Live, rolling coverage of business, economics and financial markets as Marine Le Pen’s National Rally set to be largest party in first round of France parliamentary election
Back on the French election fall-out, let’s look at what economists have had to say this morning.
Marine Le Pen, leader of the victorious National Rally, formerly called for France to leave the euro currency and the EU. She has done her best to distance herself from any anti-euro sentiments in recent times, realising they are unpopular with people whose savings are in euros, but concerns over the future of Europe have been a major part of investor concerns over a far-right government.
The result is probably better-than-feared, but not as good as the status three weeks ago pre-elections.
We could still be looking at the next few years of political paralysis in France with a stalling of the reform process. However, any fears of Frexit or a euro area breakup would be unfounded.
We are inclined to see this more as a temporary blip rather than a sign of a prolonged downturn. Manufacturing growth was seen in other parts of the world in June, such as the United States, UK, and India, according to their respective Flash PMI. This global recovery provides a supportive backdrop for Eurozone manufacturers.
Additionally, optimism about future production remains as high as it was in May, indicating that businesses are still confident about the coming year.
Continue reading…
Source link : https://www.theguardian.com/business/live/2024/jul/01/euro-dollar-sterling-bond-markets-france-election-marine-le-pen-french-hung-parliament-manufacturing-ecb-business-live
Author : Jasper Jolly
Publish date : 2024-07-01 08:10:42
Copyright for syndicated content belongs to the linked Source.