Daily Brief – EU Economy

Humphrey Percy
Chairman and Founder
Fri 25 Oct 2024

EU Economy

For the second month running the EU economy contracted slightly. As ever a patchwork performance notable for Germany improving while France put in a particularly weak contribution. Worrying for France as well as the EU is that the outlook for France is not bright. No wonder the ECB was so keen to get that rate cut in last week.

EUR/USD 1.0795.

US Election

There is clear evidence that these past months of uncertainty in the outcome of the US Presidential Election has weighed on the US economy with small and medium sized businesses citing it as the main reason for caution. With the polls too close to call and such a divergence in tax and regulation, it is hardly surprising that uncertainty is weighing on the business community. Still less than two weeks to go but with the fear that the outcome may be worse than the uncertainty it’s causing furrowed business brows.

GBP/USD 1.2975.

British Beer

Officially the average price of a pint of beer in a pub in the UK is GBP4.79. Readers in the South East in particular will be wishing that was so as they mostly fork out a lot more. For the beleaguered landlords and tenants of the UK’s pubs the news that they make only GBP0.12 profit on each pint will come as no surprise. Healthy lifestyle choices, Gen Z abstaining and supermarket competition are all contributing to pubs closing their doors for good at an ever faster rate. 

GBP/EUR 1.2020.

Off Piste

If ski-ing is your thing you are probably looking forward to the start of the ski season in two months time but at the same time fretting about the cost of taking a ski trip in Europe and the lack of reliability of good snow. Arosa Lenzerheide in Switzerland has been named the top ski resort in Europe and daily adult lift passes there will only set you back EUR89 which these days is competitive. 43 lifts and 225 kms of piste means few queues and Arosa is easily reached by train from Zurich Airport. Incidentally of the top 20 ski resorts in Europe 12 are Austrian 5 are Swiss while France and Italy only manage 3 between them.

USD/JPY 152.12.

Freedom

This was Wham!’s second smash hit following the success of Wake Me Up Before You Go Go and went to the Number 1 spot in the UK and Number 3 in the USA this day in 1984 for the boy band duo of George Michael and Andrew Ridgley. The lyrics err on the side of simplified negativity mingled with pain but hey, it sold like crazy:

I don’t want your freedom
I don’t need to play around
I don’t want nobody, baby
Part time love just brings me down

I don’t want your freedom
I don’t want to play around
I don’t want nobody, baby
Part-time love just brings me down

I don’t want your freedom

Hurt me baby
Hurt me baby
Oh, oh

Hurt me baby
Hurt me baby

Do-do-do
Oh, whoa-oh

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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