The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0948 ET - Iberdrola is on track to deliver on expectations and could raise guidance again when it reports first-half results on July 22, J.P. Morgan says in a research note. The Spanish utility should report a sharp slowdown in adjusted net income growth due to positive one-offs in 2Q last year but that shouldn't mask strong underlying performance, J.P. Morgan says. According to the bank, Iberdrola is well on track to deliver on its analysts' estimate of full-year adjusted net income of 6.8 billion euros. Shares trade 0.5% higher at 21.24 euros. (sarah.sloat@wsj.com)
0936 ET - The U.S.-Iran war is driving up oil prices, raising inflation risk and the possibility of interest rates staying high, eToro's Lale Akoner says in a note. This could be bad news for bonds and stocks such as property, utilities and expensive growth stocks, she says. "Unless oil supplies are hit more seriously, the biggest market impact is likely to stay focused on oil prices, inflation expectations and investments most exposed to interest rates," Akoner says. Investors price in 42 basis points of interest-rate rises by the Bank of England in 2026, LSEG data show. (miriam.mukuru@wsj.com)
0747 ET - Oil futures add to yesterday's gains as the U.S. continues military strikes against Iranian targets and Iran attacks vessels crossing the Strait of Hormuz. "I believe we are now in a round of negotiating under fire, following the failure at the table after the signing of the recent Memorandum of Understanding," Samer Hasn, senior market analyst at XS.com says in a note. A return to a ceasefire with more precise language concerning management of the Strait of Hormuz isn't unlikely, he says. But President Trump's assertions that the U.S. will charge a 20% fee on cargos crossing the strait to cover costs of protection "cannot be taken seriously because they are completely unrealistic." WTI is up 2% at $79.72 a barrel and Brent is up 3.3% at $86.04. (anthony.harrup@wsj.com)
0650 ET - BP delivered a solid quarterly performance that reflects how it can capture gains in prices through its operating businesses and in volatility through its trading arm, BNP Paribas analysts say in a research note. The U.K. energy major had another exceptional quarter in oil trading, and expects an uplift of about $2.5 billion from prices, according to BNP Paribas. This is helping BP reduce its net debt to between $22 billion and $23 billion, the analysts say. In a positive sign, the expected debt reduction comes despite working-capital inflows being lower than BNP Paribas had estimated, they add. This points to a reduction of between $6 billion and $7 billion in financial liabilities, BNP Paribas says. BP shares rise 2.3%.(adria.calatayud@wsj.com)
0539 ET - BP's better-than-expected performance in the second quarter and a large decline in net debt bode well for its shares ahead of the company's next strategic developments, Santander analysts say in a research note. The U.K. energy major's second-quarter update showed a strong performance across all divisions, the analysts say. Continued volatility in energy prices could remain a source of trading opportunities for BP in the coming months, they add. The situation in the Middle East and its implications for BP's strategy, alongside any guidance from new CEO Meg O'Neill on next moves, will be at the top of investors' minds when the company reports full earnings on Aug. 4, according to Santander. BP shares rise 2.3%. (adria.calatayud@wsj.com)
0452 ET - A quarter of the European Union's electricity generation came from solar power in June, a new monthly high for the renewable source, according to a study published by think-tank Ember. That made solar the largest single source of power for the month, ahead of nuclear and gas, Ember says. Solar has grown from just 10% of the total in the same month five years ago as EU members step up the pace of solar-panel installation, the study shows. In sunny Spain, a European leader in solar and other renewables, sun-power produced more than a third of electricity last month, Ember adds. "In just a few years solar has gone from a small player to an essential part of Europe's power system, as governments and citizens look for low-cost, quick-to-install domestic power sources," Ember analyst Chris Rosslowe says. (joshua.kirby@wsj.com; @joshualeokirby)
