Another Round of Price Increases ?

[bru]

120mph every time, of course the red team will tell you, that, that is 120mph of autonomous driving is to blame for your death, whereas the green team will tell you that it is tarmac being an open standard that caused the death.

 

[ljt]

There is one hard fact the traders do know about, we will not be in the EU.

Not being in the EU is what the traders are reflecting.

How we leave really does not matter to them as all outcomes are bad, just some are worse than others.

It is a bit like dying, being dead is very bad, how you got there really does not matter.

A lot can happen between now and then though, literally anything can happen. There's no point in guessing it's a waste of time and effort. That's how I view things anyway and I find it odd that currency trading is attempting to predict an outcome that's not set in stone,and reacting to something that's not even happened yet and wont for a minimum of 2 years at the earliest, seems a very odd way of doing things, but they are just my thoughts.

 

[rolypolyman]

If I remember correctly the UK was doing rather nicely long before the EU came along, now it seems we cant survive without it, absolute rubbish. Back when the pound was four dollars what did that have to do with Europe. This country has gone steadily downhill since joining the EU while those who stayed out have prospered. We have lost our identity as a country and I for one cant wait for independence from Europe. Business will continue provided you have a product someone wants. However, no doubt the doomsayers will continue there nonsense for at least the next two years until we actually leave.

 

[Nasher]

If I remember correctly the UK was doing rather nicely long before the EU came along, now it seems we cant survive without it, absolute rubbish. Back when the pound was four dollars what did that have to do with Europe. This country has gone steadily downhill since joining the EU while those who stayed out have prospered. We have lost our identity as a country and I for one cant wait for independence from Europe. Business will continue provided you have a product someone wants. However, no doubt the doomsayers will continue there nonsense for at least the next two years until we actually leave.

Exactly. Since joining the the only changes normal people have seen is everything got much more expensive and we have become over-crowded. That's why leave won the vote.

Iceland left the EU a long time ago and they have been doing much better since.

 

[spot35]

If I remember correctly the UK was doing rather nicely long before the EU came along, now it seems we cant survive without it, absolute rubbish. Back when the pound was four dollars what did that have to do with Europe. This country has gone steadily downhill since joining the EU while those who stayed out have prospered. We have lost our identity as a country and I for one cant wait for independence from Europe. Business will continue provided you have a product someone wants. However, no doubt the doomsayers will continue there nonsense for at least the next two years until we actually leave.

Globalisation is the reason why the UK is better off with the EU. We're now a very small fish in a very large pool and it will take a while before we get enough size back to be a player again. Unless we accept we'll never be a global power again. Then we'll probably be just about ok. We'll certainly never reach the heady heights of 5th largest economy again.

 

[Tute]

It'll suck a bit in the short term but I have no doubt the UK will benefit from leaving the EU.

 

[Greebo]

If I remember correctly the UK was doing rather nicely long before the EU came along, now it seems we cant survive without it, absolute rubbish. Back when the pound was four dollars what did that have to do with Europe. This country has gone steadily downhill since joining the EU while those who stayed out have prospered. We have lost our identity as a country and I for one cant wait for independence from Europe. Business will continue provided you have a product someone wants. However, no doubt the doomsayers will continue there nonsense for at least the next two years until we actually leave.

Short memory then. We were preforming economically much worse than France, Germany and Italy with our economic growth been half of theirs prior to joining.

Once we joined the EU that changed and over the last 40 years our economic growth was 50% and meant we reached the 5th largest global economy.

Gross domestic product per person has grown faster than Italy, Germany and France in the 42 years since joining the EU. By 2013, Britain became more prosperous than the average of the three other large European economies for the first time since 1965.

It is estimated that in the 43 years we have been in the EU, our economy is 10% more prosperous than if we had stayed out by comparing it to countries like New Zealand, Australia and Canada during that same period.

 

[Nasher]

It'll suck a bit in the short term but I have no doubt the UK will benefit from leaving the EU.

Probably. But most people can't think long long term. Even the government only plan for the next 4-5 years

 

[CAT-THE-FIFTH]

Short memory then. We were preforming economically much worse than France, Germany and Italy with our economic growth been half of theirs prior to joining.

