German Giant Sends Signs
Volkswagen the giant automaker of Stuttgart reports out today as its new Chairman takes control. Analysts and traders will be watching to see whether VW can continue its cost cutting ways and can shed some of it is non-core assets like the Bugatti motorcycle business.
Yen Losing Ground
The Yen continues losing ground against the Pound as strength in the British economy grows. A debate in the commons today to maintain the customs union will be advisory only in nature but will run against Ms. May’s intent to free Britain from the union entirely. The House of Lords endorsed maintain the union last week and as Ms. May has no majority in either house it may be rough going for her party.
Franc Strengthens Against Kiwi
The Franc is retracing the weakness it showed over the last weeks by gaining strength particularly against the Kiwi. We see continued rises in the pair as the decline in the Swiss was overdone.
Corn and Tariffs
Corn continues to gain strength in price as the tariff fears recede. The Chinese listed, though did not impose tariffs on imported US corn that had a weakening effect on the commodity last week. That has faded and buying is returning to the crucial agricultural product.