European shares move lower

European markets have just opened for the week’s final session, and regional shares are broadly moving lower.

The pan-European Stoxx 600 was last seen trading 0.5% lower, with all sectors and major bourses in negative territory.

The tariffs-sensitive autos sector is leading losses after industry giant Volkswagen cut its guidance, warning U.S. tariffs were eating into profits.

— Chloe Taylor

Michelin income drops

A view of tyre maker Michelin’s plant in Cholet, France, November 8, 2024. REUTERS/Stephane Mahe

Stephane Mahe | Reuters

Michelin posted a 27.8% slide in net income in the first half of the year, a sharper decline than analysts had expected. The car parts maker said the threat of higher tariffs had led to a sharp contraction in North and Central America. However, the company backed its full year guidance, saying it expects the market for its tires to remain stable compared with last year. 

— Matt Ward-Perkins

Eni earnings slump

The logo of Italian multinational oil and gas company is displayed on a fuel tanker truck parked outside an Eni petrol station in Cyprus’ capital Nicosia on September 9, 2022.

Amir Makar | Afp | Getty Images

Eni has posted a 25% drop in second quarter earnings, but still beat expectations as weaker oil prices offset a robust performance in its gas business. The Italian energy group confirmed a 5% increase in its full-year dividend, while revealing a lower-than-previously forecast capex for the year. 

— Michael Considine

Traton cuts outlook, citing tariffs impact

A Traton International LT A26 haulage truck sits on display on the Volkswagen AG (VW) Traton heavy-truck division exhibition area at the IAA Commercial Vehicles Show in Hanover, Germany, on Wednesday, Sept. 19, 2018.

Krisztian Bocsi | Bloomberg | Getty Images

Traton has cut its full year outlook as the German truck maker warns of a challenging environment as the EU and U.S. grapple over a trade deal. The company, which is majority owned by Volkswagen, also revealed that it is cutting production at some sites in response to weak demand. 

— Michael Considine

Remy Cointreau upgrades outlook

A bottle of Remy Martin XO Excellence cognac at the Remy Cointreau SA headquarters Club in Cognac, France, on Dec. 9, 2016.

Bloomberg | Bloomberg | Getty Images

French drinks firm Remy Cointreau has posted 5.7% organic sales growth for its fiscal first quarter, ahead of analyst expectations, and marking the first quarter of growth since 2023. 

The cognac-maker reduced its forecasts for the impact of tariffs, improving its profit guidance for the full year.

— Matt Ward Perkins

Volkswagen cuts guidance as U.S. tariffs hit profit

A technician cleans the VW logo during the final inspection of German carmaker Volkswagen’s electric ID. 3 car, during a media tour, in Dresden, Germany, May 14, 2025.

Matthias Rietschel | Reuters

Germany’s Volkswagen on Friday lowered its full-year guidance and reported a sharp drop in second-quarter profit, as the auto giant navigates the disruptive impact of U.S. tariffs.

Europe’s biggest carmaker posted operating profit of 3.83 billion euros ($4.49 billion) for the three months through June, down 29% from 5.4 billion euros a year ago.

Analysts had expected second-quarter profit to come in at 3.94 billion euros, according to a Factset-compiled consensus.

Read the full story here.

— Sam Meredith

Earnings still in focus

Puma Speedcat trainers are displayed at a Puma store London, Britain, January 23, 2025.

Hannah Mckay | Reuters

It’s set to be a slightly quieter day on the earnings front, but several big names have either reported ahead of the opening bell, or will do so later in the session.

Luxury behemoth LVMH, one of the region’s most valuable companies, reported lower-than-expected quarterly sales late on Thursday, while German sports apparel giant Puma warned this morning that it’s expecting to notch a loss this year on the back of a sales decline and the impact of U.S. tariffs. Elsewhere this morning, German auto giant Volkswagen cut its guidance, also citing President Donald Trump’s tariffs regime.

Also due to report today are British lender NatWest, French drinks giant Remy Cointreau and Italian energy firm Eni.

— Chloe Taylor

Opening calls

Good morning from London.

There’s just under an hour and a half to go until the final opening bell of the week, and regional indexes are currently looking poised to move into negative territory.

Futures tied to the German DAX, Italian FTSE MIB and French CAC 40 indexes were all last seen trading 0.2% lower. Those tied to London’s FTSE 100 were last heading marginally lower.

Regional shares ended the Thursday session higher, as investors focused on U.S.-EU trade talks, the European Central Bank’s widely anticipated interest rate hold and a flurry of corporate earnings.

— Chloe Taylor