As expected the Bank of England yesterday kept UK interest rates at 5.25%. The accompanying narrative was firm: rates may go up again but the inference is clear, only if it is necessary, but it is much too early to talk about cuts. The market liked this nuanced message and the equity market and GBP both duly rallied.
Late to the game- the Chinese have been building both infrastructure and influence for decades- the USA has belatedly woken up to the imperative to gain a foothold in Africa. They are sinking hundreds of millions of dollars in the Lobito corridor by building a rail link between copper mines in the Democratic Republic of Congo and Zambia and the Atlantic Coast. SGM FX are ready for this and are seeing more African currency business already.
Eating Meat Contributes to Climate Change
That’s the sort of warning on meat packaging that is planned to reduce UK meat consumption and is to be introduced soon. According to researchers at Durham University that “powerful” messaging will turn the tide of meat eaters. Maybe.
You’re So Vain
This day in 1972 pop royalty singers Carly Simon and James Taylor got married in Carly’s apartment presumably to avoid their legions of fans. While James Taylor saw himself in one way with his album at the time: Sweet Baby James, his new wife had a different take after really rather a short time: You’re So Vain. Despite these artistic differences, the marriage lasted 11 years.
You walked into the party like you were walking onto a yacht Your hat strategically dipped below one eye Your scarf it was apricot You had one eye in the mirror, as you watched yourself gavotte And all the girls dreamed that they’d be your partner They’d be your partner and You’re so vain You probably think this song is about you You’re so vain (you’re so vain) I bet you think this song is about you Don’t you don’t you? You had me several years ago when I was still quite naive Well you said that we made such a pretty pair and that you would never leave But you gave away the things you loved And one of them was me I had some dreams they were clouds in my coffee clouds in my coffee and You’re so vain You probably think this song is about you You’re so vain (you’re so vain) I bet you think this song is about you Don’t you don’t you don’t you? I had some dreams they were clouds in my coffee clouds in my coffee and You’re so vain You probably think this song is about you
Have a Great Weekend!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
European Interest Rates More momentum on rate cuts in the Eurozone as expectations grew for cuts starting in March and totalling 140bps in 2024. Equally in the UK cuts of 130bps starting in June are being pencilled in to market calendars. What this means is that GBP/EUR is looking more than especially good value at […]
UK With 2 year mortgage rates less than 4% and 5 years at 4.39%, the implication for the housing market which has responded by a modest 0.2% rise, is that rates are soon going to fall and that the UK economy is stabilising. While there will doubtless be setbacks to this rose tinted scenario, for […]
UK Labour market The Bank of England yesterday broke cover to drive the message home that due to the UK’s labour market remaining tight, it was premature to start talking interest rate cuts and it was not just Governor Bailey who was calling for higher for longer interest rates but also his MEPC colleague Jonathan […]