Category: Top Story

Shares in French companies with exposure to wine and Champagne came under pressure on Tuesday after U.S. President Donald Trump warned he could impose tariffs of up to 200% on the products.

Luxury group LVMH (EU:MC), which owns Champagne brands including Veuve Clicquot and Krug, was down more than 4% in mid-morning European trade. Other producers also weakened, with Remy Cointreau (EU:RCO) falling 1.9%, Laurent-Perrier (EU@LPE) slipping 0.7%, Maison-Pommery & Associes (EU:POMRY) down 0.4% and Lanson BCC (EU:ALLAN) easing 0.3%.

Trump indicated that the steep tariffs could be used as leverage to persuade French President Emmanuel Macron to participate in his proposed “Board of Peace”, an initiative he claims would focus on resolving global conflicts.

According to reports, the Board of Peace has sparked concern among diplomats who fear it would weaken the influence of the United Nations. The initiative would reportedly be chaired by Trump for life, starting with efforts to address the conflict in Gaza before expanding to other international issues.

Under the proposal, countries would face three-year membership terms unless a $1 billion fee was paid to support the board’s activities, Reuters reported. Diplomats cited by the news agency said up to 60 countries had been invited to join, although a source close to Macron suggested France was likely to reject the offer.

Asked directly about Macron’s stance, Trump said, “I’ll put a 200% tariff on his wines and Champagnes, and he’ll join, but he doesn’t have to join.”

The remarks mark the latest escalation in Trump’s trade rhetoric toward Europe. In recent days, he has also claimed he would impose 10% tariffs on several European countries unless the U.S. is allowed to take ownership of Greenland, a semi-autonomous Danish territory. He added that these duties could rise to 25% in June if his demands are not met.

European leaders have described the threats as a form of economic blackmail and are reportedly weighing their response, including a potential €93 billion package of retaliatory tariffs on U.S. goods. France and Germany have also urged the European Union to consider deploying an anti-coercion instrument that could restrict U.S. access to the EU, collectively the world’s third-largest economy.

Reach plc (LSE:RCH) said it now expects to deliver full-year 2025 profit ahead of market expectations, supported by the resilience of its print operations and continued tight cost control. This comes despite digital revenues for the year being forecast to fall by around 1% to approximately £130 million, reflecting weaker referral traffic from Google and a challenging macroeconomic environment.

Management pointed to solid strategic progress during the year, including the launch of digital subscription products, an expansion of video content output and continued growth in off-platform audiences. These initiatives underline Reach’s ongoing shift towards digital monetisation, while still relying on a stable and cash-generative print business to underpin earnings. The group is scheduled to report its full-year results on 3 March 2026.

Overall, Reach’s outlook is shaped by a combination of attractive valuation metrics and operational discipline. A low earnings multiple and high dividend yield continue to appeal to value and income-focused investors, although ongoing revenue pressure and variable cash flow generation remain key considerations, particularly in the context of weaker digital advertising trends.

More about Reach plc

Reach plc is a UK-based media company with a portfolio of national and regional newspaper titles alongside a broad range of digital news brands. The group generates revenue from print publishing and advertising, with an increasing contribution from digital platforms as it seeks to grow online audiences and monetise content through subscriptions, video and off-platform distribution.

GSK (LSE:GSK) has reached an agreement to acquire California-based RAPT Therapeutics in an all-cash transaction valuing the target’s equity at approximately $2.2 billion. The deal will give GSK global rights, excluding Greater China, to ozureprubart, a long-acting anti-IgE monoclonal antibody currently in Phase IIb development for the preventative treatment of food allergies.

Under the terms of the transaction, which is expected to complete in the first quarter of 2026, RAPT shareholders will receive $58 per share through a tender offer followed by a merger. GSK said the acquisition is intended to enhance its respiratory, immunology and inflammation pipeline, while making use of its established allergy-focused commercial capabilities. Ozureprubart is designed to offer dosing every 12 weeks and could broaden patient eligibility, addressing a fast-growing food allergy market associated with significant healthcare usage and economic costs in the United States.

