Daily Brief – Japan

Japan

While this week’s focus has been on the AI bubble as typified by Nvidia shares and the concerns raised by legendary investor Peter Thiel having sold all his Nvidia shares, the USD has been strengthening further against JPY prompting expectations of Bank of Japan intervention to halt the slide in JPY. When it last reached this level which was last year it was met by intervention. The yield on 20 year Japanese Government Bonds or JGBs has reached its highest level since 1999.

USD/JPY 155.22.

FSCS

As most will know, currently UK savers are protected up to GBP 85,000, but from December 1 a new limit of GBP 120,000 will come into force which means that if a UK authorised bank, building society, or credit union ceases business, the Financial services Compensation Scheme will compensate customers for their deposits up to the new limit which is for each person and each entity. An FCA report shows that as at 2024 90% of UK citizens have such savings, but the median amount for each saver is between GBP 5000 and GBP 6000. The increase in the limit is the first for 8 years.

GBP/USD 1.3153.

Chatbots

Those who have retired their brains and common sense judgement having outsourced their thinking and decision making to AI chatbot sites such as ChatGPT will have to think for themselves once again. Which, the consumer magazine has surveyed the various sites and concluded that at best UK consumers should be cautious about the information on finance, insurance, savings, and investments. For example, Microsoft’s Copilot and Chat GPT advised breaking HMRC ISA investment limits; Meta’s AI provided incorrect information on claiming compensation for delayed flights; ChatGPT incorrectly stated that it was mandatory to have travel insurance to visit EU countries.

EUR/GBP 0.8808.

O Canada

“Canada is the most European of the non European countries” claimed PM Mark Carney recently. A clue that the 35% tariff imposed by POTUS on Canada was beginning to bite and last month that was increased by a further 10% on all Canadian goods imported into the USA except for cars which are 25% and metals at 50%. More pro EU comments by Mark Carney followed with the clear aim of cosying up to the Europeans given the tough love being meted out by the USA. Look closely at the Canadian Budget and there are two items contained in it for, firstly, CAD150 million for the Canadian Broadcasting Company/Radio-Canada, and secondly, CAD 400 million to various cultural organisations. Those funds are it appears earmarked for getting Canada into the Eurovision Song Contest where they will join those other well-known European countries Australia and Israel (maybe still) and which will mean that Canadian artistes such as Celine Dion who won Eurovision in 1988 representing Switzerland will be able to sing for their own country in the future.

USD/CAD 1.4040.

Sweet Caroline

Definitely one for the pub quiz – assuming that pub quizzes continue to receive air time given the preponderance of cheating through the use of ChatGPT – is that this day in 2007 Neil Diamond sang at Caroline Kennedy’s 50^th and when he introduced this song, he announced that when he wrote the song in 1969, it had been about Caroline Kennedy as a 12 year old school girl. Those were more innocent times when an older man writing songs about a 12-year-old schoolgirl was (sort of) ok although the lyrics should even then have raised an eyebrow…or two.

Where it began, I can’t begin to know when
But then I know it’s growing strong
Oh, wasn’t the spring
And spring became the summer
Who’d have believe you’d come along
Hands, touching hands, reaching out
Touching me, touching you
Sweet Caroline
Good times never seem so good
I’ve been inclined
to believe it never would… but now I…
…look at the night
And it don’t seem so lonely
We fill it up with only two
And when I hurt
Hurting runs off my shoulder
How can I hurt when holding you
One, touching one, reaching out
Touching me, touching you
Sweet Caroline

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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