The mission of Sebastien Lecornu, France’s caretaker prime minister, to save Emmanuel Macron’s presidency from a deepening crisis immediately ran into a  predictable roadblock: namely, a lack of parties interested in its success.

Macron had asked the outgoing premier, who quit Monday, to have one last attempt — with a deadline of Wednesday evening — to bring together opposing parties to approve a budget that’s urgently needed to curb a growing debt burden and reassure investors. 

There’s no sign of it happening. Marine Le Pen’s National Rally reiterated its position today that the only solution to the crisis is to call legislative elections or for Macron to resign. It sees an opportunity to build on the gains it registered in the last snap vote in 2024. Le Pen’s party declined to meet again with Lecornu.

The Socialists aren’t pushing for fresh elections, rather they’re saying they should lead the next government. The head of the Republicans and the outgoing interior minister, has said it’s out of the question for his group to endorse a left-wing cabinet.

The impasse is raising pressure on Macron to call an early parliamentary election or to resign from the presidency. Macron’s close ally and his first prime minister, Edouard Philippe, suggested a third option: the president should offer to resign before the end of his term in 2027 on the condition of a budget being adopted.

The deadlock is likely to weigh on French assets going forward, though Goldman Sachs Group and Citigroup are split on the outlook for French bonds given differing views on how much the market has factored in the chances of new elections. — Zoltan Simon

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Hamas is looking to secure a “fair hostage exchange” as part of a deal with Israel to end the two-year war. Israel and Hamas have begun mediated peace talks this week in the Egyptian Red Sea resort of Sharm El Sheikh to build on US President Donald Trump’s 20-point peace plan. An agreement should include the unconditional entry of humanitarian aid into Gaza, a guarantee for refugees to return and immediate permission to begin reconstruction under a Palestinian committee, a Hamas spokesperson. It wasn’t clear from the comments if Hamas would agree to release hostages it holds without all of the group’s conditions being met.

The European Union unveiled tariffs today meant to shield its steel sector. The European Commission proposed tariffs of 50% — twice the current rate — on all steel imports above a quota that will be cut by roughly 45%. The move is a response to mounting fears that traditional European industries like steel are fading, choked by a glut of subsidized Chinese competition, high energy prices and dwindling local demand. The measures would align EU tariffs with a 50% US levy on most foreign steel and aluminum.

Rich Middle Eastern families, who are expected to transfer an estimated $1 trillion to the next generation in the coming years, are increasingly turning to professional money managers. Banks from Citigroup to Barclays to Deutsche Bank are hiring in the Gulf to bolster local wealth divisions. Dubai is now home to more than 70 hedge funds while neighboring Abu Dhabi is home to giants like Brevan Howard Asset Management and Marshall Wace.

Russia’s seaborne crude shipments held close to a 16-month high in the past four weeks, as Ukrainian drone strikes on refineries force the diversion of supplies to export terminals and strain their effective capacity. The EU meanwhile proposed restrictions on three firms that have provided fake flags to sanctioned oil tankers in Russia’s shadow fleet, according to documents we’ve seen. For its part, Ukraine said it will have to ramp up natural gas imports by almost a third after Russia intensified attacks against key energy infrastructure.

BlackRock says European corporate bondsstand out as one of the most compelling opportunities in global credit, with yields near 3% offering a rare source of relatively safe income. In particular, the firm favors banks, utilities, technology, media, and telecommunications, which are more insulated from tariffs than other companies.

The UK government’s decision to guarantee a £1.5 billion ($2 billion) emergency loan to Jaguar Land Rover to contain the fallout from a major cyberattack from late August carries a moral hazard, experts tell us. While allowing the carmaker to pay its suppliers and potentially protecting thousands of jobs at risk from the business disruption, it may also act as a disincentive for companies to spend more on cybersecurity.

A Jaguar motor vehicle on the outside of the Jaguar Land Rover vehicle manufacturing plant in Castle Bromwich. Photographer: Chris Ratcliffe/Bloomberg

Saudi Arabia is making “uneven” progress on its most ambitious infrastructure projects due to challenges including engineering constraints, a shortfall in private investment and lower oil prices, according to Moody’s Investors Service. While the Gulf kingdom is still expected to implement Crown Prince Mohammed bin Salman’s economic transformation plan, known as Vision 2030, fiscal trade-offs indicate the government will continue to post budget shortfalls in years to come, Moody’s said.

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