EM CEEMEA CREDIT: FROTO:1Q25, weaker profitability but solid cash flow

After being found guilty of embezzlement, far-right Rassemblement National (National Rally, RN) figurehead Marine Le Pen has been declared immediately ineligible to run for public office. The ban is for five years, upending the 2027 presidential election in which she was the early frontrunner. Le Pen left the courtroom before her full sentence was read out (she was also fined EUR100k and sentenced to four years in prison (two suspended) that can be served with an ankle monitor). There will undoubtedly be an appeal, but following a constitutional court ruling earlier in the month, Le Pen will remain barred from running for office during the appeal. As such, unless her appeal is successful and swift, the RN will have to find another candidate to run in the 2027 presidential election. 

• The verdict marks a major point in French politics. Le Pen has run for the presidency three times, reaching the run-off in 2017 and 2022 and increasing her vote share each time. Recent scenario opinion polling, putting her up against various leftist, centrist, and conservative figures showed Le Pen either winning the run off or level-pegging. Given Le Pen's high profile, it remains to be seen whether her ban results in the RN failing to capitalise on widespread public anger at the Macron administration, or if choosing a less divisive figure could in fact boost the RN's chances of winning the presidency.
• The initial favourite to take on the RN's presidential mantle would appear to be party leader Jordan Bardella. However, by 2027, he will be just 31 years of age, potentially raising concerns about his experience and suitability. 

• On the commodity front, the trend condition in Gold is unchanged, it remains bullish. Today’s strong gains highlight a bullish start to this week’s session and confirm a continuation of the primary uptrend. The rally also once again, highlights fresh all-time highs for the yellow metal. Sights are on the $3151.5, a 3.000 projection of the Nov 14 - Dec 12 - 19 price swing. Support to watch lies at $2992.4, the 20-day EMA. A pullback would be considered corrective.
• In the oil space, despite recent gains, a bearish trend condition in WTI futures remains intact, and gains this month are considered corrective. However, a key resistance at $69.17, the 50-day EMA, has been pierced. The breach strengthens a bullish theme and opens $70.98, the Feb 25 high. For bears, a reversal lower would expose the bear trigger at $64.85, the Mar 5 low. Clearance of this level would resume the downtrend and open $63.73, the Oct 10 ‘24 low.