0447 ET - BP investors are cheering its work to slash debt, as the U.K. energy company shifts its focus back to oil and gas, AJ Bell's Dan Coatsworth says. "One of the key worry points for investors over BP is its balance sheet. In that context, it's not a surprise to see significant debt reduction get a warm reception," Coatsworth says. While continuing volatility in energy markets makes forecasting the near-term outlook for the industry difficult, BP's move away from renewables and back toward hydrocarbon operations looks set to continue, he says. BP's charges of around $1 billion in its gas and low-carbon energy transition businesses and Shell's agreement to sell an Indian renewables business reinforce the trend, according to Coatsworth. BP shares rise 2.4%. (adria.calatayud@wsj.com)
0438 ET - BP could shoot through its debt-reduction target a year early, thanks to rapid progress in the second half, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani say in a research note. The U.K. energy major estimates it ended the second quarter with net debt ranging from $22 billion to $23 billion, which compares with $25.3 billion as of March 31. BP is targeting net debt of between $14 billion and $18 billion by the end of 2027, but RBC estimates the company could reduce its net debt to around $8 billion by year-end. "This should coincide with BP presenting a refined corporate plan and medium-term outlook, in our view," the analysts add. Shares rise 2.6%. (adria.calatayud@wsj.com)
0433 ET - BP could be laying the groundwork for more asset sales with its latest write-downs of about $1 billion in its transition businesses, RBC Capital Markets' Biraj Borkhataria and Adnan Dhanani say. The U.K. energy major disclosed the charges in an update that otherwise showed a strong performance in the second quarter, the analysts say in a research note. "Call it pre-divestment window dressing...better to take the hit now than show explicit value destruction at the point of sale," the analysts say. "We believe both LightsourceBP and Archaea could face the chopping block--although not formally announced by the company as far--and see no place for either in BP's portfolio long term." BP shares rise 3.2%. (adria.calatayud@wsj.com)
0411 ET - BP's strong performance against key metrics in the second quarter suggest consensus estimates are likely to be increased, J.P. Morgan's Matthew Lofting and Tianyu Wu say in a research note. The U.K. energy major followed peer Shell in releasing a strong second-quarter update, the analysts say. BP's oil-trading result was slightly higher than an already exceptional performance in the first quarter, they add. Upstream price realizations were ahead of expectations and downstream operations were also strong, according to JPM. This could trigger double-digit upward revisions to consensus estimates on group earnings and cash flow from operations across divisions, the analysts say. BP shares rise 3%. (adria.calatayud@wsj.com)
0351 ET - BP's second-quarter update looks strong, with pricing benefits ahead of expectations and a robust trading performance, J.P. Morgan's Matthew Lofting and Tianyu Wu say in a research note. "We expect the shares to be supported [Tuesday], driven also by this week's Middle East-led move higher on oil," the analysts say. The U.K. energy group expects price realizations to lead to benefits of between $1.8 billion and $2.1 billion in its oil production-and-operations segment and of $500 million to $700 million in its gas-and-low carbon energy segment. These seem stronger than the BP's rule-of-thumb price sensitivity as pricing caught up with market moves in February and March, according to JPM. BP shares rise 2.75%. (adria.calatayud@wsj.com)
2119 ET - Malaysia's benchmark Kuala Lumpur Composite Index could remain range-bound in 3Q amid geopolitical uncertainty, domestic election-related volatility, El Nino concerns and mixed corporate earnings, CIMB Securities analyst Ivy Ng Lee Fang says in a note. The index could strengthen in 4Q as earnings improve and the domestic policy environment becomes more supportive. Ng recommends investors accumulate fundamentally strong companies during market pullbacks, favoring those with resilient earnings, pricing power and exposure to long-term growth trends. She prefers sectors such as banking, building materials, healthcare, oil and gas, plantations, technology, telecommunications and transport. CIMB raises its end-2026 KLCI target by 1 point to 1746, with Dialog, IOI Corp.,Public Bank and Telekom Malaysia among its top picks. The KLCI is 0.1% higher at 1700.76. (yingxian.wong@wsj.com)
(END) Dow Jones Newswires
July 14, 2026 12:20 ET (16:20 GMT)
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