On reports of the Chinese government’s president Xi arranging talks with the regulators and an imminent policy adjustment to offer relief to the beleaguered Chinese equity market, Chinese equities had their best session for 14 months yesterday. USD/CNY 7.1880.
Meanwhile the Reserve Bank of Australia held rates steady-no surprise- as inflation continues to abate in Australia but was more surprising to a market looking for indications on timing for interest rate cuts, was the accompanying statement that inflation in the Australian economy was still too high and therefore that a further increase in interest rates could not be ruled out. Hardly in keeping with the global market view of the path of interest rate declines. USD/AUD 1.5395.
US Treasury Bonds
With 2 Years now yielding 4.45% and 10 years 4.15% the US Government Bond market is paying investors for their faith in the US government while at the same time making it clear that Chair Powell of the Federal Reserve will not be bounced into cutting interest rates prematurely to suit the Presidential aspirations of the two main candidates. EUR/USD 1.0740.
Newly re-appointed to the post Budget 2024 NatWest Share Offer, M&C Saatchi will need all of their fabled marketing skills to get the remains of the UK Government’s GBP 45 billion stake which is now down to 37% off the books of UK Government Investments. Apart from the overhang of that stake, the fact remains that on a price to book basis NatWest like Barclays for example is out of favour: at present NatWest trades on a 0.56 price to book ratio ie a discount of 44% from the perceived value of the bank on a net asset basis. Perversely that should make the shares a raging buy, but it will take a further discount to get the mythical retail investor excited about this one. However despite the caveats, if one believes that the UK economy will prosper under a fresh new Labour government led by Sir Keir and Rachel Reeves in 2025, the marked down NatWest share offer when part of an ISA portfolio represents one to tuck away. If all else fails you can always use the shares as novelty wallpaper if you are contemplating some DIY. GBP/USD 1.2540.
Never, Never Gonna Give Ya Up
It was of course Barry White and it was this day in 1974 that Barry White was awarded a gold disc for this gem and three other golds that year for other songs and an album: the shadow cast by Barry White in 1974 was huge.
Baby, baby, baby, baby Uh Oh baby Oh baby (keep on) My baby (keep on doing it)
(Right on) mm-mm-mm (Right on doin’ it) You got it together (baby, keep on) Oh, you got it together baby (right on) (Keep on doing it) gotta get it baby, oh, gotta get it
Mm-hmm (my, my, baby, keep on) I swear you got it together baby (keep on, keep on) Whatever, whatever Girl, I’ll do it Forever and ever, yeah, yeah, yeah, yeah I’ll see you through it
I’ve got to keep you pleased in every way I can Gonna give you all of me as much as you can stand Make love to you right now, that’s all I want to do I know you need it, girl, and you know I need it, too
‘Cause I found what the world is searching for Here, right here, my dear I don’t have to look no more And all my days I’ve hoped and I’ve prayed For someone just like you Make me feel the way you do…
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 […]