A ‘Doom Loop’ Threatens France as Populism Confronts Markets

© Abdul Saboor/Reuters

© Abdul Saboor/Reuters
Difference between French and German borrowing costs widens after public buildings burned and shops looted
France has been hit by a fresh wave of selling in its bond and stock markets after violent protests over the weekend led to thousands of arrests and left public buildings burned and hundreds of shops looted across the country.
The chaos has spooked investors as analysts worried that it would undermine Paris’s efforts to cut spending and reduce its debt.
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© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

© Photograph: SDIS 87/AFP/Getty Images

TOKYO — An unwelcome blast of US inflation is blowing across Asia’s markets. September’s hotter-than-expected price data revived concerns that the Federal Reserve will keep rates higher for longer, threatening fresh pressure on currencies, capital flows and economic growth across the region.
Last month’s 3.7% year-on-year increase in consumer prices didn’t just exceed forecasts. It ensured the Fed is on an even bigger collision course with both the bond market and US President Donald Trump’s White House. It’s arguably the last thing both Trump and US Federal Reserve Chairman Kevin Warsh wanted to see less than three weeks ahead of the mid-term elections.
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TOKYO — The bond vigilantes are back — and now they’re patrolling every major debt market at once. As deficits balloon, spending runs unchecked and oil prices spike, investors are reasserting control over markets that once seemed shielded from shocks and sending yields skyrocketing. The revolt spans the US, Japan, Europe and beyond as a […]
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