Bloomberg;

Markets are underpricing the prospect of Marine Le Pen emerging victorious in the French election as a sea of undecided voters throws into sharp relief pronounced apathy for center-leftist Emmanuel Macron — the front-runner by a whisker — and the backlash against the European Union project.
That’s the conclusion drawn by Charles Gave, founder of Hong-Kong based asset-allocation consultancy GaveKal Research, who predicted the triumph of Donald Trump in the U.S. election, and is now betting on a win for the anti-euro National Front candidate.
“Le Pen’s momentum is a slow-moving reaction against the men of Davos — as we have seen with Brexit and Trump — but markets don’t want to believe it,” he said by phone before the first round of the French poll on April 23.

Grab a coffee: The French, Coming Apart

At the opening of his new book, Guilluy describes twenty-first-century France as “an ‘American’ society like any other, unequal and multicultural.” It’s a controversial premise–that inequality and racial diversity are linked as part of the same (American-type) system and that they progress or decline together. Though this premise has been confirmed in much of the West for half a century, the assertion will shock many Americans, conditioned to place “inequality” (bad) and “diversity” (good) at opposite poles of a Manichean moral order. This disconnect is a key reason American political discussions have turned so illogical and rancorous. Certain arguments–for instance, that raising the incomes of American workers requires limiting immigration–can be cast as either sensible or superstitious, legitimate or illegitimate, good or evil, depending on whether the person making them is deemed to be doing so on the grounds of economics or identity.
At a practical level, considerations of economics and ethnicity are getting harder to disentangle. Guilluy has spent years in and out of buildings in northern Paris (his sisters live in public housing), and he is sensitive to the way this works in France. A public-housing development is a community, yes, and one can wish that it be more diverse. But it is also an economic resource that, more and more, is getting fought over tribally. An ethnic Frenchman moving into a heavily North African housing project finds himself threatening a piece of property that members of “the community” think of as theirs. Guilluy speaks of a “battle of the eyes” fought in the lobbies of apartment buildings across France every day, in which one person or the other–the ethnic Frenchman or the immigrant’s son–will drop his gaze to the floor first.

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