Once we joined the EU that changed and over the last 40 years our economic growth was 50% and meant we reached the 5th largest global economy.

Gross domestic product per person has grown faster than Italy, Germany and France in the 42 years since joining the EU. By 2013, Britain became more prosperous than the average of the three other large European economies for the first time since 1965.

It is estimated that in the 43 years we have been in the EU, our economy is 10% more prosperous than if we had stayed out by comparing it to countries like New Zealand, Australia and Canada during that same period.

Was talking to one of my relatives about the relative cost of things too. Food and electronics cost far more as a percentage of income than they do now.

The 1970s had massive strikes and economic problems,the 1950s had austerity due to effects of WW2,and this country was depending on loans from the US for its survival. This is why the US threatened this country with bankruptcy during the Suez crisis and won.The 60s might have been more upbeat times but many people were still poor.

People had it hard.

What people don't get,is that the UK establishment has always been more US leaning,so expect that we will more entrenched with the US,with them having a larger impact on how things are run here. Look at the rise of things like zero hour contracts,etc.

I think a lot of people here don't seem to appreciate or respect,how good they have it here compared to a lot of other countries in the world. People have it far worse in places like Spain or the US and seem to stuck moaning how much the grass will be greener on the other side and how the EU caused all the problems.

Most of the issues caused here are since the politicians got embroiled in needless wars and made stupid economic hedges. The French managed to take on the US aerospace monopolies with Airbus and Arianespace. What did the government do?? They cancelled our space programme since the US was "cheaper" and yet we lead in the Europa programme. The UK is the only country to have a successful indigenous space programme and to cancel it.

Idiot government figures scaled back many aircraft programmes in the late 50s and 60s and the French ended up selling well over 1500 Mirage fighters in the last 50 years. TSR2 cancelled for "cheaper" US aircraft being an example.

The French despite being part of the EU and Germany being part of it too,seem to have much better developed high tech manufacturing in many areas. That is only because the last 50 years of our governments and UK business only care about short term profits and basically cannot manage anything and that rot has been there well before the EU.

FFS,the Aussies are buying 12 conventional versions of the French attack submarine class. They can afford to that as most of its French developed.

You only look at how the government didn't want to put extra tariffs on cheap Chinese steel and the EU did.

Plus if we didn't make our mark in the EU and apparently France and Germany did,that is only down to our politicians.

If we cannot take on France and Germany fat chance trying to push the US or China.

Seriously with our insepid lot of politicians?? Only the old boys network is important to them. If they actually cared about this country we would have been the main power in the EU by now.

But OFC,the typical excuse it will work "long-term" - yet no one can determine whether long-term is 5 years or 20 years.If it is anything like what we saw during the 70s and early 80s,plenty of the best people buggered off abroad,especially with the massive tax rate of high rate earners which was well above 50% of their income.

I seriously hope we have some proper leadership during the next decade.

I don't see it as all our lot are more worried about party politics.

All of them are squabbling amongst themselves.

 

[=XDC=FluphyBunny]

Spoiler

Short memory then. We were preforming economically much worse than France, Germany and Italy with our economic growth been half of theirs prior to joining.

Once we joined the EU that changed and over the last 40 years our economic growth was 50% and meant we reached the 5th largest global economy.

Gross domestic product per person has grown faster than Italy, Germany and France in the 42 years since joining the EU. By 2013, Britain became more prosperous than the average of the three other large European economies for the first time since 1965.

It is estimated that in the 43 years we have been in the EU, our economy is 10% more prosperous than if we had stayed out by comparing it to countries like New Zealand, Australia and Canada during that same period.

How dare you use facts and figures in an EU thread!

 

[melmac]

If I remember correctly the UK was doing rather nicely long before the EU came along, now it seems we cant survive without it, absolute rubbish. Back when the pound was four dollars what did that have to do with Europe. This country has gone steadily downhill since joining the EU while those who stayed out have prospered. We have lost our identity as a country and I for one cant wait for independence from Europe. Business will continue provided you have a product someone wants. However, no doubt the doomsayers will continue there nonsense for at least the next two years until we actually leave.

