Europe saw major developments across politics and markets on Wednesday — a legal blow for far-right leader Marine Le Pen, a record-breaking rally in luxury stocks led by LVMH, and a landmark AI infrastructure deal between Nscale and Microsoft.
Meanwhile, the UK’s Chancellor Rachel Reeves prepared Britons for potential tax increases and spending cuts in an upcoming budget aimed at repairing the nation’s strained finances.
Le Pen’s appeal rejected by France’s court
France’s highest administrative court on Wednesday dismissed an appeal from far-right leader Marine Le Pen challenging electoral rules, dealing a major setback to her political future and threatening her candidacy in the 2027 presidential election.
Le Pen was barred in March from holding public office for five years after being convicted, along with other members of her party, of misappropriation of funds.
The Paris Criminal Court sentenced her to four years in prison, two of them to be served, a €100,000 fine, and a five-year ban from office — an order that remains enforceable despite ongoing appeals.
The National Rally leader argued that applying the ban immediately was unconstitutional and infringed upon her political rights.
However, the Council of State rejected her claim, stating the challenge “did not seek to repeal regulatory provisions but rather to amend the law, which exceeds the powers of the Prime Minister.”
Le Pen has described the case as politically motivated, but Wednesday’s decision leaves her with limited legal recourse as France’s 2027 election cycle begins to take shape.
LVMH leads record rally on China demand recovery
Shares of LVMH surged as much as 14% on Wednesday — their biggest single-day jump since 2001 — after reporting its first quarterly sales increase this year, boosted by signs of improving demand in China.
The world’s largest luxury conglomerate, which owns brands including Louis Vuitton and Moët & Chandon, led a sector-wide rally that added nearly $80 billion in market value to European luxury stocks.
Rivals Hermes, Kering, Richemont, Burberry, and Moncler climbed between 5% and 9% amid renewed investor optimism that the industry’s two-year slump may be ending.
The strong performance followed LVMH’s earnings report a day earlier, which beat analyst forecasts, underscoring resilience in high-end spending despite broader economic uncertainty.
The rally offered relief to a sector that has faced declining demand from Chinese consumers since 2022 due to pandemic disruptions and slower post-reopening growth.
UK Chancellor hints at tax rises and spending cuts in November budget
UK Chancellor of the Exchequer Rachel Reeves said on Tuesday that both tax increases and spending cuts were under consideration for the government’s autumn budget as she seeks to address a widening shortfall in public finances.
“Of course, we’re looking at tax and spending,” Reeves told Sky News, adding that fiscal discipline would define her approach.
“The numbers will always add up with me as chancellor, because we saw just three years ago what happens when … the Conservatives lost control of the public finances, inflation and interest rates went through the roof.”
Reeves attributed the UK’s fiscal challenges to “austerity, Brexit, and the ongoing impact of Liz Truss’ mini-budget,” calling Brexit’s economic toll “severe and long-lasting.”
She noted that economists had projected the UK economy to be 4% smaller due to Brexit.
She said the government was working to “undo some of that damage” through new EU arrangements on food, farming, youth mobility, and energy trading, and by prioritising “deeper trade links, most importantly with the EU.”
Reeves is set to deliver the autumn statement on November 26.
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