Morning Brief – Friday 21st

Good Vibrations

 

With Beach Boy Brian Wilson turning 77 yesterday, there are a number of lessons to be drawn including the one that says that some rock stars do miraculously live long(er) despite their lifestyle. In 1942 when Brian was born, the USA was drawn into WW2 following Pearl Harbour. At that time and indeed through the rest of WW2 and up until 1950, GBP was pegged to USD 4.03 by the UK Government following agreement at the Britton Woods Conference. We can only look today at that exchange rate ruefully. What we have to be grateful for in the UK is pretty much 74 years of peace with the exceptions of Korea and the Falklands when we deployed significant numbers of troops.

 

Good, good, good, good vibrations
Close my eyes, she is somehow closer now
Softly smile, I know she must be kind
When I look in her eyes

 

SGM-FX’s Euan has logged into his Amazon account and ordered up Beach Boys’ Greatest Hits with a view to wooing that barista babe in the coffee shop next door.

 

Fun Fun Fun .. I should coco!

 

And she’ll have fun fun fun 
‘Til her daddy takes the T-bird away 

 

 

Gold, USD, GBP and …More

 

Following the Fed’s dovish comments, gold took off riding up to $1397 at one point in the latest trading session. The USD weakened across the board and GBP consolidated and firmed with markets perceiving some clarity for the new leadership contest. As expected the MPC left rates unchanged having voted unanimously 9-0.
In a worrying sign for the Conservative Party, of the 313 voting members in the first round yesterday, 2 managed to spoil their ballot papers- come on how difficult is it to put a cross on a piece of paper?! It didn’t make any difference for Javid who was resoundingly dropped.

The second round announced last night saw Hunt-Odds 4-1 emerge as the alternative to Boris who despite the BBCs efforts to get us to think otherwise has a name definitely spelt with a H.
So goodbye Gove -Odds 2-1. The good news for the Conservatives and the UK is that we do at least have hard and soft Brexit choices to pick as candidates.

And lastly… better news for the Conservatives: only 1 out of 313 ballot papers spoilt in that last round. With a positive swing like that nationwide, they could be back in the game!

 

 

 

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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