From a broader perspective, GSK’s outlook continues to be supported by solid financial performance and attractive valuation metrics. Ongoing strategic actions, including share buybacks and sustained investment in research and development, underpin its growth ambitions. These positives are tempered by pressures on cash flow and uneven performance across certain markets, suggesting a balanced but cautiously optimistic near-term view.

More about GlaxoSmithKline

GSK is a global biopharmaceutical group focused on the discovery, development and commercialisation of medicines and vaccines. The company applies science, technology and talent to address major diseases worldwide. The planned acquisition of RAPT Therapeutics, a clinical-stage immunology specialist developing novel treatments for inflammatory and immune-mediated conditions, further strengthens GSK’s position in respiratory, immunology and inflammation, with a particular emphasis on allergy-related therapies.

DFS Furniture (LSE:DFS) has reported a strong first-half performance for the 26 weeks ended 28 December 2025, prompting an upgrade to full-year profit guidance. Underlying profit before tax and brand amortisation is now expected to reach £30–31 million, representing an improvement of £13–14 million year on year, driven by better margins, disciplined cost control and increased operating leverage.

Trading momentum remained resilient in a largely flat market, with group order intake up 2.3%. Gross sales on delivered orders are forecast to be approximately 8.7% higher, while robust free cash flow generation enabled the group to reduce net bank debt to around £60–61 million. This has brought leverage back within management’s target range. Following this performance, and with Winter sale trading in line with expectations, DFS has lifted its full-year profit outlook above current market consensus. The group has also strengthened its senior management team with the appointment of Dominique Highfield as permanent chief financial officer, reinforcing confidence in its strategy and medium-term financial objectives.

Looking ahead, DFS’s outlook is underpinned by solid earnings momentum, strong cash generation and effective cost management, although leverage levels remain an area of focus. Positive recent trading updates and corporate developments support confidence in the group’s direction, partly offset by a moderate valuation and the absence of a dividend yield.

More about DFS Furniture

DFS Furniture plc is the UK’s leading retailer of upholstered furniture, operating an integrated estate of physical showrooms and online channels across the UK and Republic of Ireland under the DFS and Sofology brands. The group specialises in living room furniture, combining exclusive product ranges with in-house UK manufacturing and third-party suppliers in the UK, Europe and the Far East. Its vertically integrated model includes a dedicated final-mile delivery network, supported by national marketing, product design innovation and accessible consumer finance options.

Big Yellow Group (LSE:BYG) delivered steady progress in the quarter to 31 December 2025, with total revenue rising 2% to £52.3 million and year-to-date growth also running at 2%. Performance was underpinned by stronger pricing, as net achieved rent per square foot increased by around 3–4%, offsetting a small seasonal dip in occupancy levels.

Closing occupancy eased to 75.4%, reflecting normal winter weakness and the impact of newly added space, but the fall in occupied area was materially smaller than seen a year earlier. On a like-for-like basis, occupancy improved quarter on quarter, supported by firmer demand from both household and business customers, with business occupancy returning to growth. Cost discipline remained evident, with like-for-like operating expenses slightly lower year to date, although management plans to reinvest some of these savings into digital marketing initiatives. For the full year, the group is guiding to adjusted EPS growth of about 2%, noting that the comparison is held back by the absence of a £4 million insurance gain booked in the prior year.

Expansion remains a key theme, with two recently opened London stores trading well and a further two sites scheduled to open before the end of the financial year. Planning consent has now been secured for most of the company’s 13-site development pipeline. Big Yellow continues to operate with a conservative balance sheet, largely funded by variable-rate debt, which management believes leaves the group well positioned to benefit from potential interest-rate cuts and future consolidation opportunities within the self-storage sector.

More about Big Yellow Group

Big Yellow Group is the UK’s leading self-storage brand, operating 111 stores with a maximum lettable area of around 6.6 million square feet. The company has a development pipeline of approximately 0.9 million square feet across 13 proposed sites and focuses on prominent, accessible locations, particularly in London and surrounding commuter areas, which account for roughly three-quarters of revenue. Its estate is predominantly freehold or long leasehold, and the group emphasises technology-enabled operations, strong customer service, engaged staff and sustainability.

