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

0800 GMT - Euro-denominated investment-grade services bonds have performed better than other investment-grade peers since the start of 2025 because U.S. trade tariffs only impact goods and not services, CreditSights' Mathieu Le Cann says in a note. Euro IG services bonds trade 7 basis points tighter than the overall ICE BofA euro IG index which tracks euro investment-grade bonds. "In the absence of first-order impacts from tariffs on most services companies, the sector stood among the most resilient during the period of peak spread volatility," CreditSights says. (miriam.mukuru@wsj.com)

0710 GMT - BBVA's results show that it has had a good start of the year, RBC Capital Markets says in a research note after the Spanish bank's first-quarter print beat consensus. The driver of the beat on a divisional basis seems to have been its performance in Spain, Benjamin Toms and Sherry Lin write. However, the analysts say that they suspect this is largely due to the lower impact of the Spanish banking tax. "We expect the focus of today's call to be on the impact of global trade wars and any developments for the Sabadell transaction," they add, referring to the bank's bid for its smaller Spanish peer. (elena.vardon@wsj.com)

0654 GMT - Deutsche Bank reported strong first-quarter results and reaffirmed its 2025 tariffs, but cautioned that tariffs add uncertainty to its outlook, RBC Capital Markets' Anke Reingen and Matthew Russell say in a research note. The German bank beat first-quarter expectations, with both revenue and costs coming in better than expected, the analysts say. The acknowledgment that tariffs bring uncertainty seems only realistic, according to RBC. "A reiteration of the intention to assess additional buybacks in the course of the year is reassuring," the analysts say.(adria.calatayud@wsj.com)

0645 GMT - Focus on HSBC's earnings call will likely be on the sustainability of its strong fee results, RBC Capital Markets says in a research note. The bank reported adjusted pretax profit 15% ahead of consensus on higher-than-expected income from fees, driven by transaction banking, wealth and capital markets. HSBC's revenue has been more stable than expected on deposit and fee growth but lower rates and foreign exchange are set to be headwinds this year and next, analysts Benjamin Toms and Pablo de la Torre Cuevas write. How much tariffs will affect the group's growth is unclear and management will also be asked about the impact of trade wars on the business in the call, they add. (elena.vardon@wsj.com)

0628 GMT - BBVA reported decent results and better-than-expected earnings with small beats across the board, Keefe, Bruyette & Woods says in a research note after the Spanish lender's first-quarter results. "Shares have outperformed the [Euro Stoxx Banks] index by 3% over the last moth but we think that these results should be well received," analysts Hugo Cruz and Ben Maher write. They point to the acceleration of loan growth and improvement of asset quality in the print, while adding that the guidance for the year is apparently unchanged. (elena.vardon@wsj.com)

0556 GMT - There is strategic appeal to Erste Group Bank buying a stake in Santander's operations in Poland but Keefe, Bruyette & Woods struggle to see a financial rationale, analysts write after the banks confirmed talks. "We think SAN is not interested in having a minority stake in EBS; therefore, EBS would have to undertake a large rights issue to pay with cash," Ben Maher and Hugo Cruz write. For Erste, a deal would be earnings-per-share dilutive and deliver a return on investment below the return on tangible equity guidance for the year, they say, adding that the negative market reaction seems to align with this view. However, a divestment makes sense for Spain's Santander as it has limited synergies in Poland and could redeploy the capital in other financially accretive markets, they add.(elena.vardon@wsj.com)

0553 GMT - The acquisition of a 49% stake in Santander's Polish operations by Austria's Erste Group makes strategic sense but the large capital increase likely needed to finance it may not please investors, Citi says after the banks said they are in talks about a potential deal. "Given the elevated trading multiples of the target and the size of the transaction it is likely that the transaction will require a sizable capital increase which may not be appreciated by the market," analyst Simon Nellis writes in a research note. Beyond this, the deal for Santander Bank Polska would be positive for Erste as it would solidify its position as a strong player in Central Europe. (elena.vardon@wsj.com)

0401 GMT - Europe's assets under management rose to $25 trillion in 2024, a 7% on-year increase that lagged other regions' steeper growth, according to Boston Consulting Group's latest report. Globally, AuMs reached a record $128 trillion, a 12% increase driven by low double-digit growth in all regions except Europe and tracked the strong performance of markets. European AuM's progression was driven by retail businesses, which had a more growth compared with institutional businesses, according to the report. "Three forces in particular are reshaping the industry: shifts in product offerings and approaches to distribution; industry-wide consolidation; and the need for radically leaner cost structures," it says. (elena.vardon@wsj.com)

0136 GMT - Bursa Malaysia's 2Q net profit may decline, weighed down by weak investor sentiment from global trade tensions and U.S. tariff risks, CIMB Securities analyst Nurzulaikha Azali says in a note. A rebound is expected in 2H as Malaysia-U.S. trade negotiations progress and market clarity improves, she says. Bursa Malaysia has said that it expects to maintain its 2025 KPIs despite market uncertainties, however, she believes a review may occur in 2Q. Bursa also plans to trim its MYR50 million-MYR60 million capital expenditure, reassessing spending amid the challenging environment, she adds. The analyst cuts Bursa Malaysia's 2025-2027 earnings estimates by 8.9%, 9.0%, and 9.1%, respectively, after its 1Q earnings disappointed. CIMB lowers Bursa Malaysia's target price to MYR7.40 from MYR8.15, maintaining a hold rating. Shares are 2.0% lower at MYR7.46. (yingxian.wong@wsj.com)

0112 GMT - Australian bank stocks' perceived status as safe havens from tariff-driven turmoil may not protect valuations if margins and earnings disappoint, Macquarie analysts warn in a note. They think that offshore investors have stepped up buying since the Trump administration unveiled U.S. tariff plans, but point out that Australia generally is exposed to only limited direct tariff impacts. The Macquarie analysts see downside risk to earnings from lower interest rates in fiscal 2026. With the market pricing in 150 basis points of cuts in the 2025 calendar year, they see material downside to current margin expectations. (stuart.condie@wsj.com)

1345 GMT - New supply of euro-denominated corporate and financial bonds picks up on Monday after weeks of subdued issuance due to tariff uncertainty and the Easter holiday, ING's Jeroen van den Broek and Timothy Rahill say in a note. Euro credit supply is expected to rise in May, surpassing April's levels of 10 billion in euro corporate bonds and 8 billion in euro financial bonds so far, the analysts say. "Whilst supply is expected to be significant in May, it will likely continue to trail last year's level for the time being," the analysts say. (miriam.mukuru@wsj.com)

1242 GMT - European reinsurers have little wiggle room this year given a tough start of the year due to weather-related losses, HSBC analysts say in a research note. The sector tends to underperform in the summer due to the uncertainty from the hurricane season, they note. Stocks have been on a bull run over the past two years and held up despite tariff turmoil but there is limited scope for earnings revision from here, analysts note. "We think the sub-sector has priced in all the 'good news' and we see limited room for re-rating," they note. HSBC cuts its rating on Munich Re and Hannover Re to hold from buy, joining Scor and Swiss Re. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

April 29, 2025 04:20 ET (08:20 GMT)

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