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

0845 GMT - The choice seems clear ahead of Volkswagen supervisory board's vote Friday on the next leg of the cost-cutting plan, Citi analysts write. Without further cost reductions, the German carmaker cannot defend its 26% EU market share, core brand margins will fade, free cash flow will disappear, and its debt rating could be reviewed, the bank says. That would mean the company having to cut spending sharply and close German factories anyway, the bank adds. Citi says it has supported Volkswagen since the appointment of Oliver Blume as CEO, sensing a willingness to do what needs to be done. "That remains the case." The bank retains its buy rating on the stock and 94 euro target price. Shares fall 2.5% to 72.25 euros. (dominic.chopping@wsj.com)

0844 GMT - European luxury companies could experience a choppy third quarter, as the comparison base gets tougher, analysts at JPMorgan say. Despite the expected sequential slowdown, markets that were already strong in the second quarter remain resilient in absolute terms, the analysts write in a research note. These include the U.S., Korea and Japan, they add. Conversely, China's retail sales point to continued volatility, the bank says. This trend is expected "to continue for the rest of the year and possibly into 2027 as well given the ongoing tough macro backdrop and new maturity of the market," the analysts say. (andrea.figueras@wsj.com)

0844 GMT - Gold's recent rally was driven by a broader set of forces than in previous cycles, says Andrew Matthews, UBS's global head of precious metals distribution. "Traditional drivers such as inflation expectations, interest rates and currency markets remain important," he says. However, "investors are increasingly focused on sovereign debt levels, fiscal deficits, geopolitical uncertainty and reserve diversification." That has strengthened the precious metal's appeal as a long-term store of value and a way to protect portfolios from a range of risks, giving it a more diversified investment case than in previous instances. Gold is up more than 20% over the past year even accounting for recent declines due to rising tensions in the Middle East fueling inflation concerns and expectations for higher interest rates. (giulia.petroni@wsj.com)

0842 GMT - Novartis's new multiple sclerosis drug might stand apart from a rival product Roche Holding is developing due to its safety profile, Citi analysts say in a research note. Novartis reported no liver-safety signals in its late-stage studies for its remibrutinib drug in multiple sclerosis, while Roche had a case of significant risk of severe drug-induced liver injury in trials for its fenebrutinib drug, the analysts say. Citi estimates Novartis's drug could generate $3.2 billion in annual peak sales in multiple sclerosis. Whether that estimate is conservative will largely depend on the magnitude of the efficacy of Novartis's drug and the U.S. Food and Drug Administration's stance on the safety of Roche's medicine, the analysts say. Novartis's shares fall 0.75%, while Roche's rise 0.8%. (adria.calatayud@wsj.com)

0840 GMT - SISB's student enrollment is set to slow this year, likely weighing on earnings, says CGS International's Pornthipa Rayabsangduan in a note. The Thai international school operator cut its guidance for its student numbers in 2026 to 4,600 from 4,800, partly due to competition and fewer Chinese students, the analyst says. She reckons the revised target could still be difficult to achieve, and reduces her estimate by 3.7%-4.8% to 4,430 in 2026 and 4,620 in 2027. She expects SISB's 2026-2027 earnings per share to contract at a 8.2% compound annual rate. CGS International trims its target price to 9.60 baht from 11.30 baht and retains a hold rating. Shares decline 1.6% to 9.00 baht. (megan.cheah@wsj.com)

0825 GMT - The Philippine peso weakens to a record intraday low against the dollar on Wednesday. The currency seems like it would remain under pressure, as oil prices could stay elevated, Maybank analysts say. However, the analysts say that any signs of Bangko Sentral ng Pilipinas' intervention could put a lid on the peso's weakness. The dollar was 0.2% higher at 62.512 pesos, after touching a record intraday high of 62.652 pesos, LSEG data show. (amanda.lee@wsj.com)

