net interest income, the analysts write. "This tailwind will more than offset near-term headwinds."( josephmichael.stonor@wsj.com)Prologis disclosed a rejected 12.6 billion-pound all-stock takeover approach and urged shareholders in its smaller U.K. rival to encourage Segro's board to discuss an offer. "Prologis Might Need Higher Offer, Cash to Entice Segro Investors -- Market Talk," at 1018 GMT, incorrectly said the approach was valued at 12.3 billion pounds.
1018 GMT - Prologis might need to offer a higher premium and add a cash component to its takeover proposal to win over Segro shareholders, AJ Bell's Dan Coatsworth says. The U.S. warehouse landlord disclosed a rejected 12.3 billion-pound all-stock takeover approach and urged shareholders in its smaller U.K. rival to encourage Segro's board to discuss an offer. "Whether an all-share bid will prove attractive to shareholders, given it would mean ending up with an investment in a much different entity, is open to question. Perhaps including a cash element would help smooth the passage of any deal," Coatsworth says. "A chunkier premium may also be required." Segro shares jump 17% in European morning trading, while Prologis is little moved in U.S. premarket exchanges. (adria.calatayud@wsj.com)
1013 GMT - U.K. warehouse landlord Segro's rejection of a $16.6 billion takeover approach from bigger U.S. rival Prologis won't be the final word in the story, AJ Bell's Dan Coatsworth says in a research note. The disclosure of an initial all-share bid submitted last week seems just the opening salvo in Prologis's pursuit, Coatsworth says. Segro's expansion into data centers might have drawn Prologis's attention, according to AJ Bell's head of markets. "It's hard to believe San Francisco's Prologis would have been interested in Segro when it was simply focused on warehouses," Coatsworth adds. Segro shares jump 17% in European morning trading, while Prologis is down slightly in U.S. premarket action. (adria.calatayud@wsj.com)
1006 GMT - Veolia Environnement's water technology division, where activity has been subdued partly due to the impact of conflict in the Middle East, is cause for concern, Deutsche Bank analyst Olly Jeffery says in a research note. Also, temporary delays in fuel surcharge recovery may weigh on results, although foreign-exchange movements are expected to be less of a headwind than in the previous quarter, Jeffery says. While the French utility company is expected to deliver stronger Ebitda growth in the first half of the year, performance is likely to remain at the lower end of its guidance range, the analyst says. Jeffery expects the company to reaffirm its full-year outlook with its results on July 30. Shares trade 1.2% lower at 35.59 euros. (nina.kienle@wsj.com)
0958 GMT - Investors signaled renewed confidence in Tencent after the Chinese tech giant announced the impending release of an AI agent for its WeChat workplace app WeCom. Tencent shares posted their largest gain in three weeks after the company's public relations head, Zhang Jun, said on social media that internal testing has started on new AI agent Dayuan. The stock jumped as much as 6.0% during the session before closing 3.4% higher at HK$428.80. Jun said Dayuan is capable of automatically analyzing existing work-related data such as emails and documents already within a user's WeCom to provide tailored responses to requests, as well as to complete recurring daily tasks.(jason.chau@wsj.com)
0956 GMT - Contemporary Amperex Technology's capacity is likely to reach 1.25 terawatt-hours by the end of 2026 and rise further to 1.75 TWh in 2027, Daiwa analysts write in a note. The brokerage sees potential for faster-than-expected expansion over the next two years. It also thinks CATL will reach its target of tripling capacity within five years, which will support growth and market-share gains. The company's sodium-ion battery technology is well-suited for AI data-center energy-storage systems, potentially opening a new growth market beyond electric vehicles. Daiwa maintains a buy rating on the stock and raises its target price to 600 yuan from 550 yuan. Shares close at 395.36 yuan. (jiahui.huang@wsj.com; @ivy_jiahuihuang)
0942 GMT - Bunzl's latest performance update shows its momentum continues to strengthen, Deutsche Bank Research analyst David Brockton says in a research note. The London-listed distribution-and-outsourcing group's revenue growth is expected to have accelerated in the first half, supported by both higher product prices and improving underlying volumes, Brockton says. While some of the pricing benefit stems from inflation linked to geopolitical disruptions and may prove temporary, evidence of genuine demand growth and limited signs of customers bringing purchases forward is encouraging, the analyst says. Recent acquisitions are forecast to provide a modest contribution to revenue growth, reinforcing confidence in Bunzl's operational progress, he adds. Shares trade 1.7% higher at 2,648 pence. (nina.kienle@wsj.com)
0930 GMT - FedEx margins are at a trough and will expand thanks to tech investments and efficiency savings, Jefferies' Stephanie Moore writes. The delivery group's margins are less than half those of its top competitor Old Dominion, the analyst writes. As a result of a fresh sales team and technology improvements that will increase the density of packaging in trucks, margins could expand by 350 basis points by 2029, Moore says. The company will also benefit from a broader growth uptick in the freight sector, she adds. Jefferies initiates its coverage of FedEx with a buy rating. FedEx after market close Tuesday reported a fall in profit for the latest quarter. Shares fall 7.2%.(josephmichael.stonor@wsj.com)
0923 GMT - AlphaValue is taking a more cautious stance on Ferrovial's toll-road operations after an exceptionally strong year, analyst Egor Sonin says in a research note. Reasons for more caution are the upcoming limits on toll increases in 2026 and the potential impact of higher fuel costs on traffic volumes, Sonin says. The infrastructure group is also expected to face further headwinds in 2026, including higher revenue-sharing costs on the I-77 highway and rising construction tendering costs, the analyst says. While Ferrovial's core operations continue to perform well, these factors have led to more moderate earnings expectations for the coming years, he adds. Shares trade broadly flat at 61.4 euros. (nina.kienle@wsj.com)
0915 GMT - Chinese policy support for the humanoid-robot industry is strengthening, according to Morgan Stanley. It notes Beijing's inclusion of robotics as a strategic emerging industry in its 15th Five-Year Plan. Support is also materializing among state-owned enterprises, with actual orders placed, MS adds in a research note. It cites State Grid's 6.8 billion yuan order for 500 humanoid robots, 3,000 dual-arm robots and 5,000 quadruped robots as an example. Overall, the industry's outlook is positive, thanks to stronger commercialization momentum, policy support and positive supplier feedback, MS writes. (tracy.qu@wsj.com)
0857 GMT - Rheinmetall management should revise guidance for its naval business after reports that the German government scrapped a booking for six F-126 frigates with a value of 12 billion euros, MWB Research's Jens-Peter Rieck writes in a note to clients. Rheinmetall's naval segment was expected to generate revenue of about 5 billion euros in 2030, but Rieck lowers that estimate to about 3 billion euros to reflect the loss of F-126 sales and the reality of a shipyard running below capacity. "The F-126 frigate cancellation strips Rheinmetall of the crown jewel that justified the NVL acquisition and anchored 2030 Naval guidance," Rieck says. Rheinmetall shares trade 13% lower at 1,008.60 euros. (mauro.orru@wsj.com)
(END) Dow Jones Newswires
June 24, 2026 06:30 ET (10:30 GMT)
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