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French bond yields surpass Greece’s for first time as budget worries swirl

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French bond yields surpass Greece’s for first time as budget worries swirl

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France’s borrowing costs have risen above those of Greece for the first time, as investors fret that Michel Barnier’s government could fail to pass a belt-tightening budget.

The 10-year yield on French government debt briefly reached 3.02 per cent in early trading on Thursday, crossing above the 3.01 per cent yield demanded by lenders to Greece, before switching back.

The crossover reflects an upheaval in the perceived riskiness of Eurozone borrowers and underscores investors’ concern about France’s political and fiscal outlook at a time when Barnier’s minority administration is struggling to push through €60bn of tax increases and spending cuts.

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“Looks like French politics are about to collide with the bond market,” said Andrew Pease, chief investment strategist at Russell Investments, as he suggested that market turmoil would eventually force politicians to accept fiscal discipline. “I think we know who wins.”

Under intense pressure from opposition parties, Barnier could face a crunch no-confidence vote as early as next week. On Thursday he made a major concession to Marine Le Pen’s far-right party by abandoning a plan to raise electricity taxes, in a bid to convince it not to bring down his months-old government.

“We can still be responsible and work together to improve the budget . . . or there is another road of uncertainty and . . . leaping into the budgetary and financial unknown,” said finance minister Antoine Armand, who also sought to dismiss any comparison between the French and Greek economies.

“France is not Greece,” he added on BFMTV. “France has . . . far superior economic and demographic power which means it is not Greece.”

French borrowing costs remain well below levels that would signify a bond market crisis, and 10-year bond yields fell back to 2.95 per cent later on Thursday, compared with Greece’s 2.99 per cent. France’s spread above German yields — a key measure of the riskiness of French bonds — has dropped back to 0.82 percentage points from a 12-year high of 0.9 points earlier in the week.

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But Thursday’s moves underscore how investors are reclassifying Paris as one of the Eurozone’s riskier borrowers.

France’s government bond market endured its worst bout of selling in two years during the five trading days to Tuesday, according to flow data from BNY Investments. Geoff Yu, senior markets strategist at BNY, said it was the “most concentrated round of selling . . . since the height of the European energy crisis in late 2022”.

Greek bond yields have also fallen markedly as the country’s economy has recovered since its bailout during the 2012 crisis. Last year, Athens’ credit rating was lifted to investment grade for the first time.

Hedge funds have also built up bigger bets against French debt than during the nadir of the 2008 global financial crisis, according to data from S&P Global Market Intelligence.

Bonds out on loan — a measure of hedge fund short selling, or betting on a falling price — are now €99.7bn, compared with just under €85bn in September 2008.

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Since the government lacks a majority in the assembly, it will probably have to use a constitutional mechanism to override lawmakers, which in turn would allow the opposition to call a no-confidence vote.

The French budget’s fate and that of Barnier’s administration remain largely in the hands of the far-right RN party, which is the biggest single party and a key voting bloc in the National Assembly.

Despite Barnier’s concession on electricity, the RN kept up pressure on the government and threatened to vote to bring it down if its demands were not met.

“There are still difficulties. It’s Thursday. He has until Monday,” Le Pen warned in Le Monde newspaper on Thursday night.

RN party leader Jordan Bardella hailed the government’s climbdown on the electricity tax as a “victory”.

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“Other red lines still remain,” Bardella added in a post on X, reiterating the party’s calls for protecting the purchasing power of the public, particularly retirees and a “serious crackdown” on migration and crime. 

Concessions the government has made to the proposed budget in recent weeks may render impossible its goal to bring back the deficit to 5 per cent of national output by the end of 2025.

France overshot its deficit target for this year and will finish at above 6 per cent of GDP — far above the EU limit of 3 per cent of GDP.

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With the white nationalist group Patriot Front, what you see is not what you get

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With the white nationalist group Patriot Front, what you see is not what you get

Members of the group Patriot Front ride the subway as a commuter looks on, in Washington, D.C., on July 4.

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The sight of hundreds of masked men roaming the streets of Washington, D.C., on July Fourth weekend, wearing khakis, blue shirts and uniform patches, was chilling to some of the city’s residents.

For many Americans, it was the first they heard about Patriot Front, a white nationalist organization that was born out of the deadly 2017 Unite the Right rally in Charlottesville, Va. A now-viral Reuters photo prompted reflections on the experience of a lone African American woman who was photographed in a Metro subway car, surrounded by white supremacists.

The planned demonstration of force was timed to bring a fringe group of extremists into public view as the nation marked 250 years of its independence. Indeed, the stunt succeeded in earning the group media coverage across mainstream outlets, amplifying its brand and potential to reach new recruits. On this occasion, the members refrained from engaging in violence and property damage, projecting an image of law-abiding, orderly activism.

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But those who are closely familiar with Patriot Front’s history and operations warn: Don’t believe what you see.

“That is not who they are in private,” said Len Kamdang, director of the Criminal Justice Project at the Lawyers’ Committee for Civil Rights Under Law. “Although they were on their best behavior [last] weekend, this is a dangerous group that commits acts of violence all over the country.”

