UK Government Borrowing
News yesterday that the UK government had a surplus ie did not need to borrow in January to the tune of GBP5.4 billion. This followed a December deficit of GBP27.4billion which was the worst performance in the 30 years of records for a December . Before declaring victory that the tide has turned in January it should be remembered that the UK total government borrowing currently stands at GBP2.49 trillion. GBP/USD1.2110.
Dow Jones Index
Poor earnings from some key Main Street stocks including Home Depot yesterday plus geopolitical tensions with President Putin walking away from the nuclear non proliferation treaty last night were enough to more than wobble the Dow. All that plus rising interest rates and economic data pointing to a slow down ahead in the US economy, the latest being home sales at a new recent low. EUR/USD 1.0660
Paczki Day
Yesterday our Polish readers were wishing each other Happy Paczki Day . In case you are wondering it’s pronounced POONCH-key. Wherever you come from yesterday was the last chance to binge on unhealthily califoric cakes/ pancakes ahead of Lent which starts today Ash Wednesday.
GBP/EUR 1.1350
Asda and Morrison
UK supermarkets are introducing vegetable rationing due to shortages: lettuces and tomatoes in Asda restricted to 3 of each per customer. Morrisons are capping cucumbers to 3 per person and restricting other vegetables including peppers. No plans to ration so far at M&S, Sainsbury’s and Tesco, but it can only be a matter of time . It is all down to extreme weather particularly in Spain and North Africa where much of this produce is grown. Meanwhile canny shopping arbitrageurs can shuttle between supermarkets. Next thing doubtlessly will be lettuce hoarding?!
Car Wash
This day in 1977 this number by Rose Royce was not only on every radio station’s playlist but went Platinum.
You might not ever get rich
But let me tell ya it’s better than diggin’ a ditch
There ain’t no tellin’ who you might meet
A movie star or maybe even an Indian chief
At the car wash
Workin’ at the car wash, girl
Come on and sing it with me
(Car wash)
Sing it with the feelin’ y’all
(Car wash, yeah)
Ooh
Come, some of the work gets kinda hard
This ain’t no place to be if you planned on bein’ a star
Let me tell you it’s always cool
And the boss don’t mind sometimes if you act the fool
At the car wash
Whoa whoa whoa whoa
Talkin’ about the car wash, girl
Come on, ya’all and sing it for me
(Car wash)
Ooh ooh ooh
(Car wash, girl)
Discussion and Analysis by Humphrey Percy, Chairman and Founder
GBP While the Bank of England’s decision to pause on raising rates by the narrowest of margins with voting 5-4, that resulted in GBP being sold sharply which reflects the market’s view that while inflation at 6.7% looked better than expected yesterday, the effect of higher oil prices and petrol and diesel at the pumps […]
Bank of England It is the big week in UK markets not because there is much doubt in the minds of economists that rates will go up once again on Thursday, but rather more because the “clever” money is predicting that this increase will be the last. What could go wrong? Assuming rates go up […]
UK Interest Rates Despite soothing words from BoE Governor Bailey last week on interest rates reaching the end of the rise cycle, wage inflation of 7.8% in the 3 months to the end of July plus unemployment a tiny bit higher at 4.3% both suggest that the end may have been called too early. So […]