The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1029 GMT - European companies might be on the cusp of a structural shift in how they deploy cash, prioritizing investment over returns to shareholders through dividends or buybacks, equity strategists at Goldman Sachs say in a research note. Corporate cash deployment in Europe is expected to increase 1% this year, with a 2% increase in investments for growth--capital expenditure, research and development, and mergers and acquisitions--and flat returns to investors--dividends and buybacks--, according to Goldman Sachs. "Historically, firms have been reluctant to invest, and have not been rewarded for doing so," the strategists say. "Over the past few decades, capital-light business models have consistently outperformed capital-intensive ones, as investors favored efficiency and scalability." The Stoxx Europe 600 index falls 1%. (adria.calatayud@wsj.com)

1010 GMT - UBS Group can keep buying back shares to the tune of $3 billion a year even with Switzerland's new capital requirements, Keefe, Bruyette & Woods analysts say. However, its repurchases will likely be smaller than previously thought, the analysts write in a research note. Switzerland's proposed new rules mean the worst-case scenario materialized for UBS, but buybacks remain in the cards for the bank throughout the phased-in implementation period, KBW says. "We expect the group to strike a balanced approach to front-loading regulatory requirements and repurchasing shares," the analysts say. "Based on our analysis, UBS can maintain $3bn in share repurchases, generate 15% returns and fully comply with new ["too big to fail"] requirements two years ahead of time." Shares fall 1.5%. (adria.calatayud@wsj.com)

0935 GMT - Tesco could upgrade its outlook if the momentum experienced in its fiscal first quarter is maintained, Shore Capital's Clive Black and Darren Shirley say. The British supermarket chain reiterated its expectations for fiscal 2026. It continues to anticipate adjusted operating profit in a range of 2.7 billion and 3.0 billion pounds. For the 13 weeks ended May 24, the group booked a 4.6% sales increase on a like-for-like basis compared with the prior-year period. "We applaud and welcome this trading momentum," the analysts write in a research note. Tesco's guidance review could start by moving to the top end of the range and perhaps progressing thereafter, they say. Shares are up 2.3% at 394 pence. (andrea.figueras@wsj.com)

0932 GMT - Boeing shares slide in premarket trading after an Air India plane carrying more than 200 passengers crashed near an airport in the western Indian city of Ahmedabad. Air India flight AI171 from Ahmedabad to London Gatwick generally operates on a Boeing 787-8 Dreamliner, according to flight-tracking websites Flightradar24 and FlightAware. Boeing stock closed 0.8% lower at $214.00 on Wednesday. Shares are down 6% Thursday premarket, touching a low of $197.00. (mauro.orru@wsj.com)

0913 GMT - Competition could become stiffer in China's on-demand market, HSBC research analysts say in a note. Alibaba Group could leverage cross-selling opportunities on e-commerce platform Taobao's massive user base, the analysts say. JD.com's edge in consumer electronics and fast-moving consumer goods remain its strongest line of defense, the analysts note. They add that it may take time for JD.com to expand its delivery network to meet the surge in orders. Delivery efficiency and an expansive network of warehouses will likely defend Meituan's leadership position, even in the medium run, the analysts say. They maintain a buy rating on Meituan, Alibaba and JD.com. (tracy.qu@wsj.com)

0903 GMT - Europe's big defense companies are flush with cash and don't need more, but their small and medium-sized suppliers do need funding, Deutsche Bank CEO Christian Sewing says. "The problem of the defense industry is the supplier industry," Sewing says at a Goldman Sachs conference. The German lender invested significantly in its defense business over the last six months as it could anticipate that the industry would be essential for the country's new government, Sewing says. Deutsche Bank has a sizable loan book for the defense industry already, with an exposure in the double-digit billion-euro range, he adds. The European Investment Bank and Deutsche Bank on Wednesday disclosed a deal aimed at bolstering liquidity for defense-industry suppliers. Shares in Deutsche Bank fall 1.6%. (adria.calatayud@wsj.com)

