Humphrey Percy Chairman and FounderWed 29 Nov 2023
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 Haskel.
At a 3 month low earlier in yesterday’s session before levelling off, USD has been hit as the market has unwound long positions ahead of the US and EU inflation data out this week.
It may have ceded Gibraltar to the UK three hundred years ago in 1713, but Spain is still at odds with the UK on the border, the status, the governance in fact pretty much everything when it comes to this rock at the end of Europe. In new Foreign Secretary David Cameron’s first big outing, he is on his way to Brussel for discussions with Spain which is pressuring the UK to sign an agreement this week. The last time DC was pressured on Europe back in 2016, it did not go so well.
Normally the risks encountered on a cruise are a surfeit of food or alcohol. However yesterday the cruising market awoke to the news that a couple from Northumberland while enjoying a Mediterranean cruise were shocked while in Marseille that the husband’s toe had suddenly become swollen and purple. The ship’s doctor discovered that a Peruvian Wolf Spider had first bitten the husband and then for good measure laid eggs inside his toe. Not all the eggs were removed resulting in a spider hatching inside the toe which then started eating its way out. Happily, when he returned home his local hospital successfully diagnosed this unusual condition and the Peruvian Wolf Spider was removed then dispatched. Beats a straw donkey as a holiday souvenir.
The Times They Are A-Changin
This day in 2010 Sotheby’s announced the auction of Bob Dylan’s handwritten lyrics of this song. Bidding was frenzied but Hedge Fund manager Adam Sender won the contest for the notes with a bid of USD 422,500 or GBP 267,400 but….that was when GBP/USD was 1.5800.
Now at 1.26 those lyrics of the 1960’s anthem would set you back GBP335,317. For GBP the times have indeed been changing-mainly in the direction of more expensive Dylan lyrics since 2010.
Come gather ’round people Wherever you roam And admit that the waters Around you have grown And accept it that soon You’ll be drenched to the bone If your time to you is worth savin’ And you better start swimmin’ Or you’ll sink like a stone For the times they are a-changin’
Come writers and critics Who prophesize with your pen And keep your eyes wide The chance won’t come again And don’t speak too soon For the wheel’s still in spin And there’s no tellin’ who That it’s namin’ For the loser now Will be later to win For the times they are a-changin’
Come senators, congressmen Please heed the call Don’t stand in the doorway Don’t block up the hall For he that gets hurt Will be he who has stalled The battle outside ragin’ Will soon shake your windows And rattle your walls For the times they are a-changin’
Come mothers and fathers Throughout the land And don’t criticize What you can’t understand Your sons and your daughters Are beyond your command Your old road is rapidly agin’ Please get out of the new one If you can’t lend your hand For the times they are a-changin’
Discussion and Analysis by Humphrey Percy, Chairman and Founder
British Pound There really was something for everyone in Bank of England Governor Bailey’s comments yesterday. Firstly he said that the BoE was comfortable with the market’s view of the decline in UK interest rates -meaning one presumes both on extent and timing. Then he followed it up by saying that the UK labour market […]
EU Commission Instead of November’s EU growth forecast of 1.2%, the EU Commission has revised back its prediction to 0.8% for the growth in the gross domestic product of the 20 countries. The 2025 year however will see growth of 1.5%. Back to 2024, it is difficult for the EU bloc to grow much when […]
Germany With the German IFO or Business Climate Index down from 90.10 a year ago to its current level of 85.20, Germany’s business leaders are more realistic about the outlook for Europe’s largest economy than their political leaders. Chancellor Scholz wisely passed the speech making duties yesterday to one of his cohorts who managed with […]