French Unemployment Rises Amid Economic Downturn; European Stocks Surge on US Surtax Exemptions
Key Takeaways
- France is experiencing rising unemployment due to a worsening economic situation.
- European stock markets surged after US surtax exemptions on high-tech products.
- UK government to take over British Steel's furnaces from Jingye to prevent production loss.
- China’s tariff response may add pressure on the Won and Korean bonds.
- France's high-income tax (CDHR) may become permanent, affecting those earning over €250,000.
Top Stories
France faces rising unemployment amid economic downturn
On April 14, 2025, reports indicate rising unemployment in France due to companies reducing hiring and implementing redundancies amid a worsening economic situation. Individuals like Jordan, an automation engineer, and Elisa, a production manager, are expressing concerns about the job market.
European stock markets surge after US surtax exemptions
On April 14, 2025, European stock markets opened significantly higher following the announcement of exemptions from US surtaxes on high-tech products. Paris gained 2.14%, Frankfurt 2.10%, Milan 2.04%, and London 1.60% in early trading.
UK government to take over British Steel's furnaces
On April 14, 2025, the British Parliament was recalled and largely approved a plan for the UK government to take over British Steel's blast furnaces from Jingye. This action aims to prevent the UK from losing steel production capabilities and potentially nationalizing British Steel, affecting 3,500 employees.
China's tariff response pressures Won, Korean bonds
Published on April 14, 2025, a report indicates that China’s tariff response may add pressure on the Won and Korean bonds.
France: High-income tax (CDHR) may become permanent
On April 13, 2025, French Economy Minister Eric Lombard declared his wish for the differential contribution on high incomes (CDHR) to be permanent, signaling solidarity. Those with incomes exceeding 250,000 euros per year for a single person and 500,000 euros for a couple without children will also be subject to the CDHR in 2025, setting a minimum tax rate of 20%.
Economic Trends
Trade war pause: unclear economic outlook persists
Published on April 14, 2025, the economic outlook remains unclear despite a temporary pause in the trade war. Global markets initially rebounded but quickly returned to previous levels due to ongoing tariffs and Trump's unpredictable behavior, potentially leading to a US recession.
France will not renew tax on large companies
Published on April 13, 2025, French Economy Minister Eric Lombard stated that the exceptional tax on large companies, which generated 8 billion euros, will not be renewed. However, the government intends to maintain or improve the 2 billion euro contribution on high incomes, citing financial resources and equity concerns.
Market Insights
Asian markets climb on eased US tariffs
On April 14, 2025, Asian stock markets climbed cautiously, relieved by the U.S. easing tariffs on electronics. The Nikkei in Tokyo rose by 1.18%, the Topix by 0.88%, Seoul gained 0.95%, and Sydney 1.34%.
Goldman Sachs Q1 2025 earnings: $12.35 EPS expected
Goldman Sachs is scheduled to report its first-quarter 2025 earnings before the market opens on Monday, April 14, 2025. Analysts predict earnings per share of $12.35 and revenue of $14.81 billion. Trading revenue is projected at $4.56 billion for fixed income and $3.65 billion for equities, while investment banking revenue is estimated at $1.94 billion.
Global Finance
French Minister Lombard in Warsaw, Poland
On April 11, 2025, French Economy and Finance Minister Eric Lombard was in Warsaw, Poland, according to a report published on April 13, 2025.