The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.
1146 GMT - British Gas owner Centrica is dialing down 2027 expectations for its Centrica Energy trading unit, pointing to continued challenges for the business that won't be well received, RBC Capital Markets' Alexander Wheeler and Ziyad Jasimuddin say in a note. The business was positioned for an excess supply of gas at the start of this year and the hit now seems to be rolling into 2027, RBC says. The U.K. energy group said it expects 2027 adjusted Ebitda for Centrica Energy to be around the levels it recorded in 2025 and expects in 2026. This points to a result of between 200 million to 250 million pounds that compares with consensus expectations of 298 million pounds, according to RBC. Shares fall 8%. (adria.calatayud@wsj.com)
1129 GMT - A question mark remains over how much Nestle has suffered from retailers pulling its products from their shelves, putting pressure on its real internal growth in Europe, Warren Ackerman from Barclays says. Nestle's overall RIG--a measure of sales volumes and one of the company's stated priorities--rose to 1.8% in the second quarter from 1.2% in the first. However, in Europe, RIG was flat on quarter. Shares fall 7% to 80.14 Swiss francs. (aimee.look@wsj.com)
1056 GMT - Pub, bar and restaurant chain Mitchells & Butlers is well-placed to continue gaining market share despite the cost-pressure backdrop, Jefferies analysts James Wheatcroft and Matthew Copeland write. The company--which houses the All Bar One and Harvester brands--reported like-for-like sales growth of 2.2% for the 42 weeks ended July 18 and reiterated that it expects cost inflation of 120 million pounds this fiscal year. The analysts see only a modest benefit from the U.K. Government's 20% cut to business rates which becomes effective April next year. Jefferies has a buy rating on the stock and 355 pence target price. Shares are down 5.1% at 261 pence. (ian.walker@wsj.com)
1045 GMT - Keppel DC REIT likely has sufficient debt headroom for inorganic growth after its aggregate leverage improved to 34% on the repayment of a loan, says OCBC Group Research's Andy Wong in a note. The move leaves comfortable debt headroom of around 673 million Singapore dollars against its 40% internal threshold, he says. The data-center real-estate investment trust's debt profile appears well-anchored, as 87% of its borrowings have been hedged with a weighted average debt and hedge tenor of 3.1 years, he says. The analyst raises his 2026 and 2027 distribution per unit projections by 4.7% and 3.0%, respectively. OCBC raises its fair-value estimate to S$2.86 from S$2.78 and retains a buy rating. Units closed 1.7% lower at S$2.30. (megan.cheah@wsj.com)
1040 GMT - Relx earnings show the company's performance was undimmed by global panic around the threat posed by AI to software companies in the first half of the year, Quilter's Matt Dorset writes. The London-listed software group posted sales growth of 7%, showing resilience in its legal as well as its science, technical and medical segments. Those segments are seen as especially vulnerable to AI, Dorset says. The group's management said it would use its unique datasets to beat off AI competition, the analyst says. Relx shares look cheap following the sharp sell-off earlier this year, "although it will clearly take much longer to dispel AI fears," Dorset says. Relx shares rise 0.6%, but remain down over 18% for the year. (josephmichael.stonor@wsj.com)
1032 GMT - Investors should look beyond the race for the most advanced AI models or chips and consider China's broader advantages across the AI value chain, Victoria Mio of Janus Henderson Investors writes. Despite trailing the U.S. on the technological front, China has developed competitive advantages in the layers of energy, infrastructure and application of the AI ecosystem, says the China equities head and portfolio manager. She notes China benefits from lower industrial power prices and rapid infrastructure development, and has a proven ability to commercialize technology at scale. Among the five layers of the AI stack, the application layer could be where the biggest long-term investment opportunities lie as AI adoption expands into robotics, autonomous driving, healthcare and enterprise products and services, Mio adds. (farah.elias@wsj.com)
1027 GMT - Palm oil ended higher as crude oil and soybean oil prices surged amid escalating tensions in the Middle East conflict, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. The U.S. is increasing the presence of forces, medics and weaponry to the Middle East to give President Trump more military options, as he considers expanding the conflict against Iran, The Wall Street Journal reported. Ng sees prices for palm oil well supported above 4,600 ringgit a ton and resistance at 4,780 ringgit a ton. The Bursa Malaysia Derivatives contract for October delivery rose 87 ringgit to 4,709 a ton.(tracy.qu@wsj.com)
1017 GMT - RELX delivered a robust first-half year performance, ING's Thymen Rundberg writes in a note. The information-and-analytics group reported higher revenue, while its operating margins continue to expand. "The key takeaway was the acceleration in both Legal and Scientific, Technical & Medical, the two divisions most often discussed in the context of AI disruption," he says. The acceleration in these units highlights that AI-enabled products are key growth drivers across both segments, he adds. While the Dutch bank doesn't anticipate significant changes to full-year revenue estimates, the results could lead to low-single-digit upgrades to 2026/2027 operating profit expectations. Shares in RELX are up 0.7% at 24.71 pounds. (najat.kantouar@wsj.com)
1012 GMT - 3i is a well-managed business with a good longer-term track record, but its near-term performance may be below market expectations, RBC Europe analysts Manjari Dhar and Richard Chamberlain write. The FTSE 100-listed investment company reported a strong performance for Dutch discount retailer Action and a better margin performance than feared, they say. Action--in which 3i has a 65.4% stake--makes up the largest share of its investment portfolio. "We think the outlook for discount retailers in Europe looks tougher now, given ongoing spending pressures on low income consumers and higher competition," they write. RBC has an underperform rating on the stock and 20.00 pound target price. Shares are up 6.7% at 27.24 pounds, but down 16.5% over the year to date. (ian.walker@wsj.com)
1006 GMT - Centrica's decision to raise its interim dividend is generous given it is suffering from energy market volatility, AJ Bell's Russ Mould writes. The energy company has hiked its interim dividend by 9% to 2 pence a share. It is too simple that say Centrica is benefiting from higher energy prices, Mould says. Investment in several areas puts pressure on cash flow while the company has some bad debts, he says. Its retail-facing British Gas business performs better, he adds. Shares fall 9.3% to 163 pence. (adam.whittaker@wsj.com)
1002 GMT - Cathay Pacific's 1H profit is set to beat HSBC's estimates, as company management expects profit of HK$6-HK$6.5 billion. Excluding a one-off gain, the mid-point implies a recurring profit of about HK$4.85 billion, up 33% on year and beating HSBC's estimates by 32%. Short‑term Middle East traffic diversion, higher fares, and air freight tailwinds helped offset fuel costs, they add. Robust premium demand in Hong Kong amid ongoing structural capacity constraints is a strong earnings catalyst, while the visible yield growth and effective fuel pass-through indicates upside potential for the stock, they write. HSBC retains a buy rating, lifting its target price to HK$16.50 from HK$15.30. Shares closed at HK$14.11. (kimberley.kao@wsj.com)
0956 GMT - Chinese memory maker CXMT's coming listing could create a liquidity shock in domestic markets, HSBC analysts say in a research note. If the overallotment option is fully exercised, CXMT's A-share IPO would be the third-largest in China. The listing could weigh on both the CSI300 and the electronics index near and on the listing day, the analysts say. As CXMT's target market cap after listing might be much larger than its IPO valuation, it could cause a siphon effect on other stocks, they note. Such a pattern emerged when Chinese foundry SMIC listed in 2020 after raising 53.2 billion yuan, they note. However, a global artificial-intelligence stock rally and recent stock purchases by Chinese state investors to prop up the market could limit a potential correction, they add. (sherry.qin@wsj.com)
(END) Dow Jones Newswires
July 23, 2026 07:47 ET (11:47 GMT)
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