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Europe --- In or Out


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You lot are carrying on like currency traders in here. :lol:

 

We don't buy or need anything significant from America and the stronger the euro gets the worse it is for European exports.

 

FTSE is strong and the bond and gilt markers are firm. BOE isn't having to buy tons of UK bonds like the ECB is buying up Euro denominated paper. ;)

 

"The idea that the BoE might start buying sterling corporate bonds again is now being discussed, especially as the ECB is buying euro denominated bonds at a fierce pace as part of its QE programme.  On the face of it though, credit spreads are trading near their historical average rather than near Great Depression levels as in 2009, and in the banking market both the availability of credit and the spread costs to large companies – those that could borrow in corporate bond markets – are benign, if not “easy”.  So why would the BoE want to start buying sterling again" ?

 

 

should-the-boe-start-buying-sterling.png

Edited by Park Life
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If imports slow down who will it hurt??

 

I'm pretty sure that as a percentage of GDP we import much more from USA than they export to us. Not to mention the import of oil from all over the world paid for in dollars. It isn't like we're just going to decide not to import anymore, we're going to continue but it's just going to cost much more.

Edited by ewerk
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Paying more for US and EU goods? Erm, yes?

 

Is this a trick question? :lol:

It will hurt their exports (we have a deficit so that is good for us). Our goods are cheaper to export (so that is good for us). 

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It will hurt their exports (we have a deficit so that is good for us). Our goods are cheaper to export (so that is good for us). 

 

er, we import a lot more than we export, you know. 

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I'm pretty sure that as a percentage of GDP we import much more from USA than they export to us. Not to mention the import of oil from all over the world paid for in dollars. It isn't like we're just going to decide not to import anymore, we're going to continue but it's just going to cost much more.

World oil price pegs aren't set in relation to the strength of the pound last time I looked and our economy doesn't run on oil. AND crude prices are at an all time low aren't they? AND we don't have the manufacturing base that looks for loads of OIL related products...

Edited by Park Life
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It will hurt their exports (we have a deficit so that is good for us). Our goods are cheaper to export (so that is good for us).

Yeah, am sure the massive markets of the US and EU are shitting it that the mighty UK has to pay more for their goods, many of which we don't produce domestically. You're off your tits.

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World oil price pegs aren't set in relation to the strength of the pound last time I looked and our economy doesn't run on oil. AND crude prices are at an all time low aren't they? AND we don't have the manufacturing base that looks for loads of OIL related products...

 

Yeah, it's not like oil, petrol and gas make up 12% of our imports. It's entirely irrelevant. FFS.

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Yeah, it's not like oil, petrol and gas make up 12% of our imports. It's entirely irrelevant. FFS.

The UK is not alone in this strategy - all 28 EU countries imported more energy than they exported in 2014 with the UK coming in as the 12th most dependent on foreign sources of energy.

The ONS says that in 2014 the UK’s import dependency was below the EU average and it was the least dependent on foreign sources of energy out of the top five EU countries by energy use: Germany, France, Italy, Spain and the UK."

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Yeah, am sure the massive markets of the US and EU are shitting it that the mighty UK has to pay more for their goods, many of which we don't produce domestically. You're off your tits.

The word you're looking for is consumer.

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nothing to worry about then :lol:

Try and differentiate between energy needs, manufacturing needs and basic consumer spending for one. ;)

 

For me energy needs could become an issue but the pound would have to fall a lot further for that.

Edited by Park Life
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World oil price pegs aren't set in relation to the strength of the pound last time I looked and our economy doesn't run on oil. AND crude prices are at an all time low aren't they? AND we don't have the manufacturing base that looks for loads of OIL related products...

Oil prices are nowhere near all time lows (even adjusted for inflation). They are low in the context of the last 10 years but that period showed unprecedented highs. Additionally, OPEC has just pledged to cut production so that will push the price up. Oil, gas and related products are traded in dollars (as are Copper, Aluminium etc) so the FX rate will have a significant impact on our cost base.

 

It's all fine though as we have a massive manufacturing base. Exports of 'innovative British jams & marmalades' that the department for international trade has been talking about will no doubt shore things up.

Edited by Billy Whitehurst
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