{"id":53679,"date":"2025-09-26T11:39:01","date_gmt":"2025-09-26T15:39:01","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/french-budget-under-scrutiny-as-global-growth-faces-headwinds-auto-stocks-surge\/53679\/"},"modified":"2025-09-26T11:39:01","modified_gmt":"2025-09-26T15:39:01","slug":"french-budget-under-scrutiny-as-global-growth-faces-headwinds-auto-stocks-surge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/french-budget-under-scrutiny-as-global-growth-faces-headwinds-auto-stocks-surge\/53679\/","title":{"rendered":"French Budget Under Scrutiny as Global Growth Faces Headwinds; Auto Stocks Surge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>France is targeting a budget deficit of approximately 4.7% of GDP in 2026<\/strong>, with a commitment to reach the <strong>3% EU goal by 2029<\/strong>. Prime Minister Le Cornu emphasized rebuilding the 2026 budget from scratch, focusing on spending cuts while explicitly rejecting austerity measures. Prime Minister Le Drian also announced a plan to save <strong>\u20ac6 billion<\/strong> through state spending reductions.<\/li>\n<li><strong>Citi forecasts a slowdown in global growth to below 2% in the second half of 2025<\/strong>, attributing this to the increasing impact of tariffs, before a projected rebound to <strong>2.5% in 2026<\/strong>.<\/li>\n<li><strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>) shares rose 1.1% to their highest level since January 2022<\/strong>, while <strong>Ford (<a href=\"\/stock\/F\">F<\/a>) shares climbed 4%<\/strong>, reaching their highest point since July 2024, amidst a broader surge in auto stocks.<\/li>\n<li><strong>Anthropic announced plans to triple its global AI workforce<\/strong> and expand its international presence, signaling significant growth in the artificial intelligence sector.<\/li>\n<li><strong>Iraq&#39;s state oil marketer SOMO confirmed that oil exports from Kurdistan&#39;s fields are scheduled to commence this Saturday<\/strong>.<\/li>\n<\/ul>\n<p>France is embarking on a critical fiscal path, with the Prime Minister indicating a projected budget deficit of around <strong>4.7% of GDP for 2026<\/strong>. The government aims to bring this down to the European Union&#39;s mandated <strong>3% target by 2029<\/strong>. Prime Minister Le Cornu stated that the 2026 budget would be &quot;rebuilt from zero&quot; with a strong emphasis on cutting expenses, while simultaneously ruling out austerity measures for the year. Separately, Prime Minister Le Drian detailed a plan to achieve <strong>\u20ac6 billion<\/strong> in savings by reducing state spending and improving living standards, as reported by Le Parisien.<\/p>\n<p>In the global economic landscape, Citi has issued a cautious outlook, predicting that <em>global growth will decelerate to below 2% in the second half of 2025<\/em>. The financial giant attributes this slowdown to the escalating effects of tariffs. However, Citi anticipates a recovery, with growth projected to rebound to <strong>2.5% in 2026<\/strong>.<\/p>\n<p>Meanwhile, the automotive sector saw significant gains. <strong>General Motors (<a href=\"\/stock\/GM\">GM<\/a>) shares increased by 1.1%<\/strong>, reaching their highest valuation since January 2022. <strong>Ford (<a href=\"\/stock\/F\">F<\/a>) experienced an even stronger rally, with its shares climbing 4%<\/strong> to their highest level since July 2024. These movements contributed to a broader surge across car stocks.<\/p>\n<p>The artificial intelligence industry continues its rapid expansion, with <strong>Anthropic announcing its intention to triple its global AI workforce<\/strong>. This strategic move underscores a significant push in the international AI market.<\/p>\n<p>In energy markets, Iraq&#39;s state oil marketer SOMO confirmed that the plan to export oil from Kurdistan&#39;s oil fields is set to begin this Saturday.<\/p>\n<p>Elsewhere, a Bank of England Monetary Policy Committee member, Dhingra, downplayed inflation concerns and advocated for lower interest rates in an op-ed for The Times. Dhingra also noted that the UK is not facing higher food inflation compared to its peers and suggested that earnings are less critical in the services Consumer Price Index.<\/p>\n<p>In the United States, <strong>3,200 workers went on strike in September<\/strong>. Additionally, senior U.S. House Republican Moolenaar announced full oversight of the TikTok sale deal and plans to summon new TikTok leaders for hearings. Starbucks (<a href=\"\/stock\/SBUX\">SBUX<\/a>) saw its CTO, Deb Hall Lefevre, resign on Monday, according to an internal memo cited by Reuters. Canada&#39;s budget balance for July recorded a deficit of <strong>-1.51 billion CAD<\/strong>, a notable shift from the previous <strong>+3.63 billion CAD<\/strong>, with the year-to-date balance at <strong>-7.79 billion CAD<\/strong> compared to the previous <strong>-3.34 billion CAD<\/strong>. The US Kansas City Fed Services Activity for September registered <strong>-9<\/strong>, down from <strong>4<\/strong> previously.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways France is targeting a budget deficit of approximately 4.7% of GDP in 2026, with a commitment to reach 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