Patriot Front’s history of violence and property damage

Kamdang’s organization sued members of Patriot Front for vandalizing a public mural dedicated to the tennis legend and Black activist Arthur Ashe in Richmond, Va., in 2021. Ashe, who was inducted into the International Tennis Hall of Fame in 1985, was born in Richmond and his legacy is a continuing source of pride to members of that community.

“A couple of Patriot Front members showed up under cover of night and vandalized the mural,” Kamdang said. “They painted white stencils all over. … They literally tried to whitewash him and they put their symbols of hate all over — their stencils, their slogans. And all the while they were caught on video. And that video leaked using some of the most horrible language that you can imagine.”

In many jurisdictions, law enforcement can seek additional hate crime charges or sentencing enhancements in cases where illegal acts appear to have been motivated by racial bias. But in this case, Kamdang said, Patriot Front members faced no criminal charges and their identities were only revealed when online activists later infiltrated the group and leaked internal records.

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Graham Platner makes it official in Maine, submitting paperwork to leave Senate race

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Graham Platner makes it official in Maine, submitting paperwork to leave Senate race

Now-former Democratic Senate candidate Graham Platner speaks at his primary election night event on June 9 in Blue Hill, Maine. Platner officially dropped out of the race July 10 following rape allegations from a former romantic partner that he denies.

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Graham Platner, Maine’s Democratic nominee for Senate, is officially out of the race.

The Maine Secretary of State said Platner filed the necessary paperwork to withdraw his candidacy two days after he announced he planned to do so following an accusation of rape by a former romantic partner. Platner denies the allegation.

The Maine Democratic Party has until July 27 to pick Platner’s replacement.

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In his withdrawal notice, Platner said “people are desperate for change” and that’s why they voted “for a new kind of politics” by making him the Democratic nominee. He expressed gratitude for those who supported his campaign and said that he will continue to fight for “the movement we have built together and the future we believe in.”

He ended his notice with a strong statement aligned with the progressive platform.

“F*ck ICE. Free Palestine. Up the Hearts.”

Platner announced his plan to withdraw from the race in an 11-minute video he posted to social media on July 8. He said he had no choice but to suspend his campaign, citing it was no longer viable financially.

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“We are going to lose our ability to fundraise. We are going to lose our ability to access voter data. We are going to lose all of the things that any campaign needs on the basic level simply to function,” he said.

Platner added that dropping out was not an admission of guilt. Rather, the decision, he said, is to keep the progressive movement in Maine alive to defeat Republican Sen. Susan Collins in November. Platner blamed the “political establishment” for his downfall and argued the goal was to force him out of the race.

“We built a campaign. We engaged in electoral politics. We motivated people. We banded together. We did it the way that we were told we are supposed to make change and we won. And now they are not going to let us have it. Not if it’s me,” he said.

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Waymo called the cops on teen riders, raising privacy concerns

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Waymo called the cops on teen riders, raising privacy concerns

A Waymo robotaxi drives in San Francisco’s North Beach neighborhood this week.

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Police in San Mateo, Calif., posted Monday on social media that they had apprehended a pair of teenagers from a Waymo driverless robotaxi after the company alerted authorities to suspected criminal activity. It’s the latest incident involving video surveillance of passengers and others by autonomous vehicles — raising questions about the limits of privacy in such vehicles.

The Facebook post by the San Mateo County Police said: “Parents do you know where your teens are? @waymo does!”

The 15-year-olds were allegedly drinking alcohol and shooting toy guns from the car, according to the police. They said Waymo’s systems detected behavior that then triggered a safety response, after which the company disabled the vehicle and contacted police.

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Waymo’s cars, equipped with an array of cameras, microphones and other sensors to monitor passengers and other nearby vehicles, are becoming more common in cities across the United States. Experts say the detention of the two teens in San Mateo highlights a potential — but not inevitable — trade-off between privacy and convenience. It also questions the extent to which companies similar to Waymo are required to hand over private data, including audio and video of passengers, in situations where a crime is suspected.

NPR reached out to Waymo, which is owned by Alphabet, the parent company of Google, for comment on the details of the San Mateo incident and how the company responded, but did not hear back. But on its website, the company says that as many as 29 cameras in its autonomous cars provide an all-around view and “are designed with high dynamic range and thermal stability, to see in both daylight and low-light conditions, and tackle more complex environments.”

“There already exist laws that govern duty to report or even duty to protect” for carriers such as Waymo, according to Alessandro Acquisti, a professor of information technology at the MIT Sloan School of Management. “The privacy problems arise when and if driverless carrier companies used such laws or ethical obligations as a pretext for blanket, indiscriminate accumulation of identifiable data for unspecified future purposes.”

That includes not just monitoring people inside the cars, but outside too. Take, for example, a hit-and-run investigation last year in Los Angeles. Media reported that the police inquiry was aided by video captured by a Waymo taxi that had a clear view of the crime. Critics suggested at the time that authorities were using the company’s vehicles as a mobile surveillance platform. And during 2025 protests in Los Angeles against Immigration and Customs Enforcement crackdowns, demonstrators vandalized Waymos, apparently angry that video recorded by the vehicles could be used by police, although there is no evidence that happened.

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