Daily Brief – British Pound

British Pound

With a GBP 4 billion auction of 10 Year Gilts today, markets are watching carefully as higher long term rates put pressure on the UK Chancellor and GBP bounces around between USD 1.21 and 1.22. After 6 consecutive trading sessions with GBP weaker and a low of 1.2097 which has taken its toll, the only bright spot yesterday afternoon was when a Goldman Sachs’s analyst broke cover to state that he saw GBP recovering from these levels although there seems precious little to support that argument at present from an economic perspective.

GBP/USD 1.2170.

UK Sky Poll

With Labour on 26%, Conservatives on 22%, Lib Dems on 15% and Greens on 8%, a not entirely unsurprising picture of dissatisfaction with the Government has emerged but what is much more striking is that Reform is only one point behind Labour at 25%. That plus the Conservatives being unable to land any punches on an accident prone Government as HM official Opposition and after being forced into third place it suggests that both the Labour and the Conservative parties need to do some soul searching.

EUR/USD 1.0254.

Darwinism

Far be it from us to be ageist but the demographic of Just Stop Oil protesters is increasingly and certainly senior as well as being old enough to know what they are doing. Yesterday two ladies from Derby and Frome in Somerset aged 66 and 77 respectively, linked up in Westminster Abbey where they spray painted the grave of Charles Darwin daubing it with the slogan “1.5c is dead” reflecting the world’s broken commitment on global warming. As a publicity stunt it is questionable given that most people positively associate Darwin with nature, but as an exercise in Darwinism or biological evolution where mankind destroys itself, it is unarguable as the JSO ladies will doubtless serve time. Subject to prison capacities of course.

EUR/JPY 161.90.

Spain

100% tax on new non EU buyers buying Spanish property? No that’s the plan from Spain to tackle the fact that 27,000 non EU buyers bought their Costa or City based Spanish dream property. It will of course close the Spanish real estate market to non EU buyers. PM Pedro Sanchez will doubtless garner some short term positive headlines, but then? Developments will remain unsold in part or whole, spend that would have accompanied those non EU buyers will not materialise and Italy, Croatia, Greece or Portugal will reap the benefits. Ole.

GBP/EUR 1.1866.

American Pie

Those with an appreciation of Don McClean will remember this song from 1972. Most fans thought that when DM referred to the day that the music died, he was doffing his hat to Buddy Holly’s early demise in a plane crash. Not a bit of it: Don had a more commercial response to the question when asked about American Pie: “It means I never have to work again.”

A long long time ago
I can still remember how
That music used to make me smile
And I knew if I had my chance
That I could make those people dance
And maybe they’d be happy for a while

But February made me shiver
With every paper I’d deliver
Bad news on the doorstep
I couldn’t take one more step

I can’t remember if I cried
When I read about his widowed bride
Something touched me deep inside
The day the music died
So

Bye, bye Miss American Pie
Drove my Chevy to the levee but the levee was dry
And them good ole boys were drinking whiskey and rye
Singin’ this’ll be the day that I die
This’ll be the day that I die

Did you write the book of love
And do you have faith in God above
If the Bible tells you so?
Now, do you believe in rock and roll?
Can music save your mortal soul?
And can you teach me how to dance real slow?

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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