Daily Brief – German Election

German Election

This weekend will almost certainly see a reduction in the Green Party’s share of the vote in the elections on Sunday. In 2021 the Greens captured 14.7% of the pie with ecological issues and specifically climate change and clean energy being high up the list of voter pre-occupations. Scroll forward four years and migration or rather immigration plus security are now the key topics. Accordingly the CDU and CSU and the Social Democrats have concluded that green issues such as home heating are not vote winners and are accordingly leaving them to… the Greens.

EUR/USD 1.0462.

Tequila

The 25% tariffs overhanging Mexico directed towards the repatriation of US manufacturing currently outsourced to Mexico plus with the aim of curbing the illicit fentanyl cross border smuggling is liable to hurt Americans and their drinking habits. Since Covid, the popularity of tequila has soared to the extent that after vodka it is the spirit of choice for cocktails in the USA ahead of whiskey, gin and brandy. Last year the USA imported USD 3.8 billion worth of tequila in the first 9 months so POTUS’ tariffs will add a not inconsequential annual USD 1.25 billion to the cost of all those Margaritas, Sunrises and Slammers.

EUR/GBP 0.8290.

Reserve Bank of Australia

As broadly expected on Tuesday the RBA cut Australian interest rates for the first time since the Covid era in 2020. However, the noises from the RBA do not make a further cut in April sound likely, and as a result, the AUD strengthened.

AUD/USD 0.6351.

Bertrand Piccard

Hats off to 66 year old Swiss boffin BP who is about to attempt to fly a green hydrogen fuelled 2 seater plane non stop around the world in 9 days without any stops and also without any mid air refuelling. 25,000 miles at an altitude of 10,000 feet at a speed of 180 km/hr is the plan for the Climate Impulse that has the same 320 feet wingspan as an Airbus A320.

GBP/USD 1.2603.

The Alamo

This day in 1982 Ozzy Osbourne of Black Sabbath was arrested in San Antonio Texas USA for urinating on the Alamo. This was bad on a number of scores as apart from being a site revered by Americans and particularly Texans as well as being a historical site of US significance, Ozzy committed this felony while wearing a woman’s dress. In fact it was his wife Sharon’s dress since she had hidden his clothes to prevent him going out. Ozzy was banned from performing in San Antonio ever again; ever turned out to be until 1992 when the ban was lifted. Here is one of what are regarded by Sabbath fans as their best songs, War Pigs:

Generals gathered in their masses
Just like witches at black masses
Evil minds that plot destruction
Sorcerer of death’s construction
In the fields, the bodies burning
As the war machine keeps turning
Death and hatred to mankind
Poisoning their brainwashed minds
Oh lord, yeah!
Politicians hide themselves away
They only started the war
Why should they go out to fight?
They leave that role to the poor, yeah
Time will tell on their power minds
Making war just for fun
Treating people just like pawns in chess
Wait till their judgement day comes, yeah!
Now in darkness, world stops turning
Ashes where their bodies burning
No more war pigs have the power
Hand of God has struck the hour

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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