France unsettles Europe as London counts its profit warnings

France unsettles European markets

Europe's markets spent Monday watching France. City A.M. reported that a bond sell-off rocked the continent after the French government imposed a curfew to contain riots. The Guardian described France as hit by a debt sell-off, with violent protests unnerving investors. By the evening, This is Money was reporting that stock markets and bonds had sold off across Europe, as investors grew alarmed by what it called spiralling unrest.

The disorder reached commerce in smaller ways. The BBC reported that Vinted, the second-hand marketplace, had blocked French looters who were listing stolen goods for sale.

This morning's London preview carried the theme forward. City A.M.'s FTSE 100 live coverage, published before the open, expected stocks to slide, citing oil pressures alongside the French turmoil. The two pressures are of different kinds: one a matter of costs, the other of politics and public order. Higher yields were meanwhile doing their usual work on a metal that pays none, with the Wall Street Journal reporting gold edging lower overnight as yields weighed. The Journal also published the results of a survey of 71 economists on where growth and yields are headed, and reported that senior Wall Street figures were undecided over whether to attend the prince's big Saudi conference.

Across the Atlantic, Monday had begun more calmly. The Journal's live markets coverage for 19 October led with tech stocks rebounding after Friday's selloff.

Warnings and Budget nerves in London

Closer to home, the weekend brought a count of corporate distress. The Guardian reported that profit warnings from UK-listed firms had reached their highest level in two years, attributing the rise to the Iran war driving up costs. This is Money reported the same high, the most since 2024, but framed the cause as Budget uncertainty. The two accounts are not exclusive. A company can face dearer inputs and an unclear tax outlook at once.

The Budget runs through much of the day's UK coverage. City A.M. reported that wealthy investors are accelerating gifting amid fears of a tax raid. Alex Brummer, writing in This is Money, warned that Budget tax hikes would put UK banks at risk of foreign takeover, with Barclays named as in the line of fire. Barclays had a second headline on Monday: the Guardian reported that the Bank of England is said to be reviewing the bank's handling of private credit loans.

Business rates drew two pleas. City A.M. reported that the City of London had been urged against rates rises to cover a £70m shortfall, and that a West End boss had urged Healey to curb rates the boss described as 'eye-watering'.

In deals, Gamma Communications delayed a crunch investor vote on a £1bn takeover that would see it leave the FTSE 250, according to This is Money. City A.M. reported this morning that Sainsbury's hopes to regain the narrative after what the paper called the Morrisons merger bombshell.

Shares handed out, and policy in Asia

Two of Monday's stranger stories concerned shares given away. Elon Musk pledged to give SpaceX shares to children in the United States. The Wall Street Journal reported the promise; This is Money described it as one share for every child in America and put the pledge at £8bn. Euronews put the potential giveaway at $10.7bn. On the same day, the Guardian reported that Anthropic, the AI firm, would commit 5% of its shares to a fund for the 'public good'.

AI also appeared on the debt side. The Wall Street Journal published an analysis arguing that the weak points in AI bonds are becoming clearer. Its private equity desk asked, separately, whether class-action lawsuits can fix private funds' valuation problem.

In China, the South China Morning Post reported that investors are flocking to dividend stocks, whose returns are double those of state bonds. A separate SCMP report said China plans 18 active ETFs as the regulator seeks to shore up the stock market. Hong Kong featured twice. The city ranked second among Asian pension systems, behind Singapore, as ageing tests retirement provision, and it aims to cement its role as a yuan bond hub by appealing to more sovereign borrowers.

In India, CNBC reported the finance minister's remark that market liquidity makes it easier for investors to exit.