Daily Brief – UK Election Landslide

UK Election Landslide

As we are being told that it is game over for PM Rishi Sunak, it is worth taking a look as to what that would mean for markets with an incoming Labour Government for the first time for 15 years with a large majority and an untested cadre of top leaders. Deep breath here goes: good for banks, construction and supermarkets with a likely pro growth Labour agenda. GBP to strengthen with the current uncertainties overhanging the currency reducing if not exactly evaporating. Implicit in these assumptions is that Rachel Reeves is trusted to be both fiscally prudent and not emulate Kwasi Kwarteng and Liz Truss in their dash for growth in September 2022. So that’s all right then.

GBP/USD 1.2742.

Empires by Land Mass

The top five empires ever include Spain in fifth position which peaked at 13.7 million sq kms in 1810, fourth is the Qing Dynasty 14.7m sq kms in 1790, third is the Russian Empire 22.8m sq kms in 1895, second is the Mongol Empire 24m sq kms in 1270 and first is the British Empire 35.5m sq kms in 1920. Given the size of Planet Earth that means that the British Empire encompassed more than 25% of the world and in addition to being the largest empire is also the most recent of the largest empires. While one can draw many conclusions 104 years later, the most obvious and least contentious is the widespread use of the English language.

GBP/EUR 1.1865.

Depressed

What do Sweden, UK, USA, Australia, Canada, Portugal and Iceland have in common? All are prescribing anti depressants to more than 100 out of every 1000 or more than 10% of their populations. Iceland leads the way with 16%. So all are either excessively over prescribing anti depressant medication or they do indeed have acute mental health problems. 

USD/AUD 1.5151.

Apple

Sifting through the various announcements made in Cupertino, USA by Apple CEO Tim Cook, the main focus has been about Apple Intelligence which is the link up with Open AI’s Chat GPT which suggests that Apple has concluded that it cannot develop or it is commercially unviable for it to develop its own AI suite of products. What it means is that AI will be integrated into Apple phones. A number of critics were quick to pronounce negatively on this development citing data security concerns including Elon Musk and Samsung, its Korean rival. Hidden away in the announcements was that on July 12 the Apple Virtual Reality device, the Apple Vision Pro will go on sale in the UK estimated at GBP 2,785. Other excitements include being able to send texts via satellite (me neither) and using head gestures (nodding or shaking one’s head) to control AirPods Pro. So the next time you see a headbanger on the train, it may just be an Apple user on a conference call.

EUR/USD 1.0738.

Ghost Town

This day in 1981 The Specials released this number which became the group’s second Number One and the last recorded by the original 7 members of the band. That was the 80’s: a time of constant change-and ghosts. Woohoo.

This town, is coming like a ghost town
All the clubs have been closed down
This town, is coming like a ghost town
Bands won’t play no more
too much fighting on the dance floor

Do you remember the good old days before the ghost town?
We danced and sang, and the music played in a de boomtown

This town, is coming like a ghost town
Why must the youth fight against themselves?
This town, is coming like a ghost town
Government leaving the youth on the shelf
This town, is coming like a ghost town
No job to be found in this country
Can’t go on no more
The people getting angry

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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