Daily Brief – European Central Bank

European Central Bank

A remarkable interview from Central Bank of Lithuania Governor Gediminas Simkus yesterday, who is also a rate setter on the Board of the ECB for two reasons: the first is the frankness with which he spoke unlike those Delphic pronouncements from most of his predecessors which could be parsed in different ways; secondly, what he said was the ECB had already achieved its inflation objectives (unlike many in its peer group) and therefore with inflation at +/-2%, the direction of inflation would be dictated by external events or forces citing Russia and its aggression being the most likely. As such, he concluded, the next move in EU interest rates could be either up or down. Meanwhile, EU interest rates will remain on hold for February.

USD/JPY 153.05.

US Dollar

Markets continue to be pre-occupied with the weakening of the USD as we wrote yesterday and ahead of the Federal Reserve Open Market Committee meeting tonight. The lack of the expected announcement on the next Chairman of the Fed, the conclusion given POTUS’ many remarks on the diminishing independence of the Federal Reserve and the investigation and potential indictment of Chair Powell on charges of improper spending in connection with the new FED HQ add up to a lot even before taking the list of other Dollar negative factors already listed by us.

EUR/USD 1.1970.

Crit’Air Sticker

Come on own up: most Brits do not have a clue that they need one of these emissions permits if they are planning to take their cars on Le Continent and especially to France and driving through low emission areas – most conurbations. Displaying this sticker is mandatory, and failure to do so could give rise to a EUR 180 on the spot fine. All part of the French fun is trying to purchase a Crit’Air sticker: not available locally, and must be bought on the French government website in advance. There are plenty of other traps for the unwary British motorist, but most Brits are savvy about adjusting their headlights, displaying a clear GB sticker or numberplate symbol, and carrying safety equipment.

GBP/EUR 1.1502.

Eastbourne

Not a normal area for us to look at, but a positive from the storms recently besetting the UK has been experienced on the Sussex coast near Beachy Head and the Seven Sisters, which is close to Eastbourne. The storms have taken the pebbles that normally are a feature of the beaches out to sea and exposed beautiful sand beneath the normally stony coastline. Those wanting to experience Sussex’s sandy shores should head for the Birling Gap. Hats, scarves, boots, and rainproof gear recommended.

GBP/USD 1.3767.

Dreams

This day in 1978 Fleetwood Mac‘s album Rumours to great and deserved acclaim went to Number One in the Charts with a collection of terrific songs that have more than stood the test of time over the past 48 years as the collective talents of Mick Fleetwood, Christine and John McVie linked up with Lyndsey Buckingham and Stevie Nicks.

Now here you go again
You say you want your freedom
Well, who am I to keep you down?
It’s only right that you should
Play the way you feel it
But listen carefully
To the sound of your loneliness

Like a heartbeat drives you mad
In the stillness of remembering what you had
And what you lost
And what you had
And what you lost

Oh, thunder only happens when it’s rainin’
Players only love you when they’re playin’
Say women, they will come and they will go
When the rain washes you clean, you’ll know
You’ll know

Now here I go again
I see the crystal visions
I keep my visions to myself
It’s only me who wants to wrap around your dreams
And have you any dreams you’d like to sell?
Dreams of loneliness

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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