Daily Brief – Africa

Africa

In case you doubt the resolve behind China’s inexorable advance across Africa, focus for a moment on CHIPS Or China’s Cross Border International Payments System which is the Chinese equivalent of the international payments system SWIFT or Society for Worldwide Interbank Financial Telecommunication (Swift) system. Countries including Libya, Angola, and Kenya as well as supra national African Export Import Bank and South Africa’s Standard Bank are all members of CHIPS. Apart from influencing the economies of these vast swathes of Africa, this is all part of China’s strategy of increasing the internationalisation of the Yuan. Stand by for an increase of Yuan denominated African borrowing via Panda bonds. While not explicitly aimed at sanctions busting, this will potentially have that result as well, of course, as by-passing the USD and US payment systems. 

GBP/USD 1.3531.

Pomegranates

Packed full of Vitamins C for immunity, K for bone density health and blood clotting, Folate and Potassium for lowering blood pressure, Pomegranates have been a mainstay of health and culture for thousands of years. The pomegranate market has historically been dominated by Iran, Turkey, and Spain but now newcomer Azerbaijan is muscling its way in with EUR 48 million of pomegranate exports last year and 200 different domestic brands. The annual Goychay Pomegranate Festival held each October is testimony to the strength of this relatively new Azerbaijani industry. Interested in going: fly to Baku and just 200km to the west is Goychay.

EUR/USD 1.1594.

Oil

Well, what a surprise though unwelcome at best: the London oil market is now beginning to price in an ongoing Iran-US conflict and both the consequent threat and the disruption to oil supplies. Oil is stable around USD 90 and 6 and 12 month forward prices are USD 80 and 76 which is well above what the curve looked like just a couple of weeks ago. Meanwhile, in a bold move new PM Andy Burnham has taken a decision despite what critics have termed as the bleeding obvious given the UK’s economic and energy positions… not to take a decision until the Autumn on whether to issue UK North Sea drilling licences. 

Brent USD 91.29.

Santorini

In a riff on rip off Britain the Daily Mail has been conducting an undercover mission by deploying its fearless reporters in the Greek island of Santorini. The theme is: luckless Brits being exploited by canny Santorinians or Therans as they are sometimes called given that Thera is the principal town overlooking the huge caldera or volcanic crater which is mostly beneath the sea. Cafes and restaurants are marking up chicken and chips, fish and chips and other Brit staples by eye watering amounts. The leading proponent of this brisk trade according at least to those intrepid Daily Mail reporters is a restaurant called Katrin with great views over the Aegean Sea and which charges €45 for 3 prawns. Whatever happened to the idea of going to Greece and eating Greek food? Incidentally and not mentioned by those Daily Mail hacks, Katrin charges a very reasonable given that stonking view, €12 for a Greek salad.

EUR/GBP 0.8554.

When Will I See You Again?

This day in 1974 the Three Degrees, the American female vocal group founded in 1963 were at Number One with this number and struck such a chord with the public and indeed the cream of society that they subsequently performed it for the then Prince now King Charles at Buckingham Palace, London in 1978. Hoo hah indeed.

Hoo, hah

Hah, hoo
Precious moments

When will I see you again?
When will we share precious moments?
Will I have to wait forever?
Will I have to suffer? (Suffer)
And cry the whole night through?

When will I see you again?
When will our hearts beat together?
Are we in love or just friends?
Is this my beginning or is this the end?

When will I see you again?
When will I see you again?
When will I see you again?

Hah, hoo

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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