Exchange rate
Jul 7th 2010, 11:59 am
#2551
BE Forum Addict
Joined: Sep 2008
Location: NS
Posts: 1,111
Re: Exchange rate
dreaming of 1.95.......I've got 50 grand sat in 'the worlds no-so-local bank'
Jul 7th 2010, 12:43 pm
#2552
Dive Bar Drunk
Joined: Nov 2006
Location: Toronto
Posts: 8,648
Re: Exchange rate
Right now, the Euro nations are tackling deficits, as is the UK. The UK will actually be ok in the medium term because banking continues to take a disproportionate amount of the worlds wealth and London will remain one of the major banking centres. There is also the potential of the falkland islands.
Don’t agree with your views on the Euro Countries still plenty of strife there before the USA starts to go under
http://www.telegraph...ys-Merrill.html
Spain may need financial rescue, says Merrill
Spain's debt crisis may force the country to tap the EU-IMF rescue fund over the next two to three months and set off a political storm, according a confidential report by the Bank of America Merrill Lynch.
Obama has tried to get the rest of the G8 to continue spending. They've refused which is good for them. However I just cannot see the US tackling its deficit, let alone its huge debt: the democrats have no political will for cuts; and the republicans feel the same way about tax rises. There is even a chance that the debt could become high enough such that it will bring the half century experiment with paper money to an end (the US has only had fiat for 40 years or so).
Looks like the US is going to take a large stake in the UK first
http://www.independe...ds-2017227.html
Jewels of British industry at risk of falling into American hands
By Alistair Dawber
American companies are preparing to launch daring takeover bids for a host of Britain's biggest corporate names – including BAE Systems and AstraZeneca – thanks to the weakness of the pound against the dollar.
Sterling has lost about a quarter of its value against the dollar in the last two-and-a-half years, and combined with the feeble recovery in the UK economy, British firms have become much cheaper for American suitors looking for a good deal.
Following the controversial takeover of Cadbury earlier this year by the US food giant Kraft, and the buyout of Gatwick Airport by an American private equity firm, analysts at Standard & Poor's predicted last week that a number of well-known UK companies, including AstraZeneca, BAE Systems and the contractor Balfour Beatty, could soon fall into American hands.
When this starts to hit, Canada is in for a very rough time. There are those that say Canada can trade with China etc, but China only needs resources to make stuff to sell back to the US. China's domestic market is still tiny.
Ultimately (in a small number of decades) TheBear is right - it will come done to energy. With current technology Canada is sitting pretty.
Once the US starts to get hit every country will probably go into a depression but yes agreed when the Global economy starts to recover the countries with the natural resources will fare much better. Banking can and will be moved any ware.
Pound down to parity within 18 months
Don’t agree with your views on the Euro Countries still plenty of strife there before the USA starts to go under
http://www.telegraph...ys-Merrill.html
Spain may need financial rescue, says Merrill
Spain's debt crisis may force the country to tap the EU-IMF rescue fund over the next two to three months and set off a political storm, according a confidential report by the Bank of America Merrill Lynch.
Obama has tried to get the rest of the G8 to continue spending. They've refused which is good for them. However I just cannot see the US tackling its deficit, let alone its huge debt: the democrats have no political will for cuts; and the republicans feel the same way about tax rises. There is even a chance that the debt could become high enough such that it will bring the half century experiment with paper money to an end (the US has only had fiat for 40 years or so).
Looks like the US is going to take a large stake in the UK first
http://www.independe...ds-2017227.html
Jewels of British industry at risk of falling into American hands
By Alistair Dawber
American companies are preparing to launch daring takeover bids for a host of Britain's biggest corporate names – including BAE Systems and AstraZeneca – thanks to the weakness of the pound against the dollar.
Sterling has lost about a quarter of its value against the dollar in the last two-and-a-half years, and combined with the feeble recovery in the UK economy, British firms have become much cheaper for American suitors looking for a good deal.
Following the controversial takeover of Cadbury earlier this year by the US food giant Kraft, and the buyout of Gatwick Airport by an American private equity firm, analysts at Standard & Poor's predicted last week that a number of well-known UK companies, including AstraZeneca, BAE Systems and the contractor Balfour Beatty, could soon fall into American hands.
When this starts to hit, Canada is in for a very rough time. There are those that say Canada can trade with China etc, but China only needs resources to make stuff to sell back to the US. China's domestic market is still tiny.
Ultimately (in a small number of decades) TheBear is right - it will come done to energy. With current technology Canada is sitting pretty.
Once the US starts to get hit every country will probably go into a depression but yes agreed when the Global economy starts to recover the countries with the natural resources will fare much better. Banking can and will be moved any ware.
Pound down to parity within 18 months
....just hit 'CTRL -' many times :-D
Jul 7th 2010, 12:52 pm
#2554
Dive Bar Drunk
Joined: Nov 2006
Location: Toronto
Posts: 8,648
Re: Exchange rate
I was thinking 1.85-1.95 by September this year 6 months ago but I never saw it dipping to 1.50- however I think 1.70 in the next 2 to 4 months.
The pound will continue improve over the next 18 months.