UK and European markets moved lower on Monday following a renewed threat from U.S. President Donald Trump to impose tariffs of up to 25% on eight European countries over Greenland.

Chancellor Rachel Reeves withdrew from a scheduled appearance at the London Stock Exchange, where she had been due to mark what organisers described as a “new golden age” for the City, after Trump said tariffs would remain in place until the United States is permitted to buy Greenland.

Her decision came as markets opened weaker, undermining the celebratory tone of the event, which had been planned after the FTSE 100 climbed above the 10,000 level for the first time.

UK equities opened in the red, with the FTSE 100 down 0.4%, following losses across Asian markets overnight as investors shifted toward safe-haven assets such as gold and silver.

Elsewhere in Europe, France’s CAC 40 fell 1.6%, Germany’s DAX dropped 1.4% and Spain’s IBEX 35 slid close to 1% in early trading.

The Treasury confirmed that Reeves would not attend the Stock Exchange event in the City. Instead, she appeared alongside Prime Minister Keir Starmer at a Downing Street press conference on Monday morning. Starmer said the dispute with Trump’s administration over Greenland should be addressed through “calm discussion between allies”.

Proceedings at the exchange went ahead without the chancellor, led by LSE chief executive Julia Hoggett, with ticker tape released as trading began.

Trump said on Saturday that he was prepared to introduce tariffs of up to 25% on goods from Denmark, Germany, France, the Netherlands, Finland, Sweden, Norway and the UK until the U.S. is allowed to acquire Greenland.

He added that an initial 10% tariff would take effect from 1 February “on any and all goods sent to the United States of America”, with the rate rising to 25% on 1 June.

“There will be hundreds of different opinions on how this will all pan out but remember that the tariffs announced on ‘liberation day’ were ultimately softened a week later,” said analysts at Deutsche Bank. “That said, as it stands the tariff threats are real, and would be economically and geopolitically damaging.”

U.S. financial markets are closed on Monday for Martin Luther King Jr Day.

European equity markets opened the week under heavy pressure after U.S. President Donald Trump warned that economic sanctions could be imposed on several European countries if they continue to oppose his proposal for the United States to acquire Greenland.

By 08:05 GMT, Germany’s DAX was down 1.3%, France’s CAC 40 had fallen 1.6%, and the UK’s FTSE 100 was lower by 0.4%.

Tariff threats dent risk appetite

Over the weekend, President Trump said the U.S. is prepared to introduce tariffs on exports from eight European countries that have resisted his Greenland initiative. The group includes major economies such as France, Germany and the United Kingdom, alongside several Nordic and northern European nations.

Trump said an initial 10% tariff would be applied from 1 February, rising to 25% in June unless an agreement is reached that would allow the U.S. to gain control of Greenland, the semi-autonomous Danish territory.

In response, the European Union has already suspended ratification of its trade agreement with the United States. Media reports suggest Brussels could revive a €93 billion package of counter-tariffs on U.S. goods, a step that would significantly intensify tensions and raise the risk of a broader transatlantic trade conflict.

“This latest flashpoint has heightened concerns over a potential unravelling of NATO alliances and the disruption of last year’s trade agreements with several European nations, driving risk-off sentiment in stocks and boosting safe-haven demand for gold and silver,” said Tony Sycamore, a market analyst at IG.

The dispute puts additional focus on the World Economic Forum, which gets underway later in the session in Davos, bringing together global political and business leaders, including a sizeable U.S. delegation led by Trump himself.

Eurozone inflation data in focus

The key economic release for Monday is the eurozone’s December inflation report, particularly with U.S. markets closed for Martin Luther King Jr. Day.

Headline eurozone CPI is expected to come in at 2.0% year on year, easing from 2.1% in November and aligning with the European Central Bank’s inflation target for the first time since mid-2025.

