Under the EES system, digital records linked to passports track when “third country” nationals – including British and American travellers – enter and leave the so-called Schengen free movement zone, which includes 29 European countries.

However, Airlines UK and Airlines for America said the EES rollout had been inconsistent.

They added “with peak summer travel approaching and the system not yet working as it should, airlines need the commission and member states to get serious about contingency measures and take a pragmatic look at whether the current timeline is realistic”.

Steve Heapy, chief executive of Jet2, said his airline found “the continued pursuit of a policy so baffling – in cases where it has clearly not been implemented in a robust manner”.

He said allowing EES checks to be paused where systems were not ready would “result in a much better experience for holidaymakers”.

Von Massenbach said there had been a “very high level meeting in Brussels” on Wednesday, “and we see now that they start to understand that this is a situation that is not bearable, not bearable over the summer”.

Airports lobby group, ACI Europe, have written to EC president Ursula Von Der Leyen, claiming wait times at border control had now reached up to five hours in peak traffic periods, and things could worsen as the busiest time of the year approached.

It warned “airlines face half-empty planes at gate closing time, while passengers are stuck in border control queues”.

Countries do have the ability to suspend EES checks under some circumstances.

However, ACI Europe argued states needed to be allowed to pro-actively suspend the system if high volumes of passengers are expected.

An EC spokesman said that “all efforts are being made to limit the impact [of EES] on travellers from outside the EU”.

He said the impact was “limited” in “most” EU airports and where there were issues, member states had not been able to provide sufficient numbers of border guards, appropriate infrastructure and automated equipment.

He said the EC continued to offer support with the new system, and was willing to do even more “in view of the coming summer period”.

NEW YORK — Merck & Co. Inc. shares fell more than 2 percent Tuesday, closing at $125.37 as investors rotated out of certain pharmaceutical names amid broader market shifts and company-specific considerations.

The 2.44 percent decline, or about $3.13 per share, reflected typical sector volatility as the pharmaceutical industry navigates patent cliffs, regulatory developments and pipeline investments. Merck, known for its oncology portfolio and vaccines, has maintained a strong position despite periodic pressures.

Keytruda, Merck’s flagship cancer treatment, continues driving significant revenue. The PD-1 inhibitor has achieved blockbuster status, with expanding approvals across multiple indications. However, eventual patent expiration remains a long-term focal point for investors.

The company’s recent performance has shown resilience in core areas. Oncology sales have provided stability, while vaccine franchises like Gardasil contribute to diversified revenue. Animal health operations through Merck Animal Health add further balance.

Tuesday’s trading occurred against a backdrop of sector rotation. Technology and growth stocks attracted capital, while some defensive healthcare names faced mild pressure. Merck’s movement aligned with peers experiencing similar dynamics.

Merck has pursued strategic acquisitions and licensing deals to bolster its pipeline. Recent transactions aim to complement existing strengths in oncology and expand into new therapeutic areas. Integration and development timelines influence investor sentiment.

Regulatory milestones remain critical. Approvals for new indications or formulations can drive upside, while clinical trial outcomes introduce variability. Merck’s research and development spending supports a robust pipeline addressing significant medical needs.

Analysts monitor Merck’s ability to offset potential revenue losses from maturing products. Diversification efforts and operational efficiency help mitigate risks associated with patent expirations.

The pharmaceutical sector faces ongoing policy debates around drug pricing and innovation incentives. Merck advocates for balanced approaches that support research while ensuring patient access.

Global operations expose Merck to currency fluctuations, supply chain dynamics and varying regulatory environments. Strong performance in key markets has helped offset challenges elsewhere.

Tuesday’s decline contributed to a mixed session for healthcare stocks. Broader indices showed varied performance as economic data and corporate earnings influenced sentiment.

Merck’s dividend remains attractive for income-focused investors. Consistent payouts reflect the company’s financial strength and commitment to shareholder returns.

Capital allocation priorities include research investment, strategic transactions and return of capital. Management balances growth initiatives with prudent financial management.

The company’s commitment to corporate responsibility encompasses access to medicines, environmental sustainability and diversity initiatives. These efforts align with stakeholder expectations in the healthcare industry.

Tuesday’s close at $125.37 left Merck shares in a range reflecting balanced views on near-term prospects. Valuation metrics incorporate growth projections and risk factors.

Longer-term, Merck’s pipeline and commercial execution will determine trajectory. Successful launches and label expansions could support revenue stability.

Industry analysts project continued demand for innovative therapies. Merck’s focus on oncology, vaccines and animal health aligns with global health priorities.

Competitive dynamics in pharmaceuticals require ongoing innovation. Merck invests significantly in research to maintain leadership positions.

