0803 GMT - Shares in France's banks sink after Prime Minister Francois Bayrou said he intends to hold a no confidence vote on Sept. 8. The prospect of a collapse seems probable as most opposition parties have signaled their likely rejection of Bayrou's government, Barclays analyst Saadalla Nadra-Yazji says in a research note. "France's political instability is becoming an economic liability," ING's Charlotte de Montpellier writes, noting that passing a 2026 budget be even harder and delay fiscal consolidation, potentially worsening the country's debt trajectory. Banks, whose fortunes closely track the economy, are the worst performers of the CAC 40 blue-chip index, which is down around 2%. Societe Generale and BNP Paribas shed around 6% while Credit Agricole falls 5%. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

August 26, 2025 04:03 ET (08:03 GMT)

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