Daily Brief – Georgia

Georgia

Having applied to join the EU in March 2022 and been granted accession in December 2023, Georgia seemed to have been on course to join the EU. However, a few months later the EU and Georgia terminated the process. With the Georgia Dream party in power, and all the leaders of the pro West parties in jail, Georgia’s chances of becoming part of the EU any time soon are negligible due to the growing number of Russian incursions and the slippage on achieving the rule of law. The EU foreign ministers issued a joint statement on Friday expressing concern over the worsening situation in Georgia.

GBP/USD 1.3493.

US Tariffs

Another weekend and more US tariff threats with Canada at 35% and the EU and Mexico at 30%. Mexico exports 80% of its total exports to the USA. The EU has been informed that the USA does not expect the EU to impose any reciprocal tariffs. Fortunately, Mexico and the EU are led by women who remain calm in the face of the USA’s seeming determination to provoke a damaging trade war and both President Ursula von der Leyen and President Claudia Sheinbaum are continuing to talk to the USA.

EUR/USD 1.1689.

UK Mortgage rate war

Good to see that Barclays, Skipton Building Society, Nationwide and TSB are all competitively cutting their lending rates for home finance. Plenty of deals below 4% and fixed rate for remortgaging on offer at 3.84%. A reflection of those lenders as well as the wider market expecting that the Bank of England will be cutting interest rates more than is priced in in the next 6 months.

EUR/GBP 0.8664.

Land of the Thunder Dragon

Bhutan the Himalayan kingdom has taken a giant leap of faith and has recently elected to fast track the adoption of crypto as an official settlement currency with over 1000 outlets accepting it. The previous claim to fame of Bhutan was the pursuit of “gross national happiness” and it can only be hoped for this gentle country that this latest adventure turns out to give its people a happy ending.

EUR/JPY 172.30.

Bad Girls

This day in 1979 disco diva Donna Summer had a Number One with this number which took dance floors by storm. Together with Hot Stuff the other Number One hit on the same album, Donna Summer cornered the dance market in that sultry summer of ‘79.

Toot toot hey beep beep

Bad girls
Talking ’bout the sad girls
Sad girls
Talking about bad girls, yeah

See them out on the street at night, walkin’
Picking up on all kinds of strangers
If the price is right you can score
If you’re pocket’s nice

But you want a good time

You ask yourself, who they are
Like everybody else, they come from near and far

Bad girls
Talking about the sad girls
Sad girls
Talking about the bad girls, yeah

Friday night and the strip is hot (hot)
Sun’s gone down and they’re about to trot (out trot)
Spirit’s high and legs look hot

Do you wanna get down

Now don’t you ask yourself, who they are
Like everybody else, they wanna be a star

Bad girl, sad girls

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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