A currency union of 21 EU members using the euro as legal tender
Italy has reached 1,413 days in power, the longest-serving government since the republic’s founding, as Meloni’s coalition marks the milestone amid debates over stability, growth, and the outlook ahead of 2027 elections.
Central banks have tightened policy in response to a surge in energy prices and persistent inflation. The US Federal Reserve has raised its policy rate to 3.75–4.00% and signalled further hikes; the ECB has lifted its key rate to 2.50%; the Bank of England has held at 3.75% but warned higher energy costs will force future rises. Markets have repriced yields and mortgage costs are rising.
The euro has fallen to near 17-month lows after investors have pushed up French borrowing costs and bond spreads. France has faced rising yields, mass protests and a political stalemate over deficit cuts ahead of the presidential election. Markets are pricing greater contagion risk across the eurozone and the ECB is under pressure to act.
The Treasury has reported that federal net interest costs for the 2026 fiscal year have reached about $1.05 trillion, making debt service the third-largest federal outlay and larger than defense. The fiscal deficit has widened to roughly $2 trillion for the year, driven largely by higher interest payments as Treasury yields have climbed.
HSBC and Barclays report sizable quarterly profits, boosting investor optimism while triggering renewed calls for tougher bank taxes ahead of the budget. HSBC has reported a 32% rise in quarterly pre-tax profits to $9.6 billion, with shareholder returns including a $1 billion buyback. Barclays follows with $2.3 billion pre-tax profits and a $500 million buyback. Budget chatter intensifies as Healey eyes revenue options to fund cost-of-living supports.
Belgian Prime Minister De Wever has had his resignation rejected by the king after failed budget talks. The king will consult coalition leaders and De Wever will report back on Nov. 16 as Belgium confronts a debt challenge and rising protests. A provisional spending regime looms if no deal is reached.