0816 GMT - New Zealand's central bank has delivered what Nomura economists expect will the penultimate rate hike of the cycle as policymakers assess the impact of prior tightening. The RBNZ struck a measured tone that suggests fewer rate hikes ahead relative to market pricing, Nomura's Andrew Ticehurst says. It said core inflation, expected wage growth and inflation expectations, remain consistent with inflation returning to target by late-2027, and that it's appropriate to gradually remove monetary stimulus. Nomura also sees the RBNZ's forecast revisions as more dovish than hawkish, including a trimmed GDP growth profile, modest increases to many unemployment projections, and broadly unchanged inflation and OCR views. All that's consistent with Nomura's base case for a final 25bp hike in December that would take the cash rate to a "neutralish" 3.00%. (fabiana.negrinochoa@wsj.com)

0815 GMT - Novartis's decision to suspend several clinical trials for a cell therapy after three patients died is expected to have a limited financial impact, Citi analysts say in a research note. Pending further updates, the news reduces the likelihood that the Swiss drugmaker's next-generation cell-therapy platform--which aims to accelerate the process of T-cell expansion to treat autoimmune diseases--could provide a future boost, the analysts say. However, the treatment was still in midstage trials, and Citi's current peak sales estimate stands at only $440 million. Novartis shares fall 0.6%. (adria.calatayud@wsj.com)

0800 GMT - Elections on Sept. 13 pose a material risk for Swedish bank earnings, should the opposition party that is leading in the polls win power, Citi analysts write in a note. A bank tax, as proposed by the Social Democrats, would potentially represent 2%-8% of 2027 consensus pretax profit, Citi says. Nordea would be least affected, with Handelsbanken hit the most, it adds. On top of this, opposition proposals to lower return on equity targets for state-owned SBAB Bank would put further pressure on sector margins. Longer-term, Citi sees further risk to Swedish banks' costs of equity from bank taxes and a challenged market share backdrop, which may prompt investors to reconsider Swedish banks as the "safe haven" they once were. (dominic.chopping@wsj.com)

0752 GMT - Oil prices hold onto Tuesday's gains after the U.S. and Iran exchanged strikes overnight, clouding prospects for a near-term deal to reopen the Strait of Hormuz. "These latest developments have underscored the lack of a realistic path towards normalizing maritime traffic through the Strait," says Ricardo Evangelista from brokerage ActivTrades. "The absence of a credible timeline is increasing investor anxiety." In early European trading, Brent crude is up 0.3% to $94.91 a barrel, while WTI futures are flat at $90.19 a barrel. Escalating tensions are also keeping refined-product markets, especially diesel, extremely tight. Disruptions to Middle Eastern and Russian exports are pushing diesel refining margins to record levels, with strong seasonal demand and limited spare refining capacity likely to keep prices elevated and volatile, according to analysts. (giulia.petroni@wsj.com)

0752 GMT - The yen gets some support from hawkish comments from BOJ officials--including Gov. Ueda--which reinforce market expectations for a rate hike this month, MUFG's Lee Hardman says. After crossing 160 against the dollar, the yen is back below the closely-watched threshold. Ueda's latest remarks at a G20 meeting gave the clearest signal yet that the BOJ is preparing to tighten--a 25bp rate hike in September is fully priced in, Hardman says. Hawkish BOJ member Takata also gave a speech saying this year represents a "regime change," in which rate hikes will be "conducted in a nimble and data-dependent manner." For Hardman, the hawkish repricing of BOJ expectations is positive for the yen but not enough to trigger a rebound yet. Dollar is last at 159.65 yen. (fabiana.negrinochoa@wsj.com)

0748 GMT - Asian equities, namely Chinese stocks, increasingly face geopolitical risks amid the prospect of a meeting between Xi Jinping and Trump later this month, BNP Paribas analysts write in a note. The bank argues that recent disputes over trade imbalances, supply chains and AI are deepening the conflict between the world's two largest economies. While the meeting could result in an extension of an existing trade truce and further commitments, BNP doesn't expect a "grand bargain" or an outcome that would materially support Chinese or Asian equities. The U.S. and China are increasingly building separate economic and technological blocs, they note, adding that it's a trend that could complicate supply chains and make bilateral revenue exposure more difficult to value.