#france
Source: The Economist
French President Emmanuel Macron came out fighting against opposition parties who he said “chose chaos”
by bringing down his premier in a historic no-confidence vote, vowing not to step aside before the end of his term. “The mandate that you have entrusted to me democratically is a five-year mandate, and I will exercise it fully until its end,” Macron said on Thursday. Macron’s term runs until 2027, but he is facing rising pressure from opposition groups to step down early. The president said he would name a new prime minister “in the coming days”, as he hit out at the far-right Rassemblement National and the leftist Nouveau Front Populaire alliance. Source: FT >>> https://on.ft.com/4ikxkhz
European automotive sector is facing deep crisis
• Demand for cars in EU has stalled and may never return to pre-pandemic levels • Outlook for exports has darkened amid US tariff threats and low Chinese demand Source: Agathe Demarais on X, Bloomberg
Europeans, especially the German carmakers,simply cannot afford losing the US market due to tariffs after taking a hit in other major markets.
They need to be really polite to Trump‘s administration... Source: Econovisuals, Eurostat
The chart of the day:
France’s benchmark bond yield matched Greece’s for the first time on record, the latest milestone in a week marked by mounting anxiety over the fate of Prime Minister Michel Barnier’s government. The rate on 10-year French notes, traditionally considered among the safest in the euro area, briefly rose to 3.03% before paring the move. That was the same as comparable Greek bonds, a country once at the heart of the European sovereign debt crisis. Investors are concerned that France may struggle to pass a budget for next year, with the far-right National Rally party threatening a no-confidence vote to bring the government down if its demands aren’t met. While French bonds rallied after Finance Minister Antoine Armand said he is prepared to make concessions on the 2025 budget, that did little to dent months of underperformance. “France is not Greece,” said finance minister Antoine Armand. "France has . . . far superior economic and demographic power which means it is not Greece.” Humility at its best... Source: FT, LSEG
OUCH! French stocks are set for their worst under-performance against European peers since 2010 as a budget standoff threatens to topple the govt.
Source: BBG, HolgerZ
On an inflation-adjusted basis, including dividends, European stocks are up 2% in the last 17 years.
Source: Mike Zaccardi, CFA, CMT, MBA
French bond premium hits 12-year high as German yields drop amid political uncertainty
Source: PiQ @PiQSuite
