Following Mexico’s rate cut last night in an attempt to inject life into its flagging economy, it looks as if the market is increasingly pencilling in two further cuts by the Federal Reserve this year: in September and December with Pimco confirming that that is indeed their prognosis. Canada is transfixed by the latest Justin Trudeau scandal with tv channels endlessly sifting through the supposedly simple question as to who intervened politically in the SNC Lavalin corruption case. Trudeau looking sweaty and uncharacteristically dishevelled in tv interviews. The Loony (Can$) weaker on Teflon Trudeau looking anything but.
The short term stock market rally due to POTUS postponing 10% tariffs on goods as he did not want to spoil Christmas shopping is understandable on thinly manned trading desks at this time of year. However when the more seasoned hands came back to their desks and pointed out that those tariffs are only temporarily off and are still planned, the market needed more than the promise of tinsel to maintain that positivity. As of late last night the US market was managing to close a bit higher than it opened which is fragile comfort but nonetheless encouraging.
200 years ago Texas was part of Mexico supported by Britain as a spoiling tactic against the emerging USA and was largely populated by Apache and Comanche Indians. 40,000 settlers from the USA arrived in the 1820s and ten years later they had grown to 150,000. The newly independent from Spain Mexican government watched all this from Mexico City and a number of battles ensued with the Texans determined to create their own country. This history explains plenty about the Mexican population of Texas today and plenty more about the spirit of Texas, the Lone Star state of America.
Sgm-fx’s self appointed health guru Compliance king Alex briefed us all at HQ on the fact that some nuts are much better for us than others: Almonds, Pistachios, Walnuts, Cashews, Pecans, Macadamias and Pine Nuts all made the cut.
The rest of us spent time working out that what was not included were Brazils, Chestnuts, Peanuts and Coconuts which we subsequently learnt are just less good for us. So not a bit like Compliance where it’s all good in fact, essential-thanks Alex!
Discussion and Analysis by Humphrey Percy, Chairman and Founder