Jenns Weidmann, President of the Bundesbank has made a call this weekend which the rest of Europe including the UK would do well to heed-if indeed as we all hope that it is correct: Germany’s economy has passed the low point of the crisis caused by the Covid outbreak. So by definition, the only way is up. GBP at its lowest versus EUR in the past 2 months as EUR has a firmer look about it.
The KSA Ministry of Tourism has announced plans to launch a tourist development fund with an initial capital of USD 4 Billion. Those who have visited the Kingdom will wonder how the initial challenges including the following will be overcome: long and difficult immigration procedures upon arrival, alcohol and other tourist recreational expectancies being forbidden, segregation of sexes on the beach and…the list continues. However, Saudi Arabia has long held this ambition and given the sheer size of the country, it must be feasible to create zones where more tolerance can be practised away from the hawk like watch of the religious police. One thing is for sure: KSA needs to diversify away from its dependence on oil- although with WTI establishing a new base at $40 that is looking much better than a few weeks ago. Saudi Riyal impervious to all this and steady at 3.75 v USD.
Between June 25 and July 1 Russia will vote on whether President Vladimir Putin is to be allowed to run for a further 2 6 year terms starting in 2024. Putin is 67 and will be 71 then so that would take him up until 83 years of age. Russia has a history of elderly statesmen but if Putin stays that long, he would comfortably eclipse all other Russian leaders times in office and all but one, Gorbachev in age who died at 89 but that was because he sensibly retired to his dacha outside Moscow at the age of 60.
Meanwhile on international markets the Rouble has strengthened versus USD to 69.42 in the past month in line with the rise in oil.
Yesterday saw top Druid King Arthur Pendragon aged 62 interviewed on BBC to mark the Summer Solstice and to explain why all good Druids should stay away from the A30 and the sacred site of Stonehenge. SGM-FX’s Charles pitched his tepee near Bishops Stortford over the weekend at his own rather small festival and apparently lit a couple of joss sticks before putting on some chanting on his iPhone as he welcomed the sunrise over a glass of his French pale Rose wine favourite, Whispering Angel. You can keep the Druid in Charles away from Stonehenge but you just can’t keep the party animal in him down for that long!
Discussion and Analysis by Humphrey Percy, Chairman and Founder