Weary and bored of Partygate and Westminster rules for us but not them? Never fear here is another tale from the other end of the world: President Fernandez of Argentina has also been found guilty of partying during lockdown. Appropriately enough for a country that defaulted on its debt for the 9th time in 2020 necessitating the re-structuring of USD 65 billion and resulting in a payback of 55 cents on the Dollar starting in 2024, there was no talk of a £100 or USD 125 fine for El Presidente. Instead he will be forced to donate USD 25,000 or GBP 20,000 which is the same as the cost of a respiratory machine and a stay in an intensive care bed. Both a disincentive and a socially useful penalty. Needless to say the story has been given a name, Olivosgate, which refers to the Presidential residence in Buenos Aires.
Research company Kantar clearly has too little to do: they have been out measuring the cost of a traditional fried breakfast. Two numbers have emerged: first the ingredients has gone up by 40p and secondly the bread, sausage, bacon, eggs, mushrooms and tomatoes cost an total of £6.83. Both numbers are suspect: first their researchers must have a truly full English for it to cost that much for a single portion and secondly, most shoppers would be amazed to learn that the ingredients have only risen in price by 40p or less than 6%. GBP fortified by this news with GBP/USD 1.2505 but less so versus EUR given EUR/USD 1.0707 so GBP/EUR 1.1680.
Regular readers of The Daily will be less surprised as to which destinations represent the best value for their holiday GBP, EUR and USD. But as a reminder right up there and much cheaper than pre Covid 2 years ago is Turkey followed by Hungary, Egypt, Poland, India, Costa Rica, Bulgaria and Croatia. This will go some way to counterbalance the much higher airline fares and hotels desperate to make up for almost zero business in the past 2 years.
He Ain’t Heavy He’s My Brother
This day back in 1969, the Hollies recorded this classic song with a then little known pianist called Reg Dwight from Pinner, Middlesex, UK on keyboards. Several things transpired: The song went to almost the top of the charts in both the UK and the USA in short order and soon after that, Reg Dwight poured himself off an aeroplane having been convinced by fellow passengers that his name was insufficiently interesting for a budding rock star: Elton John was born.
The road is long
With many a winding turn
That leads us to who knows where
Who knows where
But I’m strong
Strong enough to carry him
He ain’t heavy, he’s my brother
So on we go
His welfare is of my concern
No burden is he to bear
We’ll get there
For I know
He would not encumber me
He ain’t heavy, he’s my brother
If I’m laden at all
I’m laden with sadness
That everyone’s heart
Isn’t filled with the gladness
Of love for one another
It’s a long, long road
From which there is no return
While we’re on the way to there
Why not share
And the load
Doesn’t weigh me down at all
He ain’t heavy he’s my brother
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Click Here to Subscribe to the SGM-FX Newsletter
Related Insights
Daily Brief – Overrated Rates
Charles Porter
Tue 1 Oct 2024
Overrated Rates The unwinding of USD implied short term interest rates shouldn’t be underestimated. Take a brief look at changes in FX swap pricing over the past few months and you’ll see just how significant those interest rate expectations have proved to be. Particularly within GBPUSD, the difference is enormous. Post-pandemic inflationary pressures affected the […]
Daily Brief – Fifty Up
Humphrey Percy
Wed 2 Oct 2024
Fifty Up Exactly 50 years ago today I set out on my career in the City of London. Many of the men whom I worked with wore bowler hats and smoked pipes. Discount House men wore morning dress and top hats. Everyone wore two or three piece suits and black shoes. If you wore brown […]
Daily Brief – Bank of England
Humphrey Percy
Fri 4 Oct 2024
Bank of England In an interview with the Guardian newspaper, Governor Bailey made it clear that Central Banks could afford to cut interest rates more sharply. Markets correctly interpreted that statement as him preparing the way for cuts at pretty much every Bank of England MPC meeting for the next 6 months until they reach […]
