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

0800 GMT - Prosus's all-cash offer for Just Eat Takeaway will likely proceed, RBC Capital Markets analysts Wassachon Fon Udomsilpa and Richard Chamberlain write in a note. The Amsterdam-listed investment group has reach a conditional agreement to buy the food-delivery company for 4.1 billion euros in cash. "While there is a possibility of a counter bid, we believe Prosus is in a good position considering its offer price having over 60% premium to Just Eat Takeaway.com's latest share price," the analysts say. The offer is unanimously recommended by Just Eat's management and supervisory board. Just Eat shares closed at 12.43 euros on Friday and Prosus shares closed at 45.98 euros. (najat.kantouar@wsj.com)

0759 GMT - Shares in Subsea7 and Saipem should both react positively this morning after the companies announced a proposed merger, RBC Capital Markets analyst Victoria McCulloch writes. The enlarged business would have a 43 billion euro backlog, revenue of around 20 billion euros, and EBITDA of over 2 billion euros, McCulloch says. "The deal terms put a premium on Subsea7's market cap relative to Saipem based on Subsea 7 distributing 450 million euros in cash to shareholders prior to the deal's completion." Based on the 450 million euro cash distribution and the implied 50/50 split of the combined businesses, RBC thinks there's a premium being attributed to Subsea7's business. This already trades at a higher valuation multiple. Subsea7 shares closed at 181.60 Norwegian kroner and Saipem at 2.32 euros. (dominic.chopping@wsj.com)

0752 GMT - More support from China Vanke's major shareholder signals Chinese authorities' commitment to keep the company afloat, DBS says in a research note. The troubled Chinese developer said late Friday that key shareholder Shenzhen Metro Group, a state-owned subway operator in one of China's biggest cities, plans to provide a 4.2 billion yuan loan, days after it offered a 2.8 billion yuan loan. DBS thinks the move signals regulators' "proactiveness to act." "More disposals and refinancing will still be required, but the development may be read constructively and lend support to bond and share price performances," they say. DBS estimates Vanke could need around 32 billion yuan to meet its operating cash flow needs and bond obligations, assuming it can maintain average presales at 4Q levels. Vanke's H-shares are last at HK$6.12. (sherry.qin@wsj.com)

0743 GMT - Singapore Airlines is likely to enjoy continued healthy passenger and cargo demand, OCBC Investment Research's Ada Lim says in a research report. SIA posted improved operating results in 3Q FY 2025 such as passenger-flown revenue growing 1.7% on year on the back of a record 10.2 million passengers flown, the analyst notes. Also, SIA's cargo-flown revenue rose 9.7% on year in 3Q on higher cargo loads driven by robust year-end demand from e-commerce, the analyst adds. Management is optimistic that demand for SIA's passenger and cargo segments will remain robust in 4Q. OCBC raises the stock's fair value estimate to S$6.50 from S$6.30, with an unchanged hold rating. Shares are 1.7% higher at S$6.66. (ronnie.harui@wsj.com)

0735 GMT - Nordic markets are seen opening slightly higher, with IG calling the OMXS30 up 0.1% at around 2727. U.S. stock markets fell on Friday after an unexpected decline in the services sector PMI and weaker consumer confidence, SEB analysts say in a note. Falls deepened during the evening and the S&P500 closed as much as 1.7% lower. "U.S. interest rates fell by about 7 basis points and the market is now pricing in a 46 basis point lower policy rate by the end of the year." The election in Germany is in focus and markets initially seem to interpret the outcome as positive, SEB says. Stock markets in Asia are falling slightly in most places, though markets are closed in Japan, but stock market futures for both the U.S. and Europe are pointing higher. OMXS30 closed at 2724.26, OMXN40 at 2681.89 and OBX at 1420.78. (dominic.chopping@wsj.com)

