Top Stories — Tuesday, September 9, 2025
What is trending in the USA today? Here is Breaking News:
- France's political crisis deepens as another PM is axed: Here's what happens next — CNBC
- Anglo American shares surge 8% on 'merger of equals' with Canada's Teck Resources — CNBC
- Chinese EV maker Xpeng eyes global launch of mass-market Mona series in 2026 — CNBC
France's political crisis deepens as another PM is axed: Here's what happens next
Source: CNBC • Published: 9/9/2025, 1:58:49 PM
France was thrown into further political chaos this week by the ousting of yet another prime minister after continued budget deadlock.
Prime Minister Francois Bayrou and his centrist minority government lost a confidence vote Monday, with a total of 364 lawmakers voting against the government and only 194 in favor.
The latest government collapse was widely expected after Bayrou failed to win support from political rivals for 2026 budget plans aimed at reducing the country's yawning budget deficit amounting to 5.8% of gross domestic product (GDP) in 2024.
Bayrou's government was targeting around 44 billion euros ($52 billion) in cuts in next year's budget to get the deficit down to 4.6% of GDP in 2026.
France's financial markets reacted calmly to the latest political upheaval, with the CAC 40 opening 0.25% higher. The yield on France's benchmark 10-year bond was 2 basis points higher at 3.4755% Tuesday morning, reflecting nervousness over the latest dose of political end economic uncertainty from Paris.
Bayrou will hand his resignation letter to French President Emmanuel Macron on Tuesday, and a new government and premier will be nominated "in the next few days."
None of the options available to Macron will appeal to him.
Macron can choose a new prime minister — the fifth PM in less than two years — or create a technocratic government, but both motions are likely to face the same political opposition to budget cuts. The president could also call another snap parliamentary election, but that too could deliver an inconclusive result, or give even more seats to the far-right National Rally or to the far-left France Unbowed party.
Macron is seen as likely to choose yet another centrist ally to lead the government, but he will need to find a candidate who is a consensus builder and who can unite disparate political positions and demands.
"With the far-right National Rally and the far-left France Unbowed calling for snap elections, this would likely require a PM that can keep the centre-left Socialists from voting against the budget, as well as keeping the current centre-right coalition on board," macro strategists at Deutsche Bank said in analysis Tuesday morning.
Negotiations between Macron and various parties over the coming days will need to be monitored, according to Raphael Brun-Aguerre, senior economist at JPMorgan.
"A new lower house election cannot be ruled out, but Macron will push for a grand coalition government," he added.
Either way, the post-Bayrou government is likely to consider some degree of fiscal consolidation next year, Brun-Aguerre stressed, noting that "it will be difficult for forthcoming governments to escape this topic."
The problem becomes just how to tackle fiscal consolidation.
"While almost all parties agree on the dire state of France's public finances, political camps are strongly divided over whether to address this problem through welfare reforms or tax hikes," Carsten Nickel, deputy director of Research at Teneo, said in emailed notes Monday.
While France has some experience with the president and the prime minister hailing from different political families under a structure known as "cohabitation," so-called "grand coalitions" in the National Assembly are not part of the country's political culture.
"This complicates the search for big compromises that would entail a mix of both approaches to the country's fiscal challenges," Nickel added.
A new PM will also get a measure of public anger over proposed spending cuts and reforms, with unions calling for nationwide anti-austerity protests on Sept. 10 and Sept. 18.
Nonetheless, the need to reduce France's budget deficit remains a priority, and a sense of urgency could be impressed upon France this week when Fitch Ratings Agency releases an update on Europe's third-largest economy, which it currently rates at 'AA-' with a negative outlook.
Credit "ratings downgrades for French bonds seem possible," Holger Schmieding, chief economist at Berenberg Bank, said in emailed comments out Tuesday, noting that a Fitch downgrade on Friday would not come "as a major surprise."
Yet, Schmieding cautioned that a "genuine financial crisis with a self-reinforcing doom loop," of higher bond yields leading to bigger budget deficits and even higher borrowing costs, "remains quite unlikely for the time being."
"With its almost balanced current account, France is no obvious candidate for a financial crisis. Of course, we cannot rule it out completely. If the French Socialists, who hold the balance of power in a deeply divided parliament, continue to reject common sense and insist on unfinanceable demands, the risk could rise," he noted.
Anglo American shares surge 8% on 'merger of equals' with Canada's Teck Resources
Source: CNBC • Published: 9/9/2025, 1:52:20 PM
LONDON — European stocks inched higher on Tuesday, helped by mining giant Anglo American's share price surge after it unveiled a merger with Canada's Teck Resources.
The pan-European Stoxx 600 was 0.2% higher at 9 a.m. in London (4 a.m. ET), with France's CAC 40 index adding 0.4%. Investors in the region are also focused on further political turmoil in France after the ousting of Prime Minister Francois Bayrou on Monday.
