With global equity markets weaker across the board, WTI Oil steady but still weak at $61.51, markets are absorbing latest news from the ongoing Sino-US talks and the imposition of US tariffs on $200billion of goods, the fact that shale oil could be produced at as low a cost as $15 and concerns about the low yielding US Government bond auctions together with the size of the ongoing US debt mountain and the consequent need to finance it. Demand for the latest $27 Billion auction was poor and the lowest since 2009. The US will fund itself but the question is how much longer these low rates will attract buyers and therefore the likelihood of greater price volatility in the market. Back here in the UK PM May is reported as stitching a deal together with Labour’s Jeremy Corbyn to have a customs union like tariff free arrangement. If that is correct and the detail is both comprehensible and commercial, the next question is whether such a deal will garner sufficient support in Parliament. GBP off its lows of the day but weaker overall.
Attention could more usefully be diverted away from the streets of London and from long suffering Londoners given the disruption to the UK capital in the past weeks towards the Chinese Government-good luck with THAT- as the Peoples Rebublic are currently considering a proposal from the largest Chinese energy providers to build a new coal fired (nb coal fired) power station in two weeks’ time and then every two weeks after that…..until 2030. While it is a given that carbon emissions need to be controlled and reduced urgently, it does put Western based conservation efforts into perspective.
Fertility Rates: UK versus Spain
A bit of a face off in SGM-FX’s Compliance Department yesterday- testosterone to the fore Alex and Alberto -both macho types-reacted too soon to the headline. In fact it was all about English bluebells being mixed up with Spanish bluebell imports -it being the bluebell season. While English bluebells are more fertile they nevertheless need supplanting with Spanish ones but there is no danger of the home strain being weakened. Phew. So that’s all right then-Carry on chaps!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
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