The ECB has kept interest rates unchanged since ending its rate-cut cycle in June and signalled last month that it sees little urgency to adjust policy, citing easing inflation pressures and more resilient-than-expected growth toward the end of 2025. The central bank’s next policy meeting is scheduled for early February.

Earlier data showed China’s economic growth slowed to a three-year low in the fourth quarter, with GDP expanding 4.5% year on year, down from 4.8% in the previous quarter.

Corporate and sector moves

The European corporate calendar is relatively quiet, although UK building products group Marshalls (LSE:MSLH) said full-year 2025 adjusted profit before tax was in line with market expectations, despite continued uncertainty in its end markets.

Investor attention is also likely to turn to U.S. technology stocks trading in Europe, as these companies could face retaliatory measures from European authorities should Washington proceed with tariffs linked to the Greenland dispute.

Oil prices ease

Oil prices edged lower, giving back part of last week’s gains as markets assessed the growing risk of a trade war linked to Greenland.

Brent crude futures slipped 0.1% to $59.74 a barrel, while U.S. West Texas Intermediate crude fell 0.1% to $55.95.

Crude prices had climbed earlier last week on concerns that unrest in Iran could disrupt Middle Eastern oil supplies, a region responsible for a significant share of global production. However, much of that risk premium faded after Trump said the U.S. would not intervene militarily in the near term, prompting prices to retreat before stabilising toward the end of the week.

European beverage stocks moved lower after US President Donald Trump said he plans to introduce new tariffs on imports from the European Union and the United Kingdom, reviving trade tensions and increasing pressure on spirits producers with significant exposure to the US market.

Shares in Diageo (LSE:DGE), Pernod Ricard (EU:RI), Rémy Cointreau (EU:RCO) and Davide Campari (BIT:CPR) were down between 1% and 3.5% by 09:15 GMT.

Over the weekend, Trump said the US would introduce fresh tariffs starting at 10% from 1 February on imports from the UK and seven EU countries — Denmark, Finland, France, Germany, the Netherlands, Norway and Sweden. The proposed rate would then rise to 25% from 1 June.

These measures would add to an existing tariff framework that already includes a 15% duty on European imports and a 10% levy on goods from Great Britain. Jefferies said the proposed increases would be layered on top of current tariffs, materially raising the cost burden for European spirits companies selling into the US.

European governments have criticised the proposal and are holding emergency discussions at EU level, with reports suggesting potential counter-tariffs of up to €93 billion, according to the brokerage.

Jefferies said the renewed tariff threat reopens a US–EU trade dispute and represents a near-term risk event for spirits makers. The analysts estimate that an additional 10% tariff would have a measurable earnings impact before any mitigation measures are taken.

Based on company disclosures, Jefferies estimates the impact of a 10% tariff would equate to roughly 1% of group earnings for Pernod Ricard, 2.6% for Diageo, 3.9% for Campari and 12.1% for Rémy Cointreau. If tariffs were raised to 25%, the impact would deepen to around 2.4%, 6.5%, 9.7% and 30.3% respectively.

The analysts highlighted Rémy Cointreau as the most exposed, with an estimated €30 million US tariff impact equivalent to around 18% of profits under the current regime. Pernod Ricard’s estimated €35 million drag represents about 1.5% of fiscal 2026 EBIT, while Campari’s €15 million impact — gross annualised at €35 million — equates to roughly 2.5% of group profits. Diageo has previously flagged around $200 million of gross exposure, with the ability to offset roughly half through mitigating actions, Jefferies said.

Jefferies added that the tariff threat is likely to fuel volatility in European spirits stocks in the coming weeks as investors weigh potential earnings impacts and monitor developments in US–EU trade negotiations.

UK equities opened weaker on Monday, mirroring declines across European markets after geopolitical tensions resurfaced. Investor sentiment was dented after US President Donald Trump warned of potential sanctions against countries opposing his efforts to acquire Greenland.

