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The most significant domestic developments centered on economic pressures and public protest. Hundreds of farmers, many from the FNSEA union, drove tractors into central Paris to protest against trade deals and government regulations, leading the government to promise emergency legislation. Separately, the Paris stock market fell sharply, dragged down by luxury stocks after LVMH reported a 13% decline in its 2025 net profit to 10.9 billion euros, casting doubt on a sector recovery. In the technology sector, Capgemini announced plans to eliminate up to 2,400 positions in France. In a lighter note, a pair of sunglasses worn by Emmanuel Macron at Davos caused a major boost for the high-end Italian brand, with its stock price jumping 31% and the model selling out.
International relations were dominated by a severe trade dispute with the United States. Trump threatened to impose a 200% tariff on French wine and champagne if France did not join a proposed 'Board of Peace' initiative for Gaza, a threat Macron called 'unacceptable' and 'brutal.' Macron urged the EU to use a powerful anti-coercion trade tool in response, as Trump also announced a separate 10% tariff on France and other European countries over opposition to a U.S. plan regarding Greenland. In a related trade matter, French farmers protested the EU-Mercosur deal, leading Macron to announce France will vote against it. In aerospace, Boeing beat its European rival Airbus in annual aircraft orders for the first time in five years. Airbus, meanwhile, is close to finalizing a deal to sell about 100 A220 jets to AirAsia and signed a new cooperation agreement with China's UBTech Robotics.
4 topics | 237 sources
The European Parliament voted to refer a major free trade agreement between the European Union and the Mercosur bloc of South American nations to the EU's top court. This move delays the ratification process for the deal, which was signed after more than 25 years of negotiations. Thousands of farmers protested against the agreement in Strasbourg ahead of the vote, and the decision drew support from both far-right and far-left political groups. The French government opposed a provisional application of the treaty, calling it a 'democratic violation'. The agreement, signed in Asuncion, Paraguay, aims to create one of the world's largest free trade zones, covering 700 million people. Mercosur officials have said they intend to continue working to ratify the pact despite the European Parliament's action.
LVMH, the world's largest luxury goods company, reported its financial results. Its net profit for 2025 fell 13% to 10.9 billion euros, and the company's performance was described as mixed, which caused its own shares and those of other luxury companies to drop. Separately, employees at LVMH's champagne houses are mobilizing to protest the potential loss of their bonuses.
French President Emmanuel Macron gave a speech at the World Economic Forum in Davos, Switzerland. The expensive sunglasses he wore during the event, which cost around 650 euros, are from an Italian-owned brand. News about the glasses caused a surge in interest and a significant jump in the stock price of the company that makes them.
The French IT services and consulting company Capgemini is considering cutting up to 2,400 jobs in France. The company is reportedly planning a voluntary departure plan as part of this restructuring effort.
4 topics | 100 sources
Jan 20
Trump threatens French wine tariffs as Macron criticizes US trade policies and calls for EU defenseFormer US President Donald Trump has threatened to impose a 200% tariff on French wine and champagne to pressure French President Emmanuel Macron to join a proposed 'Board of Peace' initiative regarding Gaza. Meanwhile, Macron has publicly criticized US trade policies, arguing they aim to 'subordinate Europe' and that Europe is not being respected, while calling for the European Union to actively develop its own defense capabilities. This exchange highlights escalating trade tensions and political friction between the US and France.
Jan 14
Boeing gets more airplane orders than Airbus for the first time since 2018Boeing received more orders for new airplanes than its European rival Airbus last year. This is the first time Boeing has outsold Airbus in a year since 2018. The news comes after a period of sluggish sales for Boeing, which has faced production and safety challenges.
Jan 28
French government questions Capgemini over its contract with U.S. immigration agencyFrance's finance minister is demanding that the French technology company Capgemini explain its contract with U.S. Immigration and Customs Enforcement (ICE). This comes amid international criticism of the agency's policies and operations.