Tuesday’s session highlighted typical market fluctuations. Merck’s fundamentals remain solid despite share price movement.

Investors will monitor upcoming earnings and clinical updates for additional insights. Guidance parameters often influence expectations in the sector.

Merck plays a vital role in addressing unmet medical needs. Its products impact millions of patients worldwide through treatments and preventive measures.

The company’s history of scientific advancement supports its reputation. Discoveries in multiple therapeutic areas have contributed to public health improvements.

As Merck navigates the evolving pharmaceutical landscape, focus remains on delivering value through innovation and execution. Tuesday’s trading reflected ongoing assessment by market participants.

Broader economic factors, including interest rates and healthcare policy, influence sector performance. Merck’s defensive characteristics provide some insulation from cyclical pressures.

The stock’s movement Tuesday contributed to sector narratives around rotation and valuation. Pharmaceutical companies with strong pipelines often command premiums.

Merck continues emphasizing patient-centric approaches and scientific rigor. These principles guide development and commercialization strategies.

Tuesday’s decline represents one session in a longer-term story. Merck’s trajectory depends on successful pipeline advancement and market conditions.

Investors maintain varied outlooks based on risk tolerance and time horizons. Dividend yield and growth potential appeal to different strategies.

The pharmaceutical industry remains essential to healthcare systems globally. Merck’s contributions through research and medicines support its strategic importance.

As markets assess opportunities, Merck stands as a established player with diversified operations and forward-looking investments.

India’s equity markets are entering a more constructive phase as macroeconomic headwinds begin to fade, according to Prashant Jain, CIO, 3P Investment Managers who believes large-cap stocks are well positioned to outperform amid improving economic conditions and more reasonable valuations.

Speaking to ET Now, Jain said the combination of stronger domestic fundamentals, improving external balances, and stable valuations has strengthened his outlook for Indian equities. While he remains optimistic about the broader market, he believes opportunities are emerging selectively across sectors, particularly in large-cap banking and information technology.

Macro environment turns supportive
Jain believes India has moved past the macro challenges that weighed on investor sentiment over the past few years. He pointed to a healthier balance of payments outlook, supportive measures taken by the Reserve Bank of India, and a shift in equity ownership from foreign investors to domestic institutional investors as key positives.”I am quite constructive on the markets. The macro challenges that India was facing are clearly behind us. The balance of payments in the current year should be materially positive because of both external factors and the steps the RBI has taken. Valuations are reasonable, and stocks have moved into very strong hands from foreigners to domestic institutional investors. Multiples are reasonable, so I am actually quite constructive on these markets,” he said.

IT sector presents value despite near-term challenges
The recent correction in IT stocks, particularly following weak guidance from some mid-tier companies, has created value, Jain said. While pricing pressures remain a concern, he does not expect Indian IT companies to witness a structural decline in business.
He believes the current pricing environment is cyclical and could improve as enterprises increase technology spending to adopt artificial intelligence.”There is value, in my opinion, and I do not think these businesses are going to melt away. Even in the current deflationary environment, toplines are not negative. They are holding on, maybe flattish or with very low growth. As enterprises adopt AI, they will need to spend more, and I do not think IT budgets are likely to degrow,” he said.

However, he cautioned that Indian IT stocks continue to face valuation pressure from cheaper global peers.

“The challenge is that similar businesses outside India are trading at 20-30% lower multiples. That will continue to pose a headwind for Indian IT stocks until there is some change in sentiment,” he said.

Potential triggers could revive IT sentiment
Despite the valuation gap with global peers, Jain believes several factors could unlock value in Indian IT stocks over time.

“When you are getting good value, it is very hard to forecast how that value will unlock itself. Maybe earnings turn out slightly better than expected, foreign selling stops, domestic investors continue to support these companies, or some companies announce buybacks. Any of these could become a trigger,” he said.

Avoids specific view on ER&D companies
Asked about engineering research and development companies, which have seen mixed commentary amid slowing European auto demand, Jain chose not to offer a stock-specific opinion.

“Let me not comment specifically on ER&D names. I do not think I would be able to do justice there,” he said.

Large private banks offer compelling value
Jain is particularly constructive on large private sector banks, arguing that the sector has been weighed down by prolonged foreign institutional selling despite improving fundamentals.

He noted that credit growth has strengthened, valuations have become attractive, and the unwinding of long-held foreign positions appears to be nearing completion.

“Over the last one or two years, value has clearly emerged in large private banks. Credit growth has inched up sharply, and as FCNR(B) dollars come in, it will be positive for banks. The sector has massively underperformed because foreigners have been reducing positions, but at current valuations I would be quite constructive,” he said.