Wrong. Lost your identity? Other countries have prospered? Rubbish. This is the kind of tosh that caused the exit vote to succeed. go on, point out some of the ways that you have lost your identity by been part of the EU, and for that matter show me how been part of the EU has stopped you prospering.

Exactly. Since joining the the only changes normal people have seen is everything got much more expensive and we have become over-crowded. That's why leave won the vote.

Iceland left the EU a long time ago and they have been doing much better since.

Iceland was never in the EU. And even if they were and did leave, could you even compare the UK to Iceland?

For me this video sums up the brexit vote.

http://www.lbc.co.uk/radio/presenters/james-obrien/which-eu-law-are-you-looking-forward-to-losing/

 

[spot35]

For me this video sums up the brexit vote.

http://www.lbc.co.uk/radio/presenters/james-obrien/which-eu-law-are-you-looking-forward-to-losing/

Wow. I hadn't seen / heard that. The poor guy was ripped apart.

 

[h4rm0ny]

If people just stop bloomin buying at these prices?....You don't realy need it....just stop it...lol....bloomin children wanting things and wanting them NOW! Just stop it and they'll lower the prices to lure us back......it's not rocker science

"Rocket". And you shouldn't just quote principles thinking they are applicable anywhere. "Prices will lower if people stop buying" is flawed because "People" doesn't mean "UK citizens", it means the entire market. It is the British pound that has gone off a cliff, not the Dollar or the Euro or the Yuan. The principle of prices will be lowered until people buy is a simplistic way of describing the supply-demand curve which is that companies will sell at the point they believe Number of Sales x Profit per Sale is at the maximum. Set the price too high, the number of sales fall and you make less money over all even if the unit price is high. Set the profit too low and you're making less money than you would otherwise because people would still be willing to buy if you charged more. But the point is that the point on that curve is based on the average across entire market - which is global. A single buyer (the UK) being poorer will have an impact, but that impact CANNOT be sufficient to offset the loss because other richer customers keep the price from falling to the point it would be if the UK were the sole buyer.

To put it in very simple terms: Why would AMD sell their card at a cost the British buyer would like when they can sell the same card that richer people in Europe or the USA are happy with?

And before you respond with "Regional Pricing", this is something typically done with sunk costs (e.g. once you've spent billions on Avengers 2, you're not losing money by selling the blu-ray slightly cheaper in India than in the USA because the costs are already sunk) or with low-cost items where it's not worth trading individually (e.g. nobody is going to realise that a blu-ray costs $3 less in India than in their local shop in New York and try to order it from a shop in New Delhi). Neither of these are true of GPUs.

Furthermore, GPUs depreciate quickly so you desperately want to avoid making too many because, like tomatoes, they just wont keep their value. Consequently, companies are conservative on how many they make. That means little over-supply unless something goes badly wrong. And little over-supply means focusing first on wealthier markets. If there are left overs, THEN you reduce sale price in a cheaper market. Until that point (which is often never for GPUs due to the conservativeness already mentioned), you keep your prices based around the whole market.

TL;DR: Before you start making 'lol - it's simples' type posts, make sure you actually understand your subject matter.

 

[h4rm0ny]

A lot can happen between now and then though, literally anything can happen. There's no point in guessing it's a waste of time and effort. That's how I view things anyway and I find it odd that currency trading is attempting to predict an outcome that's not set in stone,and reacting to something that's not even happened yet and wont for a minimum of 2 years at the earliest, seems a very odd way of doing things, but they are just my thoughts.

Scenario: You have a few billion you want to invest. Do you
(a) put it in a country that you think has very shaky prospects?
(b) put it in a country that you think has a stable future?

Bonus question: Do you think two years is close enough to worry about what you do with your billions or would you invest them anyway and figure 24 months is longer than you feel like planning?

The bus doesn't have to have gone off a cliff yet for people not to want to get on it. The currency market reflects people's faith in a country doing well.

 

[ljt]

Scenario: You have a few billion you want to invest. Do you
(a) put it in a country that you think has very shaky prospects?
(b) put it in a country that you think has a stable future?

