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French political turmoil underlines ‘desynchronized growth’ in Europe

French assets came under renewed pressure on Monday after Prime Minister Sébastien Lecornu resigned just hours after unveiling his cabinet. The selloff in equities and widening OAT–Bund spreads reinforced what economists and strategists describe as a new normal: a volatile, fragmented France where politics, not policy, drives market sentiment.

CSSF presses fund managers to tighten ESG disclosures

The CSSF has ordered all Luxembourg-based investment fund managers to review and, if necessary, correct their sustainability risk policies and disclosures, following a Europe-wide supervisory exercise that found compliance broadly satisfactory but still in need of significant improvement. The order also applies to managers of so-called Article 6 funds, which do not claim ESG characteristics.