Daily Brief – CINEA9

CINEA9

The Climate Infrastructure and Environment Executive Agency of the European Commission abbreviated to CINEA9 has signed an agreement with Societa Stretta di Messina. What that means is that the dream of a bridge connecting Sicily to the mainland of Italy is a step nearer. There have been a few false dawns over the years: the Romans wanted to do it and according to some historians, built a structure of pontoons and boats that achieved that goal temporarily; Benito Mussolini also had the same dream until events overtook him in WW2; Silvio Berlusconi then took up the mantle but owing to other well known personal proclivities, failed to get the project off the ground. Now Italian PM Georgia Meloni has taken on the job of raising half of the necessary EUR 4.6 billion from the EU to build  what will be the world’s longest suspension bridge linking Messina to Calabria. According to those involved, construction will commence as soon as the end of this year with a view to a rail bridge being commissioned in the early 2030’s. Cynics would say that this vague timescale will allow all involved not to be associated with it in the event of failure given that there will be an entirely new crop of politicians and Eurocrats in place in 10 years.

EUR/USD 1.0810

UK Government Borrowing

It’s big and it’s over budget with an overshoot in September with Government borrowing at GBP16 billion versus GBP15.1 billion. All that is concerning in the context of leaked stories of Chancellor Reeves contemplating a further massive increase in borrowing to enable the spending plans already promised to her colleagues and….the electorate.

GBP/USD 1.2965

Moldova

As headlined previously here, Moldova is being steered towards joining the EU by PM Maia Sandu. In Sunday’s referendum which qualified as being valid due to the turnout being of sufficient size, a 50.3% majority in favour versus 49.7% against was recorded. Sufficient to achieve the aim but not sufficient to irritate Russian PM Vladimir Putin. Chicanery and voting shenanigans including mass vote buying have been suggested but what remains is the undeniable fact that Moldova has to pass the 9 objectives set by the EU before its candidacy can progress further.

EUR/JPY163.28

Great British Pound

Sterling has hit a 2 month low after shining brightly a few short weeks ago and has broken through GBP/USD 1.30 and GBP/EUR 1.20. Wobbles over Chancellor Reeves’ first Budget next week and what it will (not) do for UK plc is uppermost in the minds of investors both internationally and domestically. Evidence of flights of domestic capital from High Net Worth Individuals is more than anecdotal. While it is the short term that is worrying them, it is rather more the likelihood or rather the opposite of that of the business and investment climates changing favourably in the foreseeable future that is causing this flight of capital.

GBP/EUR 1.1990

Bad
This day in 1987 Michael Jackson stormed to the top of the charts with this number which went Platinum in short order selling over 1 million copies. It’s Bad…really really bad.

Ah, your butt is mine, gon’ tell you right, ah
Just show your face in broad daylight, ah
I’m tellin’ you on who I feel, ah
Gonna hurt your mind, don’t shoot to kill

Shamone, ah, shamone
Lay it on me, ah, alright

Ah, I’m givin’ you on count to three, ah
Just show your stuff or let it be, ah
I’m tellin’ you, just watch your mouth, ah
I know your game, what you’re about

Well, they say the sky’s the limit
And to me that’s really true, ah
But, my friend, you have seen nothin’
Just wait ’til I get through

Because I’m bad, I’m bad, shamone (bad, bad, really, really bad)
You know I’m bad, I’m bad (bad, bad)
You know it (really, really bad)
You know I’m bad, I’m bad (bad, bad)
Shamone, you know (really, really bad)
And the whole world has to answer right now
Just to tell you once again
Who’s bad?

The word is out, you’re doin’ it wrong, ah
Gon’ lock you up before too long, ah
Your lyin’ eyes gon’ tell you right, ah
So listen up, don’t make a fight, ah
Your talk is cheap, you’re not a man, ah
You’re throwin’ stones to hide your hands.

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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