Daily Brief – UK Economy

UK Economy

The question is whether the contraction of 0.1% in the UK economy announced on Friday between August and October was as a result of the Chancellor’s economic strategy or due to her Hokey Cokey Budget that resulted in UK plc sitting on its hands for 3 months in the run up to November 26. While there are many legacies that can be laid at the door of the predecessor Conservative government, the surprise contraction is not one of them. This then is a real life economic consequence of the Chancellor’s individual approach to the management of the UK economy. Sterling despite being buoyed last week by US Dollar weakness, did not like it and neither did the market.

GBP/USD 1.3369.

Metals

With US Dollar weaker and interest rate plays looking less attractive, the market has latterly been turning its attention towards investing in real assets and by that we mean metals as Oil has been languishing as we have written previously on the back of low economic growth and consequently a lack of economic demand. Brent traded at USD 61.10 on Friday. With Gold at USD 4337 and Silver at USD 64.38, it was Copper’s turn on Friday to trade at a new 3 month high at USD 5.39. That means that Gold is up 64% this year, Copper up 30% and Silver at 112%. Platinum is also a strong mover up 90% this year.

EUR/USD 1.1755.

Pastel de Nata

The Economist magazine named Portugal as its economy of 2025 and went on to describe it as as sweet as the pastry, pastel de nata. In second place was Ireland, followed by Israel, with Spain having dropped from first to fourth place. However, it is Portugal that gets the crown with growth of 2%. Things may not look as tasty going forward with dissatisfaction over the cost of housing and a General Strike called on Thursday.

EUR/JPY 182.84.

Cwmbach

In a real life enactment of the film Saving Grace that told the story of a cannabis farm in Cornwall, in 2020 Wales’ finest swooped on a remote farm and busted what they described as being the most sophisticated cannabis farm ever in Wales. The wheels of the law grind slowly and the lawsuit continues with the argument being over how much of the estimated multi million profit should be given up. The calculation in the mind of the main perpetrator at least seems to be weighing up a further 3 years in gaol and holding on to the moolah which works out as the equivalent of being paid GBP 500K per annum.

EUR/GBP 0.8767.

Bananas

This day in 1990, priapic pop pixie Rod Stewart married NZ model Rachel Hunter claiming that he had (at last) found the girl of his dreams. As the romancer poetically put it: ‘I won’t be putting my banana in anyone’s fruit bowl from now on.’ From now on was a for him lengthy 9 years as the couple split in 1999.

I didn’t know what day it was
When you walked into the room
I said hello unnoticed
You said goodbye too soon

Breezing through the clientele
Spinning yarns that were so lyrical
I really must confess right here
The attraction was purely physical, oh

I took all those habits of yours
That in the beginning were hard to accept
Your fashion sense, Beardsly prints
I put down to experience

The big bosomed lady with the Dutch accent
Who tried to change my point of view
Her ad lib lines were well rehearsed
But my heart cried out for you

You’re in my heart, you’re in my soul
You’ll be my breath should I grow old
You are my lover, you’re my best friend
You’re in my soul

My love for you is immeasurable
My respect for you immense
You’re ageless, timeless, lace and fineness
You’re beauty and elegance

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter