TODAY’S FAYRE

TODAY’S FAYRE – Tuesday, 12th December 2017

 

 

“Circling the Sun, at a respectful distance,
Earth remains warmed, not roasted, but the Moon
Circling the Earth, at a disdainful distance,
Will drive men lunatic (should they defy her)
With seeds of wintry love, not sown for spite.

Mankind, so far, continues undecided
On the Sun’s gender – grammars disagree –
As on the Moon’s. Should Moon be god, or goddess:
Drawing the tide, shepherding flocks of stars
That never show themselves by broad daylight?

Thus curious problems of propriety
Challenge all ardent lovers of each sex:
Which circles which at a respectful distance,
Or which, instead, at a disdainful distance?
And who controls the regal powers of night?”

 

Robert Graves – poet and author – 1895-1985

 

 

 

I understand the rationale behind wanting to decentralise Government, thus spreading growth industry and commerce more evenly around the country.

 

My colleague Simon French, Chief Economist at Panmure Gordon has long championed the idea of moving Parliament outside of London for that very reason and no time like the present for starting the move in a couple of years’ time when a purpose made building can be erected in the UK’S second city! That would allow the House of Commons to be restored as a historic palace at a cost of much less than the £6 billion estimate to the tax payer for renovating Parliament for the 21st century!

 

However Shadow Chancellor John McDonnell’s idea of moving the Bank of England to Birmingham is utterly ludicrous! The Bank of England is an extension of the Treasury. Apart from its independent role in setting interest rates, its job is to provide liquidity for the banking fraternity in the World’s largest financial centre! It is also responsible for overseeing regulation and financial stability. If all the major banks are in London, how could the Bank of England do its job effectively and efficiently from Birmingham? Also people who think that technology is the ‘be and end all’ in life are wrong! Inter-personal relationships between market, banking protagonists and regulators are fundamental to sustain an orderly banking system. This nonsense idea to grab a few cheap headlines! In the immortal words of John McEnroe – ‘You cannot be serious!’

 

CityAM’s Jasper Jolly told us yesterday that the London Stock Exchange (LSE) is set to end the year to top the European podium for company floats, bouncing back from a weak 2016 at a crucial time for the exchange. Proceeds from initial public offerings (IPOs) on the London market have been 75 per cent higher than 2016, according to data from accountants PwC. Total funds raised in 91 floats broke through the £10bn mark for the year so far at €11.7bn, well above the €6.7bn raised last year. Who said the City of London’s professional prowess will be trashed by Brexit?

 

The tech sector and telecoms lead the charge to new records on Street of Dreams despite FED rate hike likely on Wednesday. The 3 markets finished as follows – DOW +0.23%, S&P +0.32%, NASDAQ +0.51%. With access to futures on CBOE, Bitcoin traders saw this crypto-currency surged 19% yesterday. Apple will be acquiring the popular song-identification app Shazam for $400 million. Prior to the deal, Shazam was profitable and was used 20 million times a day around the world. Shazam sells ads and makes revenue by referring users to download or stream songs on apps such as iTunes and Spotify.

 

Yesterday the London’s top index gained 59 points to 7453. It looks like a bit of a ‘Santa Rally!’ with insurance companies and energy stocks leading the charge. Market makers went about their business though volumes were nothing out of the ordinary.  This morning higher energy costs seem to blight progress in Asia where most bourses were rudderless, with investors lacking conviction Towards the close markets looked as follows – ASX +0.17%, Shanghai -0.57%, Hang Seng -0.46%, Nikkei -0.21%.

 

The US department of justice has dropped its deferred criminal charges against HSBC. This action is probably due to the fact that management team headed by Douglas Flint and Stuart Gulliver have made sure the bank has complied with all its regulatory requirements since its fine of $1.9 billion for money-laundering in countries such as Mexico and possibly Iran and North Korea back in 2012 . London’s No 1 index is set to open up 16 points.

 

 UK Companies posting numbers this week – Tuesday – Carpetright, Drax, Polar Capital, Balfour Beatty, NCC, Wednesday – Bellway, Dixons Carphone, PurpleBricks, Wood Group, Thursday – PZ Cussons, Capita, Sports Direct, 888 Holdings, Bunzl, Ocado, Petrofac

 

US companies posting interim results this week – Thursday – Oracle, Adobe Systems, Jabil Circuits, Costco

 

Economic data due this coming week – Tuesday – UK Inflation Data, UK House Price Index, US PPI, Wednesday – UK Wage Growth, UK unemployment data, US CPI, US Federal Reserve monetary policy decision, Thursday – UK Retail sales, MPC Decision Meeting, US Retail sales & US PMI Composite, Friday – US industrial Production

 

David Buik

Market Commentator – Panmure Gordon & Co

 

  +44 (0)20 7886 2775

Mobile – 0044 7788 144 877

Panmure Gordon & Co

One New Change | London | EC4M 9AF

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