Daily Brief – Germany

Germany

Gloomy Germans is not an entirely unknown phenomenon for those of us who have toiled in Finanzplatz Deutschland or the Financial Marketplace of Germany which primarily encompasses Frankfurt, Berlin, Dusseldorf and Hamburg. Unfortunately the ZEW German Research Institute are upholding that less than noble tradition in their Economic Sentiment Indicator report that was released yesterday. The measly 0.5% increase in German GDP pencilled in for 2025 has been rubbed out and replaced with stagnation or zero growth or even a reduction in GDP of 0.2%. No recovery predicted until 2026 and the question that remains is whether a new CDU led coalition spearheaded by Friedrich Merz might be better. All parties are now beginning to set out their stalls for the February 23 2025 German election but early indications do not include much in the way of chuckles.

EUR/USD 1.0495.

Fiji

Fresh on the heels of the Laos alcohol poisoning story of a few weeks ago when tourists’ drinks were spiked with methanol, comes the news that a number of tourists in Fiji have been hospitalised following them drinking Pina Coladas at the Warwick Fiji Resort on the Coral Coast. This time the numbers of hospitalised tourists are less and confined mostly to Australians and one American but Fiji has moved swiftly to deny that spirits substitution with methanol or home made brew is a problem in Fiji. Evidence mounting up meanwhile that cocktail menus in Fiji are being eschewed in favour of beer and wine.

GBP/USD 1.2695.

Fully in Schengen

That is what Ursula Von der Leyen the European Commission President announced for Bulgaria and Romania. However what UVL meant by that is that when it comes to Bulgaria and Romania which have painfully negotiated this for the past 14 years, it means that when the two countries become part of Schengen in just a few days time on January 1 2025, there will still be physical border checks for the first six months and likely longer. Having crossed those borders in the last couple of months, there seemed to be some way to go for Bulgaria and Romania to achieve that fully in Schengen status.

EUR/GBP 0.8263.

Japan

Only in Japan: a Japanese izakaya chain is withdrawing one of its key customer offerings following complaints. The Yotteba chain is well known for its beer and chicken wings and its optional face slapping service. For Yen 500 or GBP2.70 you get to chose which waitress you would like to deliver a face slap to you over your beer n’ wings. Originally conceived as a post meal sobering up service, things developed until following facial injuries having been sustained and reported, Health and Safety have stepped in. Presumably no longer any sobering up then…

GBP/CAD 1.8128.

While my Guitar Gently Weeps

This day in 2004 a Gibson SG guitar that had been played by not just one but by two Beatles being both George Harrison and John Lennon went on sale in NYC and was snapped up for USD 570,000 at auction.

I look at you all
See the love there that’s sleeping
While my guitar gently weeps

I look at the floor
And I see it needs sweeping
Still my guitar gently weeps

I don’t know why nobody told you
How to unfold your love
I don’t know how someone controlled you
They bought and sold you

I look at the world
And I notice, it’s turning
While my guitar gently weeps

With every mistake
We must surely be learning
Still my guitar gently weeps

I don’t know how you were diverted
You were perverted too
I don’t know how you were inverted
No one alerted you

I look from the wings
At the play you are staging
While my guitar gently weeps

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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