Morning Brief – UK Unemployment

UK Unemployment

Since march 2020 the number of people in work has fallen by 726,000 which is a 5 year high in unemployment to 5.1%-more than 60% of those jobs lost are the under 25’s. Within that overall figure, in Q4 2020 the number of people employed declined by 114,000. The statistic that stands out is that there are (only) 121,000 people actively looking for jobs. Before drawing any hasty and ill informed conclusions on that, this is due in part to the large and one of the worst hit sectors, the hospitality industry where those who want to work simply have no jobs to apply for given that cafes and pubs remain shut. GBP remains buoyant at a high versus EUR at 1.1570 and versus USD at 1.4075 partly on USD weakness and still riding high on the UK’s vaccination programme. Longer term GBP strength will depend on productivity and the overall health of the UK economy.

Travel Bookings

This week has seen the beginnings of a reversal in the fortunes of travel companies with tour operator Tui reporting a 500% increase in foreign holiday activity on its website. Some caution of course on two fronts: first that increase is from a very low base and secondly that understandably people are cautious given the uncertainty over vaccination passports and the draconian and expensive quarantine regulations upon return to their home countries. While Easter looks to be lost in terms of holiday bookings, hopes are pinned on May and the summer season. Meantime EasyJet and other short haul European airlines are enjoying a flood of enquiries.

The Eagles

Back on this day in 1976 The Eagles’ Greatest Hits went platinum and this was the first time a band had sold 1 million copies of a record. The Eagles were to stay in the Top Billboard 100 for the following 2 years and this song remains as much of a hit 45 years later: Hotel California

On a dark desert highway, cool wind in my hair
Warm smell of colitas, rising up through the air
Up ahead in the distance, I saw a shimmering light
My head grew heavy and my sight grew dim
I had to stop for the night
There she stood in the doorway;
I heard the mission bell
And I was thinking to myself,
“This could be Heaven or this could be Hell”
Then she lit up a candle and she showed me the way
There were voices down the corridor,
I thought I heard them say…

Welcome to the Hotel California
Such a lovely place (Such a lovely place)
Such a lovely face
Plenty of room at the Hotel California
Any time of year (Any time of year)
You can find it here

Her mind is Tiffany-twisted, she got the Mercedes bends
She got a lot of pretty, pretty boys she calls friends
How…

Discussion and Analysis by Humphrey Percy, Chairman and Founder

Click Here to Subscribe to the SGM-FX Newsletter