London-listed shares of Anglo jumped 8% after it was announced that the firm had agreed to merge with Toronto-listed Teck Resources to create one of the world's top five copper producers.
Teck Resources shares traded in Frankfurt were last seen trading 22% higher.
The new company, which will be called Anglo Teck, will be headquartered in Canada and is expected to be listed on exchanges in New York, Toronto, London, and Johannesburg.
Under the deal terms, Anglo American shareholders will own 62.4% of the combined entity, with Teck shareholders getting the remaining 37.6%.
"Anglo American and Teck believe that the formation of Anglo Teck in a merger of equals will provide exceptional and enduring benefits for Canada, including establishing a global critical minerals champion headquartered in Canada, bringing strengthened Canadian leadership in critical minerals on the world stage," the companies said in a joint statement.
Traders will be keeping a close eye on France this week after Bayrou and his centrist minority government lost a confidence vote on Monday.
The French prime minister was widely expected to lose the motion after failing to win support from political rivals on both the right and left for 2026 budget plans aimed at reducing the country's yawning budget deficit.
Losing the confidence vote means French President Emmanuel Macron will now have to appoint France's fifth prime minister in less than two years. Macron is seen as likely to choose another centrist ally to lead a minority government.
Asia-Pacific markets traded mostly higher Tuesday while U.S. stock futures were little changed overnight after the Nasdaq Composite hit a new record on Monday.
Investors stateside are keeping a close eye on inflation reports this week: the U.S. producer price index report for August is due on Wednesday morning, followed by the consumer price index on Thursday.
The inflation prints will be coming in after weaker-than-expected hiring data on Friday, which helped fuel investor hope that the U.S. Federal Reserve is likely to lower benchmark interest rates at its policy meeting next week.
Chinese EV maker Xpeng eyes global launch of mass-market Mona series in 2026
Source: CNBC • Published: 9/9/2025, 1:20:15 PM
Xpeng plans to launch its mass-market Mona series in overseas markets next year in a move that will boost competition with its Chinese rivals and established automakers in the electric vehicle arena.
In a wide-ranging interview with CNBC on Tuesday, Xpeng CEO He Xiaopeng said the company's international expansion is moving faster than he expected and signaled, for the first time, that the company is open to acquiring other electric carmakers.
Xpeng launched the Mona series in China last year with the debut of the Mona M03 electric coupe. The car was launched with an aggressive starting price of 119,000 Chinese yuan, which is just under $17,000.
Xpeng will launch the Mona cars in Europe next year, He told CNBC. This is the first time the launch has been reported.
"In 2026 you can expect a variety of Mona products launched into the Chinese and European markets, as well as in rest of the world," He said, in comments translated by CNBC.
"I believe by then, what we launch will be very proven and very excellent vehicles."
These cars will likely be cheaper than some of Xpeng's higher-end models such as the P7 and G6.
It comes as Chinese automakers are aggressively launching cars outside of China and finding success in Europe where companies like BYD have continued to grow.
Adding even more competitively priced cars into the mix overseas will ramp up competition in markets like Europe where traditional automakers such as Mercedes, BMW and Volkswagen have launched their own electric vehicles to fend off Chinese rivals.
Chinese firms' expansion into Europe comes at a time when Tesla continues to record declining sales in the region.
The Guangzhou-headquartered auto firm began its global expansion in 2020 with Norway and has since launched in other markets including Germany and France.
Xpeng had previously stated a goal of establishing a presence in 60 countries and regions by the end of 2025. He said this goal had been met already, due to faster-than-expected global growth. For reference, the CEO said Xpeng was only present in three to five markets two years ago.
At the IAA Mobility auto show in Munich, Germany, Xpeng brought an upgraded version of the flagship P7 car — the Next P7 — to showcase in Europe for the first time.
Even as Xpeng continues to push overseas, especially in Europe, it faces challenges including dealing with the European Union's tariffs on China-made electric vehicles.
This has led Chinese automakers to explore manufacturing their cars in Europe. Xpeng would like to manufacture in Europe but has not not yet made a decision on the timeline for this, He said.
At home in China, the price war continues as EV makers battle it out for market share. Competition is ramping up between domestic automakers and Tesla.
This has prompted Chinese regulators to call a halt to excessive competition, known colloquially as "neijuan" or involution.
The Xpeng CEO himself has previously warned that only a handful of Chinese carmakers will survive in the coming years as many go out of business.
He said the collapse is already happening.
In this environment, He said he is open to acquisitions, something that the company hasn't done in large quantities to date. In 2023, Xpeng acquired the electric car development business of Chinese ride-hailing firm Didi.
He said Xpeng would be open to acquiring companies, including other electric carmakers.
"I think if we have the opportunity then we want to acquire some companies," He said. "For us it's a good thing to do. Manufacturing companies, EV companies are always possible."
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