Aurelia Butler

Bayrou, whose appointment on Friday made him the fourth person to serve as French prime minister this year, will be responsible for steering a 2025 budget through the fractious parliament. It was the same task that ultimately toppled his predecessor Michel Barnier, whose three-month tenure was the shortest in modern French history.Bayrou’s meetings will take place in order of the size of the parties. Le Pen’s Rassemblement National won most seats when President Emmanuel Macron called a snap election in June, but failed to secure a majority. A leftist alliance called the New Popular Front is the largest bloc.”My first job is to be a builder and, failing that, a repairman,” Bayrou told the newspaper.Barnier sought to implement tax increases on corporations and wealthy individuals to cut a deficit that is expected to reach 6% of Gross Domestic Product at the end of this year. He was unable to find a parliamentary majority to back the plan, with Le Pen saying Barnier should have done more to incorporate her party’s concerns.After Barnier sought to pass the bill without a majority vote, lawmakers from the far-right and left backed a no-confidence vote and he resigned. Credit rating agency Moody’s (NYSE:MCO) handed France an unexpected downgrade late on Friday, to “Aa3” from “Aa2,” saying that the next government was unlikely to materially reduce the country’s deficit and that the public finances would be weaker over the next three years than their October baseline scenario. More

“As always, Premium and Premium+ users get higher usage limits and will be the first to access any new capabilities in the future,” the artificial intelligence startup said in a blog.xAI has been quietly testing a new version of the Grok-2 model over the past few weeks, it said. More

(Reuters) – U.S. President-elect Donald Trump has expressed a keen interest in privatizing the U.S. Postal Service in recent weeks, the Washington Post reported on Saturday, citing three people with knowledge of the matter. Trump, who takes office on Jan. 20, has discussed his desire to privatize the Postal Service with Howard Lutnick, his pick for commerce secretary, at Mar-a-Lago, the report said. More

ACCRA (Reuters) – Ghana’s President-elect John Dramani Mahama has said he will not abandon the country’s $3 billion rescue package with the International Monetary Fund, but wants to review the deal to tackle wasteful state spending and upgrade the energy sector.Mahama, a former president who won the Dec. 7 election by a wide margin, told Reuters late on Friday he would also seek to tackle inflation and currency depreciation to mitigate a cost-of-living crisis in the West African nation.Mahama had said previously that he would renegotiate the IMF programme secured by the government of outgoing President Nana Akufo in 2023.”When I talk about renegotiation, I don’t mean we’re jettisoning the programme,” Mahama said.”We’re bound by it but what we’re saying is within the programme, it should be possible to make some adjustments to suit reality.”Ghana’s electoral commission declared Mahama, who was in office from 2012-16, winner of the presidential poll with 56.55% of the vote.The president-elect of the world’s number two cocoa producer inherits a nation emerging from its worst economic crisis in a generation, with turmoil in its vital cocoa and gold industries.FOCUS ON SPENDING, ENERGYThe IMF deal helped to halve inflation and returned the economy to growth, but Mahama said more work was needed to ease economic hardship.”The economic situation is dire … and I’m going to put my soul, physique and everything into it and focus on making lives better for Ghanaians,” said Mahama, whose National Democratic Congress party also won comfortably in a parliamentary vote held on Dec. 7.He said the “multiplicity of taxes” agreed to as part of the IMF programme had made Ghana “unpleasant for business”.”We also think that (the IMF) have not put enough pressure on the government to cut wasteful expenditures,” he said, adding a review would aim to reduce spending, including by the president’s office.”If the president is asking us to tighten our belt, he must also tighten his,” he said.Mahama said the IMF had agreed to send an early mission to conduct a regular review, adding discussions would focus on “how to smoothen out the debt restructuring” that is now in its final lap.He said a revised IMF deal would also seek sustainable solutions to the energy problems to avoid sustained power outages.”We’re going to face quite a critical situation in the energy sector. The electricity company of Ghana is the ‘sick man’ of the whole value chain and we need to quickly fix it,” Mahama said. More

