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

1204 ET - Fair Isaac is dealing with two key negative developments, Deutsche Bank says in a note. Analyst Faiza Alwy says FHFA director Bill Pulte indicated that competitor VantageScore's 20 point discount to FICO has been removed and both scores will now be treated the same by the GSEs. "This would likely in and of itself result in higher number of mortgages that will see favorable pricing with VS4 vs. FICO Classic," Alwy says. Additionally, Rocket Mortgage said it will become the first mortgage lender to use VantageScore 4.0 as its preferred credit scoring model for all eligible loans, and during 4Q will default to VS4 for mortgages delivered to the federal housing agencies, VA home loans and any other eligible mortgages, according to Alwy. Fair Isaac tumbles 27%. (kelly.cloonan@wsj.com)

1134 ET - Saudi Arabia leads major Gulf stocks lower Tuesday, with the Tadawul All Share Index falling 1.2%. Qatar's QE Index loses 1.1%, Abu Dhabi's benchmark index declines 0.3% and the Dubai Financial Market General Index slips 0.2%. Risks from the Middle East conflict remain elevated despite recovering regional oil flows. S&P Global Market Intelligence says its base case no longer assumes a clear end to the war, with Gulf exports likely to fluctuate as security conditions affect ships' willingness to transit the Strait of Hormuz. It expects only gradual improvement through 2027, with energy, freight, insurance and logistics costs remaining elevated. (farhan.rafid@wsj.com)

1101 ET - Buying a new home is now typically a better value than an existing home nationwide, Zillow says. New homes now sell for a median of $205 per square foot, below the $212 median for existing homes, according to a Zillow study. The relative discount for new homes is usually biggest where construction surged during the pandemic boom, particularly in the Sun Belt. This reverses the trend in recent years, when new homes sold for more per square foot than existing homes in 77 of 84 months from 2018 to 2024. Where construction has boomed and inventory is plentiful, discounts run deeper as increased competition gives builders more reason to offer incentives. Where inventory remains locked up and new construction faces more hurdles, builder offerings lean toward the higher end and carry a premium, Zillow says. (chris.wack@wsj.com)

0724 ET - Banco Santander faces a key catalyst in the first round of the Brazilian presidential election this weekend, which is increasingly viewed as a referendum on the country's fiscal policy, Jefferies analysts write. Polling data suggests a statistical tie between incumbent President Luiz Inacio Lula da Silva and right-wing candidate Flavio Bolsonaro, meaning a second-round runoff next month is the most likely outcome, the analysts say. A Lula victory would reinforce Brazil's focus on state-led growth, while a Bolsonaro administration would favor fiscal discipline and private sector-led growth. Brazil is Santander's second-largest market and contributed 16% of earnings in 2025. "Investors generally view a Bolsonaro victory the more constructive outcome for Santander, as a more benign fiscal backdrop could support lower rates and a faster easing cycle," Jefferies says. Shares are up 1.9%. (michael.hennessey@wsj.com)

0706 ET - Munich Re could be hedged against risks to the reinsurance market from artificial intelligence, Jefferies' Philip Kett and Derald Goh write. The German company is well diversified through its ownership of primary insurance arm ERGO Group, despite being the world's largest reinsurer, Jefferies says. Munich Re is so well diversified that it is best compared to European listed conglomerates, the analysts add. This means it is less exposed to risks from artificial intelligence reducing customer demand in the reinsurance sector. "Moreover, as the soft market for reinsurance takes hold, the group's earnings are likely to rebalance towards insurance, enhancing this view of the group as a conglomerate even more," Jefferies says. Shares are down 1.1%. (michael.hennessey@wsj.com)

0653 ET - Reinsurance volumes might fall due to artificial intelligence, despite hopes that the sector is a safe haven, Jefferies's Philip Kett and Derald Goh write. Reinsurance is protected from direct exposure to artificial intelligence, partly because the data required to underwrite reinsurance risks can't be easily obtained. However, AI could reduce the number of participants and mean reinsurance is exposed to lower customer demand. Insurance market shares could consolidate between a smaller number of large insurers, which would hit the reinsurance industry, the analysts say. "In essence, conglomerates already rely less on external reinsurance to eliminate their tail risks, and if AI lifts their share, the reinsurance industry could become less relevant," Jefferies says. (michael.hennessey@wsj.com)

