Daily Brief – Chinese Electric Vehicles

Chinese Electric Vehicles

When the news of the EU slapping additional tariffs on imports of Chinese EVs from the current level of 10% this week, there was a sense of inevitability but not a widespread appreciation of the quantum: some Chinese EV imports will attract an additional tariff of over 38%. China needless to say has not taken this quietly with He Yedong of the Ministry of Commerce coming out with strong statements yesterday. The threat of restricting brandy imports by China is no small issue for France and it is France that has been at the forefront of calls for EV tariffs. Meanwhile the EU is raising the temperature further by taking a hard look at subsidies for Chinese wind and solar companies in the EU.

EUR/USD 1.0784.

Puglia, Italy

The G7 has a short agenda for their meeting in Puglia, Southern Italy with just 3 topics: Global conflicts, Artificial intelligence and lastly uncontrolled migration from Africa to Europe. As can be readily appreciated a short agenda does not necessarily augur well for solutions to these intractable problems. But if they do need an extra discussion topic, there is always the question of the legality and consequences of seizing Russia’s USD 300 billion of frozen assets to spend on the reconstruction of Ukraine.

GBP/EUR 1.1843.

Political Divergence

As the world lurches to the right in this year’s elections, the UK stands out as being an exception as a new Left Wing Labour government looks to be pretty much a nailed on certainty with the incumbent Conservative government seemingly out of ideas, unable to distinguish itself from Labour and lastly accident prone where the latest fiasco has seen a close aide of PM Sunak popping down to the bookies a week ahead of the announcement of the General Election  to stick a £100 bet on it being July 4 at odds of 5-1. Is that the degree of desperation in the current government? £500!

GBP/USD 1.2770.

Russian Climate Damage

Apparently Russia’s Ukraine war has emitted 175 million tons of carbon dioxide in 24 months which is equivalent to the annual emittance of 90 million cars. Not that it is likely to be top of President Putin’s list of concerns, but the bill to date for climate reparations is USD 30 billion. Unclear if, how and who is going to collect it however.

EUR/JPY 169.14.

Francoise Hardy RIP

A whole page obituary in the London Times is a fair reflection on the widespread musical influence of chanteuse and songwriter Francoise Hardy who departed this world on Tuesday at the age of 80. She wanted to be thought of as a singer songwriter rather than as a top model which she was. Brian Jones of The Rolling Stones invited her for a threesome, Mick Jagger extended a similar but more conventional and exclusive invitation to her and both were met with a cool indifference. The best story of these pursuits belongs to Bob Dylan who wrote both a poem and a song dedicated to FH and topped it off by singing to her late one night which he figured was sufficient as a seduction technique. Caught up in the song, Francoise Hardy did not even notice that Bob Dylan was wooing her and when she did, she fled.

Here is her best known and only song to chart in the UK:

All over the world
People must meet and part
There’s someone like me
Feeling a pain in their heart
Some may meet again
Under that same bright star
If maybe some night
You come back from afar
Who cares if tonight
I don’t know where you are
Are you thinking of me now
Missing having me around
If you have forgotten me
My world will come tumbling down
All over the world
Others are sad tonight
There’s someone like me
Watching the sun’s fading light
All over the sky
There is the same warm glow
Here under that star
I’m wanting you to know
Wherever you are
That I still love you so 

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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