UBS On-Air: Market Moves UBS On-Air: Paul Donovan Daily Audio 'Quantities of money'
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Sep 19, 2025 French protests erupt over proposed spending cuts, reflecting strong social media narratives without alarming investors. The discussion highlights the country's substantial pools of private wealth that could support government borrowing. Additionally, there’s an exploration of Japan's inflation dynamics alongside quantitative policy strategies that balance liquidity. The podcast dives into the implications of a legal issue involving a Federal Reserve governor and how it may affect central bank credibility.
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Large French Protests Over Hypothetical Cuts
- Over half a million people protested in France against proposed government spending cuts.
- Paul Donovan notes the protests reacted to hypothetical cuts proposed by the last Prime Minister, not enacted policy.
Private Wealth Could Finance Public Debt
- France has high government debt but also large private wealth reserves.
- Paul Donovan warns mobilising wealth will affect ordinary citizens because wealth gains have been fairly democratic.
Comparing Fiscal Sustainability
- The US fiscal position is relatively more sustainable than France's, says Paul Donovan.
- The UK situation is driven more by self-imposed constraints and rising spending pushed up borrowing figures.