European Movers: Leonardo (LDO IM) +4.1%, Vallourec (VK FP) +1.6%, Repsol (REP SM) +1.2%, Greggs (GRG LN) -2.7%, Tesco (TSCO LN) -4.7%, AB Foods (ABF LN) -10.7%

• Defence Stocks, RTX (RTX) - US President Trump said he will block defence contractors from paying dividends or buying back shares until production improves, criticising slow output and high costs. An executive order targets firms including RTX, caps executive pay at USD 5mln, and links incentives to delivery and performance. Trump said the Department of War told him RTX has been least responsive, slowest to increase output and has prioritised shareholders; he warned RTX must invest in plants and equipment or lose business.
• Repsol (REP SM) upgraded to Buy from Hold at Jefferies    
• Vallourec (VK FP) - Co. initiated a EUR 200mln share buyback and aims total shareholder return to be at least EUR 500mln by Aug 2025. (Vallourec) 
• Greggs (GRG LN) - Q4 Trading Update (GBP): Total Sales +7.4% Y/Y; LFL Sales +2.9% Y/Y. FY25 Total Sales 2.15bln (prev. 2.01bln Y/Y). Market conditions remain challenging but outperformance continues with year-on-year gains in market share. Anticipate full year outcome in line with the Board's previous expectations. Looking into 2026 we expect the level of like-for-like cost inflation to be lower than in 2025 and are confident that we can continue to mitigate this whilst retaining our value leadership. We expect consumer confidence to remain a market headwind in the year ahead". (Greggs)   
• Tesco (TSCO LN) - Q3 (GBP): UK LFL Sales +3.9% (exp. +4.83%). Guidance: Now expect to deliver FY 25/26 Group adjusted operating profit at the upper end of previously guided range. (Tesco) 
• AB Foods (ABF LN) - Trading Update (GBP): Group Revenue +1%. Primark has had a challenging start to the financial year, with a mixed performance. In the UK, Primark delivered encouraging sales growth of around 3%, with like-for-like sales growth of around 1.7% in a difficult clothing market, particularly over Christmas. Now expect Group adjusted operating profit and adjusted EPS to be below last year, reflecting the guidance by segment set out above. (AB Foods) 

This headline highlights the performance of several European stocks, with notable movers like Repsol benefiting from an upgrade and Vallourec initiating a significant share buyback. Conversely, Tesco and Greggs are facing challenges that indicate market headwinds, particularly in consumer confidence and sales growth. This mix suggests that while some companies are navigating favorable changes, others are struggling in a tough economic environment, which could impact broader market sentiment.