FRANCE: Senator-PS Not Returning To Budget Talks 'For Now'

Jan-29 15:37

Reuters reporting comments from Socialist Party (PS) Senator Patrick Kanner saying that the PS is not returning to budget talks with the gov't 'for now', and that the party 'wants further concession from PM Bayrou'. In the Senate, Kanner addresses the gov't saying "We do not want our country to live under the tutelage of the extreme right". 

  • The PS withdrew from any budget discussions following comments from PM Francois Bayrou on 27 Jan talking about a 'feeling of flooding' with regards to immigration. The PS has demanded Bayrou walk back his comments, as well as committing to an increase in the minimum wage and an agreement not to cut funding for state medical aid (see 'FRANCE: PS Sets Out Conditions To Return To Budget Talks', 1154GMT)

 

Historical bullets

GILT AUCTION PREVIEW: On offer next week

Dec-30 15:36

The DMO has additionally announced it will be looking to sell GBP2.25bln of the 4.375% Jul-54 Gilt (ISIN: GB00BPSNBB36) at its auction next Tuesday, January 7.
 

US: Trump Says Speaker Johnson Has His 'Total Endorsement'

Dec-30 15:34

US President-elect Donald Trump has issued a lengthy statement on his Truth Social site endorsing House Speaker Mike Johnson (R-LA) ahead of the January 3 speaker vote on the floor of the House of Representatives. 

  • Trump: "Speaker Mike Johnson is a good, hard working, religious man. He will do the right thing, and we will continue to WIN. Mike has my Complete & Total Endorsement. MAGA!!!"
  • The statement comes after a damaging two-week period - starting in late December - when Trump and advisor Elon Musk torpedoed a Johnson-backed plan to fund the federal government. This week, a public spat over H-1B work visas has deepened fissures between the 'Silicon Valley' faction of the GOP, led by Musk, and the conservative 'America First' bloc of Trump's MAGA movement, raising concerns that a collapse of the GOP coalition could derail Trump's agenda.
  • Trump's statement appears designed to patch up the rift ahead of the speaker vote, which will kickstart a challenging 100-day period when Trump needs near-unanimous support from House Republicans to pass a reconciliation package that will include immigration and energy legislation and likely a measure to suspend the federal debt ceiling.  
  • Rep Thomas Massie (R-KY) has stated he will vote 'no' on Johnson with Rep Victoria Spartz (R-IN) leaning towards 'no'. Assuming all Democrats are present and vote 'no', four dissenting Republican votes will sink Johnson's bid and force another speaker ballot.
  • Chad Pergram at Fox News has a useful explainer on the implications of the speaker vote here

GILT AUCTION PREVIEW: On offer next week

Dec-30 15:32

The DMO has announced it will be looking to sell GBP4.25bln of the new 4.375% Mar-30 Gilt (ISIN: GB00BSQNRD01) at its auction next Wednesday, January 8.