Daily Brief – USD 30 million

USD 30 million

That is the level of wealth one must have amassed to qualify for inclusion in the category of what wealth managers and private bankers term as ultra rich. Of the world’s 7 billion people less than 1 million are ultra rich and despite the efforts of the current UK government to relieve them of their wealth or force them to relocate elsewhere, there remain almost 28,000 such people in the UK. That compares to 38,000 in Germany and 22,000 in France. China has 122,000 but the USA has more than double that with over 250,000.

EUR/GBP 0.8648.

Cloud Seeding

Used with success in the UAE to create rainfall the experience garnered there is now being tapped by Kazakhstan. While the tech cannot generate rain from a clear sky – you need storm clouds – moisture is generated by firing silver iodide into the clouds which is not a pollutant.

Kazakhstan will deploy cloud seeding in Turkistan which has had no rain for 8 months and it is expected to increase rainfall and save Kazakhstan EUR 65 million a year by enhancing crop yields. 

GBP/USD 1.3426.

US Dollar

Positively, agreement between Israel and Lebanon has been reached in principle to implement a ceasefire but still contingent on Hezbollah ceasing hostilities on Israel and removing all its fighters from South of the River Litani. This last bit is both understandable and correct but requires Iran to order that. As such, that part of the US-Iran peace deal puzzle remains elusive. Attack on Kuwait airport, POTUS calling Netanyahu crazy in a phone call, strikes in Hormuz, oil up and so it goes on which all add up to a firm USD as we go into the weekend. 

EUR/USD 1.1611.

Poland

The Polish economic picture with growth of 3.7% is so good that it merits a closer look in the context that Poland has one of the lowest birth rates in the world. Unfortunately, such growth cannot last as it is unsustainable given Poland’s large debt position exacerbated by high borrowing costs, overly generous social security payments and too many large projects. VAT receipts and tax gathering do not meet targets nor match commitments and last but not least there is a lack of political willingness to raise taxes. In short something has to give on the income or the expenditure side or… both.

EUR/JPY 185.68.

Absolute Classic Rock

No not a song but a radio station and on this day in 2010, listeners polled Led Zeppelin’s Stairway to Heaven as their Number One song ever and the band’s Whole Lotta Love at Number 4 and lastly their Rock n’ Roll at Number 7. Surprising to learn that 40 years on Led Zep diehard fans were both not deaf and capable of remembering the songs.

There’s a lady who’s sure all that glitters is gold
And she’s buying a stairway to Heaven

When she gets there she knows, if the stores are all closed
With a word she can get what she came for

Ooh, ooh, and she’s buying a stairway to Heaven

There’s a sign on the wall, but she wants to be sure
‘Cause you know sometimes words have two meanings

In a tree by the brook, there’s a songbird who sings
Sometimes all of our thoughts are misgiven

Ooh, it makes me wonder
Ooh, makes me wonder

There’s a feeling I get when I look to the West
And my spirit is crying for leaving

In my thoughts I have seen rings of smoke through the trees
And the voices of those who stand looking

Ooh, it makes me wonder
Ooh, really makes me wonder

And it’s whispered that soon if we all call the tune
Then the piper will lead us to reason

And a new day will dawn for those who stand long
And the forests will echo with laughter

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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