It may be a long time ago, but it just goes to show that at the time of (the last real as opposed to Le Petit Emanuel) Napoleon, some good sense did come from France:
Burgundy makes you think of foolish things, Bordeaux makes you talk about them and Champagne makes you do them.
(Jean A. Brillat-Savarin 18th century gastronome.)
If only the politicians of today could call on M. Brillat-Savarin…..
This week has started with market sages scratching their heads over in no particular order: President Trump- his own interpretation of the Robert Mueller Report plus the ongoing Sino-US trade talks; PM May finding a way to describe the same deal differently for the third time to the UK Parliament having last night lost control of the Brexit Process last night; President Macron and the Gillets Jaunes ( CAC selling off sharply-finally); Chancellor Merkel with the German economy falling to a 79 month low.
Talk is increasing about the possibility of a global recession exacerbated by the US Treasury Bill Yield now higher at 2.46 than the 10 year US Treasury Bond yield 2.43. An inverted yield curve reflects expectations of flat/negative growth. Equity markets having sold off sharply yesterday recovered last night and that has followed through this morning: Dow ended slightly up at 25,516; FTSE at 7177; CAC 5260; DAX 11,346; Hang Seng 28,534. Oil WTI at 59.39 on further Venezuela tensions; Gold at $1321. Very little movement in global currency markets with GBP flat against USD and EUR but slightly lower against ZAR. 10 yr Govt Bond yields see UK at 1.00; Germany -0.02; US 2.43; Japan -0.06.
Lastly news just in from the World Metal Congress on another sort of Heavy Metal: it turns out that Jeremy Corbin’s favourite song from the 70s was Steppenwolf’s Born to be Wild famously used in Easy Rider…must make him all misty eyed over having Diane Abbott on the back of his motorbike!
Discussion and Analysis by Humphrey Percy, Chairman and Founder
Germany The German business climate was slated to rise in July but instead it fell in terms of both current and also future expected business conditions as reflected in the IFO Index made up of manufacturing, services, trade and construction sectors as submitted by 9000 firms. Germans wishing doubtlessly that they could be as strongly […]
UK Energy Apart from announcing that there will be no further North Sea drilling licences issued, newly minted Uk Energy Minister Ed Miliband has wasted no time in greenlighting three huge new solar farms in Lincolnshire, Cambridgeshire and Suffolk. Sufficient to power 400,000 homes with an output of 1.4 GW the solar farms will cover […]
British Pound GBP is currently in fashion: with a record number of long positions and currently at the top of the G7 currency performance charts and after a period of being deeply unfashionable GBP is wanted-in a good way. The reasons for this are diverse: first off is the Bank of England’s caution on cutting […]