European markets and politics were in focus as investors weighed shifting economic signals and mounting social pressures across the region.
London stocks edged lower as weakness in energy shares offset a fresh defence rally, while signs of easing wage expectations offered cautious optimism for UK inflation watchers.
On the continent, French farmers brought disruption to Paris with renewed protests over incomes and regulation, and China’s Anta made a tentative move on Puma, highlighting ongoing strategic reshaping in European corporates.
Oil drags FTSE despite defence surge
London’s FTSE 100 slipped on Thursday as weakness in oil majors offset another powerful rally in defence stocks.
The blue‑chip index eased around 0.3%, with Shell tumbling after cutting its LNG production outlook and flagging a loss in its chemicals unit, while BP also traded lower.
Oversupply worries continued to hang over the wider energy sector.
In contrast, defence names surged to fresh records after President Trump called for a big increase in US military spending, sending BAE Systems sharply higher.
Retailers were another weak spot, with Associated British Foods, Greggs and Tesco all under pressure after cautious updates today.
French farmers bring Paris to halt
Hundreds of French farmers drove tractors into Paris on Thursday, blocking roads and demanding urgent government action on falling incomes and rising costs.
The protest, organised by the powerful FNSEA union, snarled traffic around the capital as farmers voiced anger over cheap imports, environmental regulations, and what they call unfair competition.
Some tractors carried banners reading “No farmers, no food” and “Save French agriculture.”
The government has promised talks, but farmers say past pledges have not been honoured.
The demonstration follows similar protests across Europe, with farmers warning they will escalate action if their concerns over profitability and bureaucracy are not addressed quickly.
Anta eyes Pinault Puma stake
China’s Anta Sports has approached the Pinault family with an offer to buy its roughly 29% stake in German sportswear group Puma, Reuters quoted people familiar with the matter.
The talks are described as preliminary, and there is no guarantee a deal will be reached, but a transaction would mark a major shift in Puma’s shareholder base and deepen Anta’s push into global markets.
The Pinaults, who control French luxury group Kering via their holding company, have been gradually reshaping their portfolio.
Any sale would likely be closely watched by regulators and investors, given Puma’s brand strength and European footprint.
UK wage growth expectations ease
British firms have scaled back their wage growth expectations for the year ahead, according to the Bank of England’s latest survey, offering a tentative sign that pay pressures may be easing.
The proportion of companies expecting wage growth above 5% has fallen, while those planning increases of 2-3% have risen.
The shift, if sustained, could help the BoE feel more confident that inflation is returning sustainably to target.
However, the central bank remains cautious, noting that wage settlements are still running above levels consistent with its 2% inflation goal, and the labour market remains tight in several sectors.
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