RBS: Panic! Sell everything! Meltdown looming!
Discussion
Digga said:
That an increase capital allowances for investment in plant and equipment.
Can you explain that Digga? I read the UK has 500k annual investment allowance right? Does that mean investments in machinery over that are not deductible from 'profit' for tax purposes? If a business had gross earnings of 1m and spent 1m on machinery, they would have to pay tax on 500k 'profit'?Sam All said:
Zod said:
I blame the immigrants.
Au contraire, they provide fresh blood and keep costs contained. 
More seriously, every recession over the last century has been preceded by a large oil price spike, affecting the cost of doing business and consumers' ability and willingness to pay. Current market weakness is based on low, unsustainable commodities prices, due in the main part to reduced Chinese demand.
fblm said:
Digga said:
That an increase capital allowances for investment in plant and equipment.
Can you explain that Digga? I read the UK has 500k annual investment allowance right? Does that mean investments in machinery over that are not deductible from 'profit' for tax purposes? If a business had gross earnings of 1m and spent 1m on machinery, they would have to pay tax on 500k 'profit'?
e's drawers, so long term budgeting and planning (the sort we need for real growth) is simply not possible. Currently they are £200k, down from £500k last year. You still get depreciation against tax, and 18% write down on figures higher than the allowance but the maximum allowance against profit is £200k.Well the next Mazak CNC machine tool we're likely to buy - and we're only a piddling little engineering firm - will be over £250k. Cash is king and every little helps SMEs.
ETA yes, your calculation, based on last year's allowance is correct.
Zod said:
Indeed they do.
More seriously, every recession over the last century has been preceded by a large oil price spike, affecting the cost of doing business and consumers' ability and willingness to pay. Current market weakness is based on low, unsustainable commodities prices, due in the main part to reduced Chinese demand.
Consumer benefits, governments lose some tax revenue.More seriously, every recession over the last century has been preceded by a large oil price spike, affecting the cost of doing business and consumers' ability and willingness to pay. Current market weakness is based on low, unsustainable commodities prices, due in the main part to reduced Chinese demand.
Leveraging/dependance by oil producers much much higher this time, likely to cascade down to banks.
But hey Shell super unleaded is still well over a quid.
Digga said:
For one thing, the allowance is up and down like a we's drawers, so long term budgeting and planning (the sort we need for real growth) is simply not possible. Currently they are £200k, down from £500k last year. You still get depreciation against tax, and 18% write down on figures higher than the allowance but the maximum allowance against profit is £200k.
Well the next Mazak CNC machine tool we're likely to buy - and we're only a piddling little engineering firm - will be over £250k. Cash is king and every little helps SMEs.
ETA yes, your calculation, based on last year's allowance is correct.
Thankse's drawers, so long term budgeting and planning (the sort we need for real growth) is simply not possible. Currently they are £200k, down from £500k last year. You still get depreciation against tax, and 18% write down on figures higher than the allowance but the maximum allowance against profit is £200k.Well the next Mazak CNC machine tool we're likely to buy - and we're only a piddling little engineering firm - will be over £250k. Cash is king and every little helps SMEs.
ETA yes, your calculation, based on last year's allowance is correct.
fblm said:
Digga said:
For one thing, the allowance is up and down like a we's drawers, so long term budgeting and planning (the sort we need for real growth) is simply not possible. Currently they are £200k, down from £500k last year. You still get depreciation against tax, and 18% write down on figures higher than the allowance but the maximum allowance against profit is £200k.
Well the next Mazak CNC machine tool we're likely to buy - and we're only a piddling little engineering firm - will be over £250k. Cash is king and every little helps SMEs.
ETA yes, your calculation, based on last year's allowance is correct.
Thankse's drawers, so long term budgeting and planning (the sort we need for real growth) is simply not possible. Currently they are £200k, down from £500k last year. You still get depreciation against tax, and 18% write down on figures higher than the allowance but the maximum allowance against profit is £200k.Well the next Mazak CNC machine tool we're likely to buy - and we're only a piddling little engineering firm - will be over £250k. Cash is king and every little helps SMEs.
