Morning Brief – European Elections

European Elections

Traditionally European voters are decided on how to cast their votes well in advance of polling day, right? Wrong: in most cases and for example while worth looking at Malta where only 5% make up their minds in the last few days, at the other end of the scale in the Netherlands where I am writing this, 40%+ of the electorate is still undecided. This is not unusual in Europe with between 25 and 35% of the France, Denmark, Sweden and Finland’s electorates still mulling over how to vote at the end of this week. That could inevitably make for some surprises going into those Elections.

EUR/USD 1.0866.

UK Student Loans

It is some time since we have written about this subject, and unsurprisingly the amount outstanding to the UK government ie the tax payer from students most of whom are older ex students has increased. The annual student loan is between GBP 4,327 and GBP 13,328 and 1.5 million students take advantage of this generous offer which adds up to GBP 20 billion annually. A year ago the total outstanding stood at GBP206 billion and in 20 years time that will increase it is estimated to GBP 460 billion. As can be quickly calculated the rate of repayment is not good and it is getting worse. Doubtless investment in the future of the UK feels right, but in the end it comes down to affordability for the UK -and for those ex-students, the concept of repayment of their loans.

GBP/USD 1.2760

Mission Accomplished

Yesterday the Chinese spacecraft Chang’e blasted off from the far side of the Moon being the first ever space mission to have collected rock samples from that area of the Moon. It will land back on Earth in Inner Mongolia on June 25 having planted the Chinese flag on the dark far side of the Moon as yet another example of Chinese ambition when it comes to territorial expansion.

USD/CNY 7.2365.

Midnight Trains

The company Midnight Trains set out to run luxury nighttime trains from France to European capitals. Playing to peoples’ lifestyle choices and to the chance of burnishing their green credentials the company looked set fair. Sadly it came down to arithmetic and a woeful lack of a grasp on the economics meant that Midnight Trains had to go cap in hand to the French government. So far that has been met by the Fat Controller with stony silence or silence de pierre. Project in the siding.

GBP/EUR 1.1740.

The Girl from Ipanema

It was just a year ago that on this day Brazilian singer Astrud Gilberto departed this world and is of course best remembered for singing the 1964 Stan Getz song Girl from Ipanema which notched up 5 million sales. Despite this Astrud Gilberto received the standard fee of USD125 which underlines the need to always read the small print.

Tall and tan and young and lovely,

The girl from Ipanema goes walking

And when she passes,

each one she passes goes, “Aaah…”

When she walks, she’s like a samba

That swings so cool and sways so gently

That when she passes,

each one she passes goes, “Aaah…”

Oh, but he watches so sadly –

How can he tell her he loves her?

Yes, he would give his heart gladly,

But each day when she walks to the sea,

She looks straight ahead – not at he…

Tall and tan and young and lovely,

The girl from Ipanema goes walking

And when she passes,

he smiles, but she doesn’t see…

Oh, but he sees her so sadly –

How can he tell her he loves her?

Yes, he would give his heart gladly,

But each day when she walks to the sea,

She looks straight ahead – not at he…

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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