British Pound
A better day for GBP as Sterling clawed back almost half of its losses from earlier in the week. Following Federal Reserve Chair Powell’s comments on higher for longer US interest rates on Tuesday, the USD strengthened sharply at the expense of all currencies and was then evidenced by a sickly looking GBP. GBP/USD 1.1920.
US Jobless Claims
With yesterday’s Weekly Jobless Claims in the US coming in at 211,000 pretty much as expected, markets transferred their attention to today’s Payroll Number. However the market is mindful that yesterday’s release was the highest since October 2022. 2 Year US Treasury Bond yields dropped 9bps to 4.98% on fears that the labour market is showing an early sign of weakness. In reality, the data is unclear. EUR/USD 1.0570.
BMW
A shot in the arm for the beleaguered British car industry (for a change) with news yesterday that BMW is to invest GBP600 million in its Mini plant in Oxford in anticipation for the future build of electric powered Minis. All Minis will be electric by 2030. GBP/EUR 1.1270.
La Tour d’Argent
Those who have not had the good fortune to dine at this Michelin starred Paris restaurant offering one of the best views on Earth should stick it on their bucket list. Opened in 1582 as an inn offering accommodation to travelling noblemen and given its own crest by Henry IV, its claim to fame is that it was the first place in 16th century France that provided forks to eat with. Presumably the clientele were using their forks for grooming facial hair prior to this gastronomic epiphany.
A Taste of Honey
Recently departed and much mourned Herb Alpert and the Tijuana Brass together with some members of the band, Wrecking Crew best known for backing the Beach Boys recorded this hit which spent 5 weeks at Number One before going on to win a Grammy and become a legendary standard;
Winds may blow over the icy sea
I’ll take with me the warmth of thee
A taste of honey
A taste much sweeter than wine
I will return
I’ll return
I’ll come back for the honey and you
I’ll leave behind my heart to wear
And may it e’er remind you of
A taste of honey
A taste much sweeter than wine
I will return
I’ll return
I’ll come back for the honey and you
He ne’er came back to his love so fair
And so she died dreaming of his kiss
His kiss of honey
A taste more bitter than wine
I will return
I will return
I’ll come back for the honey and you I’ll come back for the honey and you
Have A Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
British Pound In itself not really a story but when a Member of the Bank of England’s Monetary Policy Committee opines on the UK currency, the market reacts. Yesterday it was the statement that if investors had not fully priced in the likelihood of further interest rate rises from both the Federal Reserve and the […]
Big Week With news about the arranged marriage of Credit Suisse to UBS announced on Sunday night following the bank’s CHF 50 billion liquidity line injection last week, repercussions from the failures of SVB and Signature Bank and fears for First Republic Bank despite a USD 30 billion multi bank rescue, expectations for a 50 […]
European Central Bank Doubtless the ECB wished that their awaited meeting and press conference had not been scheduled to take place yesterday given the fragile state of global markets. Although an improvement on the febrile atmosphere earlier in the week following the affirmative and decisive action from the Swiss National Bank in providing a USD […]