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
Bank of England As expected the BoE cut interest rates by 25bps yesterday. So far so good but then the BoE departed from the script. Flat economic growth up until the end of 2024 was less of a surprise but then a new forecast for inflation +3.7% and 2025 economic growth slashed from 1.5% to […]
Not another headline Markets have either grown complacent or are reading beyond Trump’s headline statements. Over the past week markets have been presented with the challenge of fresh tariffs on China with retaliatory tariffs on the US also due to come into force in just under a week. In addition to that they have the […]
German Election With just 18 days to go to the German election, tensions are building. The centre right CDU whose leader Friedrich Merz is likely to be the next Chancellor is under fire for proposing a tougher immigration policy. That says his critics is similar to the far right AFD and verboten given the antipathy […]