Daily Brief – Germany

Germany

The German business climate was slated to rise in July but instead it fell in terms of both current and also future expected business conditions as reflected in the IFO Index made up of manufacturing, services, trade and construction sectors as submitted by 9000 firms. Germans wishing doubtlessly that they could be as strongly upbeat as they are strong at compiling statistics. 

EUR/JPY 165.40.

Layering

This is the term used to describe how fake news is planted and then takes on a life of its own by releasing follow up similar snippets of news. Last October, Elena, the wife of Ukraine’s President Zelensky was accused of spending more than USD 1 million in Cartier, 5th Avenue NYC. For all the obvious reasons this was emotive given the then and ongoing pleas from her husband for financial and munitions support from the West. Once the headline had been picked up, a number of other stories were planted that appeared to support the accusation including an intern who was seemingly an attractive black American female, who lost her job for leaking a copy of the sales invoice that was helpfully printed and itemized the jewellery. It turns out that the source of the fake news was Russian and as for the intern, she is apparently a Russian beautician. 

EUR/GBP 0.8420.

Japanese Yen

As we alerted readers in recent weeks Japan does not like JPY being overly weak and actively dislikes USD/JPY above 150. In the same way that officials were tight lipped as they gritted their teeth and reportedly spent USD 39 billion supporting the Yen last week, Minister Shunichi Suzuki delphically muttered that he could not comment on a snap back in JPY yesterday in case it gave misleading signals to the market. Given the suddenness of the snap it is safe to say that further $ billions were sold yesterday combined with the possibility that the Bank of Japan is set to ditch its low interest rate policy and raise rates.

USD/JPY 152.40

QNUPS

Nothing to do with marriage and pre nup agreements. This is a story broken by the Guardian to do with the avoidance of Capital Gains Tax and Inheritance Tax by transferring pension and other assets offshore; hence Qualifying Non UK Pension Schemes. This wheeze is being hawked by Baker Tilly and is supposedly both completely legal and bulletproof. This may sound a familiar pitch to those long suffering film finance investors from 20 years ago whose cases are still unresolved who were sold schemes by top name banks like HSBC for which they were charged through the nose, only for HMRC to disagree followed by all those highly remunerated advisers denying any accountability. Mind your eye and your UPS.

GBP/USD 1.2890.

QNUPS

This day in 1975 The Eagles released the album of this name, their first to reach Number One notching up 4 million sales and which included no less than 3 number one singles including this one.

One of these nights
One of these crazy old nights
We’re gonna find out
Pretty mama
What turns on your lights
The full moon is calling
The fever is high
And the wicked wind whispers
And moans

You got your demons
And you got desires
Well, I got a few of my own

Oh, someone to be kind to in
Between the dark and the light
Oh, coming right behind you
Swear I’m gonna find you
One of these nights

One of these dreams
One of these lost and lonely dreams now
We’re gonna find one
One that really screams

I’ve been searching for the daughter
Of the devil himself
I’ve been searching for an angel in white
I’ve been waiting for a woman who’s a little
Of both
And I can feel her but she’s nowhere
In sight

Oh, loneliness will blind you
In between the wrong and the right
Oh, coming right behind you
Swear I’m gonna find you
One of these nights

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter