2025-07-16
CNBC's The China Connection newsletter: From Didi to DeepSeek
This is CNBC’s live blog covering European markets.UK bank Barclays fined £42 million over handling of financial crime risksU.K. regulators have issued bank Barclays a £42 million ($56.3 million) fine for two failings in financial crime risk management.One fine relates to folded wealth management firm WealthTek, where the Financial Conduct Authority said Barclays “failed to check it had gathered sufficient information to understand the money laundering risk, before opening a client money account.” Barclays has also agreed to make a voluntary £6.3 million contribution to former WealthTek clients who have a shortfall in claims from the company, which the FCA said led it to reduce its fine over the matter.WealthTek’s principal partner John Dance was charged in 2024 with alleged misappropriation of £64 million of customer funds and is due to stand trial in 2027.The FCA meanwhile fined Barclays £39.3 million for risk failings in its banking services for business Stunt & Co., which was found to have received money from a multimillion-pound money laundering operation.CNBC has contacted Barclays for comment. Shares in the bank were 0.15% higher at 8:58 a.m. in London.— Jenni ReidRenault shares plunge 17% after French carmaker lowers guidance, appoints new interim CEOStephane Mouchmouche | Hans Lucas | Afp | Getty ImagesThe electric Renault 5 at Automotive Summit at the Porte de Versailles exhibition center, Paris, France, on October 15, 2024.Shares of French carmaker Renault plunged on Wednesday after the company lowered its 2025 guidance and announced the appointment of a new interim chief executive officer.The Paris-listed stock was last seen trading 16.6% lower.In a trading update published late Tuesday, Renault said it is targeting an operating margin of around 6.5% this year, down from a previous forecast of around or exceeding 7%.Read the full story here. — Sam MeredithASML drop drags European chip stocks downEuropean semiconductor stocks fell on Wednesday after equipment maker ASML posted guidance that missed expectations.ASML’s third-quarter revenue guidance fell short of analyst forecasts while the company narrowed its own revenue guidance for 2025.On top of that, the Dutch tech giant said that, while it is preparing for growth in 2026, it “cannot confirm it at this stage.”ASML shares dropped 7% in early trading as a result. Other European chip names also fell. ASM International was down more than 4%, while BE Semiconductor was 3.4% lower. STMicro and Infineon were also down.— Arjun KharpalEuropean stocks open lower The opening bell rang around 30 minutes ago, and European stocks are broadly trading in negative territory. Hot U.S. and U.K. inflation prints, concern about the regional semiconductor sector and a profit warning from Renault all weighed on sentiment.The pan-European Stoxx 600 was last seen trading 0.2% lower, with sectors trading mixed. Among major bourses, France’s CAC index led losses with a 0.24% loss.— Chloe Taylor Danish official says 30% tariffs on EU ‘completely unacceptable’Thierry Monasse | Getty ImagesDanish Minister of European Affairs Marie Bjerre pictured on May 27, 2025 in Brussels, Belgium. Marie Bjerre, Denmark’s minister for European affairs, told CNBC that U.S. President Donald Trump’s plans to slap 30% tariffs on EU goods is “completely unacceptable.”“It is certainly interesting times — now, President Trump announced that he will impose 30% tariffs on Europe, and I have to say that is completely unacceptable, that is unjustified,” she said in an interview with CNBC’s “Europe Early Edition.““Europe is a trading partner that you can rely on, that you can trust in, and we will go into negotiation with the U.S. in good faith – but we also know that Europe ... having a single market with 450 million consumers, we are very attractive market, and therefore we also ready to defend our interests, and we are ready to come with countermeasures if required.”When asked if the EU could reach a trade compromise with Washington before Trump’s Aug. 1 deadline, Bjerre said it was “very hard to say.”“We keep being surprised about which [tariff rate] is now imposed on us,” she said. “It started [at] 10% then it was even more, then it was back to 10%, then it was suspended, and now it’s 30% – it is, I have to say, quite unreliable.”— Chloe TaylorUK inflation hits hotter-than-expected 3.6% in JuneMike Kemp | In Pictures | Getty ImagesWestfield Shopping Centre in Stratford on 5th June 2025 in London, United Kingdom. The U.K.’s annual inflation rate hit a hotter-than-expected 3.6% in June, according to data released by the Office for National Statistics (ONS) on Wednesday.Economists polled by Reuters had anticipated inflation would reach 3.4% in the twelve months to June, after it hit 3.4% in May.Read more here.— Holly EllyattChip giant ASML says it can’t confirm that it will grow in 2026ASML reported second-quarter earnings that beat estimates with the its key net bookings figure ahead of consensus.However, the chip equipment giant missed analyst expectations for revenue guidance in the current quarter and warned of the possibility of no growth ahead.Here’s how ASML did versus LSEG consensus estimates for the second quarter:Net sales: 7.7 billion euros ($8.95 billion) versus 7.52 billion euros expectedNet profit: 2.29 billion euros vs 2.04 billion euros expected Read the full story here.— Arjun KharpalGood morning, here are the opening callsDan Kitwood | Getty Images News | Getty ImagesHouses in South London in February 2025.Good morning from London, and welcome to CNBC’s live blog covering all the action and business news in European financial markets on Wednesday.Futures data from IG suggests regional markets will start the week flat to lower, with London’s FTSE 100 unchanged and both France’s CAC 40 and Germany’s DAX expected to open 0.2% lower. Italy’s FTSE MIB is seen opening 0.35% higher.The downbeat mood for regional markets comes after a difficult start to the week, after U.S. President Donald Trump announced last weekend that he would impose a 30% tariff on goods imported from the EU starting Aug. 1.Hope that the bloc will negotiate a trade deal with the White House before the end of the month was outweighed Tuesday by global growth concerns after data showed U.S. inflation rose to 2.7% from 2.4% in June.— Holly EllyattWhat to keep an eye on todayPiroschka Van De Wouw | ReutersThe ASML logo is seen at its headquarters in Veldhoven, Netherlands, on June 16, 2023.Earnings season is upon us, with ASML, Richemont and Handelsbanken announcing their latest financial results on Thursday.On the data front, we have the latest U.K. inflation print for June and EU trade data.— Holly Ellyatt
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