Morning Brief – Markets

Markets

US 10 Year Treasury now back just over the psychological 3% mark, USD strong on the back of that EUR/USD 1.0670. Japanese Yen at a 20 year low USD/JPY 132.80. Australia raised interest rates yesterday by 0.50 in a surprise move and indicated that a steep path of further increases lies ahead from the current level of 0.85% towards a more normal 2.50%. GBP weaker as the No Confidence vote in PM Johnson is further analysed with the fact that 148 of his party voted against him outweighing the fact that he survived. GBP/ EUR 1.1705

China

As a demonstration of the cultural divide between China  and the West , news that the Chinese government is offering rewards to citizens who report instances of security breaches or evidence of foreign spying activity. A hotline has been opened and on a first past the post basis for proven cases reported, either spiritual or material rewards will be distributed. Spiritual awards will be in the shape of certificates reflecting good citizenship in reporting incidences of anti state activity; material awards will be in amounts of between 10,000 and 100,000 Yuan so up to almost USD 15,000. USD/CNY 6.6720.

Frozen at Sea Summit

Today marks the start of the keenly anticipated Frozen at Sea Summit in Aalesund, Norway. Andrew Cook, the appropriately named head of the UK’s National Federation of Fish Fryers is on a mission to help the UK’s beleaguered fish and chip industry and he has a cunning plan which involves asking Norway to send more of their fish to the UK. With Icelandic cod having increased per kilo from £7.80 to over £16 and potatoes having increased 30%, chippies across the land are rooting for him.

Janis Joplin

Only 6 years ago Janis Joplin’s family home in Texas was put up for sale at a cost of USD 500,000. When the real estate agent was asked to justify the price given that comparable were listing for between USD 70,000 and 80,000, he came back with an Estate Agent chestnut: “You’re obviously paying for the fame of the home.” Here is perhaps Janis Joplin’s best known song:

I’d like to do a song of great social and political import
It goes like this

Oh Lord, won’t you buy me a Mercedes Benz?
My friends all drive Porsches, I must make amends
Worked hard all my lifetime, no help from my friends
So, oh, Lord, won’t you buy me a Mercedes Benz?

Oh Lord, won’t you buy me a color TV?
Dialing For Dollars is trying to find me
I wait for delivery each day until three
So, oh, Lord, won’t you buy me a color TV?

Oh, Lord, won’t you buy me a night on the town?
I’m counting on you Lord, please don’t let me down
Prove that you love me and buy the next round
Oh, Lord, won’t you buy me a night on the town?
Everybody

Oh, Lord, won’t you buy me a Mercedes Benz?
My friends all drive Porsches, I must make amends
Worked hard all my lifetime, no help from my friends
So, oh Lord, won’t you buy me a Mercedes Benz?

That’s it

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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