The Week: Paris Under Curfew, Trump’s Gift to Putin, and a Looming Data Center Bubble

France entered a new phase of unrest this week. What started as student protests over school conditions grew into a broader movement against the cost of living, with around 550,000 people marching across the country and police arresting nearly 2,400 people over the weekend. Parts of Paris and several other cities went under overnight curfews. On Raging Moderates, Jessica Tarlov described the scene: "When you see the meme come to life of the French couple sitting there and having a coffee and smoking a cigarette as it burns around them, you know that you're in big trouble."

The political implications are serious. France faces an election in about six months, with far-right candidate Marine Le Pen polling at 37–38% and hard-left rival Jean-Luc Mélenchon close behind. "There is nobody in the middle," Tarlov noted. Markets are rattled too: France's 10-year bond yield hit 4.9% on Monday, and its debt is expected to reach 122% of GDP next year. Terry Wiseman, global FX and rates strategist at Macquarie, explained the "doom loop" connecting street protests and bond markets. When yields rise, the market pressures France to cut spending. That pushes people into the streets demanding more spending, which hurts GDP and tax revenue, which further undermines the state's ability to service its debt. F