European stocks are slightly lower
The Stoxx 600 index in Europe closed down by 0.08% on Monday. While this shows a slight recovery from earlier lows, it indicates that investors are in a waiting mode, particularly in light of the ongoing US-China trade talks taking place in the UK today.
Monday didn’t bring much in the way of new data or revenue reports, but noteworthy movements were seen on the London exchange. Notably, chip designer Alphawave soared 20% after its announcement of a $2.4 billion acquisition deal with the US semiconductor company Qualcomm. Interestingly, shares of Spectrum also climbed 60% following confirmation of discussions regarding its potential acquisition by the private equity firm Advent International.
Additionally, in London Tech Week, Nvidia’s CEO Jensen Huang emphasized the company’s commitment to investing in the AI sector, dubbing it a “Goldilocks” opportunity.
Looking ahead to Tuesday, we’ll keep an eye on updates from London Tech Week, the European Defense and Security Summit in Brussels, the Paris Finance Forum, and the NVIDIA GTC AI Conference in Paris. Economic data on employment and wages in the UK is also anticipated.
TikTok opens offices in New London to boost employment in the UK
TikTok, the Chinese-owned video app, has announced plans to establish a new office in London, thereby doubling its investment in the UK. The planned 135,000-square-foot office will be situated in the Barbican area and is expected to open in early 2026. This addition complements TikTok’s existing headquarters in Farringdon, which encompasses 88,500 square feet and opened in 2022, raising the company’s total investment in the UK to £140 million ($189.5 million). The company has also committed to creating 500 new jobs in the UK.
European stock markets slip
European stocks saw a decline throughout Monday, with the Stoxx 600 index down 0.28% as of 1:58 PM in London, reflecting a broadly negative sentiment in the markets.
Global investors are looking forward to fresh updates from the ongoing US-China trade discussions that began in London. According to Kevin Hassett from the U.S. National Economic Council, a brief yet impactful meeting is anticipated as Washington seeks confirmation on various matters.
In foreign exchange markets, both the euro and the British pound were trading approximately 0.1% higher against the US dollar.
THG stocks have reached an all-time low. Will there be a rebound?
THG, a muscle protein maker, saw its stock price drop to an all-time low on Monday. However, analysts at Jeffries suggest that there’s potential for investors to double their money with these stocks. Since going public on September 16, 2020, the company’s share value has plummeted nearly 96%. Topline growth has also been shaky, declining roughly 20% since achieving 2.5 billion euros ($2.9 billion) in revenue for 2021. Despite persistent macroeconomic challenges, such as rising prices for key ingredients, Jeffries remains hopeful for a stock rebound.
On the other hand, JP Morgan analysts have a less optimistic view, pointing to the company’s first-quarter results that didn’t meet expectations. They believe executives need to demonstrate tangible turnaround strategies before any meaningful stock recovery can occur.
Alphawave will skyrocket with Qualcomm Takeover
Alphawave, a London-based chip designer, saw its stock surge over 20% following news of a $2.4 billion acquisition by Qualcomm. The California firm is offering 183 British pence ($2.48) for each share of Alphawave, a substantial premium from its value of 94p before the offer was made public in early April.
With valuable intellectual property regarding high-speed connections, Alphawave has numerous clients, including Amazon’s AWS, which bolsters its appeal as an acquisition target.
WPP CEO announces retirement
WPP Group CEO Mark Read will retire at the end of the year after over 30 years with the company, including the last seven as CEO. His tenure has seen WPP shares yield a negative return rate of 41%, contrasted with a 49% return in the FTSE All-Share Index.
In his statement, Read expressed gratitude for the relationships cultivated over his long career while suggesting now was the right time for a change in leadership.
This is the opening call
Good morning from London! This is CNBC’s live blog that’s tracking developments in European financial markets as a new trading week kicks off.
Futures data indicate that London’s FTSE is set to rise by 7 points, Germany’s DAX by 3 points, France’s CAC 40 by 5 points, and Italy’s FTSE MIB by 13 points.
Attention is focused on the ongoing US-China trade talks expected to unfold in London today. Per President Trump’s announcement, Treasury Secretary Scott Bescent, along with two other officials, will meet with Chinese counterparts in an attempt to negotiate a trade deal.
Moreover, Nvidia CEO Jensen Huang will give a keynote speech at London Tech Week, although no major revenue data releases are scheduled for this week.
Global Market Action Overnight
US stock futures appeared mostly flat overnight as the S&P 500 hovers close to record highs, following a news-heavy week likely to affect market sentiment.
Inflation data will be a focal point later this week, with the consumer price index set to be released on Wednesday and the producer price index on Friday, giving traders crucial insights into the impact of current tariff rates on the economy.
