61–70 of 94 posts
It looks like the GBP has been in decline for years. Here's the last 10 years: http://www.xe.com/currencycharts/?from=GBP&to=USD&view=10Y
There was a stable level at 1.95 in 2007-2008, then a drop and a sinusoid around 1.55 for 8 years, then another drop to lower levels after Brexit. We'll see where it goes from there.
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I should have been clearer, the analysts said there would be an immediate meltdown in the UK economy after the brexit vote if it was leave. That forecast was completely wrong, the opposite has happened. As it's widely been reported in the UK, in both lefty and righty papers, I'm surprised you've failed to see it. It's been mentioned every time we get a positive growth figure, or an unemployment fall, or whatever.
As has been mentioned on this thread before you posted, those analyses were based on the announced policy that article 50 would be triggered immediately. It wasn't. Long term Brexit is absolutely going to be disastrous for the UK economy, unless parliament can get us on to a soft-brexit EEA membership track. The tragedy is that the British economy was going well through the beginning of 2016 and after a bumpy road im…
No. It might be. I'll even accept will probably be. You haven't got a clue, I haven't got a clue. Professors of economics at respected universities don't agree, in house analysts at top financial institutions don't agree. At best you can say that heavily politically influenced bodies tend to agree.
I'm fine with you stating an opinion on this stuff, I have my own expectations (chunky period of inflation and stagnant growth at best) - but I'm awfully tired of people selling forecasts as facts
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If that's true it would suggest that Apple are not in fact basing their price on expected further devaluations of the pound vs the dollar. So either they don't expect the price to fall further, or they do expect it to fall further but don't want to burden their UK customers with even higher prices at the moment.
Or they are aligning their prices against a psychologically meaningful breakpoint such as the increase from £7.99 to £9.99 given in the article, which happens to be about 25%, rather than a precisely 20% increase which would yield a price of £9.59. People here are reading way more into that 5% than is remotely warranted and for ludicrously incidental reasons. What's actually happening here is very simple. Apple has b…
Otherwise I agree with you.
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Not true. Article 50 stipulates the maximum negotiating period, not the minimum. T-May could quite legally declare Article 50, negotiate for a day, then join NAFTA the day after...
No, the UK cannot unilaterally withdraw before the end of the two year period. An earlier withdrawal is only possible if the UK and the EU both agree.
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No, the UK cannot unilaterally withdraw before the end of the two year period. An earlier withdrawal is only possible if the UK and the EU both agree.
well, technically as long as it is aiming for an hard brexit it can withdraw unilateral whenever it wants. The two year period is a safety blanket to negotiate a better deal while still enjoying the existing rules.
So the UK can't 'withdraw unilateral whenever it wants' without creating a giant legal problem as its erstwhile partners attempt to enforce its (still extant) obligations.
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well, technically as long as it is aiming for an hard brexit it can withdraw unilateral whenever it wants. The two year period is a safety blanket to negotiate a better deal while still enjoying the existing rules.
According to the text of Article 50, a withdrawing state remains bound by the Treaties (and thus by EU law) until either (1) an exit agreement is made and enters into force; or (2) two years pass after Article 50 is invoked. So the UK can't 'withdraw unilateral whenever it wants' without creating a giant legal problem as its erstwhile partners attempt to enforce its (still extant) obligations.
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Or they are aligning their prices against a psychologically meaningful breakpoint such as the increase from £7.99 to £9.99 given in the article, which happens to be about 25%, rather than a precisely 20% increase which would yield a price of £9.59. People here are reading way more into that 5% than is remotely warranted and for ludicrously incidental reasons. What's actually happening here is very simple. Apple has b…
Uh 25% increase only leads to round prices at certain points. 25% increase on £1 is £1.25... Otherwise I agree with you.
Apple uses prices aligned to multiples of these units, with some rounding. So when Apple realigns UK prices to take into account currency fluctuations, they do so based on a combination of how much and how long the exchange rate has changed, and what their target price units and price points are. Also I'm sure they factor in holiday season timing to e.g. avoid negative publicity running up to Christmas.
So the pound is soaring higher this morning.. they will have to cut prices!
This is a great example of when to not use percentages in a headline. Or, you know, go for it! If you're trying to get clicks.
"While critics might note that Apple’s price increase is greater than the pound’s loss in value, financial analysts predict that the market still hasn’t fully priced in the cost of Brexit — that is to say the pound still has further to fall." So what mechanisms keep the price from instantly dropping if "everyone" agrees it should be lower? Market inefficiencies? Or lots of money betting on an upswing?
> ...Apple’s price increase is greater than the pound’s loss in value... It's 5% more than the pound's loss in value next to the Dollar. But bear in mind that for the last 6 months Apple has simply swallowed a 20% reduction in their (and developers) UK App Store revenue. Look at it that way and we in the UK have enjoyed subsidized prices for most of the last year.