Bonus question: Do you think two years is close enough to worry about what you do with your billions or would you invest them anyway and figure 24 months is longer than you feel like planning?

The bus doesn't have to have gone off a cliff yet for people not to want to get on it. The currency market reflects people's faith in a country doing well.

Well seeing as the scenario of me having anywhere near that amount of money to invest is highly unlikely, then I'll answer as best as I can.

I'd do one of two things personally. Wait and see what happens then invest, or invest for now, then if the outcome was bad, then react by reinvesting somewhere else.

On a personal level I don't plan that far ahead generally speaking. I'm grateful if I wake up the next morning, let alone years in advance. I take each day as it comes.

The point I was originally making was that there are too many different outcome scenarios to be reacting to and guessing this early. It could be we never actually leave the EU, a general election could happen where one of our parties pledges is to keep us/re-join in the EU if they get elected. Rarely is anything permanent in politics and the way a country is run.

 

[h4rm0ny]

Spoiler

Was talking to one of my relatives about the relative cost of things too. Food and electronics cost far more as a percentage of income than they do now.

The 1970s had massive strikes and economic problems,the 1950s had austerity due to effects of WW2,and this country was depending on loans from the US for its survival. This is why the US threatened this country with bankruptcy during the Suez crisis and won.The 60s might have been more upbeat times but many people were still poor.

People had it hard.

What people don't get,is that the UK establishment has always been more US leaning,so expect that we will more entrenched with the US,with them having a larger impact on how things are run here. Look at the rise of things like zero hour contracts,etc.

I think a lot of people here don't seem to appreciate or respect,how good they have it here compared to a lot of other countries in the world. People have it far worse in places like Spain or the US and seem to stuck moaning how much the grass will be greener on the other side and how the EU caused all the problems.

Most of the issues caused here are since the politicians got embroiled in needless wars and made stupid economic hedges. The French managed to take on the US aerospace monopolies with Airbus and Arianespace. What did the government do?? They cancelled our space programme since the US was "cheaper" and yet we lead in the Europa programme. The UK is the only country to have a successful indigenous space programme and to cancel it.

Idiot government figures scaled back many aircraft programmes in the late 50s and 60s and the French ended up selling well over 1500 Mirage fighters in the last 50 years. TSR2 cancelled for "cheaper" US aircraft being an example.

The French despite being part of the EU and Germany being part of it too,seem to have much better developed high tech manufacturing in many areas. That is only because the last 50 years of our governments and UK business only care about short term profits and basically cannot manage anything and that rot has been there well before the EU.

FFS,the Aussies are buying 12 conventional versions of the French attack submarine class. They can afford to that as most of its French developed.

You only look at how the government didn't want to put extra tariffs on cheap Chinese steel and the EU did.

Plus if we didn't make our mark in the EU and apparently France and Germany did,that is only down to our politicians.

If we cannot take on France and Germany fat chance trying to push the US or China.

Seriously with our insepid lot of politicians?? Only the old boys network is important to them. If they actually cared about this country we would have been the main power in the EU by now.

But OFC,the typical excuse it will work "long-term" - yet no one can determine whether long-term is 5 years or 20 years.If it is anything like what we saw during the 70s and early 80s,plenty of the best people buggered off abroad,especially with the massive tax rate of high rate earners which was well above 50% of their income.

I seriously hope we have some proper leadership during the next decade.

I don't see it as all our lot are more worried about party politics.

All of them are squabbling amongst themselves.

Boom, *keyboard drop*

Great post.

 

[h4rm0ny]

I'd do one of two things personally. Wait and see what happens then invest, or invest for now, then if the outcome was bad, then react by reinvesting somewhere else.

Ah but firstly, your money has to be somewhere. And secondly, in this hypothetical scenario you're going to be someone whose job it is to maximise returns on investment. If you're a fund manager (which if you're shuffling billions around you probably are), making that choice is actually what your job is.

On a personal level I don't plan that far ahead generally speaking. I'm grateful if I wake up the next morning, I take each day as it comes.

Which I respect. But people responsible for managing billion dollar funds are less enlightened than you.

