UKRAINE: Zelenskyy Tries To Rally Support For Financial Backing Ahead Of EUCO

The MEF has announced a buyback auction for Wednesday 19 November for up to E5.0bln. It will look to buyback:

• the 3.50% Jan-26 BTP (ISIN: IT0005514473)
• the 0% Apr-26 BTP (ISIN: IT0005437147)
• the 3.80% Apr-26 BTP (ISIN: IT0005538597)
• the 3.85% Sep-26 BTP (ISIN: IT0005556011)
• the Apr-26 CCTeu (ISIN: IT0005428617)

Speaking at the 'Choose France' trade fair, PM Sebastien Lecornu has lamented that some planned tax cuts will never be implemented, and that the budget deficit risks rising to 6% of GDP, rather than being reduced below 5% as planned under his original fiscal programme. Lecornu claimed he would not enact a budget that damages France's business environment, saying, "I will not do just anything. I will not endorse just anything. The danger that weighs on the French economy is the lack of a budget. With all the economic, financial, and political uncertainty that comes with it." 

• In attempting to assuage the concerns of business representatives at the conference, Lecornu downplayed the prospect of some tax hikes coming into force, saying, "We are currently scaring a part of the country with taxes that will never be implemented because they are unconstitutional and lack a tax base. [...] The notion of compromise now is about avoiding the worst tomorrow [...] There's a last-ditch effort in everything I'm trying to do: the business world needs to be aware of that."
• Lecornu's comments are similar to those from Economy Minister Roland Lescure, who said in a 16 Nov Le Figaro editorial, "Political uncertainty generates economic uncertainty. To remove this uncertainty, we need to adopt a 2026 budget ... But not at any price,"
• Discussion on the draft end-of-management bill (PLFG), a "technical" text adjusting the 2025 finances, is set to resume at 21:30CET, with the National Assembly due to vote on the state budget by midnight on Sunday, 23 November. 

• EUR/USD: Nov19 $1.1700(E1.1bln), $1.1800(E1.6bln); Nov20 $1.1500(E2.0bln), $1.1630(E1.2bln), $1.1675-80(E1.5bln); Nov21 $1.1500(E1.4bln), $1.1675-80(E1.2bln)
• USD/JPY: Nov20 Y150.00($1.3bln), Y155.00($1.3bln)
• AUD/USD: Nov20 $0.6550(A$2.3bln)
• USD/CAD: Nov21 C$1.3950-70($1.3bln)
• USD/CNY: Nov20 Cny7.1080-89($2.0bln)