Morning Brief – US Employment

US Employment

Lots of statistics but broadly the direction is clear: the unemployment numbers in the US are declining despite some higher than expected figures in California. At the end of July there were a record 10.9 million job vacancies and the Federal Reserve is projecting 4.8% unemployment at year end. EUR/USD at 1.1720.

UK Outlook

Again lots of stats but the one that caught our eye was that UK inflation is now forecast by the Bank of England to temporarily rise above 4% due to rises in energy and goods prices. That is the first time that 4% has been mentioned so is significant. Supermarket bosses at Iceland and Tesco are urging customers not to panic buy. At the same time the National Farmers Union is saying that unless the UK government allows temporary visas for HGV drivers, that shortages in the supply chain delivery will most definitely lead to problems.

GBP steady at $1.3730.

Turkey

A cut by the Turkish Central bank of 1% to 18% satisfied President Erdogan if not the markets. Expectations were for the rate to remain unchanged at 19% given that Turkish inflation stands at a giddy 19.25%. The Turkish Lira was punished severely as a consequence falling 1.5% standing at TRL8.74 versus USD. The record low posted in June was 8.88.

EU Charging Cable Standardisation

Not content with standardising bananas and courgettes, the EU is proposing the standardisation of charging cables for smart phones, tablets, cameras, headphones, portable speakers and handheld video game consoles. The chosen standard is the USB C. The year for this to start is 2022 and a grace period of 2 years is allowed. That means that Apple Iphone users who now use the lightning cable will be out of luck-if the proposal is adopted. Apple shares at $146.70 and the market cap $ 2.43 trillion with a P/E ratio of 28.73.

James Brown: I Got You I feel Good

Bizarrely, this day in 1988 the crooner known as the Godfather of Soul burst into an insurance office brandishing a shotgun demanding to know which of the 40 salesmen had used his personal washroom. A police car chase across two states ensued with multiple shots fired by the police into James Brown’s pickup before he was arrested in Georgia. Although offered the chance to plead guilty and serve 90 days in jail, he refused and was sentenced to two 6 year terms to run concurrently. James Brown is remembered for much more than that and especially for his terrific music. Here is one of his very best:

Whoa! I feel good, I knew that I would, now
I feel good, I knew that I would, now
So good, so good, I got you

Whoa! I feel nice, like sugar and spice
I feel nice, like sugar and spice
So nice, so nice, I got you

When I hold you in my arms
I know that I can’t do no wrong
And when I hold you in my arms
My love won’t do you no harm

And I feel nice, like sugar and spice
I feel nice, like sugar and spice
So nice, so nice, I got you

When I hold you in my arms
I know that I can’t do no wrong
And when I hold you in my arms
My love can’t do me no harm

And I feel nice, like sugar and spice
I feel nice, like sugar and spice
So nice, so nice, ’cause I got you

Whoa! And I feel good, I knew that I would, now
I feel good, I knew that I would
So good, so good, ’cause I got you
So good, so good, ’cause I got you
So good, so good, ’cause I got you

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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