Daily Brief – POTUS in Kingdom of Saudi Arabia

POTUS in Kingdom of Saudi Arabia

As one of POTUS’ travelling companions on this week’s visit, Larry Fink of Blackrock represents everything that a US President might want to burnish his credentials in the desert kingdom: head of the largest asset manager on the planet, hugely influential and totally credible. Just a shame that he spoilt all that by telling attendees at the Saudi-US Investment Forum in Riyadh some home truths: 90 days of uncertainty are in prospect over trade and tariffs; investors are sitting on tens of trillions of USD over worries about the US economy and US debt; US deficits are henceforth going to attract much greater scrutiny. Hardly the way for President Trump to win friends and influence people in the region.

EUR/USD 1.1102.

Collective Action Problem

These were US Treasury Secretary Bessent’s words to explain why the EU had not done a trade deal with the USA. It’s hardly original and harks back to the question posed by Henry Kissinger when he was Secretary of State between 1973-1975: who do I call when I want to talk to Europe? If Bessent had done his homework he would know that back in 2009 the EU decided that such a discussion should be had with the President of the EU Commission which is of course Ursula Von der Leyen.

EUR/JPY 164.43.

US Visitor Spending

Predicted to fall by 7%, there is a temptation to say so what that visitors to the US are going to be spending less. However that 7% represents USD 12.5 billion and if that is not enough that represents a fall of more than USD 30 billion since pre-Covid 2019. The USA is the largest travel and tourist economy globally and is the only country of the 184 countries covered by the World Travel and Tourism Council that is seeing a fall in absolute international tourist spending. Germany has told its citizens that having a visa does not guarantee entry which has further dented EU enthusiasm to visit the USA on top of the politics and overspill from the anti foreigner invective from POTUS.

GBP/USD 1.3207.

Eurovision Accommodation

As the world hurtles towards the semi finals last night and tomorrow night and Saturday’s final of the Eurovision song contest, those canny Swiss are making hay with hotel and AirBnB prices. Top attendees in Switzerland’s Basel or Basle will be unsurprisingly the Swiss who have bought the most tickets but will mostly not need to pay the eye wateringly expensive accommodation costs. That privilege will be afforded to the Germans, Brits, French and Spanish who make up most of the fan base. Accommodation costs for this week are 130% higher than last week and 160% higher than next, so go figure with an average AirBnB cost for 6 nights at EUR1,804 for the 50,000 fans from 80 countries expected. If money is no object, there is a studio in St Jakobshalle available at EUR 21,906 and… it’s only 8kms from Basle. Bargain.

EUR/GBP 0.8408.

Reload

This day in 2000 Tom Jones became the oldest artist at 60 to release new material which went to Number One. The Reload album went on to sell 4 million for the woolly Welsh wombat as he was known and was consequently a nice little earner for him. Strangely the album was not released in the USA which was their loss and buying it from now on for US readers will doubtless command a tariff uplift. This song from the Reload album despite serial syntax mangling was an even bigger commercial success than the album: Sex Bomb.

Spy on me baby, you satellite
Infrared to see me move through the night
Aim, gonna fire, shoot me right
I’m gonna like the way, the way that you fight

Now you found the secret code I use
To wash away my lonely blues
And I can’t deny or lie
‘Cause you’re the only one to make me fly

Sexbomb, sexbomb you’re a sexbomb
And you can give it to me when I need to be turned on
Sexbomb, sexbomb you’re my sexbomb
And baby you can turn, turn me on
Woo

Yey

Don’t get me wrong, ain’t gonna do you no harm
This bomb’s for lovin’ and you can shoot it far
I’m your main target come and help me ignite
Lovestruck, holding you tight
Make me explode, although you know
The route to go to sex me slow
Yes, I must react to claims of those
Who say that you are not all that?

Sexbomb, sexbomb, you’re my sexbomb
And you can give it to me when I need to come along
Sexbomb, sexbomb, you’re my sexbomb
And baby you can turn me on (yeah)

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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