Renault shares plunge 17% after French carmaker lowers guidance, appoints new interim CEO
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%.
The company is also aiming for a free cash-flow between 1 billion euros ($1.16 billion) and 1.5 billion euros, down from roughly or above 2 billion euros, previously.
Renault also announced the appointment of Duncan Minto as interim CEO, following Luca de Meo's abrupt resignation last month after around five years at the helm of the company.
"Currently CFO of Renault Group, Duncan Minto will ensure the day-to-day management of the company alongside Jean-Dominique Senard, who will hold the position of Chairman of Renault s.a.s., the operating company of the Group, during this period," Renault said in a statement.
Renault is poised to report its half-year results on July 31.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNBC
2 hours ago
- CNBC
If Apple makes a foldable phone, analysts say this stock will benefit
Even if Apple's long-awaited foldable may still be months or years away, buyers are lining up for a potential major supplier: Chinese glass maker Lens Technology . It's "one of the key beneficiaries of [the] foldable iOS smartphone supply chain," Citi analysts led by Kyna Wong said in a July 14 report about Lens Tech. They estimate the device could contribute to 5% of the Chinese company's revenue next year, and 12% in 2027. In a report last week, reputable Apple analyst Ming-Chi Kuo kept up expectations that the iPhone maker will begin making a foldable next year. Apple has not made any announcements, and did not immediately respond to a request for comment on whether Lens Tech would provide the "ultra thin glass" that covers the phone display panel. The Citi report initiated coverage of Lens Tech after its stand out Hong Kong public offering on July 9 — raising 4.77 billion HKD ($610 million) on the exchange's busiest day ever for listings — five IPOs at once. Bank of America Securities was one of the underwriters. The Citi analysts rate Lens Tech a buy, with a price target of 26 HKD ($3.13), or nearly 25% upside from Friday's close. "We believe the H-share listing is positive for the company," the analysts said, "as it should provide more cash for potential R & D initiatives and overseas capacity expansion, and expand the overseas institutional investor base." U.S. hedge fund magnate Steve Cohen has jumped in, with multiple purchases over three days that brought his stake in Lens Tech to 8.41% of issued voting shares, according to filings with the Hong Kong stock exchange. About 30% of proceeds raised from the Hong Kong offering will go towards developing foldable screens, Lens Tech said in its prospectus. "By increasing our production capacity in China, we aim to ensure robust support for the mass production of middle and high-end foldable smartphones for our customers and improve our market share in foldable screens," the company said. Lens Tech did not name Apple, but disclosed that its largest customer has been a Nasdaq-listed U.S. multinational founded in 1976 — and said the business relationship started "almost two decades ago when Customer/Supplier A was developing the industry's first touch-enabled smartphone with full-sized screen." Lens Tech's latest listing follows a trend this year of more mainland Chinese companies going public in Hong Kong, which is easier for international investors to access. The company already trades on the Shenzhen Exchange. "We expect Lens to benefit from the foldable iPhone launch [and] AI glasses & robotics" that drive earnings growth of at least 20% a year in 2026 and 2027, UBS analyst Zoe Xu and a team said in a separate July 14 report. They resumed coverage of the mainland China-traded shares with a buy rating and a new price target of 26.20 yuan, up from 16 yuan previously. The Citi analysts also raised their price target on Lens Tech's mainland-traded shares to 32 yuan ($4.45) from 25 yuan. Lens Tech has been reducing its reliance on Apple revenue, and states in its prospectus that "Customer B" is a "Nasdaq-listed American company founded in 2003 that designs and sells smart vehicles." Other listed customers include South Korean, French and Chinese companies. The UBS analysts pointed out that Lens Tech shares remain depressed after a 30% tumble in the week following U.S. "Liberation Day" tariffs in early April. But they expect the company can benefit from selling to Chinese startups such as smart glasses company Rokid and Zhiyuan Robotics. And even without a potential foldable iPhone, Lens Tech can likely benefit from selling cover glass for this year's iPhone 17 which is expected to offer a slimmer design. Lens Tech noted in its prospectus that its direct exports to the U.S. are limited and that it plans to use Hong Kong listing proceeds to expand production overseas in Vietnam and Thailand. In addition to China, the company said it already has factories in Vietnam and Mexico. — CNBC's Michael Bloom contributed to this report.