Largecaps likely to outperform as foreign selling eases
While small and mid-cap stocks have staged a recovery from recent lows, Jain believes large-cap companies currently offer better value. He expects improving macro conditions and easing foreign selling to benefit the large-cap segment over time.

“As a category, largecaps are offering better value. They have borne the maximum brunt of foreign selling, and as macro conditions improve and foreign selling abates, largecaps should outperform smallcaps,” he said.

At the same time, he acknowledged that opportunities continue to exist in the broader market.

“After the correction in small and midcaps over the last two years, value is emerging on a stock-specific basis. It is going to be a stock picker’s market,” he said.

Strong economy could lift large-cap earnings
Jain dismissed concerns that earnings growth will remain confined to smaller companies, arguing that India’s underlying economy remains robust. He cited healthy demand conditions, strong credit growth, rising GST collections, and supportive nominal GDP trends as reasons why large-cap earnings could also accelerate.

“The underlying economy is doing extremely well. Credit growth, GST numbers and demand conditions point to a very robust economy. We could see some acceleration in earnings growth even in the large-cap space,” he said.

No clear view on real estate
While acknowledging that the real estate sector remains important, Jain said he does not track it closely enough to offer a meaningful opinion.

“It is a good space, but I do not track it very closely. So, let me not comment on that,” he said.

Consumer discretionary preferred over staples
Jain drew a clear distinction between consumer staples and consumer discretionary businesses, arguing that the former faces slower growth and increasing competitive pressures despite its strong business quality.

He believes discretionary consumption offers better long-term growth opportunities, although investors must remain disciplined on valuations.

“Consumer staples are highly penetrated and will continue to exhibit slow growth. They are also facing increasing competition from organised retail, D2C brands and private labels. The businesses are excellent, but valuations remain demanding relative to likely growth,” he said.

Instead, he prefers businesses linked to discretionary spending.

“I would be more inclined towards the consumer discretionary space than the consumer staples space,” he said.

He added that the discretionary universe is broad, covering automobiles, airlines, consumer durables, building materials, food delivery, cosmetics and apparel retail, making stock selection critical.

“It is a very diverse category. The attempt should be to have a realistic view of what growth is sustainable over the long term and what is already priced in. My preference would be to do more work in that space than in the staples space,” he said.

Outlook
Jain’s investment outlook remains firmly constructive. He believes improving macroeconomic conditions, healthier valuations and resilient domestic liquidity are creating an attractive backdrop for equities. While he sees selective opportunities across sectors, his preference currently lies with large-cap companies, private sector banks, and select consumer discretionary businesses, while viewing stock selection as the key driver of returns in the small- and mid-cap universe.

The £66m investment is expected to secure 190 jobs and create 40 new ones

The maker of Shreddies and Cheerios has been given the go-ahead for a major expansion of its Wiltshire factory.

Cereal Partners UK was granted permission by the council this week for a £66m extension of its Staverton plant near Trowbridge. The investment is expected to secure 190 existing roles at the site and create 40 new jobs.

Cereal Partners UK has been a major employer in Wiltshire for nearly 30 years, producing well-known breakfast cereals such as Shredded Wheat and Shreddies in the county.

Wiltshire Council said the investment would “enhance the site’s capacity and efficiency” and allow the company to respond more effectively to changing consumer demand while supporting its future growth.

The Staverton expansion comes 15 months after Cereal Partners UK confirmed production at its plant in Bromborough, on the Wirral, would end and be re-located to Wiltshire under plans.

Councillor Helen Belcher, cabinet member for economic development, said: “This is a positive development for Wiltshire, representing a significant investment in the local economy. It secures existing jobs at the Staverton site while also creating opportunities for future employment as the business grows.

“Cereal Partners UK has been an established part of the local economy for many years, and this investment demonstrates continued confidence in Wiltshire as a place to do business.

“Enhancing the facility’s capacity and efficiency will help support the company’s long-term sustainability while contributing to economic growth in the Trowbridge area.”

Cereal Partners UK is part of Cereal Partners Worldwide, which was formed in 1990 as a joint venture between Nestlé S.A. and American food giant General Mills.

The UK division has established itself as the second largest manufacturer, with over 25 per cent of a market that’s worth more than £1.3bn.

Its brands include Shredded Wheat – first introduced more than a century ago – and Shreddies, which was first produced in 1953.

Qualcomm shares closed lower Tuesday after an unusual sequence of intraday events left the stock down more than 1.5% on the day, whipsawed by a Wall Street Journal report suggesting SpaceX had built a prototype device using its Snapdragon chips, followed by a swift denial from Elon Musk that wiped out a sharp midday rally and sent the stock back into negative territory before the closing bell.

