UK Interest Rates
With the expectation that the Bank of England will raise interest rates 25 BP in March to 4.25% and then pause, the wage price inflation data released yesterday underlined the fact that there does need to be some stronger medicine to dampen and reverse inflation from more than 5 times the target rate of 2%. That was enough to send GBP up to GBP/USD 1.2210 and GBP/EUR 1.1330.
US Dollar
With annualised US inflation 0.1% lower in January than it was in December, the market concluded two things: first US headline inflation is turning and second it is not turning far enough for the Federal Reserve to relax the pressure on high interest rates any time soon. That was enough to significantly strengthen the USD to reach USD/JPY 132.40 and EUR/USD 1.0730.
Irish Punts
No need to pinch yourself, 21 years after the Irish Punt was converted to EUR, there remain EUR 223 million of Irish Punts and, if not exactly in circulation-think in pockets, down the back of the sofa etc-then definitely out there. What may not be appreciated is that the Central Bank of Ireland will convert claimants’ Punts into EUR with no time limitation. For those readers who have Punts the conversion rate is EUR/IR£ 0.787564.
Artificial Intelligence
With Valentine’s Day safely past for another year, it is time to examine the best (?) lines from the world of AI for those seeking a date. You have been warned:
1. Do you have a map, I keep getting lost in your eyes.
2. If you were a vegetable, you would be a cute cumber.
3. Do you believe in love at first swipe or do I need to unmatch and match with you again?
Just think, they were the best ones from the world of AI.
Easter Saved
It had to be an early example from Shropshire UK of the silly season which is normally restricted to stories in July and August when journalists are short of material: yesterday following the arrest and conviction of a lorry driver who had stolen a consignment of 200,000 Cadbury’s Crème eggs, Police were reported to have feared for whether Easter could be celebrated with such a lot of confectionary going missing. This major heist had necessitated the use of a major Police operation on the M42 motorway in the Midlands which ended with the lorry driver surrendering with his arms up. Really?
You’re No Good
This day in 1975 Linda Ronstadt had her only Number One with this number having had no less than 21 songs in the Billboard Top 40:
Feelin’ better now that we’re through
Feelin’ better, ’cause I’m over you
I learned my lesson, it left a scar
Now I see how you really are
You’re no good
You’re no good
You’re no good
Baby, you’re no good
I’m gonna say it again
You’re no good
You’re no good
You’re no good
Baby, you’re no good
I broke a heart that’s gentle and true
Well, I broke a heart over someone like you
I’ll beg his forgiveness on bended knee
I wouldn’t blame him if he said to me
You’re no good
You’re no good
You’re no good
Baby, you’re no good
I’m gonna say it again
You’re no good
You’re no good
You’re no good
Baby, you’re no good
I’m tellin’ you now, baby
And I’m going my way
Forget about you, baby
‘Cause I’m leavin’ to stay
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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