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

1618 ET - Humana's loss in its challenge to the government's downgrade of its 2026 Medicare ratings should come as no surprise to investors, who had baked the expected ruling into current stock price, Cantor analysts say. Still, the ratings downgrade is a $10 to $15 blow to 2026 EPS, a hit that will last until Humana sees its Medicare ratings bump up, the analysts say. That is unlikely to happen for 2027 ratings, which Humana had little time to improve upon after receiving its 2026 downgrade, but the company has expressed optimism about a ratings improvement for 2028. In a bid to improve future ratings, the company has improved call-receiving technology and sent out at-home blood pressure monitors and colon cancer screening kits, the analysts say. (nicholas.miller@wsj.com)

1005 ET - Young people are driving American Express's growth. Millennials' spending increased 10% in 2Q, while Gen Z's jumped around 40%, the company says. And they are still keeping up with their payments, with delinquency rates for those two groups nearly 40% better than the industry average for older ages, Amex executives say during an analyst call. The younger generations tend to be very value-conscious and tend to see Amex's credit-card fees as worthwhile for the perks the bank offers, management says. "We're acquiring lots of Gen Zs and lots of millennials with these cards," CEO Stephen Squeri says. (katherine.hamilton@wsj.com)

0943 ET--Americans are cutting back on travel this summer and companies across industries are feeling it. American Express says credit-card spending on travel and entertainment declined in 2Q from 1Q, bucking an overarching trend of resilient spending in other sectors. Jet-engine maker GE Aerospace is keeping what it calls a conservative view for departures, an indicator representing demand from commercial airlines. Investors are trying to get a handle on where travel demand stands after Delta Air Lines and United Airlines reported this week. Their reports reflected some resilience to economic volatility during the spring, but outlooks are still more tempered than they were at the start of the year. (katherine.hamilton@wsj.com)

0942 ET -- American Express is going all in on premium. Its cardholders are no longer that interested in fee-free cards or getting cash back when they spend. Instead, they're shelling out more and more for annual fees so they can get reservations at booked-solid restaurants, visit the company's swanky Centurion lounges and enjoy special benefits at concerts and sports events. The growing interest in these perks, which American Express calls a generational shift, is making it easier for the bank to hang onto customers while raising card fees. It has raised its card fee by an average 17% every year since 2019. (katherine.hamilton@wsj.com)

0914 ET - Canadian home prices in the country's biggest markets fell in June, and are down from a year ago, says the latest report from the Teranet-National Bank house-price index. On a seasonally-adjusted basis, house prices in Canada's 11 biggest markets fell 0.5% from the prior month, and 1.8% from June of last year. The house-price index is about 3.4% lower than the peak hit in May, 2022, or around the time the Bank of Canada began aggressively raising interest rates. The report indicates that market conditions tightened marginally in June but remain balanced compared to the historical average. Soft conditions in Ontario and Vancouver, British Columbia--the most expensive markets to own a home--are weighing on the national data, National Bank says. (Paul.Vieira@wsj.com; @paulvieira)

0903 ET - Charles Schwab says it accumulated $80.3 billion in core net new assets during 2Q as over 1 million new brokerage accounts were started. The 31% increase brought the brokerage's year-to-date asset gathering to $218 billion, which is up 39% compared with the same period last year. Charles Schwab's total client asset tally is now up at $10.76 trillion, a company record. The gains are a sign that retail investors and investment advisers are turning to Schwab, CEO Rick Wurster says, amid a rebound in equity markets from the tariff-related disruptions seen in April. Charles Schwab climbs 4.3% to $97.10 premarket. (dean.seal@wsj.com)

0748 ET - Sabadell's standalone valuation is already appealing, but the stock could further benefit from its new strategic plan and a potential improvement of BBVA's takeover bid acting as catalysts, CaixaBank says in a note. The sale of its U.K. unit TSB strengthens the rationale for BBVA to raise its offer and throw in an extra cash component to match Sabadell's extraordinary dividend, analyst Carlos Peixoto writes. This extra payout, as well as the level of profitability and shareholder remuneration that the bank is set to maintain in the future, strengthens its standalone perspective. "This suggests that the downside risks in the event of BBVA withdrawing its bid are limited (and should be short-lived)," Peixoto notes. (elena.vardon@wsj.com)

0726 ET - The European Commission's decision to start an infringement procedure against Spain over the conditions the government imposed on the BBVA-Sabadell bank tie-up was expected given its similar stance on another banking deal in Italy, CaixaBank says in a research note. "We view as unlikely that the Spanish government would cave in to the EC's pressure," analysts say, adding that any decision will occur once the offer process is already concluded. The EC's decision has no immediate impacts on the bid's timeline nor on the restrictions imposed by Madrid on the deal, namely its condition to keep the banks as separate legal entities for at least three years. (elena.vardon@wsj.com)

0601 ET - Sabadell's decision to divest its U.K. unit TSB should be viewed on its own merits rather than through the lens of a takeover defence, proxy advisory firm Glass Lewis says. The Spanish bank is the target of a hostile bid from larger peer BBVA. The timing of the proposed sale of the division has added scrutiny given the takeover offer and lead some to question whether it intended to derail the deal. Given the passivity rules Sabadell is under, its shareholders will be asked to vote on the sale of TSB to buyer Santander. "The transaction appears strategically and financially sound," Glass Lewis says, noting that the bank would exit a non-core market and use the proceeds to reward shareholders through a special dividend and reinvest at home. The proxy recommends that shareholders vote in favor of the proposal. (elena.vardon@wsj.com)

0549 ET - The sale of Sabadell's U.K. unit TSB is a compelling deal, proxy advisory firm Institutional Shareholder Services says in a report. This comes ahead of the meeting at which shareholders of the Spanish bank will be asked to vote on the sale to buyer Santander. The transaction allows the bank to refocus on its core markets and distribute most of the proceeds to investors, ISS says. The proxy firm says that a vote for the sale is warranted. "The transaction has a solid strategic rationale and represents an attractive valuation," it says. Sabadell is simultaneously trying to fend off a takeover bid from BBVA but the attractiveness of this stock offer has been pushed down and doesn't appear compelling at this point, it adds. (elena.vardon@wsj.com)

0542 ET - The stocks of lenders AIB Group and Bank of Ireland have risen by around a fifth in the past three months but have limited scope to rerate any further, UBS says in a research note. They operate in an environment in which net interest income and profits are normalizing in response to lower rates, while near-term sentiment around the Irish economy remains uncertain, analysts Sanjena Dadawala and Jason Napier write. UBS downgrades its rating on both stocks to neutral from buy. AIB shares slip 1% to 6.67 euros, while BoI's are down 1.3% at 11.97 euros. (elena.vardon@wsj.com)

0541 ET - Increased commercial momentum could have a positive impact on Intesa Sanpaolo's shares, UBS says in a research note. The Italian bank is still a quality option but has struggled to attract attention this year, analysts Ignacio Cerezo and Adele Palama write. More momentum in terms of volume and activity can help the lender's key performance indicators shine. This can also be aided by a shift toward assets under management products that bring in higher margins, the analysts say. "Incoming 2Q results do not appear to be a strong catalyst, but we still see ISP's compounder profile in earnings/distribution terms attractively valued at current prices," they note. Shares trade at 4.9 euros and have gained 28% since the start of the year. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

July 18, 2025 16:50 ET (20:50 GMT)

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