European market updates: July 4, 2025

The top of pan-Scandinavian airline SAS informed CNBC that European airline consolidation “wanted a second section,” after Air France-KLM confirmed it plans to extend its stake within the enterprise to 60.5% from slightly below 20%.

“Scale nonetheless issues, consolidation nonetheless issues on this trade… it is a capital intense and low margin enterprise, so consolidation is at all times the secret,” Anko van der Werff informed CNBC’s “Squawk Field Europe,” including that it was a “excellent day” for the airline.

“We’ve got a development path ourselves… I believe we’re additionally nicely positioned throughout the Air France-KLM group,” Van der Werff continued.

SAS has struggled financially in recent times, exiting U.S. Chapter 11 chapter proceedings final 12 months after restructuring its debt and enterprise operations and delisting. The European aviation trade extra broadly is seen rising consolidation because it grapples with increased prices, provide chain challenges and competitors from the U.S. and the Center East.

Air France-KLM stated in a press release that its elevated stake mirrored the “profitable turnaround of SAS” and that the companies had “synergy potential.” Air France-KLM shares had been 0.18% decrease Friday morning.

After a damaging open, French spirits names are uneven as buyers assess what China’s ruling in its anti-dumping investigation imply for the sector.

Pernod Ricard has been shifting between losses and positive factors, final 0.9% decrease at 9:40 a.m. in London, whereas Remy Cointreau is down 1.7%. The Chinese language ministry of commerce stated Friday it had concluded EU producers had engaged in “dumping” exercise which had harmed the Chinese language brandy trade and stated it might impose retaliatory duties of as much as 34.9% for a five-year interval from July 5.

Nevertheless, it additionally famous that any firm which met the minimal worth commitments submitted to China by EU trade associations wouldn’t be topic to the tariffs.

“On the face of it, the tariffs seem hefty, however the impact can be extremely minimised as a result of worth enterprise settlement massive producers like Remy Cointreau have reached with Chinese language authorities,” Susannah Streeter, head of cash and markets at Hargreaves Lansdown, informed CNBC.

“Though it is clear it’s going to nonetheless be a more durable market, given they should adhere to a minimal import worth in China, the settlement nonetheless seems to be a extra beneficial final result than had been feared. It is why there hasn’t been a big drop in share costs. Nevertheless, there may be nonetheless pessimism floating round, on condition that tariffs have gotten extra deeply embedded within the world economic system,’ Streeter added.

CNBC has contacted Remy Cointreau for remark.

China is a key marketplace for European cognac, a type of brandy. Beijing launched its investigation after the EU voted in favor of tariffs on Chinese language-made electrical autos.

— Jenni Reid

Europe’s inventory markets are within the crimson throughout the board on the open, with the regional Stoxx 600 index down 0.4%, the U.Ok.’s FTSE 100 down 0.32%, Germany’s DAX down 0.29% and France’s CAC 40 down 0.72%.

French drinks sellers are taking an early hit, with Pernod Ricard down 3.3%, Remy Cointreau down 4.5% and luxurious large LVMH down 2.1%, as information breaks that China’s commerce ministry has issued a ultimate ruling on its probe into European Union brandy.

The investigation dominated that the bloc has engaged in dumping of the spirit, based on a Google translation of a ministry reduction. In line with Reuters, a tariff charge on EU brandy can be set at as much as 34.9% for 5 years from July 5. The ministry assertion notes that no anti-dumping duties can be imposed on merchandise that meet EU trade affiliation worth commitments.

— Jenni Reid

Manufacturing orders in Germany tumbled 1.4% month on month in Could, statistics workplace Destatis stated Friday, nicely beneath the expectations of a 0.1% decline forecast in a Reuters ballot of analysts. Orders had been up 5.3% 12 months on 12 months.

The month-to-month fall was primarily attributable to a 17.7% drop in laptop, digital and optical merchandise, an space that acquired a number of massive orders in April.

— Jenni Reid

Airline group Air France-KLM says it’s initiating proceedings to take a majority stake in Scandinavia’s SAS, upping its holdings within the firm to 60.5% from slightly below 20%.

Air France-KLM hopes to shut the deal within the second half of subsequent 12 months.

The transfer “brings not simply stability however can even enable for deeper industrial integration,” SAS CEO Anko van der Werff stated in a press release.

Good morning from London.

European markets throughout the U.Ok., France and Germany are heading for a damaging begin on Friday, based on IG information.

That follows a better shut on Thursday, with world equities boosted by a a lot stronger than anticipated U.S. jobs report. Formally, Wall Road is on a break for the 4 July vacation at this time.

Nevertheless, buyers are positive to be checking their telephones for updates after U.S. President Donald Trump’s flagship megabill handed in Congress. A number of adjustments lie forward, together with to taxes, social spending and vitality coverage.

We’re in the meantime nearing Trump’s July 9 deadline for tariff negotiations, which might see duties on key buying and selling companions such because the European Union spike except a deal is reached. Trump has stated the U.S. will start sending letters to nations setting out their tariff charges on exports to the U.S., with 10 to 12 nations set to obtain theirs at this time.

Treasury Secretary Scott Bessent informed Bloomberg he expects round 100 nations will face a ten% levy, the baseline of the so-called ‘reciprocal’ tariffs.

The EU in the meantime says it’s closing in on a “framework” commerce deal, however {that a} full settlement can be inconceivable to succeed in by July 9.

— Jenni Reid, Matt Ward-Perkins