ETA yes, your calculation, based on last year's allowance is correct.
BlackLabel said:
IMHO: Yes, next question.This is certainly where it gets harder to kick the can down the road (or as the better analogy has it, keep kicking the football uphill).
Digga said:
BlackLabel said:
IMHO: Yes, next question.This is certainly where it gets harder to kick the can down the road (or as the better analogy has it, keep kicking the football uphill).
From the article and not related, but related.
Deutsche Bank five year default probability spike
Credit Suisse CEO Tidjane Thiam shrugs off first loss since 2008
turbobloke said:
Credit Suisse CEO Tidjane Thiam shrugs off first loss since 2008
It's pass the parcel, but instead of a present inside there's something rather odious. Thiam's just unlucky (unwise?) enough to have been caught holding the parcel at the wrong time. It's not like what is inside these parcels - for all the banks - did not exist until today.turbobloke said:
Credit Suisse CEO Tidjane Thiam shrugs off first loss since 2008
I've seen him talk a few times now and been very unimpressed by each, it seems to me they may have been sold a pup.However I don't believe European banking is in any deeper than the level to which it has grown accustomed. Banking is at the intersection of difficulties with squeezed margins and increasing regulatory focus (R&C and Quality people are proliferating at an almost alarming rate making banks very parochial and conservative) are hindering top line growth. In many ways squeezing and reorganizing is probably what banks need to figure out what they are in individually good at, what needs to be pruned and how they can eek their way back to growth.
speedy_thrills said:
turbobloke said:
Credit Suisse CEO Tidjane Thiam shrugs off first loss since 2008
I've seen him talk a few times now and been very unimpressed by each, it seems to me they may have been sold a pup.However I don't believe European banking is in any deeper than the level to which it has grown accustomed...
Thanks for those words of comfort
speedy_thrills said:
...what they are individually good at, what needs to be pruned and how they can eek their way back to growth.
Or perhaps in Barclays case a tourniquet on one leg while hacking off the other. They're slashing remuneration, implementing a long term hiring freeze and selling off chunks. Brutal stuff and I hope they have a business left to run when they are finished. Must be a strange place to work.speedy_thrills said:
speedy_thrills said:
...what they are individually good at, what needs to be pruned and how they can eek their way back to growth.
Or perhaps in Barclays case a tourniquet on one leg while hacking off the other. They're slashing remuneration, implementing a long term hiring freeze and selling off chunks. Brutal stuff and I hope they have a business left to run when they are finished. Must be a strange place to work.fblm said:
Digga said:
That an increase capital allowances for investment in plant and equipment.
Can you explain that Digga? I read the UK has 500k annual investment allowance right? Does that mean investments in machinery over that are not deductible from 'profit' for tax purposes? If a business had gross earnings of 1m and spent 1m on machinery, they would have to pay tax on 500k 'profit'?Greenspan said:
We’re in trouble basically because productivity is dead in the water,” he said. “Real capital investment is way below average. Why? Because business people are very uncertain about the future.
http://www.bloomberg.com/news/articles/2016-03-01/greenspan-says-negative-rates-warp-investment-behaviorDigga said:
fblm said:
Digga said:
That an increase capital allowances for investment in plant and equipment.
Can you explain that Digga? I read the UK has 500k annual investment allowance right? Does that mean investments in machinery over that are not deductible from 'profit' for tax purposes? If a business had gross earnings of 1m and spent 1m on machinery, they would have to pay tax on 500k 'profit'?Greenspan said:
We’re in trouble basically because productivity is dead in the water,” he said. “Real capital investment is way below average. Why? Because business people are very uncertain about the future.
http://www.bloomberg.com/news/articles/2016-03-01/greenspan-says-negative-rates-warp-investment-behaviormarkcoznottz said:
In other news bears go into the woods. Don't employ art graduates in government..,.
In the same way that the EU fails to see the problems at the heart of the Greek economy, so the UK and US administrations are completely and utterly clueless as to the source of productivity and economic growth.s
t will really hit the fan for many businesses next year with the double-impact of dividend taxation and compulsory pension legislation.Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff