Rolling coverage of the latest economic and financial news
France’s government did try to cool the situation yesterday, by proposing a budget for next year including €43bn in cuts and tax rises.
Under the proposed plan, the tax burden would rise while spending growth would be slowed through slashing state spending, and capping increases to pensions and civil servant salaries.
France’s fiscal package would prevent the deficit from reaching 6.5% of GDP next year, but it would not stabilise public debt. With a difficult political process ahead, French bonds are likely to remain under pressure, while the threshold for ECB intervention remains high
Markets stumbled yesterday as we began Q4, with mounting signs of financial stress focused on Europe. In fact, the daily moves were reminiscent of the Euro crisis in many respects, with sovereign contagion a big talking point.
10am BST: Eurozone flash inflation reading for September
1.30pm BST: US non-farm payrolls employment report
3pm BST: US factory orders report for August
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