Bank of England
The UK’s Monetary Policy Committee will pronounce tomorrow and uppermost in their minds will be the UK Inflation release which came out first thing this morning. Because it is higher at 10.4% rather than significantly lower than last month’s annualised 10.1%, not only does the Bank of England have more egg on its inflation fighting face, but the MPC has little choice but to raise rates and it is a question rather of by how much rather than if, despite the fears for the fragility of the economy. The cause of the rise in UK inflation? Higher eating out prices and the recent salad shortages! Hmmm. GBP firm at GBP/USD 1.2255.
Commodities
With Gold back to USD 1,948 and WTI Oil at USD 68.80, the market has, on the face of it, absorbed the bank rescue related events from last weekend and steadied. While the expectation remains that the Federal Reserve will indeed raise interest rates by 25bps tonight, the market will hang on every word and nuance from the FOMC for what happens next. Too hawkish and bank stocks will get hit again, while too accommodating towards the doves will send the inflation fighting hawks back to the barricades. One good piece of news-at least for UBS shareholders: as at last night UBS shares were trading at CHF 19.42 which is 32% above their low on Monday morning. EUR/USD 1.0770.
The Grand Canal
No not Venice, but China where the 1,782 long man made canal which is 9 times the length of the Suez Canal runs from Beijing to Hangzhou with sections of it as much as 2,500 years old. Having dried up in parts, the Chinese government decided to get the canal flowing again in 2022 and it is now once again a major artery as well as a tourist attraction in China. With China and Russia at the very top of the news agenda with their leaders now meeting in Moscow, USD/CNY 6.88.
Please Please Me
The first album that the Beatles released burst on to the burgeoning music scene this day in 1963 and stormed to the top of the charts where it stayed for 30 weeks. The message unsophisticated and the lyrics were simple but the fans did not care; here it is: Come On!
Please Please Me:
Last night I said these words to my girl
I know you never even try girl
Come on (come on)
Come on (come on)
Come on (come on)
Come on (come on)
Please, please me, whoa, yeah, like I please you
You don’t need me to show the way, love
Why do I always have to say, love
Come on (come on)
Come on (come on)
Come on (come on)
Come on (come on)
Please, please me, whoa, yeah, like I please you
I don’t want to sound complaining
But you know there’s always rain in my heart (in my heart)
I do all the pleasing with you
It’s so hard to reason with you
Whoa, yeah, why do you make me blue?
Last night I said these words to my girl
I know you never even try, girl
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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