0358 ET - Legal & General Group has weaker-quality earnings while competition intensifies in the U.K. pension risk transfer market, Citi's Alejandra Chavez says. Higher competition in the market is driving margin compression, lower pension buyout volumes and tighter credit spreads, causing Citi to take a "cautious stance". L&G also has the lowest operating profit and earnings per share annual growth expectations through 2028 compared to peers in the U.K. life insurance sector, based on Citi's forecast and consensus estimates. "Our valuation frameworks broadly point to fair value below the current share price implying risk-reward ratio skewed to the downside," Chavez writes. Citi reiterates its sell recommendation with a target price of 248 pence, up slightly from 245 pence. Shares rise 0.1% to 297.10 pence. (michael.hennessey@wsj.com)

0311 ET - Julius Baer Gruppe should be able to move back to business as usual after the end of a probe by Switzerland's financial regulator, RBC Capital Markets' Anke Reingen and Susana Cruz write. The regulator, Finma, ended its enforcement proceedings and says the Swiss bank's CET1 requirement will increase to 9.4%, compared to the bank's latest ratio of 18.5%. The end of the probe should remove some of the discount on Julius Baer's shares due to a "manageable" outcome, RBC says. It should also lower the cost of equity. "Gradually JB should be able to move back to business as usual as other restrictions are lifted," the analysts add. (michael.hennessey@wsj.com)

0307 ET - Demand for euro-denominated bank bonds eases off due to investor caution as bond market volatility rises, ABN Amro strategists say in a note. Investors are demanding a higher premium to buy bank bonds, causing issuers to reduce supply, the strategists say. "This week, no new euro bank bonds have yet come to the market, suggesting issuers have shifted in wait-and-see mode." (miriam.mukuru@wsj.com)

0256 ET - Julius Baer Gruppe should benefit from the end of a probe by Switzerland's financial regulator, which removes an overhang on the lender's stock, J.P. Morgan's Amit Ranjan and Kian Abouhossein write. The regulator, Finma, noted shortcomings in credit-risk management but acknowledged measures taken by Julius Baer to address the shortcomings. The measures taken by the Swiss company's management so far are key to avoiding a repeat of previous issues, the analysts agree. Julius Baer also requests approval for a share buyback program, which JPM sees as a positive signal. The end of the probe shifts focus back to the bank's operational performance, JPM adds. (michael.hennessey@wsj.com)

0239 ET - S&U's performance in the first half was resilient with a strong result for the Advantage Finance business, Berenberg analysts write. The lender is likely to deliver a second half-weighted operating performance this year, Berenberg adds. However, the delay to confirmation of a new funding facility will generate a small drag on interest expense, the analysts add. As a result, Berenberg trims its adjusted pretax profit expectations to 34.1 million pounds from 34.9 million pounds. This won't have a material impact on book value per share for 2028, the analysts note. Therefore, Berenberg doesn't make any changes to its price target of 2,310 pence. Shares closed at 1,965 pence on Monday. (michael.hennessey@wsj.com)

2117 ET - The sharp repricing of Malaysian Government Securities might add another headwind to banks' 2H noninterest income, but the earnings and book-value impact could remain manageable, Hong Leong IB analyst Raymond Ng says in a note. The 10-year MGS yield has risen to 3.94% from 3.60% at end-June, with further volatility possible if U.S. rates remain elevated, he notes. Higher yields should eventually support investment income as banks reinvest maturing securities, but this benefit will take time to materialize, he says. AMMB and Bank Islam Malaysia are relatively more exposed to potential earnings pressure, while Bank Islam, AMMB and Public Bank have higher sensitivity to book value, he adds. Hong Leong keeps a neutral rating on Malaysia's banking sector, pegging Public Bank as 4Q's top pick.