 

[Kaapstad]

Was talking to one of my relatives about the relative cost of things too. Food and electronics cost far more as a percentage of income than they do now.

The 1970s had massive strikes and economic problems,the 1950s had austerity due to effects of WW2,and this country was depending on loans from the US for its survival. This is why the US threatened this country with bankruptcy during the Suez crisis and won.The 60s might have been more upbeat times but many people were still poor.

People had it hard.

What people don't get,is that the UK establishment has always been more US leaning,so expect that we will more entrenched with the US,with them having a larger impact on how things are run here. Look at the rise of things like zero hour contracts,etc.

I think a lot of people here don't seem to appreciate or respect,how good they have it here compared to a lot of other countries in the world. People have it far worse in places like Spain or the US and seem to stuck moaning how much the grass will be greener on the other side and how the EU caused all the problems.

Most of the issues caused here are since the politicians got embroiled in needless wars and made stupid economic hedges. The French managed to take on the US aerospace monopolies with Airbus and Arianespace. What did the government do?? They cancelled our space programme since the US was "cheaper" and yet we lead in the Europa programme. The UK is the only country to have a successful indigenous space programme and to cancel it.

Idiot government figures scaled back many aircraft programmes in the late 50s and 60s and the French ended up selling well over 1500 Mirage fighters in the last 50 years. TSR2 cancelled for "cheaper" US aircraft being an example.

The French despite being part of the EU and Germany being part of it too,seem to have much better developed high tech manufacturing in many areas. That is only because the last 50 years of our governments and UK business only care about short term profits and basically cannot manage anything and that rot has been there well before the EU.

FFS,the Aussies are buying 12 conventional versions of the French attack submarine class. They can afford to that as most of its French developed.

You only look at how the government didn't want to put extra tariffs on cheap Chinese steel and the EU did.

Plus if we didn't make our mark in the EU and apparently France and Germany did,that is only down to our politicians.

If we cannot take on France and Germany fat chance trying to push the US or China.

Seriously with our insepid lot of politicians?? Only the old boys network is important to them. If they actually cared about this country we would have been the main power in the EU by now.

But OFC,the typical excuse it will work "long-term" - yet no one can determine whether long-term is 5 years or 20 years.If it is anything like what we saw during the 70s and early 80s,plenty of the best people buggered off abroad,especially with the massive tax rate of high rate earners which was well above 50% of their income.

I seriously hope we have some proper leadership during the next decade.

I don't see it as all our lot are more worried about party politics.

All of them are squabbling amongst themselves.

I remember the 60s and 70s before the EU, things were bad.

What did we learn at school, things like making your own candles in case there was another power cut lol.

 

[ljt]

Ah but firstly, your money has to be somewhere. And secondly, in this hypothetical scenario you're going to be someone whose job it is to maximise returns on investment. If you're a fund manager (which if you're shuffling billions around you probably are), making that choice is actually what your job is.



Which I respect. But people responsible for managing billion dollar funds are less enlightened than you.

I know where that much would be if it were mine I certainly wouldn't feel the need to invest it to make more

And no I would never want to be the person managing multi billion pound funds, it sounds like it relies too much on guess work.

I still feel people are over-reacting to something we still can't predict the outcome of though.

If we were to believe all the stuff coming out of the media, then if we had another referendum now then remain would win. And we'll be coming up to another general election soon. If we talk about predicting the future, then one of the parties running could have a manifesto pledge to re-join the EU if they win, that would be an interesting election (if we've even left by the next election that is)

 

[Kaapstad]

I know where that much would be if it were mine I certainly wouldn't feel the need to invest it to make more

And no I would never want to be the person managing multi billion pound funds, it sounds like it relies too much on guess work.

I still feel people are over-reacting to something we still can't predict the outcome of though.

If we were to believe all the stuff coming out of the media, then if we had another referendum now then remain would win. And we'll be coming up to another general election soon. If we talk about predicting the future, then one of the parties running could have a manifesto pledge to re-join the EU if they win, that would be an interesting election (if we've even left by the next election that is)

Not much chance of re joining the EU, the French did not want us the first time round.

Charles de Gaulle must have foreseen this mess.