Daily Brief – Parallel Universe

Parallel Universe

This time what seemed to be such a parallel universe was yesterday’s meeting between USA VP JD Vance and EU Commissioner Ursula von der Leyen following the USA sticking penal tariffs on EU aluminium and steel. UVL retaliated with “We should look with optimism at our transatlantic relations” but then remembered to say something which the EU 500 million people that she purports to represent might expect: “Unjustified tariffs on the EU will not go unanswered.” Phew: strong stuff. Then it was back to the dinner.

EUR/USD 1.0356.

EU by numbers

Germany, France and Italy account for 53% of the EU’s $19 trillion economy encompassing 27 countries. Add in Spain and the Netherlands and those 5 countries are 68% of the EU. Germany is larger than the combined total of the smallest 20 EU countries. So when Germany’s economy runs into the economic sand it’s kind of fundamental for the EU.

GBP/USD 1.2440.

No and Low

This is the way that the EU plans on reversing the trend away from (alcoholic) wine drinking. The EU is responsible for about half of the world’s wine consumption and the way to solve the economic decline in the wine industry due to Gen Z in particular adopting a healthier lifestyle than their predecessor Boomers is to provide them with low or even no alcohol wine choices at premium prices. It would seem that wine remains a snob thing even with Gen Z.

EUR/GBP 0.8324.

PIGS

That acronym comprising Portugal Ireland Greece and Spain seemed to be a thing of 2012 and thus safely behind us given that it applied in a derogatory way about those countries and their ability to manage their economies. However led by Spain it would seem that part of the acronym is on the way back this time about discouraging non EU buyers from buying property. This time Ireland has been replaced by France. So if you plan on buying a home in one of those countries, apart from taking professional advice, you might want to step up the pace a bit before it becomes too expensive to contemplate.

USD/JPY 153.20.

Little Red Rooster

Those were the days: when a burgeoning rock band wanted to garner some bad boy publicity their agent would arrange to get them arrested. That was exactly what happened when police were arranged to raid Keith Richards’ West Wittering Sussex retreat, Redlands and Keith, Mick Jagger and Marianne Faithful were taken away under arrest this day in 1967. Now the police are too busy or working from home so agents resort to social media and fake news to promote their clients.

I am the little red rooster
Too lazy to crow for day
I am the little red rooster
Too lazy to crow for day

Keep everything in the farm yard upset in every way

The dogs begin to bark and hounds begin to howl
Dogs begin to bark and hounds begin to howl
Watch out strange cat people
Little red rooster’s on the prowl

If you see my little red rooster
Please drive him home
If you see my little red rooster
Please drive him homeI had no peace in the farm yard
Since my little red rooster’s been gone

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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