The CAC index is unchanged in the Thursday session. Currently, the index is at 5,283.75, up 0.03% on the day. There are no French or eurozone indicators on the schedule. On Friday, France releases Consumer Spending and Preliminary CPI.
French President Emmanuel Macron wants to further integrate the eurozone, and has proposed that the bloc should have its own budget and finance minister. On Tuesday, Macron went as far as proposing that Germany and French completely integrate their markets and corporate rules by 2024. However, Macron may find serious resistance to his plan in post-election Germany, where a weakened Angela Merkel will have her work cut out cobbling together a coalition. Merkel made a first move by appointing her former finance minister, Wolfgang Schaeuble as president of parliament. This astute move clears the path for the pro- business FDP party, which has insisted on the powerful finance portfolio, to join a coalition with Merkel. The FDP is fiscally hawkish and is strongly opposed to Germany continuing to finance weaker eurozone members, such as Greece. If the FDP does take part in the government, Merkel may have to shift away from her pan-European vision, which could ice Macron’s proposal to further integrate the eurozone.
On Tuesday, German industrial giant Siemens AG announced that it would merge rail operations with Alstom SA, a French train manufacturer. The merger is aimed as a response to growing competition in the rail transport sector, particularly from the Chinese state-owned railroad, CRRC. The merger still needs to be approved by regulators, but is already being hailed as an important deal which will strengthen economic ties between France and Germany and will help Europe compete on the global stage. French finance minister finance minister Bruno Le Maire has said that he will ensure the deal, which still must be approved by regulators, does not result in any job losses at Alstrom.
