EasyJet stock drops almost 5% as first-half losses increase.

In light of ongoing market volatility influenced by the White House’s protectionist trade approach, some investors are looking to move away from the US dollar, according to UBS. Iqbal Khan, President of UBS Asia-Pacific, shared this sentiment during a conversation with CNBC’s Martin Son. “There’s definitely a noticeable trend towards diversifying away from the greenback. Recent events have highlighted this,” Khan mentioned. He emphasized the importance of examining both currency and fee sectors.

This perspective aligns with predictions from the European Central Bank, which suggested that a “fundamental regime change” could be on the horizon as investors reevaluate the risks associated with US assets.

Italy’s Banco BPM has labeled a recent decision by the Italian market regulator, Consob, to suspend Unicredit’s acquisition bid as “abnormal.” The 30-day suspension came after Unicredit’s rivals gained ground in the domestic market. Banco BPM had previously turned down a $10.5 billion offer in November but faced new terms in April that allowed Unicredit to proceed. The firm expressed frustration about the unclear timeline for clarifying the decision, as translated by CNBC.

Banco BPM noted that the suspension is very concerning and suggested that Unicredit might be considering Italy’s golden power laws.

As trading began, the European markets shifted into negative territory just ten minutes after the opening bell. The pan-European Stoxx 600 index fell by 0.5%, with most sectors showing declines. Major indices from Germany and France also saw drops of around 0.5%, while London’s FTSE 100 index decreased by 0.4%.

EasyJet has reported losses during the first half of the year but remains optimistic about full-year performance, citing strong current bookings. The airline recorded a pre-tax loss of £394 million ($529 million), compared to £350 million in the same period in 2024. After announcing this news, EasyJet’s shares dropped by 3% shortly after the London market opened.

CEO Kenton Jarvis described the first half as “interesting times.” He noted that the first quarter performed well, but the second quarter showed a slight loss, pointing to significant capacity investments. Jarvis mentioned challenges in aircraft deliveries from Airbus and Boeing but highlighted strong demand overall, particularly for summer bookings.

The budget airline is set to release its second-quarter results, with analysts anticipating a positive outlook as the summer holiday season approaches. Bank of America analysts expect a 13% increase in capacity compared to last year and a load factor of 86% for this quarter.

Deutsche Bank has downgraded BT Group’s stock ahead of its fourth-quarter results, citing a 17% rise in stock price this year. Analysts have expressed concerns about fundamental challenges, including increasing competition. However, BT has garnered positive sentiment following investment from one of India’s largest telecom companies.

UBS analysts are optimistic about British Land’s performance relative to its peers, especially following its fourth-quarter results. Expectations are high, driven by a robust retail warehouse sector. UBS analyst Zachary Gauge suggested that the strong office presence in the city would likely lead to exceeding benchmarks in the market.

Good morning from London! The European markets are projected to open lower, with London’s FTSE expected down 43 points, Germany’s DAX set to drop 135 points, and the French CAC 40 likely to see a decrease of 48 points.

Today, look out for revenue reports from EasyJet, BT, British Land, and Tate & Lyle. Additionally, the Purchasing Managers’ Index for France and the UK is expected to be released. CNBC will also feature interviews from the Barclays Leadership Conference addressing energy, geopolitics, and sector challenges.

The European markets are likely to reflect declines seen overseas, particularly after a challenging overnight session in Asia-Pacific, where US sentiment was weighed down by concerns over rising debt due to a new budget bill. US stock futures showed little movement amid apprehensions over the fiscal deficit. Notably, the Dow dropped over 800 points, while S&P 500 declined by 1.6%, impacted by surging Treasury yields.