By 08:29 GMT, the FTSE 100 was down 0.1%, while sterling strengthened slightly, with GBP/USD up 0.07% at 1.33. Across Europe, Germany’s DAX was lower by around 1%, and France’s CAC 40 had fallen about 1.4%.

UK market round-up

Marshalls plc (LSE:MSLH) said full-year 2025 adjusted profit before tax came in at £43.6 million, in line with market expectations, with group revenue reaching £632 million despite ongoing uncertainty across its end markets. The result matched the company-compiled analyst consensus range of £41 million to £45 million and was consistent with trends outlined in its November trading update.

Ashtead Technology Holdings plc (LSE:AT.) reported full-year 2025 revenue of approximately £203 million, up 21% from £168 million in 2024, including organic growth of 3%. The subsea technology group said its adjusted EBITA margin is expected to be at the top end of its medium-term target range, slightly ahead of market profit forecasts.

Dowlais Group plc (LSE:DWL) said trading in 2025 exceeded previous guidance, based on unaudited results. The company expects adjusted revenue of around £5 billion for the year ended 31 December 2025, representing 3.1% growth at constant currency. Foreign exchange headwinds of around £90 million are expected to reduce reported growth to approximately 1.3%, with both Automotive and Powder Metallurgy contributing.

M&C Saatchi plc (LSE:SAA) confirmed that its full-year 2025 performance was in line with earlier guidance despite persistent macroeconomic pressures. The group expects like-for-like net revenue to decline by around 7%, or roughly 2.5% excluding Australia, with reported net revenue of £210 million and operating profit of £26 million.

In leadership updates, WH Smith PLC (LSE:SMWH) announced plans to appoint Leo Quinn as Executive Chairman from 7 April 2026, subject to shareholder approval. Quinn brings more than 20 years of experience leading UK-listed companies, most recently as chief executive of Balfour Beatty.

Separately, Workspace Group PLC (LSE:WKP) said chief executive Lawrence Hutchings has stepped down with immediate effect. Charlie Green, co-founder of The Office Group (now Fora), will assume the role of CEO from 2 February.

Shares in Big Technologies plc (LSE:BIG) surged 16.05% after the company announced a full and final settlement of the Buddi litigation. Big Technologies will pay £38.5 million to resolve claims from former Buddi Limited shareholders relating to its 2018 acquisition of Buddi.

M&C Saatchi (LSE:SAA) said its performance in 2025 was in line with prior guidance, with like-for-like net revenue expected to decline by around 7%, or approximately 2.5% when excluding Australia. Reported net revenue for the year is expected to be £210 million, alongside operating profit of £26 million.

The group delivered £12 million of annualised cost savings in the second half of the year and ended the period with a strong balance sheet, including net cash of £13 million. Management said this financial position provides flexibility to pursue strategic opportunities and continue executing its share buyback programme.

Commercial momentum improved during the year, supported by better pipeline conversion from newly established regional growth teams. The company secured a number of high-profile, multi-specialism mandates, including work linked to Coca-Cola’s Premier League sponsorship, UK Government strategy and development frameworks, a major Super Bowl advertising campaign, and expanded engagements with existing clients such as JP Morgan Chase and Ferrari.

Looking ahead, M&C Saatchi said it remains confident in delivering profitable growth in 2026, despite ongoing macroeconomic uncertainty. The group cited its portfolio-led strategy, focus on higher-margin growth drivers and strong levels of client retention as key pillars underpinning its outlook.

From a market perspective, M&C Saatchi’s investment case is supported by positive corporate developments and signs of improving financial performance, although share price technical indicators continue to suggest bearish trends. Recent insider buying by the chief executive and a strategic acquisition are viewed as notable positives, while valuation metrics point to a moderately attractive profile.

More about M&C Saatchi plc

M&C Saatchi plc is a London-headquartered creative solutions company that helps clients grow by maximising the reach and effectiveness of their brands. Operating a regional-first model, the group spans five core specialisms — Advertising, Issues, Passions, Consulting and Media — and serves global clients from hubs across the UK, Europe, the Middle East, Asia-Pacific and the Americas.