To absolutely no-one’s surprise the Bank of England left rates as they were yesterday at 5.25% and Governor Bailey said they needed more data before cutting rates. Critics of the UK Monetary Policy setting unit will soon be accusing the Bank of being too slow to raise rates when inflation took off and equally slow to cut rates when inflation receded and the economy is flat lining. GBP/USD 1.2704.
It may seem bizarre in rainy wintery Northern Europe to know that in Catalonia, Spain they are facing the worst drought ever with further water restrictions. It has also forced the Fuente de Piedra pink flamingos to seek a new home from their traditional wetland habitat in Malaga Province. At a human level, what this all means is that citizens of Barcelona and their horde of visitors all face water shortages with consequent rationing. GBP/EUR 1.1720.
To everyone’s general surprise and probably her own, the Swedish activist is now 21 years old so sufficiently grown up to stand trial for breaking UK public protest laws which is why she and 4 others appeared yesterday at Westminster Magistrates Court. We await to find out what penalties Greta Thunberg faces if found guilty, but a ban on visiting the UK as a minimum would be nice. EUR/USD 1.0860.
Peloton may have a nearly new CEO of just 2 years and a relatively new post Covid plan, but for investors the story is depressingly the same: revenues outweighed by costs result a net loss for Q4 2023 of almost $200 million. While that is better than the $335 million Q4 loss in 2022, it must be a question as to whether either the CEO or the current plan are fit for purpose. In August the shares stood at $9.60 but after yesterday’s results and a further 20% fall, the shares were less than half that at $4.28.
Flaming Ferrari profitability
In 2023 Ferrari’s revenues reached EUR 5.97 billion with a net profit of EUR 1.26 billion- a new record for the company. Things look good for Ferrari with the luxury car manufacturer predicting even better figures for 2024. Yesterday the news that Ferrari had deployed some of that profitability in signing Lewis Hamilton for the 2025 season thereby luring him away from Mercedes began to leak out. Lewis it will be remembered had sworn he would stay at Mercedes for the rest of his life. New life. Ferrari sold more than 13,600 vehicles in 2023 which in a year when the global economy has flirted with recession is more than impressive. Ferrari shares are available on the New York Stock Exchange and are trading at $380 a new high.
I Want To Know What Love Is
This day in 1985 this song ascended to Number 1 in the Billboard 100 where it clung like a limpet for weeks. Foreigner’s fortune was made and dance floors heaved to this tune that epitomised those more innocent days when travelling far accompanied by love and pain was a must have for any self respecting pop song.
I’ve gotta take a little time A little time to think things over I better read between the lines In case I need it when I’m older
This mountain, I must climb Feels like a world upon my shoulders Through the clouds, I see love shine Keeps me warm as life grows colder
In my life, there’s been heartache and pain I don’t know if I can face it again Can’t stop now, I’ve traveled so far To change this lonely life
I wanna know what love is I want you to show me I wanna feel what love is I know you can show me (hey)
Gotta take a little time Little time to look around me I’ve got nowhere left to hide Looks like love has finally found me
In my life, there’s been heartache and pain I don’t know if I can face it again Can’t stop now, I’ve traveled so far To change this lonely life…
Have a Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
British Pound There really was something for everyone in Bank of England Governor Bailey’s comments yesterday. Firstly he said that the BoE was comfortable with the market’s view of the decline in UK interest rates -meaning one presumes both on extent and timing. Then he followed it up by saying that the UK labour market […]
EU Commission Instead of November’s EU growth forecast of 1.2%, the EU Commission has revised back its prediction to 0.8% for the growth in the gross domestic product of the 20 countries. The 2025 year however will see growth of 1.5%. Back to 2024, it is difficult for the EU bloc to grow much when […]
Germany With the German IFO or Business Climate Index down from 90.10 a year ago to its current level of 85.20, Germany’s business leaders are more realistic about the outlook for Europe’s largest economy than their political leaders. Chancellor Scholz wisely passed the speech making duties yesterday to one of his cohorts who managed with […]