0731 GMT - A decisive fiscal regime shift in Germany seems unlikely after centrist parties failed to win a constitutional majority, analysts at Deutsche Bank write. Even with the support of the green party, the conservative party CDU/CSU and Chancellor Olaf Scholz's Social Democratic Party jointly hold just under 66% of seats, they add. Constitutional changes, including to the country's fiscal rules, known as debt brake, would rely on the support of far-left Die Linke or far-right AfD, the analysts write. This could be seen as negative by investors as its reduces the likelihood of a decisive shift in Germany's fiscal framework, the analysts add. (adam.whittaker@wsj.com)

0727 GMT - The euro and European stock futures rise on relief there were no major surprises from Germany's federal elections Sunday, Swissquote Bank's Ipek Ozkardeskaya says in a note. The Conservative Christian Democrat Union won the election with 28.5% of the vote while the far-right Alternative for Germany were in second at 20.8%. "The kneejerk reaction is a swift rebound of the euro and the equity futures on hope of higher spending by the new German government would tackle the economic weakness of past years," Ozkardeskaya says. The euro rises 0.4% after hitting a four-week high of $1.0531 overnight, according to FactSet. IG futures data show Germany's DAX opening 0.95% higher and France's CAC up 0.1%, although the U.K.'s FTSE 100 is seen opening down 0.1%. (renae.dyer@wsj.com)

0724 GMT - Chinese shares closed mixed, with the Shanghai Composite Index dropping 0.2% to 3373.03. The Shenzhen Composite edged 0.1% higher, while the ChiNext Price Index was 0.7% lower. Investors are awaiting the upcoming Two Sessions meetings for more policy signals from Beijing. Among major stocks, property stocks advanced. Poly Developments & Holdings was 1.8% higher and China Merchants Shekou Industrial Zone Holdings rose 3.4%. Decliners included Hygon Information Technology, which was 1.85% lower, and BYD, down 1.75%. (tracy.qu@wsj.com)

0723 GMT - Germany's incoming administration must drive an economic turnaround and foster innovation to restore the country's competitiveness, the Federation of German Industries (BDI) says in a statement. Policymakers should prioritize economic growth to counteract declining industrial production and Germany's weakening position as a business hub, the industry group says. The BDI outlines four key priorities for the new government to focus on: enhancing competitiveness, promoting innovation, modernizing the state, and strengthening Germany's global standing. The group proposes lowering energy prices--which have risen since the start of Russia's invasion of Ukraine-- lower company taxes and a reduction to bureaucracy, among others.(helena.smolak@wsj.com)

0718 GMT - Lenovo's PC volumes should stabilize in calendar 2025, supported by an accelerated Windows 11 replacement cycle, CGS International analyst Ray Kwok says in a note. He projects Lenovo's PC revenue to rise 1% and 3% for FY 2025 and FY 2026, respectively, as average selling prices rise due to better product mix and bigger contributions by premium PCs, such as gaming PCs and AI PCs. CGS Interational raises its FY 2026 and FY 2027 EPS forecasts on Lenovo by 13%-15% as the global PC market recovery drives demand for AI PCs and servers, supporting profitability. The brokerage raises the stock's target to HK$15.00 from HK$13.30 and maintains an add rating. Shares are last at HK$13.02. (hoishan.chan@wsj.com)

0713 GMT - There needs to be more clarity regarding the focus sectors of Singapore's S$5 billion Equity Market Development Program, says Shekhar Jaiswal, head of equity research at RHB Singapore, in a note. This would ensure the program aligns with sectors that make up the largest portion of the potential initial public offering pipeline for the Singapore Exchange. Jaiswal also stresses the need for greater transparency on how much of the funds will be allocated to small- and mid-cap companies. "Without this clarity, there remains a risk that much of the funds may get allocated to large-cap/or index stocks," he adds.(amanda.lee@wsj.com)

0712 GMT - A two-party coalition between the conservative party CDU/CSU and Chancellor Olaf Scholz's Social Democratic Party is now the most likely outcome in Germany's federal election, analysts at Deutsche Bank write. Germany's corporate sector is expected to see a government led by a strong CDU/CSU as positive, they add. It should promise less policy gridlock and uncertainty than under the outgoing government, the analysts write. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

February 24, 2025 03:00 ET (08:00 GMT)

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