Europe bulletin: FTSE slips, US-EU clash escalates, Secure Trust's big move

European markets drifted into the Christmas break as thin trading left the FTSE slightly lower, even as the index capped a standout year of outperformance.

Politics, meanwhile, moved faster than markets: Washington’s visa bans on EU tech figures sharpened a transatlantic clash over free speech and regulation, while Paris pushed to shape Ukraine’s security future.

In corporate news, Secure Trust Bank shored up its balance sheet with a clean exit from troubled motor finance.

FTSE slips in thin holiday trade

The FTSE 100 dipped 0.1% on Wednesday as the London stock exchange wrapped up early for Christmas.

Homebuilders Taylor Wimpey and Persimmon climbed 0.5% each, but healthcare stocks fell 0.5%, dragged down by AstraZeneca's 0.7% drop.

The index has held steady since hitting a five-week high following the Bank of England's rate cut last week.

Meanwhile, BP stayed flat after announcing a $6 billion sale of its Castrol lubricants business to US firm Stonepeak, a major piece of its $20 billion divestment plan.

Trading remained sluggish with many investors sitting out ahead of the holiday.

The FTSE 250 managed a slight 0.07% gain. Over the full year, the FTSE 100 is up a solid 20.7%, outpacing the European STOXX 600 and the S&P 500's 16% gains.

US-EU tech speech showdown

The Trump administration slapped visa bans on former EU Commissioner Thierry Breton and four European anti-disinformation campaigners, accusing them of pressuring American social media platforms into censorship.

Secretary of State Marco Rubio framed the targets as "radical activists" working against free speech, but Paris shot back hard.

French Foreign Minister Jean-Noël Barrot condemned the move as intimidation undermining European sovereignty, insisting the EU's Digital Services Act, which Breton championed, was democratically adopted and has no US reach.

Breton himself called it a "McCarthy's witch hunt," noting the European Parliament voted 90% unanimously for the DSA.

The crackdown reveals deepening transatlantic tensions over tech regulation, with the EU now promising to respond "swiftly and decisively" if Washington doesn't reverse course.

France ramps up Ukraine push

French President Emmanuel Macron spoke Wednesday with NATO Secretary General Mark Rutte about Ukraine and the "Coalition of the Willing," France's push to craft credible security guarantees for Kyiv.

Macron pledged Paris will intensify these efforts starting in January from the French capital, insisting solid security assurances are essential to achieve "a robust and lasting peace."

The timing matters: Ukraine just released a revised 20-point peace plan demanding EU membership and NATO Article 5-style security commitments, effectively NATO protection without formal membership.

Macron's backing signals Europe won't let Washington dictate Ukraine's post-war future alone.

With Germany ramping up defense spending and Rutte warning the security situation could deteriorate by 2027 if Europe doesn't act fast, Macron's January summit looks like Europe's attempt to lock in Ukraine's security before any ceasefire deal gets inked.

Secure Trust boosts capital ratio

Secure Trust Bank sealed a £458.6 million ($619 million) sale of its consumer vehicle finance arm to LCM Partners on Wednesday, marking an exit from a bleeding business.

The lender had already stopped new lending in July, so this deal kills the unit outright.

The sale price sits slightly above the portfolio's £442.5 million book value, generating a modest profit after costs.

The real prize for shareholders: the disposal boosts Secure Trust's capital ratio by 195 basis points to 14.8%, freeing up capital for buybacks, something CEO Ian Corfield signaled the bank is "considering" pending regulatory approval.

Secure Trust faced £21 million in motor finance commission redress after the FCA tightened rules on hidden commissions, eating into already-thin margins.