The pound in the last 3/4 years was over valued against the US dollar just like the Canadian dollar is overvalued now.
I do not see how US purchase of British publicly floated companies effects currency. More UK companies will take their place and UK based shareholders will get their money from the takeover anyway and just stick it elsewhere.
Jul 7th 2010, 12:56 pm
#2555
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
" I do not see how US purchase of British publicly floated companies effects currency. More UK companies will take their place and UK based shareholders will get their money from the takeover anyway and just stick it elsewhere. "
On the face of it you are right, however, if large UK companies are taken over by foreign buyers there is the chance that the new owners may move the company away from the UK which may effect trade/export/unemployment figures etc, and in turn sterling.
On the face of it you are right, however, if large UK companies are taken over by foreign buyers there is the chance that the new owners may move the company away from the UK which may effect trade/export/unemployment figures etc, and in turn sterling.
Jul 7th 2010, 12:59 pm
#2556
Dive Bar Drunk
Joined: Nov 2006
Location: Toronto
Posts: 8,648
Re: Exchange rate
" I do not see how US purchase of British publicly floated companies effects currency. More UK companies will take their place and UK based shareholders will get their money from the takeover anyway and just stick it elsewhere. "
On the face of it you are right, however, if large UK companies are taken over by foreign buyers there is the chance that the new owners may move the company away from the UK which may effect trade/export/unemployment figures etc, and in turn sterling.
On the face of it you are right, however, if large UK companies are taken over by foreign buyers there is the chance that the new owners may move the company away from the UK which may effect trade/export/unemployment figures etc, and in turn sterling.
But it can work the other way where they invest more. Also in purchasing the company aren't all these billions of dollars purchasing sterling that then get's paid to the shareholders?
Also is Britain not better off washing it's hands of underperforming businesses?
It is a double edged sword.
Jul 7th 2010, 2:48 pm
#2557
Joined: Aug 2005
Posts: 14,227
Re: Exchange rate
I know.
But it can work the other way where they invest more. Also in purchasing the company aren't all these billions of dollars purchasing sterling that then get's paid to the shareholders?
Also is Britain not better off washing it's hands of underperforming businesses?
It is a double edged sword.
But it can work the other way where they invest more. Also in purchasing the company aren't all these billions of dollars purchasing sterling that then get's paid to the shareholders?
Also is Britain not better off washing it's hands of underperforming businesses?
It is a double edged sword.
http://noir.bloomberg.com/avp/avp.as...D=748813737&A=
(it's worth waiting for the video to load, don't know why bloomberg don't just use flash like everyone else)
Jul 7th 2010, 5:10 pm
#2558
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
"He also says the UK has 'dodged a bullet' with it's deficit reduction plans."
We are doing more than most other countries, including the USA, to reduce our deficit, so I cant agree.
M.
We are doing more than most other countries, including the USA, to reduce our deficit, so I cant agree.
M.
Jul 7th 2010, 5:21 pm
#2560
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
No, I cant agree that the UK has dodged the bullet.
Jul 7th 2010, 5:22 pm
#2561
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
Hang on, I might be having a brain fart
Jul 7th 2010, 5:24 pm
#2562
Joined: Aug 2005
Posts: 14,227
Re: Exchange rate
Ok, then perhaps you can explain how this:
Seems to contradict this?
Jul 7th 2010, 5:39 pm
#2564
Wanna-be Canadian
Joined: May 2008
Posts: 176
Re: Exchange rate
That will teach me to drink vodka in the afternoon.
Interesting interview, though I cant understand why they chose to film it in a field.
If the interviewee is right and the USA will need to sell assets to Singapore/China and other wealthy foreign nation funds, I'm unsure if this would be popular with American citizens, the patriots that they are
But I agree with his sentiment, America can not continue to borrow a trillion dollars plus each year to cover its deficit and expect its fiscal policy to be taken seriously.
M.
Interesting interview, though I cant understand why they chose to film it in a field.
If the interviewee is right and the USA will need to sell assets to Singapore/China and other wealthy foreign nation funds, I'm unsure if this would be popular with American citizens, the patriots that they are
But I agree with his sentiment, America can not continue to borrow a trillion dollars plus each year to cover its deficit and expect its fiscal policy to be taken seriously.
M.
Jul 7th 2010, 5:48 pm
#2565
Joined: Aug 2005
Posts: 14,227
Re: Exchange rate
That will teach me to drink vodka in the afternoon.
Interesting interview, though I cant understand why they chose to film it in a field.
If the interviewee is right and the USA will need to sell assets to Singapore/China and other wealthy foreign nation funds, I'm unsure if this would be popular with American citizens, the patriots that they are
But I agree with his sentiment, America can not continue to borrow a trillion dollars plus each year to cover its deficit and expect its fiscal policy to be taken seriously.
M.
Interesting interview, though I cant understand why they chose to film it in a field.
If the interviewee is right and the USA will need to sell assets to Singapore/China and other wealthy foreign nation funds, I'm unsure if this would be popular with American citizens, the patriots that they are
But I agree with his sentiment, America can not continue to borrow a trillion dollars plus each year to cover its deficit and expect its fiscal policy to be taken seriously.
M.
