A bout of risk aversion dented European stocks on Tuesday as jitters grew over potential credit-related problems at banks and inflation, while typically defensive stocks such as pharmaceuticals and food rallied.
Alcatel-Lucent, which posted a first-quarter net loss and warned on 2008 sales, will ask shareholders to vote on a proposal to tie its CEO's 6 million euro ($9.45 million) golden parachute to performance objectives, the Times newspaper reported on Tuesday.
The chief executive of Europe's biggest lender on Tuesday called on central bankers to raise interest rates in order to combat inflation.
European shares ended lower on Monday, led by Swiss bank UBS on concerns about further asset writedowns.
European Central Bank head Jean-Claude Trichet said on Monday that financial markets were experiencing an "ongoing correction" and repeated that the G7 was concerned about excessive dollar volatility.
European stocks fell 1.7 percent on Friday, losing ground for the third time in four sessions as a dip in metal prices prompted investors to book recent lofty gains on mining shares.
Oil rallied again on Friday following a retreat after it reached a new record high of $135 a barrel, on the back of a weaker dollar and worries about production in countries other than the OPEC members.
Euro zone economic growth looks set for a sharp slowdown in the second quarter after a strong performance at the start of the year, data showed on Friday, but rocketing inflation will keep interest rates on hold.
The controversy over China's treatment of Tibet has had many discussing whether world leaders should skip the summer Olympics in Beijing. A survey in Germany and France found a majority believe their leaders should not attend the Opening Ceremonies.
European shares ended higher on Thursday, lifted by telecom stocks and by banks which gained on consolidation talk, while a dip in the price of crude took energy stocks lower.
European Central Bank President Jean Claude Trichet warned on Monday that the end of the credit crunch was not yet in sight and the world was experiencing an "ongoing and very significant market correction."
The credit crunch is far from over and is likely to hit sectors other than housing, Marc Faber, Editor and Publisher of “The Gloom, Boom & Doom Report”, told "Squawk Box Europe."
France's biggest retail bank, Credit Agricole, announced a 5.9 billion euros ($9.1 billion) rights issue to shore up its capital after further writedowns at its Calyon investment bank, sending its shares down sharply.
Societe Generale, the French bank hit by the world's worst rogue trader scandal, reported a 23.4 percent fall in first quarter net profit although earnings came in above the average market forecast.
The European Central Bank left its key interest rate unchanged at 4 percent on Thursday, as widely expected, and its president Jean-Claude Trichet warned on inflation pressures.
The European Central Bank will most likely do on Thursday what it has done every month since the credit crunch started last August: keep rates steady and talk tough on inflation.
Engineering group Alstom said on Tuesday some of its employees had been questioned as witnesses in a Swiss legal investigation, but said a report it was being investigated for paying bribes was based on speculation.
A host of news out of France on Tuesday, with Alstom down more than 2 percent on reports that officials are investigating it for bribery.
Nicolas Sarkozy promised the French people more money, faster growth and a break with the past. So how has he delivered?
The financial sector fueled a rally in European shares on Friday, which scored their third weekly gain, after U.S. jobs data suggested the world's largest economy was proving more resilient than expected.