That is the question facing Madame Christine Lagarde of the ECB ahead of the meeting tomorrow: is French inflation annualised to December which was released yesterday of 3.3% a passing puff of wind or more of a stiff French breeze? On the back of recently released German inflation which reflects that it could well be more than just a passing phase, the ECB despite its previously stated reluctance to raise rates and remove the current easy monetary conditions will be under pressure to act rather than watch. EUR/USD 1.1270.
Following our recent piece about UK productivity, we have been asked by several clients for further comparisons between the UK and other countries. Here is how average annual output growth per worker has changed between 2009 and 2019:
Japan +1.2%, Germany +1.1%, Canada +1.0%, France +0.9%, USA +0.8%, UK +0.7% and Italy 0.4%. between 1997 and 2007 the UK was +1.9% in second place behind USA with +2.3%. So in both absolute and comparative terms within this peer group the UK has become less competitive.
If gaming is a foreign country to you, like it is for me, the announcement that Sony maker of PlayStation has paid USD3.6 billion for games developer Bungie which is behind titles such as Destiny might get your attention. Two weeks ago rival Microsoft maker of the Xbox console paid USD 68.7 billion for Activision Blizzard which is the owner of Candy Crush and Call of Duty. Even if this all leaves you a bit nonplussed, there is clearly a wave of integration and corporate activity in the gaming sector. Nearer to home, it is worth having a look at French video game company Ubisoft Entertainment that owns Assassins Creed and Rabbids among many other titles. While somewhat lively as a share price, there is no doubt that interest will increase in this company owned by the Guillemot family as the race to consolidate in the gaming sector progresses.
English two tone and ska revival band (no me neither) The Specials released this gem on this day in 1980 which promptly went to Number One despite its controversial lyrics at the time, and which now would precipitate much more than controversy. For those of you who did not remember this song, it captured the zeitgeist of the time (more with the beat than with the lyrics):
You’ve done too much
Much too young
Now you’re married with a kid
When you could be having fun with me
Oh no, no gimme no more pickni
You’ve done too much
Much too young
Now you’re married with a son
When you should be having fun with me
We don’t want, we don’t want
We don’t want no more pickni
Ain’t he cute?
No he ain’t
He’s just another burden
On the welfare state
You’ve done too much
Much too young
Now you’re married with a kid
When you could be having fun with me
No gimme, no gimme, no gimme no more pickni
Call me immature
Call me a poser
I’d love to spread manure in your bed of roses
Don’t want to be rich
Don’t want to be famous
But I’d really hate to have the same name as you
You’ve done too much
Much too young
Now you’re married with a kid
When you could be having fun with me
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Milan, Italy The City of Milan has a late night noise problem and so it has acted unilaterally to resolve it-Italian style. A ban on the sale of take away food including ice cream and pizza after midnight is being imposed to protect the “peace and health of residents.” Here in the UK late night […]
Coal tinted spectacles If you had to boil down the global economy into one category from the options of bad/fair/good, what would you choose? We all experience the economy vastly differently down to an infinite number of variables. But by and large the current phase we are in, characterised by strong global growth rates, record […]
British Pound Reports that the UK may cut its interest rates before the USA cut their interest rates were the final straw this past week for Sterling. A slew of less than helpful inflation, employment and finally retail sales saw GBP weaker , but then the suggestion that with the background of that less than […]