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

1004 GMT - L'Oreal faces a critical third quarter, which will be key to understanding the company's ability to maintain its growth pace, UBS analysts Guillaume Delmas and Andrei Condrea say in a note. The French beauty group delivered a positive surprise in the first half, with 6.5% adjusted like-for-like growth in sales, the analysts say. This was, however, on the back of a favorable comparison base, they add. Keeping the growth pace at around 6% in the third quarter against the toughest base of comparison of the year would cement the idea that the industry will continue to grow and that L'Oreal can outperform rivals, the bank says. The stock trades 0.9% higher. (andrea.figueras@wsj.com)

1001 GMT - Demand for 24/7 trading in the U.K. is minimal, Euroclear's head of product strategy, Kate Lowe, says at the Digital Assets Week conference in London. Traders are currently more occupied with adapting to the requirements around the move to T+1 trading--the settlement of trades within one day of a trade--rather than round-the-clock trading made possible in part by tokenization, Lowe says. Developing technology to facilitate 24/7 trading is more straightforward than the legal and regulatory complexities required for it to run smoothly, Lowe adds. (josephmichael.stonor@wsj.com)

0957 GMT - Mercedes-Benz's car EBIT margins could fall below 3% this year while profitability might not recover as much as Citi had hoped next year, the bank says. However, much of this is discounted in the current share price, it adds. After the recent Volkswagen, BMW and Volvo Car profit warnings, it is clear that European autos continue to face severe earnings challenges in the second half of the year, Citi says. Key incremental pressures are coming from a combination of the continued deterioration in the Chinese market, much higher EU electric-vehicle penetration, global price competition, and higher raw materials costs, it says. The bank lowers its target price for Mercedes-Benz stock to 42 euros from 51 euros and keeps its neutral rating. Shares rise 0.5% to 40.42 euros. (dominic.chopping@wsj.com)

0940 GMT - High memory costs could be reflected in smartphone makers' 2H earnings, HSBC analysts say in a research note. As smartphone makers procure most memory chips under contract rather than buying directly in the spot market, there is a delay in cost transmission, they say. While DRAM contract prices started to rise in 4Q last year, many smartphone makers still had lower-cost inventories, which delayed the impact on earnings, they note. The impact of higher procurement costs should become more visible in 2H as inventories turn, the analysts say. Meanwhile, consumer-electronics makers have less bargaining power as this round of memory-price increases is driven by surging artificial-intelligence demand while smartphone and PC demand remain weak, they add. (sherry.qin@wsj.com)

0932 GMT - A successful takeover of Kenmare Resources would be a further blow to the embattled London bourse, AJ Bell's head of markets, Dan Coatsworth, writes. "While the investor audience for Kenmare is relatively niche, losing it would still be a crying shame given it has been a long-standing name in the U.K.-quoted mining space," he says. The Mozambique-focused titanium minerals producer said it received a takeover approach from International Resources Holdings, an Abu Dhabi-based mine-to-market natural resources extractive company. Kenmare said talks are continuing, but didn't disclose any financial details or terms being discussed. Kenmare shares are up 28% at 232 pence, but are down 5.7% over the year to date. (ian.walker@wsj.com)

0924 GMT - Informa investors will want clarity on the future of academic business Taylor & Francis, which is set to separate from the company and leave it more exposed to economic swings, AJ Bell's Dan Coatsworth writes. The company is looking to separate its academic publishing business and double down on the events arm with the purchase of Clarion, Coatsworth notes. "While potentially less profitable and exciting, the publishing side is arguably more defensive and less exposed to fluctuations in the economy. In the future, that could mean Informa is more of a rollercoaster ride for shareholders," the analyst adds. Following the Covid-19 pandemic, investors could be nervous about Informa being exposed to the risk of future disruption to in-person events, the analyst says. Shares are up 3.9%. (michael.hennessey@wsj.com)

0920 GMT - Julius Baer expects the Federal Reserve to deliver one final rate hike in December, followed by an extended pause, says chief economist David Kohl. The U.S. labor market cooled slightly in September, with overall job growth slowing and fewer than 50% of industries reporting job gains, among other indicators. Julius Baer now sees the December FOMC meeting as the most likely opportunity for the next 25bp rate hike. Financial conditions have tightened since the last FOMC meeting far more because of rising long-term yields and U.S. dollar appreciation than the increase in short-term rates, while the offset from higher equity markets has moderated, he says. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0907 GMT - Informa might have been able to negotiate a cleaner or more shareholder-friendly financing structure for its purchase of Clarion Events, Bernstein's Annick Maas and Christophe Cherblanc write after a conference call. The rationale of the deal by the events and academic-publishing group remains clear, as Clarion brings a large and complementary portfolio. "That said, the financial structure is less compelling to us, with the transaction meaningfully increasing group leverage," Bernstein adds. As Clarion has been seeking a sale since 2025, and Informa is the only obvious strategic buyer, Bernstein says it could have agreed to a better financing structure. Shares are up 4.1%. (michael.hennessey@wsj.com)

0854 GMT - The smartphone market isn't likely to recover in 2027, HSBC analysts say in a research note. Industry group IDC expects 2026 global smartphone shipments to fall 16.7% amid higher memory costs. Despite creating a low base for 2027, affordability remains a constraint for a strong replacement cycle, they say. "A consumer who defers an upgrade in 2026 does not necessarily return in 2027 if the replacement device is materially more expensive, or offers less memory at the same price," they note. However, premium smartphones could be more resilient while entry-level Android phones will face more headwinds, they add. (sherry.qin@wsj.com)

0842 GMT - Banco Santander's discount to peers is difficult to justify, especially as first-round results from Brazil's election may calm investors, Citi analysts write. Market-friendly candidate Flavio Bolsonaro received stronger-than-expected support in the first round of the election, but uncertainty remains ahead of the second round later this month, Citi notes. Brazil contributes 15% of Santander earnings, making the election a key topic for investors. Santander continues to trade at a discount to peers despite strong earnings growth, Citi adds. "While Brazil remains a key risk, we believe the magnitude of SAN's valuation discount appears difficult to justify based on our earnings and cost of risk assumptions," the analysts say. Shares are up 1.6%. (michael.hennessey@wsj.com)

0838 GMT - LVMH will likely report a deterioration in trends, consistent with industry dynamics, Equita SIM's Paola Carboni says. The sector backdrop remains uncertain, especially regarding demand in China, which represents a key market for both the industry and LVMH's core fashion and leather-goods business, the analyst writes in a research note. Carboni expects the French luxury conglomerate to report an organic increase in revenue of 0.4% for the third quarter, compared with a 3% rise in the previous three-month period. Equita SIM confirms its hold rating on the stock, "pending signs of improvement in business momentum." Shares are up 0.7%. (andrea.figueras@wsj.com)

0823 GMT - The luxury sector will likely have taken a step down in the third quarter compared with a better second quarter, with slower trends for most regions and nationalities, analysts at JPMorgan write in a note. This context should bring even greater polarization of performance between brands, they say. The analysts expect another strong quarter for jewelry and high-end ready-to-wear, favoring companies like Richemont, Brunello Cucinelli and Ermenegildo Zegna, JPMorgan says. Meanwhile, another step down in the luxury backdrop will likely translate into further pressure on already fragile trends in soft luxury items like bags, apparel and shoes, with no leather goods brand strong enough to remain immune, the analysts say.