Bank of England
Governor Bailey more optimistic about both inflation falling and also interest rates peaking at a lower level. The Delphic language normally favoured by Central Bankers was not deployed yesterday when the Governor saw no reason to correct the market in its assumption that 4.5% would be a ceiling for interest rates. Not only that, he confirmed the expectation of the UK Central Bank that inflation would halve to 5.2% by the end of 2023 which would be primarily driven by significantly lower energy prices. More cynical market participants are hoping that these latest forecasts by Governor Bailey prove to be more accurate than those he made in 2022. GBP/EUR 1.1410.
With RSA experiencing power cuts for up to 10 hours a day in some areas as Eskom struggles to deliver electricity, there has been a knock on effect to the chicken industry which is warning of impending delivery shortages due to the inability of abattoirs to operate for large parts of the day. Outlets such as KFC are bracing themselves for being unable to meet demand for their core product. USD/ZAR 17.2950.
UK Supermarket Battle
With Aldi being named the cheapest supermarket for the second year running with GBP 81 for a basket of 48 popular items versus the most expensive Waitrose GBP 112 for the same basket, Aldi piled on the pressure in Aylesbury Buckinghamshire yesterday by sending buses to pick up customers from outside rival supermarkets Tesco and Sainsburys. It is not reported what Aldi’s competitors thought about this stunt, but it is unlikely they liked it much while their customers on the other hand did like it-a lot.
Billionaire League Table
A video clip currently going the rounds shows how the relative wealth of the world’s richest 10 people has changed in the past 2 years in bar chart form. If you have not seen it, the shifting fortunes downwards of some billionaires is striking eg Elon Musk and Jeff Bezos and also the continuity and consistency of others eg Warren Buffett. Top of the pile as of now is Frenchman Bernard Arnault ($173 Billion) with the rest of the top ten comprising 7 from the USA and 2 from India.
World’s Coldest City
Eastern Siberia’s Yakutsk holds the title as the world’s coldest city with reported temperatures of Minus 62.7C. A dress code tip from a resident: Dress in layers, like a cabbage.
Grand Ole Opery
This day in 1973 rocker hellraiser and all round bad boy Jerry Lee Lewis was booked to lay the famous venue on the strict condition that he only play country and western and by inference act nice. All went according to schedule to begin with but pretty soon Jerry got bored and launched into a string of rock and roll numbers before treating his audience to a stream of bad language. Here is his very best hit, Great Balls of Fire
You shake my nerves and you rattle my brain
Too much love drives a man insane
You broke my will, but what a thrill
Goodness, gracious, great balls of fire
I laughed at love ’cause I thought it was funny
You came along and moved me honey
I’ve changed my mind, your love is fine
Goodness, gracious, great balls of fire
Kiss me baby, woo feels good
Hold me baby, wellllll
I want to love you like a lover should Your fine, so kind
I want to tell the world that your mine mine mine mine
I chew my nails and I twiddle my thumbs
I’m real nervous, but it sure is fun
Come on baby, drive my crazy
Goodness, gracious, great balls of fire!!
Have a Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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