Franceโs Bond Crisis Deepens
Investors are heading for the exit as France's bond crisis deepens and political gridlock sets in. Georgia Hall explains. (Source: Bloomberg)
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Investors are heading for the exit as France's bond crisis deepens and political gridlock sets in. Georgia Hall explains. (Source: Bloomberg)
Worries are mounting and bonds, stocks and the euro are taking the hit.
France presented its โ2027 budget bill on Thursday, seeking to enact unpopular belt-tightening measures that can lower its deficit and appease increasingly twitchy bond investors ahead of next year's presidential election. The legislation faces a tough ride in a deeply divided parliament, as political clans position themselves for one of the country's most consequential elections in modern times.
A measure of French bond risk reached another milestone as investors gird for potential political upheaval next year.
When a struggling French property services company reported results recently, the numbers included a line item that raised eyebrows in the credit market: โฌ20 million ($23 million) of additional earnings for future savings from a new artificial intelligence strategy.
Isabelle Scemama, BNP Paribas Global Head of AM Alternatives, joins "Bloomberg Brief" to discuss how investors should respond to a more uncertain global backdrop. She speaks to speaks with Bloomberg's Guy Johnson at the IPEM Global conference in Paris, France. (Source: Bloomberg)