0841 GMT - Investors will focus on any comments regarding the supply of rare-earth minerals made at the Paris Air Show next week, Citi analysts say. Concerns over the medium-term availability of these key minerals have increased following trade tensions between the U.S. and China. The aerospace industry needs them for the production of sensors, navigation, propulsion and flight control systems, the analysts note. Many suppliers have six months or so of inventory to support manufacturers, and there could be rationing and bottlenecks if the U.S. and China don't come to terms by the fall, the analysts say. Airbus is down 1.5%, Melrose Industries is down 1.6%, while Thales and Safran are both down 1.1%.(cristina.gallardo@wsj.com)

0838 GMT - BP has scope to lower capital expenditure in a down-cycle, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. They write this after hosting a virtual call with BP's Chief Executive Murray Auchincloss. BP is currently guiding for capex of $14.5 billion in 2025, of which $13.8 billion is organic spend--which includes spending in existing operations--, they add. BP could remove around $500 million from its exploration budget, around $1 billion from major projects that have not yet been sanctioned, and has flexibility in its U.S. onshore business where annual capex is around $2.4 billion, they write. Shares trade up 1.6% at 379.75 pence.(adam.whittaker@wsj.com)

0827 GMT - Leonardo being awarded the production of the rear section of the fuselage for the Airbus A220 will help the Italian group's troubled Aerostructures division to approach break-even, Equita analyst Martino De Ambroggi says. Valerio Moro, the new chief executive of Airbus Italy, told reporters that Leonardo had been chosen for the task, and that the work will start after the summer, IlSole24 newspaper reports. The aerospace and defense company's unit has posted triple-digit losses for seven years. Supplying those parts to Airbus will be a long-term program and will help Leonardo crafting a deal to rescue the Aerostructures unit with a financial or industrial partner, De Ambroggi says. Leonardo's shares are down 0.8% at 47.96 euros. (cristina.gallardo@wsj.com)

0824 GMT - Oracle shares are climbing Thursday premarket after the cloud-services company posted strong results for the last quarter of fiscal 2025 and said fiscal 2026 would be even better. Oracle stock closed 0.6% lower at $176.38 Wednesday ahead of results. Shares are up 8.1% premarket, touching a high of $191.00. Revenue grew 11% to $15.90 billion in the three months ended May 31, above a FactSet projection of $15.57 billion. Earnings per share of $1.19 also exceeded a FactSet forecast of $1.16. Chief Executive Safra Catz said fiscal 2025 was a very good year, but fiscal 2026 will be even better. The executive expects Oracle's total cloud growth rate--applications plus infrastructure--to increase to more than 40% in fiscal 2026 from 24% in fiscal 2025. (mauro.orru@wsj.com)

0823 GMT - Deutsche Bank CEO Christian Sewing is hopeful Germany's new ruling coalition will spur consumers to spend more. Saving ratios among the lender's retail clients are running close to peaks seen during the Covid-19 pandemic. "The ratio of what has been saved from the net income of private clients, retail clients, was almost as high as the peak of Covid times," Sewing tells a Goldman Sachs conference in Berlin. Sewing expects the plans of the new German government to be net positive for Deutsche Bank. However, things are moving slowly and the benefits to economic growth of Chancellor Friedrich Merz's 500 billion-euro infrastructure fund will start to show up in 2026, Sewing says. Shares in Deutsche Bank fall 1.6%. (adria.calatayud@wsj.com)

0816 GMT - Halma's strong performance in fiscal 2025 offer continued confidence in future growth, IG analysts say in a research note. The U.K. engineering group saw record results for the 12 months, achieving its 22nd consecutive year of profit growth with an 11% rise in revenue and a 16% increase in adjusted pretax profit. A strong performance across all sectors and regions, as well as a robust cash generation, and sustained investment that supported a 7% dividend increase signals confidence moving forward, they say. Shares trade 6.4% higher at 32.14 pounds and are leading the FTSE 100 index. (nina.kienle@wsj.com)

(END) Dow Jones Newswires

June 12, 2025 06:30 ET (10:30 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.