Shares of the San Diego-based wireless chipmaker closed at $181.92, down $2.87, or 1.55%, marking the fourth consecutive session of losses for a stock that has been under sustained pressure from a combination of investor rotation out of technology names, removal from key Russell growth indexes and lingering questions about how quickly the company can ramp its newly announced data center chip business. The stock fell an additional 17 cents to $181.61 in after-hours trading.

The Wall Street Journal reported during Tuesday’s session that SpaceX had a prototype of a handset-like device, sending Qualcomm shares sharply higher in intraday trading as investors speculated the Snapdragon chip family could be central to any consumer device produced by the world’s most valuable startup. The gains evaporated when Musk called the WSJ story “utterly false,” denying that any such device relied on Qualcomm components.

The episode added another layer of volatility to a stock that has already endured a dramatic round trip in 2026. Qualcomm reached an all-time high of $259.92 on May 29, propelled by a well-received investor day at which the company laid out an aggressive diversification strategy built around artificial intelligence and data center chips. The stock has since fallen more than 30% from that peak, closing Tuesday roughly $78 below its all-time high even as the company’s fundamental business and long-term targets have not materially changed in the weeks since.

Qualcomm’s 2026 Investor Day, held in late June, was the defining corporate event for the stock in recent months. The company unveiled its new Dragonfly C1000 data center central processing unit, revealed a strategic multi-generation supply agreement with Meta Platforms as the first major customer for the new chip, and told analysts it was targeting more than $15 billion in data center AI revenue by fiscal 2029, up from a smaller initial estimate, as part of a broader goal of reaching $40 billion in non-handset chip revenue by the same year. That $40 billion figure represented nearly double the company’s prior projection for non-smartphone revenue and came alongside a forecast for $18 in adjusted earnings per share by fiscal 2029.

Morgan Stanley, which had previously maintained a cautious stance on the stock, turned less pessimistic following the investor day, raising its price target while describing the data center chip ambition as a potentially significant long-term growth driver even while maintaining a neutral rating overall. Bank of America raised its target to $220 from $195, UBS lifted its target to $235 from $170 and RBC Capital raised its estimate to $250 from $175 following the same event. Benchmark maintained a buy rating with a $300 price target. Mizuho raised its target to $210 from $170. The average 12-month price target across analysts covering the stock now sits at approximately $215, implying meaningful upside from current levels.

Those targets were set before Qualcomm’s stock declined so sharply from its May highs, a retreat driven in part by a broader rotation out of semiconductor and technology names that has pressured many high-multiple chip stocks in June. Qualcomm was also removed from several Russell growth and defensive indexes, reducing automatic buying pressure from passive and index-tracking institutional investors who had previously been required to hold shares in proportion to the company’s index weighting.

The company’s most recent quarterly results, covering the fiscal second quarter, showed continued momentum in its diversification strategy even as the broader handset market remained subdued. Qualcomm reported revenue of $10.60 billion against analyst estimates of $10.59 billion, with adjusted earnings per share of $2.65 beating the consensus estimate of $2.55 to $2.56. Automotive revenue surged 38% year-over-year to $1.3 billion, while Internet of Things revenue grew 9% to $1.7 billion, both segments central to the company’s push to reduce its dependence on smartphone chip sales, which have faced pressure from customers, including Samsung and Apple, exploring alternatives to the Snapdragon lineup for some of their devices.

Google reportedly selected MediaTek rather than Qualcomm or Broadcom to help build its next-generation TPUv9 artificial intelligence chip, known internally as Triggerfish, according to reporting from GF Securities, a development that dampened some of the enthusiasm surrounding Qualcomm’s data center ambitions even as the company has sought to position itself as a credible alternative to Nvidia’s dominant GPU-centric approach to AI inference computing.

Qualcomm’s next earnings report is scheduled for August 5, when the company is expected to provide its first detailed guidance update since the investor day and give analysts a clearer read on how the Meta Platforms supply agreement and the Dragonfly C1000 data center chip are progressing toward meaningful commercial revenue. Third-quarter guidance for automotive revenue pointed to 50% year-over-year growth, suggesting that segment at least remains on a sharply positive trajectory even as the data center opportunity requires more time to develop.

The stock’s current price-to-earnings ratio of approximately 13.7 times trailing earnings has drawn attention from value-oriented investors who view the multiple as low relative to the growth profile the company is projecting for 2029, particularly if the data center chip program delivers even a fraction of the revenue targets management outlined at the investor day. The company also maintains a 23-consecutive-year streak of dividend increases, with its current yield of approximately 1.94% providing income support for holders waiting for the stock’s recovery from its post-peak slide.