Mubarak's resignation is the triumph of a people's challenge. Now for the hard part as the army leads Egypt along an uncertain and possibly confrontational path to constitutional reform and free and fair elections. As the man in the suit said, 'one does not grow a new government overnight'. The army, i.e., the supreme council, has indicated it will retain authority for 6 months or until a general election can be held.

Equity markets greeted the people's victory with the thumbs up. For commodity markets it also meant some letting off of steam which may ease concern about the outlook for inflation. But the prevailing pressures are upward and the question remains; are emergency settings for interest rates still warranted?

David Fuller's view Where GDP growth is evident, markets are anticipating both higher rates over the medium term and somewhat higher inflationary pressures. This makes sense to me and I have increased my US Treasury Bond short, as detailed above.