Renault Shake-Up, European Stocks Drop Amid U.S. Inflation and Trade Tensions

French carmaker Renault has appointed Duncan Minto as interim CEO following the unexpected resignation of Luca de Meo last month. Minto, who currently serves as the company’s CFO, will manage day-to-day operations alongside Jean-Dominique Senard, now Chairman of Renault s.a.s. The change in leadership comes just ahead of Renault’s anticipated half-year financial results, due on July 31, adding further intrigue to the company’s strategic direction amid the evolving EV landscape.

European stock markets closed lower on Tuesday for the third consecutive session. The Stoxx 600 index dipped 0.37%, as optimism about potential EU-U.S. trade talks was overshadowed by concerns about slowing global growth. These fears were fueled by fresh U.S. inflation data showing a rise to 2.7% in June, prompting investor caution. While Nvidia’s gains gave tech stocks a mild boost, broader sentiment turned bearish across sectors.

Individual company performance influenced major shifts in European markets. U.K. homebuilder Barratt Redrow plunged 9.4% after missing its annual home completions target, despite announcing a £100 million share buyback. Ericsson also saw a 7.7% drop following Q2 results that revealed U.S. tariffs negatively impacted margins, despite a modest rise in income. Similarly, B&M shares fell 7.1% despite a slight revenue increase attributed to seasonal demand.

Despite the overall decline, European tech stocks bucked the trend, closing 0.8% higher thanks in part to Nvidia’s announcement that it hopes to resume sales of its H20 chips to China. Major European semiconductor firms like ASML and Infineon benefited from this news. Meanwhile, Ericsson CEO Börje Ekholm expressed concern over stringent AI regulations in Europe, arguing they’re hampering investment and innovation, even as Ericsson continues to invest in AI development locally.

Beyond corporate shifts, broader macroeconomic tensions shaped investor sentiment. U.K. Chancellor Rachel Reeves faces pressure to address the country’s widening budget deficit, as confidence in Britain’s fiscal trajectory wavers. Meanwhile, challenger bank Starling is contemplating a New York IPO, dealing another blow to the London Stock Exchange. The specter of a 30% U.S. tariff on EU goods from August 1 continues to loom large, compounding uncertainty in an already fragile economic environment.

Source: Cnbc