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

1157 GMT - There is potential for Carnival to modestly beat 3Q EPS expectations, as better-than-expected yields more than offset higher fuel costs, according to William Blair in a note. Analysts Sharon Zackfia and Francis Tian expect net yields to rise about 2%, topping Wall Street estimates for a 1% increase, on the back of stronger-than-anticipated last minute booking demand and continually strong onboard spending trends. The upside would put Carnival in a good position to potentially raise its full-year net yield outlook, they say, even as higher fuel prices continue to pressure earnings. Carnival is scheduled to report 3Q results on Sept. 29. (connor.hart@wsj.com)

1136 GMT - Canada's newly announced Productivity Mega Deduction serves as an immediate capital allocation catalyst for domestic energy producers, says Robert Mann of Desjardins. In a report, the analyst says that the policy unveiled at the Canada Investment Summit "provides further runway behind the increasingly constructive policy backdrop emerging in Canadian energy." In particular, it will be relevant for "producers actively deploying capital into growth and development projects." Paired with recent permitting and royalty reforms, the shift enhances Canada's competitiveness and supports positive final investment decisions for upcoming projects, Mann says.(adriano.marchese@wsj.com)

0941 GMT - Harbour Energy's exposure to European gas prices will turbocharge free cash flow generation, BofA analyst Cian Evans-Cowie writes as he upgrades the stock to buy from neutral with a new target price of 350 pence, from 280 pence. Shares have lagged peers despite having the highest free cash flow sensitivity to European gas prices, he says. Harbour's free cash flow for 2026 could be around $2.65 billion, which implies a more than 45% upside to the company's guidance, he says. This cash can be used to pay down net debt, which is seen falling more than 30% by end of 2026, he adds. This will then free up more cash to return to shareholders, he says. Shares rise 2% to 277.00 pence. (adam.whittaker@wsj.com)

0836 GMT - TKMS offers exposure to Europe's naval rearmament and undersea warfare modernization, Stifel says in a note initiating the stock at buy. The German naval defense company is capable of more than doubling its secured revenue base, with more than 25 billion euros of backlog and a mature pipeline, according to analyst Thomas Mordelle. "Submarine design authority, pressure-hull manufacturing, acoustic engineering and naval combat-system integration are among NATO's scarcest capabilities," Mordelle says. Naval demand is rising faster than available capacity and TKMS is positioned to benefit as it moves beyond platform manufacturing into becoming a sovereign maritime systems integrator, Stifel says. Stifel sets a target of 105 euros. TKMS shares trade 2.3% higher at 87.30 euros. (sarah.sloat@wsj.com)

0725 GMT - European energy stocks open lower Friday morning as oil prices continue to slide. The pullback in prices largely reflects a perception that geopolitical risks are moderating, MUFG's Soojin Kim writes. Diplomatic efforts are stepping up while China and other partners are reported to have urged Iran to restrain Houthi attacks near Bab el-Mandeb Strait, Kim adds. This pushes Brent crude down 1.9% to $102.87 a barrel while WTI falls 1.7% to $100.15 a barrel. In London, Shell and BP both fall around 1%. Spain's Repsol drops 1.5% and Italy's Eni is 1.4% lower. Norway's Equinor falls 0.5%.(adam.whittaker@wsj.com)

0719 GMT - Bitcoin rises modestly following gains on Wall Street overnight driven by a rally in tech stocks. Investors buying shares of companies tied to artificial intelligence boosted tech stocks, leading U.S. stock indices higher. An easing of oil prices is also supporting risk sentiment. Lower oil prices reflect some profit taking and reports that Saudi Arabia could soon restore some flows through its damaged East-West pipeline which was closed after a drone attack from Iraq. Bitcoin rises 1.1% to $77,392, LSEG data show. (renae.dyer@wsj.com)

0713 GMT - Oil prices extend losses from the previous session, with Brent crude now at around $102 a barrel amid efforts to restore Saudi export capacity. "Supply concerns have eased as Saudi Arabia works to restore its damaged East-West pipeline," says Soojin Kim, analyst at MUFG. "The recent decline in spot oil prices largely reflects a perception of moderating geopolitical risks, but continued threats to both Hormuz and Red Sea routes should keep Brent above pre-war levels and volatility elevated." In early European trading, Brent falls 2.2% to $102.54 a barrel and is on track for a weekly loss of nearly 2%, while WTI futures are down 1.9% to $99.97 a barrel. Attention now shifts to the United Nations General Assembly in New York next week, as the U.S. has reportedly agreed to let Iran's leaders participate. (giulia.petroni@wsj.com)

0519 GMT - Korea Electric Power is expected to face earnings pressure from elevated fuel-purchase costs through 2H,Hyundai Motor Securities' Donghyun Shin says. The analyst expects the South Korean state utility operator's profit to decline sharply in 2H, with higher crude oil and liquefied natural gas prices weighing on its bottom line. Shin expects operating profit to fall 71% from a year earlier in 3Q and 76% in 4Q and net profit to slump 74% in 3Q and 82% in 4Q. Higher utilization of the company's nuclear reactors, some of which are currently undergoing maintenance, would be needed to improve earnings, he adds.