CNBC
8 hours ago
- CNBC
Global week ahead: Banking bellwethers and a tariffs waiting game
Next week, the CNBC teams are back on the road – and it's all about the banks and the ECB. From Frankfurt to Milan, and Paris to London, the financials are in focus. The markets seem to be banking on the financial sector to keep up the positive earnings momentum this quarter. Citi described the first quarter as "remarkably resilient," with analysts now expecting Stoxx 600 earnings-per-share growth to turn positive year-on-year this quarter. Much of that optimism is centered on the big banks, while other sectors like luxury, autos and energy have been plagued by earnings downgrades. Unicredit kicks things off on Wednesday. The Italian banking giant will try to keep investors focused on the numbers, rather than its M&A ambitions. While its moves around Commerzbank have seen it increase its equity stake to 20%, Saxo Bank analysts highlight the uncertainty around its potential takeover of Banco BPM, after an Italian court blocked the move until further conditions are met. The stock is up over 50% so far this year, providing some cheer for CEO Andrea Orcel as he battles to keep his expansion plans on track. French financial BNP Paribas — the euro zone's largest lender by assets — reports earnings on Thursday. Last quarter, the bank soared past expectations driven by performance at its investment bank, but revised its profitability target slightly lower. On the same day, attention will turn to Frankfurt for Deutsche Bank's latest set of numbers. The German lender logged its best profit in 14 years last quarter, benefiting from increased trading volumes around the market volatility. CEO Christian Sewing told CNBC in June that he sees an opportunity for Europe to invest more in its own defense sector as a key growth area. For macro-watchers, the highlight of the week in Europe will come from the European Central Bank. President Christine Lagarde and her fellow policymakers are expected to keep rates on hold at 2% on Thursday. But there is a BIG catch… U.S. President Donald Trump's tariff threats are not expected to derail this meeting's outcome, according to Reuters, citing five ECB governing council member sources. But if Trump does push ahead with 30% tariffs on EU imports, there is a broad assumption the ECB will cut rates in response. Investors will have until Sept. 11 to assess the impact, as the ECB breaks for the summer after this week's meeting. In terms of the underlying economic conditions, Deutsche Bank warns that European inflation risks are "still being underestimated, with a remarkable complacency across key assets," with the tariff impact yet to fully trickle through. The bank's macro strategist also told CNBC's Squawk Box Europe that the Aug. 1 tariff deadline for negotiations between the U.S. and EU sets the stage for a late outcome to trigger a "very sharp market reaction."
American Military News
21 hours ago
- American Military News
Iran Tells Europeans To Abandon ‘Worn Out' Threats Amid Nuclear Sanctions Debate
This article was originally published by Radio Free Europe/Radio Liberty and is reprinted with permission. Iranian Foreign Minister Abbas Araqchi has called on European powers to halt threats against Tehran, including warnings about reinstating UN sanctions. Tehran's top diplomat wrote on X on July 18 that he told his British, French, and German counterparts, as well as the EU foreign policy chief, during a joint call that Europe 'should act responsibly' and abandon 'worn-out policies of threat and pressure.' He said the EU and the European trio, the so-called E3, have 'no moral or legal ground' to trigger the 'snapback' of UN sanctions. On July 15, French Foreign Minister Jean‑Noel Barrot told fellow EU ministers that the E3 is prepared to reimpose UN sanctions on Iran unless Tehran offers a 'firm, tangible and verifiable commitment.' The Europeans reiterated the same stance during the call with Araqchi, according to a French diplomatic source cited by Reuters, who said Iran was pushed to reach a 'verifiable and lasting' deal with the United States. Under the 2015 nuclear agreement — the Joint Comprehensive Plan of Action (JCPOA) — long‑standing UN restrictions on arms sales, banking, and nuclear‑related technology were lifted a decade ago. European governments can still invoke the deal's 'snapback' mechanism before an October 15 deadline, a step that would restore those sanctions and give them a narrow but significant source of leverage in current negotiations. Iran suspended cooperation with the International Atomic Energy Agency (IAEA) in the wake of the US and Israeli bombing of its nuclear sites last month. The European are pressing for UN nuclear inspectors to resume work in Iran, aiming in part to prevent Tehran from reorganizing its nuclear program after the damage caused by the strikes. Under the 2015 nuclear deal, China and Russia — longtime supporters of Iran in such negotiations — cannot veto a snapback of sanctions. Although the formal window to trigger the mechanism closes in October, European governments could opt to postpone the move beyond that deadline to keep the door open for further talks. Iranian and US negotiators were scheduled to meet in Oslo last week but the meeting was postponed, with apparently no new date agreed upon. 'Any new round of talks is only possible when the other side is ready for a fair, balanced, and mutually beneficial nuclear deal,' Araqchi wrote on X. Speaking at a press briefing this week, US President Donald Trump said that while Iran is eager to engage in talks, he is in 'no rush' to do so, noting that 'we obliterated their sites' in the June 22 strikes on nuclear facilities in Fordow, Isfahan, and Natanz.
