SGM-FX insights

Positively not negative   In a press conference yesterday Jay Powell distanced himself and his central Bank from the possibility of negative interest rates. It might sound a little dry and with hundreds of thousands of people having already lost their lives to Coronavirus, a little misplaced. However, to the foreign exchange market this news […]

USA Real Estate   Reassuring to see that there is still some very very expensive real estate available in these times in the USA. So if any of you fancy a 20 bed mansion with 23 bathrooms in Beverley Hills and are looking for a home for USD 165M, look no further. Likewise and relatively(?) […]

National Technology Day   Today May 11 is indeed National Technology Day in India and it is not only appropriate to celebrate that but also somewhat topical in these Locked Down days when the whole world not just India has recently undertaken crash courses in online technology such as Zoom, Team and other connectivity. Also […]

VE Day: UK Bank Holiday today   Today is a holiday in the London market, but SGM-FX is working a full day and is ready to provide a full service for our clients despite all banks being shut.     Fashion   We are now seeing fashion sales beginning to pick up again -but online […]

Andy’s Outlook   The Bank of England had an earlier than usual monetary policy decision this morning. The decision to move the announcement forward to 7am, apart from demanding that the market gets up earlier to monitor how the decision unfolded, also indicated unofficially that the decision was unlikely to introduce policy measures of any […]

Auto Sector: how the future looks(today)by numbers   Ferrari announced better than expected revenues at $1.02 billion, makes less than 10,000 cars a year priced between $215K and $1 M and here’s the key point, enjoys a profit margin of 24%. Ferrari has a market cap of $ 30 Billion ahead of General Motors at […]

Five-eyes   An exogenous threat always has the capacity to make us reconsider what really matters. In lockdown the things that frustrated us as individuals may now seem to no longer matter or, on the contrary, they may have grown in importance. Whatever the issue and no matter the change in importance, the important thing […]

Airlines: Winner and Losers   It is fair to say that the losers currently outnumber the likely winners with Norwegian, South African and Virgin looking especially vulnerable. However news that Lufthansa is close to clinching a EUR 10 Billion lifeline in exchange for 21.5% of their equity shows that if a government wishes to support […]

May 1 and the Markets   Here we are on Day 122 with 244 Days to go in 2020 so exactly one third of the way through the year. On February 17 a mere 74 days ago WTI Oil traded at $53. And now it is $17. Gold at present just over $1700. The Dow […]

Powell; and the virus is gone   Yesterday evening is was the opportunity for the Federal Reserve to share its latest reflections on the US and the global economy in its delivery of its latest monetary policy decision. Federal Reserve Chairman Jay Powell met the expectation for rates to remain on hold at 0.00-0.25% but […]

Delivery Hero   German online takeaway food company Delivery Hero reported almost double delivery orders and revenues in their Quarterly report. This Berlin based company is a good example of what the future for diners and shoppers will likely look like post Lock Down as they already have a well developed electronic sales platform which […]

Twin Deficits   Until recently the “Twin Deficits” theory was seen as a rather bland and mundane economic theory that had good basis but limited physical evidence. However, the post-millennial explosion of national debt brought with it an appreciation of the importance of the theory to the value of a currency. In particular, the theory […]