Humphrey Percy Chairman and FounderMon 29 Jan 2024
US Treasury Bonds
With $34 trillion of debt the US Government has to run fast to keep up as it keeps increasing given the cost of re-financing the debt. This week the US has auctioned $61 billion of 5 year debt and $ 60 billion of 2 year debt. In April the USA is looking to raise $70 billion of 5 year debt. For now demand is there and investors reckon they are being paid properly. Watch this space as cutting interest rates too much may change that perception. 5 years yielding 4.04%.
For readers who have not visited the City of London for a couple of years, they might be quite surprised to see wide pavements, granite benches outside Mansion House and hardly any traffic. Between the City of London Corporation and Mayor Khan they have achieved daily and nightly gridlock as East West traffic is funnelled to Lower Thames Street. Well intentioned? Maybe. Naïve for sure. Has it improved life for City workers? No. Try getting a taxi or an Uber. As for those benches, they are unused. GBP/ USD 1.2700.
Icon of the Seas
Royal Caribbean now holds the title of owning the world’s largest cruise ship: 365 meters long. 7600 passengers plus 2350 crew. 8 neighbourhoods. With 20 decks and 40 restaurants, by any stretch of the imagination the Icon of the Seas is a monster. EUR/USD 1.0855.
If you live in Italy you will be following urban hero Fleximan who has taken it upon himself to destroy as many of Italy’s speed cameras with an angle grinder as possible. So far he has knocked out 15 but the net is closing in. So far Fleximan has concentrated on the North East and the Veneto in particular. Needless to say Fleximan is popular with everyone except with motorway police who are seeing a lucrative source of income much reduced. EUR/JPY 160.78.
It’s brutal out there in the world of rock and pop on occasion, and no time less so than during an exchange at half time at the Super Bowl this day in 2012. Elton John encouraged fellow singer Madonna as follows: “Make sure you lip-sync good. Of course you have to play live, but I don’t think you can.” The less than gallant Sir Elton has been consistent in his sledging of Madonna over the years, but to her eternal credit, Madonna has refused the many opportunities she has had to retaliate:
I remember when rock was young Me and Susie had so much fun Holding hands and skimming stones Had an old gold Chevy, and a place of my own
But the biggest kick I ever got Was doing a thing called the Crocodile Rock While the other kids were rocking ’round the clock We were hopping and bopping to the Crocodile Rock, well
Crocodile rocking is something shocking When your feet just can’t keep still I never knew me a better time and I guess I never will Oh, lawdy mama those Friday nights When Suzie wore her dresses tight And the Crocodile rocking was out of sight
But the years went by and the rock just died Suzie went and left me for some foreign guy Long nights crying by the record machine Dreaming of my Chevy and old blue jeans
But they’ll never kill the thrills we’ve got Burning up to the Crocodile Rock Learning fast as the weeks went past We really thought the Crocodile Rock would last, well
Crocodile rocking is something shocking When your feet just can’t keep still I never knew me a better time and I guess, I never will Oh, lawdy mama those Friday nights When Suzie wore her dresses tight Crocodile rocking was out of sight
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 […]