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European Stocks Fall as French Riots and Political Uncertainty Rattle Markets

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European stock markets opened lower on Monday as France assessed the damage from a weekend of violent protests and looting, with business leaders criticising the government over security failures and warning of substantial financial losses.

The pan-European Stoxx 600 fell more than 0.6% at the start of trading, while the Euro Stoxx 50 slipped 0.1%. France’s CAC 40 dropped 0.5%, with supermarket group Carrefour losing more than 2% after reporting that 50 of its stores had been targeted by looters.

Germany’s DAX recorded the steepest decline among major European indexes, falling more than 0.8%. The UK’s FTSE 100, Italy’s FTSE MIB and Spain’s IBEX 35 each traded between 0.4% and 0.6% lower. The Netherlands’ AEX bucked the trend, rising more than 0.4%.

French government borrowing costs also remained under pressure as lawmakers debated the 2027 budget in a divided parliament. The yield on France’s 10-year government bonds stood at 4.86%, following a rise to its highest level since 2002 earlier this month.

The spread between French and German 10-year bond yields, a measure of investor concern about French finances, was 143.5 basis points. It exceeded 150 basis points in early October, reaching its widest level since the eurozone debt crisis.

Moody’s is scheduled to review France’s Aa3 credit rating, which carries a negative outlook, on Friday.

The euro fell 0.2% against the US dollar to around $1.121 and lost 0.2% against the British pound, trading at approximately £0.841. The currency had reached its lowest level against the dollar since May 2025 and against sterling since June 2025 last week, amid concerns about French debt and a stronger dollar.

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Businesses Count Cost of Weekend Violence

The market reaction followed nationwide demonstrations on Saturday against rising living costs and conditions in French schools. The marches attracted around 550,000 people, according to authorities, but deteriorated into rioting and looting in Paris, Lyon, Marseille, Bordeaux and other cities.

Interior Minister Laurent Nuñez said about 2,400 people had been arrested. Reports put the number of injured police officers, gendarmes and firefighters at between 500 and nearly 1,000.

Nuñez acknowledged that authorities had failed to anticipate the scale of the unrest and had lost control in some cities. He offered to resign, but President Emmanuel Macron rejected the offer, saying security forces needed continuity in their command.

Carrefour chief executive Alexandre Bompard, who also heads the French retail federation FCD, said around 1,500 shops had been affected, with total losses running into hundreds of millions of euros. Repairs at Carrefour alone were expected to cost well over €10 million.

Lacoste chief executive Thierry Guibert called on the state to act quickly to protect businesses and employees after stores belonging to Lacoste and Aigle were looted. Intermarché chief Thierry Cotillard expressed anger over the damage, while employers’ group Medef described the looting as unacceptable.

Smaller retailers also criticised the response. The head of outdoor retailer Snowleader said police had advised him to follow up on Tuesday after he reported looters breaking into his Lyon store. A representative of Marseille’s city-centre traders said businesses had been left without adequate protection.

Prime Minister Sébastien Lecornu was due to chair a crisis meeting on Monday, while Commerce Minister Serge Papin planned talks with trade federations, banks and insurers. Trade unions have also called a nationwide strike for November 5, adding to concerns over further disruption.

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Turkey and Qatar Sign Mutual Defence Pact as Gulf Security Alliances Shift

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Turkey and Qatar have signed a mutual defence agreement to strengthen military cooperation and prepare for potential external attacks, as the Iran war accelerates changes in security arrangements across the Gulf and wider Middle East.

Turkish President Recep Tayyip Erdogan and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani signed the agreement during a meeting in Istanbul on Friday, where they co-chaired the Supreme Strategic Committee between the two countries. The meeting also produced agreements covering trade, energy, diplomacy, education and culture.

A joint statement said the defence pact was intended to strengthen collective security, support regional stability and establish a common response to an external armed attack against either country or both.

The two sides agreed to consult on security threats and expand cooperation through joint military exercises, defence industry projects and exchanges of military personnel for training.

Erdogan said Turkey and Qatar would continue working to prevent another outbreak of conflict in the Gulf and promote dialogue and peace. His office described the agreement as a new stage in the countries’ close relationship and said it would expand cooperation in defence production.

The leaders also discussed Israel’s attacks on Gaza and the humanitarian situation in the Palestinian territory, efforts to normalise relations in Syria and developments in Libya.

Regional defence partnerships expand

The agreement comes amid a wider reassessment of security arrangements following the war involving Iran. While Gulf governments continue to regard the United States’ military presence as central to their security, Washington’s signals of a broader strategic realignment have encouraged regional countries to strengthen other defence partnerships.

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Turkey, Qatar, Saudi Arabia, Pakistan and Indonesia have all taken steps towards closer military or defence industry cooperation in recent months.

In August, Turkey, Pakistan and Saudi Arabia signed the Mecca Joint Defence Agreement, under which the three countries agreed to support one another if any came under attack. The pact was ratified by the Turkish parliament last week, bringing together NATO member Turkey, Pakistan, which possesses the Muslim world’s only nuclear arsenal, and Saudi Arabia, a major regional military and economic power.

Turkey has said the agreement is not directed against any country and remains open to additional participants, including Egypt.

Pakistan and Kuwait also signed a joint defence and military cooperation agreement in August.

In October, Qatar, Turkey, Pakistan and Indonesia signed the Badr multilateral memorandum of understanding, focusing on cooperation in the defence industry.

