SGM-FX insights

A new Gold Standard?   Global stocks flinched this week as the US Administration ordered the close of the Chinese consulate in Houston. The abrupt closure was justified on grounds of national defence and in particular spying concerns. China has promised to retaliate if Washington does not reconsider its decision, marking the closure a serious […]

Nifty   The Nifty Index has lived up to its name: the Nifty (Fifty) comprises 50 of the largest Indian stocks on the National Stock Exchange and fleet of foot investors who bought on March 24 this year will be congratulating themselves today on a 43% rise in their fortunes with the Nifty Fifty now […]

Russia   This is how it works in a pandemic affected Russia under President Putin: he simply instructed his officials yesterday to “fully restore the labour market” and stated his displeasure that 3 million or 6.3% of Russians were unemployed. USD/Ruble at 71.22.     Saudi Arabia   Spare a thought for the citizens of […]

Global Japanification     I’m told that when you make a risotto, you’re supposed to add the stock a ladle at a time and let it evaporate/absorb. Have you ever just dumped the lot in and feared you’ve ruined the whole dish? How about building a fire. Have you ever smothered it in so much […]

UK Economy   Economists professed disappointment at yesterday’s release of the 1.8% rebound in the UK economy in May and GBP sold off accordingly. While housing starts and manufacturing showed improvement, this was not enough for the economists. May was the month that the UK was still pretty much fully locked down and in addition […]

Hats off, Masks on   In March this year, the pandemic unmasked the fragility of European risk sharing (pardon the pun). Not only did the Union not have adequate risk sharing procedures in place on the fiscal and monetary front but it also felt like every man for himself. Cross border state aid and the […]

What’s safer than a Swiss Bank?   The answer turns out to be a Swiss rock vault carved out of a mountain. Bruega Mega Safe are offering clients ready to spring a minimum of $500,000 for a space in the vault that will be the size of 10 football pitches and will house gold, art, […]

US Dollar   Pretty much across the board yesterday the greenback saw declines including against the Chinese Yuan up 2.5% since its low two months ago, the Euro, GBP, Swedish Kronor, Norwegian Kronor and NZ Dollar. Some of this was prompted by a further rise in Chinese equities ( CSI300 Index on a 5 year […]

Bonus Season   Yesterday afternoon’s charismatic speech by Chancellor Rishi Sunak in the House of Commons was peppered with bellows of “hear hear” from PM Johnson from the front bench. The Chancellor had built up a bit of a reputation for under promising and over delivering in the past few months of his trial-by-fire ministerial […]

US Airlines   Chicago USA based United saw a sharp decline in both bookings and also by 5.5% in its share price yesterday. Having revived until a couple of weeks ago, following the imposition of a 14 day quarantine rule in New York, Connecticut and New Jersey, United led the way with all US airlines […]

Another Round?   As ‘Super Saturday’ subsided into crapulent Sunday, the UK’s hospitality industry received a welcome boost. Opening their doors for the first time in more than 100 days, pubs, restaurants, hairdressers and more welcomed customers back (from 1+ metres away). Of those of you that did frequent the pub or eat out in […]

Central Bank Economic Optimism   The Bank of England has now been joined by the Banque de France with the assertion that the French economy too is performing more strongly than expected and is pulling out of the economic trough more quickly than anticipated. The markets are totting up the increase in savings as more […]