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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 441.88-2.7%Feb 5 4:00 PM EST

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To: TobagoJack who wrote (216942)10/6/2025 11:08:57 AM
From: Box-By-The-Riviera™  Read Replies (1) of 220062
 
the french are going to kill the Euro if Germany doesn't do it first

Live
French borrowing costs rocket as prime minister resigns


Sebastien Lecornu has resigned as France’s prime minister Credit: LUDOVIC MARIN/POOL/AFP via Getty Images

Chris Price. Alex Singleton

Key momentsUpdated 12 minutes ago
French bond yields surgeFrance’s cost of borrowing has jumped to 3.6pc, with analysts saying the PM’s departure had “blindsided” markets Cac 40 tumblesThe stock market sank and the euro also slumped over fears France would not be able to pass a budget Investors flock to goldThe crisis has helped to push the safe haven asset to a new record high UK stocks wobbleThe FTSE 100 fell before recovering to climb slightly, with banking stocks suffering amid the uncertainty
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The cost of government borrowing has rocketed higher in France after its new prime minister resigned hours after appointing his new cabinet.

Bond yields surged and French stock markets sank after Sébastien Lecornu resigned after just 27 days in the role amid threats from allies and opponents to topple his government.

His unexpected resignation deepens the political crisis in France, which is now seeking its fourth prime minister in less than a year.

The hard-Right National Rally immediately urged President Emmanuel Macron to call a snap parliamentary election.

Appointed last month, Mr Lecornu had faced the formidable task of cobbling together a consensus in a deeply divided parliament for an austerity budget for next year.

Two immediate predecessors, Francois Bayrou and Michel Barnier, were ousted by the National Assembly over plans for a cost-cutting budget.

Jack Allen-Reynolds of Capital Economics said France’s “fractured parliament is making it nearly impossible to pass a budget that reduces the fiscal deficit”.

Its government borrowing costs have climbed above those of Italy, Greece and Portugal, with the yield jumping as much as 11 basis points to 3.61pc. The difference between its bond yields and those of Germany reached the widest level this year.

Chris Beauchamp, chief market analyst at IG, said markets had been “blindsided” by Mr Lecornu’s exit, with the Cac 40 stock index down as much as 2.1pc.

He said: “The real worry will be that the procession of prime ministers unable to govern will at some point force the resignation of President Macron, which would cause the crisis to intensify significantly.”
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