Daily Brief – Oil

Oil

At a smidge below USD70, Brent oil rose sharply at the beginning of the week on the back of two principal factors: firstly, the EU committing to buy USD 750 billion of energy products from the USA as part of the 15% tariff trade deal; secondly, POTUS’ 50 day ultimatum to President Putin to cease the war in Ukraine or face 100% tariffs. Yet another cliff like market event come mid September and especially so for Russia.

EUR/USD 1.1531.

British Pound

This may be the start of a further weakening of GBP versus Euro now that the EU has come to trade and tariff terms with the USA and the UK, while having secured a more favourable tariff of 10% according to the market at least looks to be a bit Cinderella like despite Sir Keir making obeisance at Turnberry on Monday. The other side of the story is that France, Germany, and Greece so far, and maybe more to come, have broken cover to grumble about the EU Commission President’s deal with the USA. There is the rather more salient point that the EU is either close to, or at the end of its rate cutting cycle while the Bank of England is looking like having to cut rates more than once this year. So divergence in its rate cycle from the EU and a weaker exchange rate for the UK in prospect.

GBP/USD 1.3333.

CBI

UK readers may think this is the CBI as in the somewhat tarnished and antiquated Confederation of British Industry back when the UK was a major industrial nation. Not so, this is Citizenship by Investment and the 5 Caribbean nations, offering passports do so with as little as a USD200K investment in property. Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis and St Lucia offer access to 150 countries, including in some cases the EU and the UK as well as zero inheritance, capital gains and income taxes. What’s not to like?!

EUR/GBP 0.8647.

Easter Island

The famous Moai statues on Chile’s Easter Island are the draw for tourists on this remote territory in the Pacific Ocean. The snag is that the Moai are deteriorating and or falling into the sea. 1000 Moai were carved between 1100 and 1600AD. The Easter Islanders are taking action and starting off by waterproofing 5. If that works it will be rolled out to the other 995. 

EUR/JPY 171.11.

Wild Thing

This day in 1966 The Troggs had a hit with this song which turned out to be a timeless classic. Originally from Andover, Hampshire UK and calling themselves The Trogladytes, the band made great progress once they escaped Andover and changed their name. Unkindly accused of being one hit wonders the Troggs did manage an album which less promisingly was called From Nowhere and went on to release other big sellers such as Love is All Around.

Wild thing, you make my heart sing

You make everything groovy, wild thing
Wild thing, I think I love you
But I wanna know for sure
Come on and hold me tight
I love you

Wild thing, you make my heart sing
You make everything groovy
Wild thing

Wild thing, I think you move me
But I wanna know for sure
Come on and hold me tight
You move me

Wild thing, you make my heart sing
You make everything groovy, wild thing
C’mon, c’mon, wild thing
Check it, check it, wild thing

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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