Uncertainty Looms as French Government Falls: Impact on Investments

The collapse of the French government has caused political and economic uncertainty, worrying investors. Safran's CEO, Olivier Andries, expressed concerns about a potential rollover of the 2024 budget affecting the defense sector. A decision on the location of a new carbon brakes factory is influenced by stability factors.

The recent downfall of the French government has triggered waves of political and economic uncertainty, a situation typically unfavorable for investors, according to the CEO of Safran, a partially state-owned engine manufacturer.

Olivier Andries, Safran's CEO, highlighted the potential implications of a government budget rollover into 2024, which could adversely impact the defense sector.

Andries further explained that political and economic stability will be crucial when deciding next year where to establish a new carbon brakes factory, with France, the U.S., and Canada being contenders, and emphasized the importance of steady energy prices.

(With inputs from agencies.)