The latest Turkey-Qatar agreement adds another layer to these emerging arrangements. Its emphasis on consultations, military exercises and defence production reflects efforts by regional governments to strengthen their ability to respond to security threats while maintaining existing international partnerships.

The developments point to a more varied regional security network, with countries pursuing closer bilateral and multilateral ties as uncertainty continues over the Gulf’s future security environment.

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Zelenskyy to Meet Trump Envoys in Dublin as Europe Seeks Role in Ukraine Peace Talks

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Ukrainian President Volodymyr Zelenskyy is expected to meet US envoys Steve Witkoff and Jared Kushner in Dublin on Thursday as diplomatic efforts to end the war with Russia continue.

The meeting is scheduled on the sidelines of the ninth European Political Community (EPC) summit, hosted by Ireland, where leaders from more than 45 countries are gathering to discuss security and other strategic issues.

Witkoff and Kushner are expected to arrive from Moscow after meeting Russian President Vladimir Putin. They will brief Zelenskyy on the latest developments in negotiations, following two days of discussions in Abu Dhabi.

Zelenskyy arrived in Dublin on Wednesday evening and met Irish Taoiseach Micheál Martin, who expressed solidarity with Ukraine and condemned Russia’s continuing attacks.

Martin described the attacks as “barbarous” and “vile”, praising the Ukrainian people for their courage and resilience.

Zelenskyy thanked European representatives for their involvement in the Abu Dhabi discussions but insisted that Europe must have a direct role in negotiations concerning the continent’s future security arrangements.

“This war is in Ukraine, and ending this war without Europe’s participation would be unjust, and it would be impossible,” he said.

He called on European leaders to agree on a single representative to participate in future negotiations, arguing that a coordinated position was necessary as diplomatic discussions continue in November.

Kushner said in Abu Dhabi on Wednesday that he would seek Putin’s “blessing” for direct European involvement in the talks.

Zelenskyy is also expected to hold bilateral meetings and attend plenary sessions and a Friends of Ukraine gathering co-chaired by Martin and UK Prime Minister Andy Burnham.

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Security tightened across Dublin

The summit is taking place under heightened security following a series of threats targeting schools, airlines and media organisations. Hoax bomb threats were sent to hundreds of schools in Ireland, the United Kingdom and Italy on Wednesday.

Garda Commissioner Justin Kelly said Irish police were prepared for all eventualities, citing their equipment, training and operational plans.

Several protests are also planned along routes leading to Dublin’s Convention Centre, where the summit is being held. Kelly said police would facilitate peaceful demonstrations but act swiftly if criminal activity occurred.

The EPC was established in 2022 following Russia’s invasion of Ukraine. It provides a forum for European leaders, including countries outside the European Union, to discuss shared political and security challenges.

Canadian Prime Minister Mark Carney is attending for the first time, alongside Norwegian Prime Minister Jonas Gahr Støre and Swiss President Guy Parmelin. Carney’s participation has been described by an EU official as a sign of Canada’s interest in closer security cooperation with Europe.

This year’s summit, themed “Europe: Strong, Secure and Connected”, will focus on competitiveness, energy security and connectivity. Migration is also expected to feature in discussions, with a joint statement anticipated from Italy, Denmark and the UK.

The meeting will be followed on Friday by an informal gathering of EU leaders, where divisions over Europe’s approach to Ukraine are expected to feature prominently.

Italian Prime Minister Giorgia Meloni recently criticised the lack of coordination among European countries, urging European Council President António Costa to make Ukraine a priority. She warned that multiple diplomatic initiatives and competing voices risk undermining Europe’s credibility in negotiations with Russia.

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UK Considers Adding eBay and Vinted to Social Media Ban for Under-16s

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The UK government is considering extending its planned social media restrictions for under-16s to online marketplaces eBay and Vinted, amid concerns that their messaging features could expose children to online grooming.

Culture Secretary Lisa Nandy said ministers were examining whether the resale platforms should be included in the ban, which is scheduled to take effect in March next year.

Asked on the BBC’s Sunday with Laura Kuenssberg whether the government intended to prevent under-16s from using the websites, Nandy said: “We are looking seriously at doing so in order to keep children safe.”

The move follows a report by The Sunday Times that the government was considering adding eBay, Vinted, Depop and Facebook Marketplace to the list of restricted platforms. The newspaper cited concerns that private messaging could allow strangers to contact and groom children.

An eBay spokesperson said the company was committed to providing a safe marketplace for its customers and wanted to understand more about the proposed legislation.

“While the details of the proposed legislation are not yet clear, we look forward to understanding more and continuing to work constructively with the government,” the spokesperson said.

Vinted had not responded to requests for comment.

Both eBay and Vinted already require users to be at least 18. eBay says membership involves entering into a contract, while Vinted’s platform is primarily used to buy and sell second-hand clothing and other fashion items. The company has grown to around 17 million users in the UK.

Scope of the proposed restrictions

The government announced the under-16 social media ban in June, initially identifying 10 major platforms that would be affected. YouTube is also expected to be restricted, although YouTube Kids, its child-focused service, will remain available.

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Ministers have not yet published the complete list of affected services. The proposed rules are intended to cover platforms designed to enable social interaction and allow users to post material.

Restrictions could also apply to services offering livestreaming or features through which strangers can contact children, including some gaming platforms. Roblox, popular among children aged eight to 12, is not expected to face a complete ban, although features such as its chat function could be restricted.

The UK is following Australia’s introduction of similar restrictions last year. Although some children there have found ways to bypass the rules, British ministers have said they intend to adopt a tougher enforcement approach.

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