The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1406 ET - Californians found it tougher to afford a home in 2Q, with only 19% of households being able to purchase a $916,750 median-priced home in the state, the California Association of Realtors says. While that number fell from 22% in 1Q, it was above the 17% recorded in 2Q of 2025, the Association says. More households in the state could afford a typical condo or townhome than a year ago, but affordability slipped from the prior quarter, to 30% from 32% in 1Q. Lower mortgage rates helped improve housing affordability from a year ago across most of California, according to the Association. (stephen.nakrosis@wsj.com)
1031 ET - Bank of America CEO Brian Moynihan is sticking with his research team's call that the Fed will raise rates three times in September, October and December. "They really are saying that the labor market is in very good condition and so you have to work on the inflation side and make sure that it keeps going down," he says on CNBC. He adds that, right now, Bank of America's forecast for three rate rises should get the Fed in a place where FOMC members feel inflation is tamed. Moynihan also says he's seeing more convergence in the spending patterns of higher and lower income customers. "That's very good," he says. (patrick.sheridan@wsj.com)
0959 ET - HSBC Holdings' cost guidance restricts forecast upgrades, with its wealth-management offering crucial to the market's view on the bank, UBS analysts say. The wealth segment delivered for the London-based bank in the second quarter, with wealth non-interest income up 21% and 8% annualized net new money growth, UBS writes. However, banking net interest income is the larger driver of revenue, the analysts add. The signal that HSBC might look to invest in revenue opportunities in 2027 is also key, UBS says. As a result, profit margins might be tighter than UBS expected. UBS leaves its earnings per share estimates for 2026 through 2028 largely unchanged as higher income is offset by additional costs. HSBC shares are down 4.6% in London. (michael.hennessey@wsj.com)
0411 ET - United Overseas Bank's sale of UOB Asset Management to Allianz Global Investors could boost its 2026 dividend yield, says Macquarie Capital's Jayden Vantarakis in a note. The deal to sell the unit for 555 million Singapore dollars comes after the lender moved to divest its interests in two real-estate sites. He estimates the UOB Asset Management sale could add roughly 0.3% to its 2026 dividend yield, assuming its gain of S$330 million flows through to its earnings and UOB's 50% payout policy. UOB continues to hold stakes in listed affiliates, which could unlock further gains if sold, he adds. Macquarie retains its outperform rating and S$45.16 target price on UOB, which falls 0.7% to S$42.94. (megan.cheah@wsj.com)
0357 ET - Legal & General posted mixed results across its key reporting lines, with volume pressure remaining a risk to earnings in its institutional retirement unit, RBC Capital Markets analyst Ben Cohen says in a research note. L&G's ability to grow volumes without compromising on returns remains a key question, as well as the source of its raised guidance for its management actions unit, Cohen says. "Overall, we see the release as neutral to slightly positive," he adds. Shares in the British provider of life insurance, pensions, retirement and investment services trade 0.3% higher at 303.7 pence. (nina.kienle@wsj.com)
0347 ET - Hiscox's momentum might be improving and the insurer could achieve its medium-term retail growth target a year early, J.P. Morgan analysts say. Hiscox reported retail growth of 8.2% for the first half. This was above the 8% growth target it had originally set for 2026, which has been upgraded to 9%. The new 2026 target suggests retail growth will be at or very close to double percentage digit in the second half, JPM says. "Hiscox had originally aimed to achieve double-digit growth in its retail business by 2028 so if the momentum can be sustained in 2027, this points to the...target being achieved a year early," the analysts write. Middle East claims were far larger than expected in the first half, they add. Hiscox shares are up 1.6% in London. (michael.hennessey@wsj.com)
0332 ET - HSBC Holdings' stock rally could pause while faster top-line growth takes time to arrive, Citi analysts say. Citi cuts its recommendation on the stock to neutral from buy, saying planned investments will hit earnings in the near term and support revenue growth only in the long term. HSBC's asset sales could weigh slightly on revenue growth in the near term, the analysts say. Citi cuts the London-based bank's underlying EPS forecasts for 2026 through 2028 by up to 3%, due to higher costs combined with lower 2026 buybacks than expected. HSBC's focus on volume growth might limit near-term buybacks, the analysts add. HSBC shares in London are down 1.9% at 15.54 pounds and have rallied 35% since the start of 2026. (michael.hennessey@wsj.com)
2328 ET - Pinnacle Investment Management's "messy" fiscal 2026 result doesn't do anything to shift UBS analysts' view of the stock. With an unchanged neutral rating on the stock, the investment bank's analysts tell clients in a note that June-quarter net flows and fiscal year-end funds under management were stronger than expected. However, this is offset by what they say is a material 25% miss on their forecast for second-half net profit. They lower their forecast for fiscal 2027 EPS by 3%, but their target price of 18.00 Australian dollars remains the same. Shares are up 6.5% at A$18.92. (stuart.condie@wsj.com)
2320 ET - Bitcoin is little changed in Asian trading amid signs that more traders are buying and holding their positions at current levels, analysts at crypto trading platform Bitfinex say. The asset remains under pressure from stronger demand for the U.S. dollar, persistent inflation and rising long-term bond yields. Slower trading from institutional investors, reduced market liquidity and seasonal weakness in August are also keeping the cryptocurrency stuck in the $62,000-$65,000 range. Still, a recovery in ETF demand may strengthen the case for a rebound, Bitfinex says. Bitcoin stays flat at $64,313,67. (jason.chau@wsj.com)
2250 ET - Judo Capital's bull at Jefferies sees the Australian business lender's path toward self-funding growth being tested in its current fiscal year. Analyst Andrew Lyons expects Judo's profit for its most recent fiscal year, which ended June 30, to be at the bottom of the ASX-listed company's guidance range. However,Lyons tells clients in a note that asset-quality concerns, worsening deposit conditions, and the sustainability of recent efficiency gains are set to make fiscal 2027 a challenging period. He expects Judo to report a 20 basis-point expansion in its fiscal 2026 net interest margin, but forecasts a 1bp contraction in fiscal 2027. Jefferies keeps a buy rating on the stock and raises its target price 3.0% to 1.69 Australian dollars. Shares are up 2.2% at A$1.0475. (stuart.condie@wsj.com)
2244 ET - The Bank of Korea's rate-hike cycle could proceed faster than previously expected as South Korea's economic fundamentals strengthen, Morgan Stanley's Kathleen Oh says. The economist expects the BOK to raise its policy rate to 3.5% by 1Q 2027, earlier than her previous forecasts. Both tech and non-tech exports are likely to continue accelerating, while consumption is expected to recover rapidly on improving household income and fiscal support, Oh says. Demand-driven price pressure is likely to keep core inflation elevated, she adds. Morgan Stanley raises its 2026 growth forecast for the country to 3.4% from 2.8% and its 2027 forecast to 2.7% from 2.3%. (kwanwoo.jun@wsj.com)
2233 ET - HSBC is likely to benefit from Asia's structural wealth momentum, which should serve as a driver of long-term growth for the lender, says Morningstar's Kathy Chan in a note. The London-based bank, which makes most of its profit in Asia, is one of the region's leading wealth managers, she notes. She expects the lender to post average revenue growth of 6% over 2026-2030, supported by its increasing assets under management. Morningstar retains a fair-value estimate of HK$158 and 1,490 pence on its Hong Kong and London shares, respectively. Shares fall 1.4% in Hong Kong to HK$164.20 and closed 0.8% lower in London at 1,584.60 pence.
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