Group 1 - The French CAC index has dropped by 2%, reflecting overall market concerns about potential political instability in France [1][3] - France's government debt-to-GDP ratio is approximately 115%, making it one of the highest in Europe, prompting Prime Minister François Bérou to propose an annual spending cut of €44 billion [3] - The upcoming confidence vote on the spending cut proposal is expected to fail, leading to fears of either fiscal tightening or increased political uncertainty in France [3] Group 2 - Former President Trump is attempting to remove Federal Reserve Board member Lisa Cook, which could impact the composition of the Federal Open Market Committee (FOMC) [1][4] - If successful, Trump's actions could result in three out of twelve FOMC members being appointed by him, raising concerns about the independence of the Federal Reserve [4] - The yield spread between 2-year and 30-year U.S. Treasury bonds has widened to its highest level since 2022, indicating market apprehension regarding economic stability [4] Group 3 - Trump has threatened to impose a 200% tariff on China if it does not supply sufficient rare earth magnets to U.S. companies, escalating trade tensions [5] - The digital services tax (DST) imposed by certain countries, particularly in Europe, is also under threat, with Trump warning of significant tariff increases unless these taxes are revoked [5] - The DST currently generates approximately £800 million annually for the UK Treasury, which is already facing financial constraints ahead of the autumn budget [5]