Daily Brief – Porsche

Porsche

Yet another auto company with falling sales. Only in the case of Porsche, its sales have fallen only 1% in 2024 on the previous year. However margins have fallen considerably with gross operating profit down from EUR 7.3 billion in 2023 to EUR 5.3 billion in 2024. This is enough of a wake up call for Porsche to announce 4,000 job cuts in the next 5 years. While Elon Musk’s Tesla’s gross revenue might be an order of magnitude greater at EUR 90 billion for 2024, Elon Musk must be casting an envious eye at Porsche’s sales decline given the 75% decline in sales in Europe and 65% in Australia in the first 2 months of 2025.

EUR/USD 1.0863.

Oil

With oil prices(Brent) struggling to stay above $70, the fact is that the swashbuckling POTUS trump is having a deflationary effect on both the world economy and as a consequence world oil prices. The weakening US Dollar will create a bit more demand doubtlessly but this will soon be offset by OPEC+ increasing supply in April. While POTUS has said that he wants US companies to produce more goods, there is little incentive for them to do his bidding given that global prices look soft and getting more so.

GBP/USD 1.2937.

Gold

Up by 12% this year(so far) at $2940 and within a whisker of its all time high, for those long of it from last year or even before, good news. For the rest it’s very much a mixed blessing given gold’s status as a safe haven asset and a hedge for global geo political fears not to mention armed conflict. Some analysts are predicting a break through $3000 and an average trade price of $3150 for Q3.

EUR/JPY 161.34.

BEC

The bacon, egg and cheese sandwich is as NYC as it is possible to be and used to cost $3 at local NY delis. Now at $5 due to the soaring cost of eggs but New York ever creative is substituting the mung bean for eggs . Apparently it is a good substitute so the next time you are in NYC give it a go. Apparently light and fluffy this member of the legume family(?!)  tastes…..eggy!

EUR/GBP 0.8388.

Blondie

This day in 1978 Blondie fronted by Debbie Harry was at Number 2 in the charts with their song Denis. The only reason it was not Number 1 for those readers with a good memory was due to a doctor’s daughter from Rickmansworth in the shape of Kate Bush whose combination of warbling lyrics and balletic poses won her the top slot for Wuthering Heights.

Oh Denis, ooh-be-do, I’m in love with you
Denis, ooh-be-do, I’m in love with you
Denis, ooh-be-do, I’m in love with you
Denis, Denis, oh with your eyes so blue
Denis, Denis, I’ve got a crush on you
Denis, Denis, I’m so in love with you
Oh, when we walk, it always feels so nice
And when we talk, it seems like paradise
Denis, Denis, I’m so in love with you
You’re my king and I’m in heaven every time I look at you
When you smile, it’s like a dream
And I’m so lucky, ’cause I found a boy like you
Denis, Denis, avec tes yeux si bleus
Denis, Denis, Quand j’ai peche’ pour deux
Denis, Denis, Pour un baiser d’eternite’
Denis, Denis, Je suis folle de toi
Denis, Denis, Embrasse moi ce soir
Denis, Denis, Pour un baiser d’eternite
Oh Denis, ooh-be-do, I’m in love with you

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter