for now, manuel valls is still prime minister. a new list present of ministers to president hollande by tomorrow. of course, the important part of all this, the french are going to react in terms of popularity. has lost about nine points of popularity over the past month. he went from 45% to 36%. the president's popularity is at a record low right now. >> where does this leave the french economy? fromre talking to guests bearing berg. they were saying that while a lot of the right noises are being made by the french government, they haven't followed up with policy actions. where does this leave the french economy and the outlook for it? of course, these signals that president hollande wants to maintain his line of economic policy. he introduced a stability pact earlier this year to cut taxes for companies. that is starting to have an impact. as you see, the french gdp didn't grow in the past two quarters. from that, to abandon the deficit target for 2014, of course we will have to see who gets named finance minister and economic m

wants tohis government be led by a government, manuel valls -- you can see his photo. this is the real turning point hollande's francois presidency -- and president francois hollande's presidency. 59% of people say they think these -- it is a good move to minister. the economy a lot of people said he was a troublemaker, so it is good to get him out of the government. according to the poll, the government has a lot of work for heartserms of winning and minds and building confidence. eight out of 10 people in the poll believe the new government's new economic policy will not be more clear, more just, or more effective than it already is. >> some other papers are taking a closer look at who are the new faces of the government. thele figaro," right-leaning paper, is kind of disappointed in this new government. there aren't that many major changes. basically, hollande has rallied around him the few faithful supporters he still has. hisrding to "le figaro," ranks are getting pretty thin. the left-leaning paper has more hope in this government, especially these three new mini

the big news this morning, french prime minister manuel valls and his government have resigned. francois hollande once to name a new cabinet as soon as tomorrow. resid offered his nation. bloomberg news government david is going to join us shortly. for more on the french government, we are joined by caroline connan. big news this morning and a big surprise as well. yes, it is a big blow for the french government. we just have the message from paris saying that the entire government of prime minister manuel valls has to resign. that comes after the economy minister made some pretty strong comments over the weekend in a newspaper interview saying that the economic policy of the government had to be revised, that he had to tell the french the cruel truth about how the french government is failing in terms of economic policy. they were offering tax cuts of 16 billion euros. shortly after that, the prime heister reacted, saying that had crossed the yellow line, -- he hads very much to react. this morning, president hollande decided that wasn't enough. the popularity of the prime mini

prime minister manuel valls was speaking on french television last night. he said the priority was to cut france's deficit and he has no doubt that he will get the majority from the socialist party about this. have a listen. i will seek a vote of confidence at the national assembly in september or october. we will get the majority. it can't be otherwise. >> the problem is that the socialist party has been fractured, has been divided after this political crisis in france. they have a very short majority, only 291 seats when the majority needed is 289. they might have to look for broader support from the greens or even the far left. seekmay even have to opposition votes. >> thank you very much, caroline connan. up next, we continue the conversation on the fallout in france after a major government shakeup this week. not a big surprise, but the timing was for many people. we talked to ricardo barbieri up next after the break. stay with us. ♪ >> welcome back to "on the move" live from the city of london. let's bring it back to hollande. the french president has

manuel valls has presented his resignation of the government. this follows a disagreement over policy between him and the economy minister. speed.s up to we have this resignation. we are waiting for a new government to be announced in the next 24 hours. >> exactly. as soon as tomorrow. his team will change. minister economy criticized the economic policies of the government. this weekend during a gathering of left-wing politicians in france. was to blameolicy for unemployment which has killed a booming economy in france. economicecause of the policy. taxes i-16 billion euros. the education minister said the austerity policies in the past 10 years including germany were to blame. the big surprise is that instead of just getting rid of -- the president got rid of the entire team. we should know by tomorrow who will be part of this new team. >> this raises some big questions about the french economy. againsts austerity fiscal stimulus. these are similar conversations we have had all of these years of the euro zone economic crisis. or does this leav

. >> prime minister manuel valles will quickly form a new government in an earth to restore being austerity but hard to establish confidence. >> that's six years later, after the beginning of the crisis, we are just a bit above the gdp, the level of economic activity that we had in 2008. so we failed. and these measures are assessed. >> broadly speaking, france is not happy with all of this. president hollande's own approval is at a staggering 17% and a survey suggests well over 80% don't believe that he or his socialist government have the answers for a flagging french economy. many believe the man elected on a platform of change has failed to deliver. >> we'll have to wait and see. i'm not sure that things will change right away. i'm not expecting miracles. >> translator: change is a word we hear all the time. but we're only seeing a change going backwards. we've got to stay hopeful. hope that the new government will do something. >> what happenwhat happens next? well, france gets to keep president hollande until at least 2017 and hollande has instructed that the cabinet should stay direc

in theory that should give manuman manuel valls.e situation over the weekend where the economy minister was questions his own policy. it was quite surreal. so valls acted, the prime minister who's a decisive character. he went and said either he goes or go. the president agreed to get a new government with valls in power which should in theory boost valls' plan and allow him to go forward with the ways to get the country out of the crisis. >> we keep hearing the prime minister valls is a bit more to the right. at the end of the day, this could play into france's hand positively. if he get ace cabinet or team behind him on the same path, they can get top measures through, right? >> well, i mean -- we've got to take a point of this that he wants the right ones. the people on the left disagree. if you take the consensus on economic policy reforms cutting back on public spending and budget is important, then yes he'll have a clearer hand, united government. there are big questions though. one he would still have to command a majority in

here, there is not a big difference between president on thee and manuel valls other hand.l of them want an easing of posterity and at least more time to meet the fiscal deficit targets. the prime minister and president or not keen on having an open conflict with germany on the sin -- in the central bank. >> in terms of the stability of nde administration, this is designed to bolster it. there is concern that it may be a splintered socialist party that could lead to an early election, a difficult cohabitation with other parties. what is your read of the political end? >> i don't think there is immediate danger of the government being defeated. if there is a vote of confidence and the government and the parliament in the next couple of weeks or so, i am sure he will win it. of ahings will play out longer-term, the next year or so on, if unemployment shows no chine -- no sign of falling, there will be pressure to change policy costs or call new elections, new parliamentary elections. nothing in the near future. 2017 feels like a long way away. -- this is only going to work to