France PM Ousted Amid Debt Concerns; US Job Growth Weak, Inflation Looms
Key Takeaways
- French PM ousted due to debt concerns, potentially leading to credit rating downgrade.
- Weak U.S. job growth and rising inflation may prompt a Federal Reserve rate cut.
- Nikkei hits record high, driven by US rate cut expectations, reaching 44,021 points.
- Nebius Group's shares surge 33% after $17.4B deal with Microsoft for GPU infrastructure.
- Trump's deportation policies could cause U.S. inflation to hit 4% by 2026: Zandi.
Top Stories
France: PM ousted, bond market pressure, potential credit downgrade.
On September 8, 2025, France's Prime Minister François Bayrou was ousted due to debt concerns and austerity opposition, potentially leading to a credit rating downgrade. French bonds faced pressure, with the government facing political and fiscal uncertainty.
US: Weak job growth, inflation concerns, and potential Fed rate cut.
The U.S. Labor Department is expected to publish a preliminary nonfarm payroll benchmark on September 9, 2025, potentially showing weak growth due to automation and immigration enforcement. Rising inflation and slowing job growth create challenges for the Federal Reserve's monetary policy.
Japan: Nikkei hits record high, driven by US rate cut expectations.
On September 9, 2025, the Nikkei index of the Tokyo Stock Exchange reached a new record, driven by expectations of interest rate cuts by the U.S. Federal Reserve. The index climbed to 44,021 points, hitting 44,074.35 points in early trading.
Nebius Group: $17.4B deal with Microsoft, shares surge.
On September 8, 2025, Nebius Group announced a $17.4 billion deal with Microsoft for GPU infrastructure capacity, causing its shares to jump 33% after hours. This was driven by surging demand for data centers due to the generative AI race.
US: Trump's deportation policies could cause inflation.
Mark Zandi warned that mass deportations under U.S. President Donald Trump could cause inflation to hit 4% by 2026. Deportations have significantly reduced the number of immigrants, impacting labor-reliant sectors.
Market Insights
US: Stock market rises on rate cut expectations, inflation data awaited.
On September 8, 2025, US stock futures rose, with the Dow, S&P 500, and Nasdaq increasing, driven by anticipation of interest rate cuts by the Federal Reserve. Investors are awaiting inflation data, including the PPI and CPI reports, to influence policy decisions.
Argentina: Election loss, currency and market impact.
Following the defeat of Argentina's ruling party in Buenos Aires on September 8, 2025, the dollar is expected to rise, and the stock market is anticipated to be negatively affected. The government maintains its fiscal and exchange rate policies.
Delhi: Gold and silver prices fall from record highs.
On September 8, 2025, gold and silver prices in Delhi fell from record highs due to selling pressure, although global spot prices and futures reached new records. Analysts are monitoring US inflation data for future price direction.
China: A-share market experiences fluctuations.
On September 8, 2025, the A-share market saw fluctuations, with the ChiNext Index falling over 2%, while some sectors like robotics and healthcare rose. The Hang Seng Index showed mixed performance.
Key economic data releases scheduled for September 9, 2025.
Investing.com outlines key economic data releases for September 9, 2025, including the Payrolls Benchmark and EIA Short‑Term Energy Outlook, which are expected to influence market sentiment.
Australia: Consumer sentiment falls to early 2022 levels.
On September 8, 2025, Australian consumer sentiment fell 3.1% to 95.4 in September, the lowest since early 2022. Economic concerns outweighed gains in family finances and a cooling inflation backdrop.
Bitcoin and Ether prices surge.
On September 8, 2025, Bitcoin and Ether prices surged following President Donald Trump's embrace of the crypto industry.
Policy Watch
Indonesia: Finance Minister removed, market volatility feared.
On September 8, 2025, Indonesia's Finance Minister Sri Mulyani Indrawati was removed, raising concerns among global investors about increased market volatility and budget credibility.
China: Xi Jinping advocates for open trade.
On September 8, 2025, Xi Jinping stated that BRICS should uphold openness and protect the international economic and trade order.
UK: Potential IMF bailout warning.
On September 9, 2025, Kemi Badenoch warned that the UK might need an IMF bailout due to soaring borrowing costs. She offered to collaborate with Labour on welfare cuts.
Brazil: Tax exemption bill for income tax.
On September 8, 2025, the president of the Chamber reaffirmed the commitment to vote on the bill to expand the income tax exemption to those earning up to R$ 5,000 monthly. The government is pushing for the bill to be sanctioned by October.
India: GST 2.0 triggers price cuts from automakers.
India's GST 2.0, effective September 22, 2025, has led to price cuts from major automakers, ranging from ₹1.55 lakh to ₹10 lakh. The aim is to boost affordability and sales ahead of the festive season.