France

One day after president Trump remarked in a speech at a conference that a friend thought
"Paris is no longer Paris" after attacks by Islamist militants, French President Francois Hollande fired back at Donald Trump on Saturday. During a speech at the Conservative Political Action Conference on Friday, Trump repeated his criticism of Europe's handling of attacks by Islamist militants saying a friend "Jim" no longer wanted to take his family to Paris.

As French voters look set to make a massive swing to the right in their upcoming presidential election (see our notes on the topic here and here), a group of frightened liberal protesters have decided to back a relatively surprising, if impossible, presidential candidate in 2017, Barack Obama. 

And, lest you thing this is a joke, a quick walk around Paris even reveals campaign posters for "Obama17" plastered all around the city.

Submitted by Saxo Bank's Martin O'Rourke via TradingFloor.com,

The ongoing scramble for German safety away from French political uncertainty, has led to yet another blow out day for German 2 Year Schatz, with the yield tumbling to a fresh all time low of -0.92%, as Eurozone breakup concerns have spread from the bond market, and are now pressuring the euro sending the EURUSD below 1.05 for the first time in over a month.

The rush into German paper and out of France, means that the 10Y Greman-French spread has topped 0.8%, the widest in over four years, while the 2Y US-German spread is now well over 2%, the widest since at least 2000.

Submitted by Yves Mamou via The Gatestone Institute,