Diageo announces CEO will resign and names interim replacement
European stocks show cautious gains as Diageo faces CEO change
European stocks are navigating through today’s trading, with the Stoxx 600 index showing a slight increase of around 0.06% as of 2:27 PM London time (9:27 AM ET). The market sectors are displaying mixed results, with automotive stocks dropping 1.3%, while financial services are up by 0.9%.
Stoxx 600 index.
In the UK, the inflation rate was reported at 3.6% this morning, which is higher than anticipated. Despite this, market indicators suggest about an 80% chance of rate drops by the Bank of England in August. Recent trends suggest a cooling labor market.
There’s still uncertainty surrounding US tariff policies affecting the EU. Maros Sevkovic, the EU’s trade director, is heading to Washington later today for talks with US officials, including Commerce Secretary Howard Lutnik. While there’s skepticism about the likelihood of the 30% tariff being enforced, some analysts see potential implications, especially if the EU doesn’t address certain key issues.
On the corporate front, Renault shares dropped 18% after the automaker’s recent guidance cut for 2025 and the appointment of an interim CEO.
Meanwhile, Diageo experienced a minor profit adjustment of just under 1% after CEO Debra Crew’s departure and the appointment of CFO Nik Jhangiani as interim CEO. The company has seen its stock decline by over 24% in the past year, facing challenges from US tariff uncertainties and slowing spirit sales post-pandemic.
Diageo shares rise 4% following CEO Debra Crew’s exit
Diageo shares increased by 4% at 12:53 PM (7:53 AM ET) in London after the announcement of Nick Giangiani as the new interim CEO, following Debra Crew’s resignation through a “mutual agreement.” Crew had held the position since June 2023.
Giangiani, who previously served as the Chief Financial Officer, is stepping in to fill the gap left by Crew.
Diageo stock price.
Richemont’s strong first quarter sales as jewelry shines through
Cartier owner Richemont reported quarterly sales exceeding expectations as the jewelry sector thrives amid a general luxury market downturn.
The Swiss luxury group experienced a 6% year-on-year increase in revenue, totaling EUR 5.4 billion ($62.8 billion) for the quarter ending in June.
Growth was particularly strong across all regions except Asia, where a decline was noted in Japan following a spike in spending the previous year due to a weaker yen.
Richemont has performed well amid broader market declines, driven by strong demand for brands like Van Cleef & Arpels, Buccellati, and Cartier. Notably, jewelry sales grew 11% at constant currency for the three months leading to June.
However, sales within the IT Specialist Watchmakers division, which includes Piaget and Roger Dubuis, fell by 7%, attributed to declines in Asia, although the company noted the decline was less severe than in previous quarters.
Barclays fined £42 million for financial crime risk management failures
The UK regulators have fined Barclays £42 million ($56.3 million) due to two significant lapses in managing financial crime risks.
One of the fines relates to the now-defunct wealth management firm Wealthtek. The Financial Conduct Authority indicated that Barclays failed to adequately assess and gather information about the money laundering risks before opening client accounts. Additionally, Barclays plans to make a voluntary contribution of £6.3 million to a former Wealthtek client lacking access to funds.
An individual associated with Wealthtek, John Dance, is facing charges related to the alleged misappropriation of £64 million, with a trial set for 2027.
The FCA has also levied a £39.3 million fine against another firm, Stunt & Co., for similar risk management failures.
A Barclays representative informed CNBC that the FCA’s probe into Stunt & Co. was focused on historical money laundering activities and did not implicate the bank in violating money laundering regulations. They noted that the bank had initiated a review and fully cooperated with the FCA inquiries.
Barclays shares saw a slight rise of 0.15% by 8:58 AM in London.
Renault shares dive 17% as new interim CEO appointed after guidance cut
French automaker Renault’s shares dropped significantly on Wednesday following a reduction in its 2025 guidance and an announcement regarding a new interim CEO.
Shares listed in Paris were seen trading down by about 16.6%.
In a statement released late Tuesday, Renault outlined a targeted operating profit margin of around 6.5% for this year, a decrease from previous forecasts of over 7%.
– Sam Meredith
ASML’s drop affects European chip stocks
European semiconductor stocks plummeted on Wednesday following disappointing guidance from equipment maker ASML. The company’s guidance missed analysts’ expectations and also reflected a narrower revenue forecast for 2025.
Consequently, ASML shares fell by 7% during early trading, negatively impacting other European chip companies. Stocks like ASM International, down over 4%, along with STMicroelectronics and Infineon shares; both also saw declines.
– Arjun Kharpal
European stocks open in the red
European stocks are trading in negative territory following the opening bell. Factors such as the recent inflation figures from the US and UK, along with concerns in the semiconductor sector and Renault’s earnings alert, have contributed to this drop.
The overall Stoxx 600 index is trading lower by 0.2%, reflecting mixed sector performances. The French CAC index shows a decline of 0.24%.
– Chloe Taylor
Danish officials criticize proposed 30% EU tariffs
Danish Minister of European Affairs, Marie Bier, expressed strong disapproval of President Trump’s suggestion to impose a 30% tariff on European goods, categorizing it as “completely unacceptable.”
She remarked, “President Trump’s announcement of a 30% tariff is troubling. Europe is a trusted trading partner, and we seek to negotiate with the US in good faith. We also have a single market comprising 450 million consumers.”
When asked about the potential for a trade agreement before Trump’s August 1 deadline, Bier highlighted the difficulty of predicting such outcomes. She mentioned her surprise at the escalating tariff rates, noting that an initial 10% had now risen to 30%.
– Chloe Taylor
UK inflation rises to 3.6%, exceeding expectations
According to the National Bureau of Statistics (ONS), the UK’s annual inflation rate reached 3.6% in June, which is higher than economists had forecasted. Reuters had anticipated it would hit 3.4% for the year ending in June.
– Holly Eliatt
ASML signals uncertainty for growth in 2026
ASML reported second-quarter revenues that exceeded analyst expectations, particularly in online bookings. However, the company also missed growth forecasts for current quarterly revenues and raised concerns about potential stagnation.
This reflects ASML’s position against the second-quarter consensus estimates.
Net sales: €7.7 billion ($8.95 billion) vs. €7.52 billion
Net profit: forecasts at €22.9 billion vs. €2.04 billion
– Arjun Kharpal
Good morning, here’s what to watch
Good morning from London. We’re kicking off with a live blog that previews the day’s European financial market activities.
IG’s futures indicate a minor downturn in regional markets, with the CAC40 and Germany’s DAX index expected to decline by 0.2%. Conversely, Italy’s FTSE MIB appears to be opening about 0.35% higher.
Market sentiment has been somewhat subdued, especially after Trump announced last weekend that a 30% tariff on EU goods will take effect on August 1.
There’s hope for negotiations between the bloc and the US by the end of the month, particularly with inflation rising from 2.4% in June to 2.7%.
– Holly Eliatt
Key updates to watch today
The revenue season is upon us, with ASML, Richemont, and Handelsbanken set to release their financial results on Thursday.
In terms of economic data, keep an eye out for the latest UK inflation numbers for June and EU trade statistics.