In a recent note, Deutsche Bank (ETR:DBKGn) strategists have discussed the potential implications of Lighthizer’s absence, placing it within the broader context of Trump’s recent statements on tariffs.First of all, despite Lighthizer’s likely absence, tariffs remain “likely,” Deutsche strategists note, with President-elect Trump reiterating his belief in their effectiveness in a recent NBC interview.Trump has threatened to increase tariffs on key trade partners, including Mexico, Canada, China, and the BRIC nations. Jamieson Greer, Trump’s pick for U.S. Trade Representative, and Peter Navarro, appointed as a Senior Counselor for Trade and Manufacturing, are both seen as proponents of stringent trade policies.“We therefore continue to anticipate that more tariffs are coming, with or without Lighthizer,” strategists led by Matthew Luzzetti said in a note.Still, the composition of Trump’s economic team suggests a nuanced approach to tariffs. Treasury Secretary nominee Scott Bessent has advocated for a strategic application of tariffs, while Commerce Secretary nominee Howard Lutnick views them as a “bargaining chip” to lower trade barriers for U.S. exports.“Thus, while tariffs may be coming, there will be voices in the room that will act as meaningful counterweights to hawkish inclinations on trade. We would view the universal baseline tariff as most at risk here,” strategists noted.The absence of Lighthizer might be interpreted by markets and trade partners as a softening of the U.S. trade policy. According to Deutsche Bank, “Trump is unlikely to want to send that signal.”To maintain a firm stance, strategists said Trump may increase the rhetoric around tariffs to emphasize their importance in his administration’s agenda. The recent threats of heightened tariffs on Canada, Mexico, and the BRIC countries serve as examples of this approach.Without Lighthizer’s maximalist tariff strategy, strategists believe the economic outlook could see some benefits.A less aggressive tariff policy from the outset might reduce the risk of a significant supply shock to the economy. Consequently, the bank sees an improved distribution of growth and inflation outcomes, albeit marginally. More

UBS analysts categorize the progression into distinct stages that are likely to unfold throughout 2025, starting with what they term the “tweet phase,” escalating to the “imposition phase,” and eventually transitioning into the “impact phase.”The “tweet phase,” according to UBS, is already underway, characterized by public declarations and demands through social media. These early-stage announcements often serve to define negotiating positions and apply pressure on trade partners even before official actions are undertaken.The “imposition phase” is expected to commence in the first quarter of 2025. During this stage, legal groundwork will be laid for imposing tariffs, requiring procedural steps, public commentary, and time for drafting measures that can withstand legal scrutiny. UBS anticipates that while some preparatory work may already be underway, the timeline for this phase will depend on administrative priorities and the need for meticulous implementation.Following the imposition, the “impact phase” is projected to begin from the second quarter onward. UBS notes that businesses, aware of the risks, are likely to engage in stockpiling and inventory management to mitigate short-term disruptions. However, the broader economic effects, such as reduced trade volumes and slowed growth, could manifest even before corporate earnings reflect the full brunt of tariff-related costs.A parallel “negotiation phase” is expected to persist throughout the year. UBS highlights the likelihood of ongoing talks between trade partners aimed at either defusing tensions or responding with retaliatory measures. For instance, recent moves by China to restrict exports of critical metals in response to U.S. actions underline how trade policies may remain highly transactional and subject to abrupt shifts.Despite the uncertainty, UBS analysts also emphasize that the response from global markets and trade partners could significantly shape the trajectory of this conflict. They cite President-elect Donald Trump’s threats to impose 100% tariffs on BRICS countries unless specific conditions are met, a move they deem unlikely to materialize but indicative of the heightened rhetoric surrounding trade policy.In addition to the timeline, UBS provides insight into the potential economic implications of new tariffs. Emerging market currencies, particularly the Chinese yuan, are expected to experience increased volatility and pressure as a result of reduced trade volumes and investor risk aversion. The yuan could face additional stress, similar to patterns observed during prior trade tensions, though interventions by China’s central bank are likely to provide some level of stabilization.The note also examines how these dynamics intersect with broader economic policies, including the Federal Reserve’s rate-cutting strategy and the impact on the U.S. Treasury yields. UBS warns that more extensive tariffs could risk stagflation—a toxic mix of high inflation and low growth—though their baseline scenario suggests moderate inflationary effects. More