Thursday, October 04, 2007

Heard on Mervyn King's iPod this morning...

Well, the P/L has taken a bit of a hit overnight, with just about every sector, alpha and beta, losing money. Such is the stuff of noisy markets ahead of key releases, such as tomorrow's US payroll report and today's MPC and ECB announcements. Macro Man is taking a fairly sanguine view here, as he believes that much of the sound and fury is mere stochastic noise. As such, he is fading these moves, and was filled on his EUR/USD bid at 1.4135.

Today, of course, sees the aforementioned central bank announcements in Europe. ECB focus will of course be on the press conference, though unlike last month the euro should be the focus of attention. How Trichet can credibly express a preference for higher interest rates and a lower euro escapes Macro Man....sort of like the US Treasury's simulataneous stated preference for "strong dollar" and a lower USD/CNY.

In the UK, some stories are circulating of a possible rate cut, with a few punters observing that every no-change announcement accompanied by a statement, such as we had in September, has been immediately followed by a rate cut. Macro Man has his doubts, espeically after the stick that Mervyn got for Swervin'. On the train into London this morning, Macro Man saw a chap that looked remarkably similar to the BOE governor listening to an iPod. As is the wont of many commuters listening to "personal" music devices on public transport, he had the volume cranked extra loud. This is what he was playing:

Gordon you gotta let me know
Should I stay or should I go?
If you say the job is mine
I'll be here 'til the end of time
So you gotta let me know
Should I stay or should I go?

It's always please please please
When Northern Rock is on its knees
One day it's fine, and then it's black
Then Mr. Darling's on my back
Well come on and let me know
Should I stay or should I go?

Should I stay or should I go now?
Should I stay or should I go now?
If I cut there will be trouble
And if I don't it will be double
So come on and let me know
Should I stay or should I go?

This indecision's bugging me
We tried to charge a penalty
But no one borrowed cash from me
They borrowed from the ECB
Come on and let me know
Is the Rock safe or will it blow

Should I stay or should I go now?
If I cut there will be trouble
And if I don't it will be double
So you gotta let me know
Should I stay or should I go?

Who knew that The Clash was so instrumental in formulating policy on Threadneedle Street?

UPDATE: Evidently the next song on Mervyn's iPod was INXS rather than the Cutting Crew....

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