France’s Prime Minister Sebastien Lecornu resigned just a day after President Emmanuel Macron named a new cabinet, deepening the country’s political crisis and sparking a selloff of French assets. The premier quit less than 24 hours after Macron announced a government that retained most senior members from previous cabinets. French bonds fell as investors braced for more political uncertainty. The yield on 10-year notes rose nine basis points to 3.6%. That widened the nation’s borrowing premium over German debt — a key gauge of fiscal risk — to over 89 basis points, the highest level since late 2024. In Japan, pro-stimulus lawmaker Sanae Takaichi’s near-certain elevation as Japan’s next prime minister jolted financial markets, with the yen and long-term bonds tumbling even as equities surged to all-time highs.
Today’s guests: Sophie Huynh, BNP Paribas Asset Management Portfolio Manager and Strategist, Fabrice Pothier, Rasmussen Global CEO, Ludovic Subran, Allianz CIO and Chief Economist
Chapters:
00:00:00 – The Pulse
00:00:39 – French PM Lecornu Resigns
00:04:54 – European Stocks Fall as France Plunged Intro Crisis
00:12:28 – Takaichi Win Jolts Yen & Japanese Bonds
00:16:03 – France in Crisis as PM Lecornu Resigns
00:23:24 – Headlines: French Bonds Fall, Japan Stocks
00:24:36 – Economic Impact of France Political Crisis
00:28:23 – Allianz CIO Warns French 10-Year Yield Can Rise to 4%
00:39:56 – Outgoing French PM Lecornu Speaks After Shock Resignation
00:46:01 – French Equities Sell Off on Political Crisis
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