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

0724 ET - Munich Re's CEO departure wasn't expected and is disappointing given that shares gained 330% under Joachim Wenning's eight-year tenure, Jefferies says in a research note. "We find ourselves reassured that the group will be in good hands, as the current group CFO, Dr Christoph Jurecka, will succeed him," analyst Philip Kett writes. Jurecka is well known by investors and has a deep understanding of the business. He was the finance chief of the German reinsurer's ERGO unit from 2011 to 2019 when the troubled subsidiary undertook a successful restructuring program. Shares are up 0.6% at 578.4 euros and have gained 19% in the year to date. (elena.vardon@wsj.com)

0540 ET - UniCredit's withdrawal from its Banco BPM bid seems like a tactical retreat, Deutsche Bank says in a research note. Ditching its offer provides the bank with flexibility for future moves on the target and the option to go ahead with another offer or not, analyst Giovanni Razzoli writes. "The market may anticipate a revised offer, supporting [Banco BPM]'s valuation--which we believe will also continue to benefit from a combination of strong fundamentals, cheap valuation and M&A appeal," he says. Shares in UniCredit--which separately posted second-quarter results and raised its guidance--rise 4.3% while Banco BPM's fall 2.2%. (elena.vardon@wsj.com)

0536 ET - By pulling out of its takeover offer for Banco BPM, UniCredit is sending a strong signal that it won't pursue deals at any cost, Morningstar says in a market comment. "This stance will likely strengthen its position in future negotiations," analyst Johann Scholtz writes. The risk of overpaying was real given the current competitive environment and M&A activity, he notes. Significant regulatory hurdles also presented execution risk and would have complicated the realization of synergies. Walking away shows UniCredit's strategic discipline, he adds. Shares in UniCredit--which separately posted second-quarter results and raised its guidance--rise 4.8% while Banco BPM's fall 1.9%. (elena.vardon@wsj.com)

0358 ET - There is much to like in UniCredit's standalone strategy despite the missed strategic opportunity in Italy, Equita says in a research note. The lender withdrew its takeover bid for peer Banco BPM after encountering government opposition. "We continue to appreciate UCG's standalone strategy, capital strength and strong visibility on both earnings and distributions," analyst Andrea Lisi writes. BPM had been trading at a premium to UniCredit's implied offer price. Separately, UniCredit reported better-than-expected second-quarter net profit and lifted its guidance to account for higher earnings and the consolidation of its stake in Germany's Commerzbank. UniCredit rises 2.6% while BPM is down 3.2%. (elena.vardon@wsj.com)

0352 ET - BBVA launching its bid for Sabadell in September makes sense, Alantra says in a research note. The Spanish bank said it expects the acceptance period for the takeover bid to start after the publication of first-half results and Sabadell's shareholder meeting. The initial expectation was for the tender offer to be launched next week with a 70-day period but a September kickoff with a likely shorter 30-day window is more practical, analyst Francisco Riquel writes. "The match was always going to be played in September, so little changes in substance," he notes. Having the bid open during a volatile month like August--when many shareholders are on holiday--would have exposed it to unnecessary market risk, given the large stock component of the offer. Riquel expects BBVA to revise the offer and add a large cash component in early September. (elena.vardon@wsj.com)

0234 ET - UniCredit's quarterly results and guidance raise should be welcomed by the market, Keefe, Bruyette & Woods says in a note after the Italian bank's update. UniCredit's earnings beat market views but had many positive one-offs, leading to a messier-than-usual print, analysts Hugo Cruz and Ben Maher write. "Management guidance improved once again but we think the market will want to understand how much of the improvement is due to the equity accounting of the stakes in [Commerzbank] and Alpha," they write, referring to the shareholding it holds in the German and Greek banks. (elena.vardon@wsj.com)

0207 ET - The news that UniCredit dropped its takeover offer for Banco BPM is a major surprise, J.P. Morgan says in a research note. The bank could have made the math work and found common ground with BPM's top shareholder Credit Agricole, analysts write. While the development is disappointing from a strategic point of view, there is still value in UniCredit's standalone strategy and analysts like the bank's strong capital position and excess cash. "The M&A optionality remains there, although at this stage, nothing is high on the list in our view," they say. The withdrawal implies that the legal hurdles may have been higher than expected, that the bank wasn't ready for a prolonged battle on this front or that it didn't believe it could get support from Credit Agricole, which would have become a blocking minority. (elena.vardon@wsj.com)

2202 ET - Australian banks could be about to lose a key source of valuation support, Macquarie analysts say. Australia's unemployment rate unexpectedly rose to a four-year high of 4.3% in June, which may indicate that the tightness in the labor market is easing. The Macquarie analysts point out that overall wage growth is also moderating. The suggestion is that the scenario could hit the affordability of credit for consumers, who face rising house prices amid lower interest rates and policy support. The Macquarie analysts tell clients in a note that the banking sector's recent outperformance looks increasingly unsustainable. (stuart.condie@wsj.com)

2118 ET - Bursa Malaysia's 2Q earnings are expected to be soft due to weaker trading volumes, RHB IB analysts Nabil Thoo and David Chong say in a note. They forecast 2Q net profit at 55 million ringgit-65 million ringgit, down 19%-32% on year and 5%-20% on quarter. Amid ongoing global uncertainty, trading sentiment may have remained muted, weighing on Bursa's earnings. They add that derivatives volumes could also decline, reflecting softer CPO prices. The analysts cut 2025-2027 earnings estimates for the exchange operator by 1%-2%. RHB raises Bursa Malaysia's target price to MYR8.05 from MYR7.70 as it rolls forward valuation, and maintains a neutral rating. Shares are 0.1% higher at MYR7.64. (yingxian.wong@wsj.com)

1846 ET - Capital One is looking to reignite Discover's slow growth now that the bank has acquired it. Discover's originations and growth have been muted over the past few years as the company tried to dial back credit losses, Capital One CEO Richard Fairbank says. Fairbank plans to lean into some of Discover's products and its highly rated customer service. He sees opportunity in Discover's flagship credit-card product, including its business specifically geared toward students. "It's going to be in the context of a little bit of muted growth at the moment," he says. "I think as we fully get into there, there'll probably be a few areas we'll dial back around the edges." (katherine.hamilton@wsj.com)

1742 ET - Capital One tells investors its expected costs of integrating Discover into its business are now going to be higher than previously thought. Capital One anticipates the cost of its integration of Discover, which it acquired in May, will be somewhat higher than the previously expected $2.8 billion, Chief Executive Richard Fairbank says without giving an exact new number. "These opportunities are exciting, but they will require significant investment to bring them home," Fairbank says. Capital One plans to move its debit business and part of its credit business onto the Discover network, which it believes will move bigger spenders to the network, he says. (katherine.hamilton@wsj.com)

1412 ET - The cannabis industry needs some kind of federal marijuana reform to come through and lift sentiment around the battered sector for the back half of the year, AllianceGlobalPartners analyst Aaron Grey says in a research note. Cannabis companies are still facing persistent pricing pressure, a lack of state-level catalysts for driving growth and upcoming debt maturities, making federal reform a needed development, the analyst says. People close to the Trump administration have been increasingly vocal about the need for reform in recent weeks, but its unclear how high of a priority it is for Trump, Grey says. Neither the president nor a key member of his administration have made a definitive statement about cannabis since Trump took office, he says. (dean.seal@wsj.com)

(END) Dow Jones Newswires

July 23, 2025 12:20 ET (16:20 GMT)

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