In investment banks at least, new management is hardwired upon assuming office to firstly trash their predecessors and then tell everyone just what a mess they have inherited but that things will soon be much better under their leadership. The UK’s (very) new Prime Minister Sunak lost no time yesterday in demonstrating that he had been well trained at Goldman Sachs, and guess what, the market liked it-a lot: 10 Year Gilt Yields at 3.68% and 30 Years at 3.69%. GBP/USD 1.1470 and GBP/EUR 1.1505.
On average on any day around the world there are 241 LNG carriers at sea. This has increased and in September there were an average of 268 of which 51 were off the shores of European countries and in particular the UK, Spain, Germany, Netherlands and Portugal. The LNG is transported by ship at a temperature of -160c and once unloaded it has to be converted to gas involving regasification and special plant facilities. While the Netherlands and Germany in particular have been building new plants, there simply are not enough. The plan ahead of winter and in the wake of Russia and Ukraine for EU nations was to get to 80% of storage capacity by November 1, but already storage facilities are 95% full: hence the queue of ships.
Exactly a year ago USD/CNY stood at 6.38. For 6 months CNY was largely unchanged against USD and then in April the first leg started to 6.79 took place over the space of 1 month. That lasted for 3 months and then in August the USD big move started and here we are today at 7.31. There is a market view that argues that while a cheaper Chinese Yuan is exactly what the Chinese government is seeking, that the pace of the change is what they are trying to slow. Meanwhile CNY is now 14.6% cheaper than it was a year ago.
Incredibly to some of us, office occupation for American businesses stands at 50% across the country. Increasingly however companies are worried since worker productivity has declined as school runs, sport, dog walking or watching videos have all been on the up during working hours. But all this starts even before the job holder has been appointed when search consultants when interviewing candidates online are now routinely asking them before getting the interview under way to pan their cameras around the room to ensure that they are alone. There have been multiple instances of candidates having interview coaches out of camera shot but able to pass them instructions on how to nail the best answers to questions. Even more entrepreneurially, it has been known for candidates to have a much better qualified person in the room who gives the answers to the interviewer while the official candidate averts his face or places a hand over his mouth. Despite this gaming of the system USD markedly weaker at USD/JPY 1.4760 and EUR/USD 0.9975.
News in that an Iranian gent did not shower for more than 60 years believing it harmful to him as he also felt fresh food to be-he subsisted on mature(?) porcupine meat. Weeks after having his first wash since he was 34, he has died at the age of 94. History does not relate whether his last words were “I told you so.” India has taken up the challenge with their own anti shower champ, Kailash Singh aged 67 and still alive, announcing that he too has not showered for 39 years. Amateur.
It was this day in 1984 that the duo force of nature that were Wham! Reached the top of the charts with this number. Lots more but here’s a taste:
Every day I hear a different story
People saying that you’re no good for me
Saw your lover with another and she’s makin’ a fool of you, oh
If you love me baby, you’d deny it
But you laugh and tell me I should try it
Tell me I’m a baby, and I don’t understand
But you know that I’ll forgive you
Just this once, twice, forever
‘Cause baby, you could drag me to hell and back
Just as long as we’re together
And you do
I don’t want your freedom
I don’t want to play around
I don’t want nobody, baby
Part time love just brings me down
I don’t need your freedom
Girl, all I want right now is you
Do, do, do
Whoa, oh, yeah
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Click Here to Subscribe to the SGM-FX Newsletter
Opportunity for a weaker Dollar The passing of month-end allows markets an opportunity to reassess currency valuations. Despite a cooling off within the Dollar as forecasted following the agreement between the White House and Kevin McCarthy, month end flows yesterday showed favourable conditions for a short-term Dollar resurgence. The beginning of June coincided with headlines […]
Did EURUSD miss the news? Over the weekend, the President and the Speaker of the House of Representatives reached a much-awaited deal on the US debt ceiling. The impending constraint on debt could have forced the shutdown of government departments and precluded the US government from servicing costs and existing debts, triggering a default. The […]
UK Wages Bank of England Governor Andrew Bailey yesterday warned of the pressure on wages that are threatening to lead to a wage price spiral as the effects of inflation on the cost of living together with the 12 consecutive interest rate rises that consumers have experienced. The market has not enjoyed the poor inflation […]