Financial Services Roundup: Market Talk

The latest Market Talks covering Financial Services. Exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0800 GMT - Bodycote investors should seek larger takeover bids from private-equity suitors, Berenberg analysts write. New proposals from CVC and Veritas, both worth around 1.56 billion pounds, are unsurprising given a previous bid from Apollo at 1.52 billion pounds, the analysts say. Both come at a premium to Bodycote's share-price lows, but the valuation of the U.K. industrial company could be above 1,000 pence a share--or 1.7 billion pounds--under a blue-sky scenario, they say. "However, we also believe there should be scope for the private equity bidders to push the price higher...and still earn strong returns on a five-year view, such is the growth, margin and cash-flow potential within the group, in our view," Berenberg adds. Shares fall 0.8% to 915.5 pence in London. (michael.hennessey@wsj.com)

0745 GMT - Bodycote's private-equity suitors aren't offering generous prices, in another example of bidders taking advantage of a harsh market for U.K. industrial stocks, RBC Capital Markets' Mark Fielding writes. CVC and Veritas are separately offering around 1.56 billion pounds to take the heat-treatment company private, and Bodycote's board said it would likely recommend both to shareholders. The proposals from CVC and Veritas value Bodycote at 907.8 pence and 906.8 pence respectively--excluding a 7.2 pence interim dividend--and are a 21% premium to the company's last closing price before takeover interest was disclosed. "We have previously argued that bids for Dowlais and recently Rotork have undervalued quality industrial assets that have been harshly derated in the U.K. market," the analyst say. Bodycote shares are down 1.0% at 914 pence. (michael.hennessey@wsj.com)

0520 GMT - Fitch Ratings expects credit profiles of Malaysia's six largest banks to remain resilient, driven by a supportive operating environment, sound asset quality, stable profitability and strong capitalization. While economic growth is expected to moderate in 2026, underlying fundamentals could remain supportive on domestic demand and stable inflation, Fitch says in a note. Asset quality should be supported by low nonperforming loans and fewer loans showing signs of heightened credit risk, it says. Profitability should remain stable, with pressure from lower interest rates and intense deposit competition likely to be cushioned by banks' strong deposit bases and active balance-sheet management. Malaysian banks' ratings should remain supported by adequate capital buffers, although material deterioration in risk profiles, asset quality or capitalization could lead to downward ratings pressure, Fitch adds. (yingxian.wong@wsj.com)

0122 GMT - DBS Group's higher guidance for 2026 appears to be largely within expectations, says Citi analyst Tan Yong Hong in a note. The Singapore lender raised its guidance for 2026 total income to grow, versus a previous expectation for it to be stable. DBS also expects its commercial book noninterest income growth to be a mid teen percentage, compared with a high single digit. This implies that commercial book noninterest income growth could slow in 2H, given that 1H's growth came in at 20%, Tan says. While DBS's 2Q profit beat consensus estimates, Tan flags it was driven by volatile items, such as a repayment-driven general provisions writeback and lower-than-expected total provisions. Citi maintains its buy rating and target price of S$73.50. Shares rise 1.8% to 74.86 Singapore dollars. (megan.cheah@wsj.com)

0113 GMT - Public Bank is no longer seen as a standout banking stock following its recent rally, AmInvestment Bank analyst Chan Jit Hoong says in a note. The bank's 18% year-to-date share price gain has compressed its dividend yield to about 5%, broadly in line with peers, while its 3.5 billion ringgit capital management plan appears largely priced in, he says. Chan sees limited balance sheet levers to drive returns, given already high loan-to-deposit and loan-to-fund ratios, and says that IT spending may need to increase to support digitalization and commercial banking growth, potentially putting pressure on its sector-leading cost-to-income ratio. AmInvestment Bank downgrades Public Bank's rating to hold from buy, while maintaining a 5.60 ringgit target price. Shares are 0.4% lower at 5.25 ringgit. (yingxian.wong@wsj.com)

1806 GMT - 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)

1431 GMT - 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)

1359 GMT - 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)

(END) Dow Jones Newswires

August 06, 2026 04:20 ET (08:20 GMT)