French Major Policy Change To Benefit Stocks: Societe Generale

French President Francole Hollande announced Tuesday a pro-business agenda of tax and spending cuts.  The move was anticipated by many in the French financial services industry.  Late last week Societe Generale put out a research note that said the expected radical changes in policy will benefit French equity markets but could hurt bonds, according to the bank’s weekly Multi Asset Snapshot publication. In early trading the CAC 40 was up over 1% on the news.

Citing a 2013 New Years speech that laid the groundwork for forthcoming changes, the research report said: “We think the French President is on the eve of implementing a policy shift as radical as that made in 2003 by German Chancellor Schroeder (re-elected in 2002)...