France Averts Shutdown, US Sanctions EU Tech Lawmaker, Gold Hits Record High

France's Stopgap Budget

• 🇫🇷 France's National Assembly approved a stopgap budget bill for 2026 to ensure the state continues to operate into January.
• ⚠️ This temporary measure, known as 'Lespel', allows for continued tax collection and borrowing despite the lack of a full fiscal plan.
• 📉 The French Prime Minister noted that if the situation persists, there will be negative consequences, with the deficit projected at 5.3% of economic output.

US Sanctions on EU Tech Regulation

• 🇺🇸 The Trump administration imposed visa sanctions on former EU Commissioner Thierry Breton and four others for regulating big tech platforms.
• 🗣️ The US accused Breton of "extraterritorial censorship," while the global disinformation index called the sanctions an "authoritarian attack on free speech."
• 🏛️ Breton responded by questioning if the US was returning to McCarthyism.

Precious Metals Rally

• 🥇 Gold surged to an all-time high above $4,500 an ounce, with silver and platinum also reaching record levels.
• 📈 This rally is attributed to global uncertainty, a debasement trade, mistrust in traditional assets, a weaker dollar, and central bank gold purchases.
• 📉 Traders anticipate further US Federal Reserve rate cuts, which typically benefits non-yielding precious metals.

Epstein Files and Wealth Exodus

• 📄 The US Department of Justice's release of heavily redacted Epstein files has faced criticism for delays and redactions, with some arguing it unfairly tarnishes individuals.
• ✈️ Billionaire Alan Howard, co-founder of Brevan Howard Asset Management, has relocated to Switzerland from the UK, adding to concerns about wealthy individuals exiting Britain due to tax policies.

Market Performance and Economic Outlook

• 📈 Global stocks reached record highs, with the S&P 500 closing at an all-time high, driven by better-than-expected US GDP growth and expectations of Federal Reserve rate cuts.
• 🚀 The potential for large IPOs from companies like OpenAI and SpaceX is also boosting market sentiment.
• 🌏 Asian stock markets, particularly South Korea, have shown strong performance, partly due to starting from a lower base and currency appreciation.