French and Japanese Leaders to Discuss Hormuz Maritime Security

Macron’s allies opened the door to suspending his contested pension reform as the president struggles to forge a new government, increasing political uncertainty in France. The move raises doubts about fiscal consolidation and reform prospects and could pressure French assets and widen OAT-Bund spreads. Monitor French sovereign bonds, domestic banks and equity volatility until a stable government and clear policy direction emerge.

Analysis

Macron’s allies opened the door to suspending his contested pension reform as the president struggles to forge a new government, increasing political uncertainty in France. The move raises doubts about fiscal consolidation and reform prospects and could pressure French assets and widen OAT-Bund spreads. Monitor French sovereign bonds, domestic banks and equity volatility until a stable government and clear policy direction emerge.