TODAY’S FAYRE

TODAY’S FAYRE – Monday 26^th November 2012

“I imagine this midnight moment's forest: 
Something else is alive 
Beside the clock's loneliness 
And this blank page where my fingers move. 

Through the window I see no star: 
Something more near 
Though deeper within darkness 
Is entering the loneliness: 

Cold, delicately as the dark snow 
A fox's nose touches twig, leaf; 
Two eyes serve a movement, that now 
And again now, and now, and now 

Sets neat prints into the snow 
Between trees, and warily a lame 
Shadow lags by stump and in hollow 
Of a body that is bold to come 

Across clearings, an eye, 
A widening deepening greenness, 
Brilliantly, concentratedly, 
Coming about its own business 

Till, with a sudden sharp hot stink of fox 
It enters the dark hole of the head. 
The window is starless still; the clock ticks, 
The page is printed.

Ted Hughes – Poet Laureate – 1930-1998

England finished off India in great style this morning at the Wankede Stadium in Mumbai, winning the game by 10 wickets. Apart from the obvious plaudits for Messrs Cook, Pietersen, Panasar and Swann, what pleased me most this morning was Nick Compton’s approach to the task at hand in finishing the match off in style.  He played his natural game, instead of prodding and poking around, he used his feet and played each ball on merit.  I think he is a very good player and let’s hope this little cameo of an innings will allow him to grow in stature and secure the opening birth, vacated by Andrew Strauss.

The UK’s participation and relationship with the EU has been an emotive subject on the political agenda for many years in this country due to either ambivalence or ignorance on the subject.  Only about 6% of the country ever really gave more than cautionary consideration to the subject, when entering a polling booth.  Today the UK’s role has now become far more relevant.  I suspect it is all down to the fact that the EU’s economy has been ‘hanging in rags’, thanks to a disastrous sovereign debt crisis.  Unfortunately the UK is caught in the cross fire of these problems, which it cannot ignore, as it does about 40% of its trade with EU countries.  Had the UK not neglected the Commonwealth, Asia and other BRIC countries as trading partners for so many years, it would not find itself in such an invidious position. Having spent copious weeks flying UK PLC’s flag abroad with such gusto and enthusiasm, the PM clearly understands what needs to be done to redress the balance in the years ahead.

One might have been forgiven for thinking that former UK PM Tony Blair had a full-enough agenda on his plate as Europe’s official envoy to the Middle-East, his speech making gravy train, his JP Morgan Chase commitments and his charities, without sticking his oar in to the EU agenda as well. I suppose the fact that he failed in his quest to become President of Europe, has made him even more determined to influence the debate.  His Middle East responsibilities alone, would have been sufficient for most people.

Whether you like the cut of Mr Blair’s politics or whether you have forgiven him for dragging the UK into the Iraq conflict on a whim and at the behest of George W Bush, he still remains a brilliant orator with PR skills second to none.  However what I will not forgive him or Gordon Brown for is the UK’s signature to the Treaty of Lisbon, which centralizes the EU, weakening democracy by 'moving power away' from national electorates. It has also on parochial basis lumbered this country with unnecessary bureaucracy particularly financial and bank regulation.  The UK should have no interest in Federalism. It is not part of the UK’s culture. Those who know me will understand that I am deeply in love with UK PLC.  However I may come across as a monosyllabic congenital throwback, but I do understand the importance of trade and our commitment to many European countries.  There is no need for that to change!  The EU’s bureaucracy should not be for us. I suspect at the end of the day we will reluctantly be part of the EU. The Independent’s brilliant columnist Steve Richards suggested on ‘Marr on Sunday’ that we will remain a ‘stroppy member!’ I think that is about right.  Anyway, it is typical of the enigmatic Blair to always want to steal other people’s thunder. He will do so this Wednesday with a keynote speech ahead of the PM who will be making similar thought provoking comments next month.

No doubt the ‘The Troika’ will fudge an agreement over Greek debt by tomorrow night. They are obliged to!  Whatever is agreed will just be a band aid job at best.  So long as night follows day Greece cannot sustain debt and the servicing of it at current suggested levels and deliver growth, unless the debt is completely re-structured or massive hair-cuts are taken by bond holders. I suspect that Germany would still object to that initiative. I don’t care how it is dressed up; it remains just a game of soldiers to me!  Anyway does it matter what I think?  Absolutely not! Sentiment has improved, so I can go and boil my head as far as the majority is concerned.

I am very hopeful that this week Chancellor Osborne will announce that Paul Tucker will succeed Sir Mervyn King as the next Governor of the Bank of England ahead of next Wednesday’s Autumn Statement. The market needs stability and continuity. I would like to thank Lord Burns, Sir John Vickers and Lord Turner for providing candidacies to ruminate over.  Really, without being disrespectful, it should always have been no contest, despite Mr Tucker’s LIBOR blip at the TSC. LIBOR was always the immediate responsibility of the FSA. Mr Tucker, I think, will make a memorable Governor in very trying circumstances.

Liam Halligan wrote a very good piece on banking in the Sunday Telegraph.  Having spoken to many city luminaries the recommendation was that banks should be split implying that the Glass-Steagall act should be re-introduced. He took counsel from Tullett Prebon’s Terry Smith.  Having made a fortune out of the City and banks it never ceases to amaze me that Mr Smith takes great delight in ‘slagging-off’ his customers in the media – remarkable bravery and candidness! Mr Halligan also mentioned a venerable former merchant banker SIR Peter Hambro.  I am not acquainted with that gentleman.  I know a Peter Hambro, who has been a HUGE success as chairman of what was Peter Hambro Mining now Petropavlovsk PLC.  In a previous life Mr Hambro was a very average discount broker at Smith St Aubyn – the first bill broker to ever go a bear of the gilt market in its balance sheet!  That set the cat amongst the pigeons! Are we talking about the same person or have I missed Peter Hambro’s knighthood or is Mr Halligan talking about the same person?

Essar Energy reports an H1 pre-tax loss of $283m on FX and oil volatility, while H1 EBITDA doubles to $582.6m.  Aberdeen Asset Management posted improved results this year as against last year’s efforts – profits up from £169m to £187.2m on revenues of £869m up from £784m last time.

Black Friday’s Thanksgiving retail shopping was encouraging.  147 million are expected to visit the shopping malls down from 151 million last year, but ON-LINE SALES should be up by 15% to $64 billion!  The ‘average spend’ for the holiday season is up from $740.57 a person to $749.51 a person.

UBS was fined $30 billion by the FSA for poor regulatory controls, which resulted in Kweku Adoboli’s fraudulent behaviour, which cost the Swiss banking titan $2.3 billion. 

Qatar sold share sin Barclays valued at $1.24 billion at a 4% discount, but still maintain a 6.7% stake in the bank.

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