In France, Investors Get the Centrist Limbo They Wanted

When it comes to France’s turbulent politics , the current impasse is probably the best investors could have hoped for.

The second round of French legislative elections delivered a widely expected hung parliament, but not its predicted makeup: Rather than coming in first, Marine Le Pen ’s far-right and anti-immigrant National Rally finished third. In a shock twist , the leftist New Popular Front alliance emerged victorious, with the party of President Emmanuel Macron and its allies in second place.

This is because leftists and centrists ended up coordinating. In many local races, candidates dropped out to avoid dividing the vote against the far right. Still, no party has an outright majority, which plunges the country into political gridlock. This was, counterintuitively, the preferred outcome for financial markets.

The CAC 40 initially tumbled when the elections were called in June, driven by fears of a potential National Rally government challenging the European Union with fiscally expansive plans. Then the French stock benchmark perked up, as the first-round results suggested that the far-right wouldn’t get a majority.

Yet markets remained volatile because the rise of the New Popular Front raised even greater concerns. The policies of this coalition, in which leftist firebrand Jean-Luc Mélenchon is a key leader, also include more public spending, on top of widespread tax increases. Indeed, the CAC 40 closed down 0.6% Monday, probably reflecting investors’ concerns about these parties potentially managing to form a new government. Mélenchon has stated that there will be no deals with the centrists.

These worries seem overblown. Yes, there are doubts about how France will handle its budget deficit, which amounted to 5.5% of gross domestic product in 2023 and has forced the EU to launch an “excessive deficit procedure” against the country. Macron may need to accept the reversal of reforms such as a higher retirement age.

Still, a fiscal crisis isn’t in the cards, because the European Central Bank is ultimately in control of France’s bond market.

As for economic growth, it is unclear how much impact Macron’s policies have had in the first place, particularly given resistance from unions and swaths of the public, which resulted in the famous “yellow vest” protests in 2018 and 2020.

What matters for sectors battered in the stock market, including banks, energy firms and infrastructure operators, is that the risk of widespread tax increases, nationalisations and a prolonged standoff with Brussels seems smaller now than a few weeks ago. Whatever Mélenchon says, the left will either have to compromise or else form a minority government that might scare investors but wouldn’t be able to pass laws.

So there isn’t much justification for the lower valuation of lenders such as Société Générale and especially BNP Paribas —one of Europe’s most interesting banks that now trades at 0.65 times tangible book value. The same is likely true for firms such as energy utility Engie and infrastructure-concessions leader Vinci , which have lost 8% of their market value since the end of May.

These elections are more a symptom of Macron’s weakness than its cause. After a chaotic month, French politics is back where it has been for years, with a rising far right forcing the left to back a centrist platform that can achieve little because few people actually like it. Macron himself became president on an anti-Le Pen ticket, but in seven years has failed to rally broad support for his pro-business vision.

This could eventually make Le Pen’s victory inevitable, as she claimed after initial results came in. For now, though, it is more or less what markets ordered.

Private-equity firm Paine Schwartz Partners is backing BERO, a nonalcoholic beer brand launched by British actor and “Spider-Man” star Tom Holland.

A person familiar with the transaction said it values New York-based BERO at more than $100 million and will help support the brand’s ambitious growth plans.

BERO co-founder and Chief Executive John Herman said the company aims to more than double its sales team and significantly expand distribution to roughly triple sales this year.

BERO, which Holland and Herman launched in late 2024, reached nearly $10 million in sales in its first year and expects sales to reach almost $30 million this year, said Herman, who previously served as president of C4 Energy brand drink maker Nutrabolt.

“We weren’t just looking for capital,” Herman said. “We were looking for great partners that could help us grow.”

Paine Schwartz is investing through BetterCo Holdings, a portfolio company in the firm’s sixth flagship fund that it formed late last year to hold non-control investments in better-for-you food and beverage businesses, Paine Schwartz CEO Kevin Schwartz said.

Ultimately, Schwartz said he expects BetterCo to hold five to 10 investments.

BERO, BetterCo’s third investment, falls within the firm’s typical growth investment range of $10 million to $25 million, he said.

Earlier BERO backers include leading talent agency William Morris Endeavor Entertainment and venture-capital firm Imaginary Ventures, which also participated in the latest investment.

“This first external raise is not just a milestone, but a validation of what’s been achieved in a single year,” said Logan Langberg, a partner at Imaginary Ventures.

When they started BERO, Holland and Herman tapped as brewmaster Grant Wood, a past Boston Beer executive who went on to found Revolver Brewing, now part of Tilray Brands.

The brand currently offers four types of beer, including two IPAs. Its products are sold at Target stores, on Amazon.com and at other retail locations, such as supermarket chains Sprouts Farmers Market and Wegmans Food Markets in the U.S. and Morrisons in the U.K. BERO is also available at a number of liquor stores and bars and restaurants.

The company also offers a $55 a year premium membership that offers such perks as free shipping and access to member-only products and limited-edition releases.

To help build the brand’s name, BERO has struck a series of partnerships, becoming the official nonalcoholic beer partner of luxury sports-car maker Aston Martin and fitness studio chain Barry’s.

Nonalcoholic beers, which generally contain less than 0.5% of alcohol by volume, have become increasingly popular and account for the biggest share of alcohol-free drink sales, according to the Beer Institute, a national trade association.

Sales of such drinks are growing at a more than 20% annual rate and were expected to exceed $1 billion in 2025, according to market-research firm NielsenIQ, citing so-called off-premise channel sales it tracks, such as sales at liquor stores and grocery stores. But the bulk of those sales come from the top five brands, such as Athletic Brewing, co-founded by a former trader at Steve Cohen’s hedge fund Point72 Asset Management, NielsenIQ said.

Alcohol-free drinks, the market-research firm said, have emerged as a lifestyle choice—one based not on quitting alcohol but expanding options, with most non-alcohol buyers also buying alcoholic drinks.

“There’s a pendular swing in behaviours that [is] happening right now when it comes to people’s relationship with alcohol,” Herman said.

Corrections & Amplifications undefined Nonalcoholic beer brand BERO offers its fans a premium membership for $55 a year. An earlier version of this article incorrectly said the membership costs $50. (Corrected on Jan. 20.)

In France, Investors Get the Centrist Limbo They Wanted

Polarisation has for years left the country’s politics stuck in an unpopular middle ground, and the latest elections won’t change that

Paine Schwartz joins BERO as a new investor as the year-old company seeks to triple sales.