France’s youngest president in history has boundless ambition. Thibault Camus / AP
France’s youngest president in history has boundless ambition. Thibault Camus / AP
France’s youngest president in history has boundless ambition. Thibault Camus / AP
France’s youngest president in history has boundless ambition. Thibault Camus / AP

Macron’s popularity slides, but is this a temporary blip or cause for concern?


  • English
  • Arabic

As disgruntled voters in the West demand alternatives to the political mainstream they accuse of failing them, the far left and far right have become a good deal more susceptible to volatile public opinion. 
But what term best suits 39-year-old France's new president Emmanuel Macron, broadly if a little implausibly – given his past roles in banking and government – part of the shift away from the established order?
He occupies central political ground. But the early signs that he can be as dogmatic as the rest suggest that he may represent a new doctrine, the hard centre. 
As Mr Macron cruised to victory in May, great weight was attached to the promise of renewal and change. His success, quickly followed by a strong parliamentary majority for his fledgling party, La République En Marche (Forward the Republic), was little short of sensational, if marred by high abstention. 
But the honeymoon period is already over. Polls show him to have lost more support in his first two months in office – a 10 per cent drop – than any president since Jacques Chirac 22 years ago.
So what has gone wrong, and is the slump cause for serious concern or a meaningless blip? 
At least two factors fuel the misgivings that have so swiftly appeared since the euphoria of his emphatic defeat of the Front National – and therefore far right – leader Marine Le Pen for the presidency. 
Firstly, he has experienced an almost Trump-scale string of key departures. Secondly, in part linked to the first, he displays a streak of authoritarianism that few expected. This plays well with those who believe France cries out for the smack of firm government, but outrages a sizeable minority that sees rebelliousness as not only a virtue but a republican right.
When picking fights with the media – suspicion that he was trying to dictate which correspondents news organisations sent on presidential assignments and a minister's bodged attempt to start criminal proceedings against newspapers over leaked policy documents – Mr Macron's administration probably felt safe from public disapproval. But slapping down a popular chief of armed forces, Pierre de Villiers, over spending cuts, and the five-star general's piqued resignation, raised rather more eyebrows.
The left-leaning Libération accused Mr Macron of running France as if directing Apple or Google and advised him to "grow up a little". From the right, Le Figaro asked whether the "Macron machine" had shuddered to a halt.
The president can argue that his approval rating (54 per cent) remains at a level his predecessor, the hapless socialist François Hollande, could barely dream of. He impresses foreign leaders and made useful progress when hosting the Paris talks that produced agreement on a ceasefire in Libya.
But once the summer ends, he faces tough tests at home as he strives to deal with issues damaging to the French economy but notoriously difficult to resolve. 
The unions are implacably hostile to planned reforms of pensions and employment law. A turbulent autumn of discontent – translated as disruption to transport and other services, accompanied by demonstrations liable to turn violent – lies ahead.
Mr Macron insists his will, backed by a democratic mandate, must prevail. In that respect, his hard centre is little different from the conventional left and right of previous governments. And presidents have a habit of ultimately bowing to the fury of the street. 
France's youngest president in history has boundless ambition. The country is about to discover whether he also has the acumen to overcome the tallest obstacle to his project: a very French tendency to support reforms as long as they affect only others.

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.” 

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”

Company%20profile
%3Cp%3E%3Cbr%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Khodar%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%20and%20Alexandria%2C%20in%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ayman%20Hamza%2C%20Yasser%20Eidrous%20and%20Amr%20El%20Sheikh%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20agriculture%20technology%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24500%2C000%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Saudi%20Arabia%E2%80%99s%20Revival%20Lab%20and%20others%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%2035%3C%2Fp%3E%0A
Know your Camel lingo

The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home

Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless

Asayel camels - sleek, short-haired hound-like racers

Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s

Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices