Importers - long term £vs$ projections?

[sam.r]

Any other importers getting a little worried with the sterling?

We have seen our cost prices up 30% in 6 months with the far east manufaturing costs rising and the weak pound.

Any ideas on long term projections? When may we see it start to turn round?

How long is a peice of string I hear you say....

Any 'experts' out there with a guess?

[VX Foxy]

[VX Foxy]

http://www.telegraph.co.uk/finance/economics/inter...

[Windsorphil]

I've been watching this very closely with a brand new business just manufacturing, in China, our first batch of product - half has been sold to the USA and half to the UK - so I like a strong dollar to a degree as my margins are narrower in the USA, I gain on the forex (product will retail circa $23 in the USA and circa £18 in UK) but obviously lose in UK so I have to have a slightly higher margin here.

[mrmr96]

Check out the bottom of page 2:
http://www.rbs.com/content/economic/downloads/uk/f...

Period	$ per £	$ per €	£ per €	¥ per $	Euro refi rate	US Funds rate	UK Bank rate
2008 Q1	1.99	1.58	0.80	100	4.00	4.25	5.25
Q2	1.99	1.58	0.79	106	4.00	2.25	5.00
Q3	1.78	1.40	0.79	106	4.00	2.00	5.00
Q4	1.54	1.31	0.85	100	2.50	0.50	2.00
2009 Q1	1.53	1.30	0.85	98	2.00	0.25	1.50
Q2	1.51	1.27	0.84	95	2.00	0.25	1.00
Q3	1.51	1.24	0.82	93	1.50	0.25	1.00
Q4	1.48	1.20	0.81	92	1.50	0.25	1.00
2010 Q1	1.49	1.18	0.79	90	1.50	0.25	1.00
Q2	1.51	1.18	0.78	90	1.50	0.25	1.00
Q3	1.54	1.17	0.76	90	1.50	0.25	1.00
Q4	1.56	1.17	0.75	90	1.50	0.25	1.00

Edited by mrmr96 on Thursday 4th December 17:14

[Simpo Two]

My hunch is that nothing will improve significantly/sustainably for a year at least.



I know nothing, but bear in mind that (1) I suggested to my IFA in the spring that it might be an idea to get out of equities, and (2) prior to that mooted a delfationary spiral like Japan. He ignored me of course, and stupidly I ignored myself

[Plotloss]

Consumer electronics will almost certainly be going up across the board in Q1 2009

[craig7l]

sam.r said:

Any other importers getting a little worried with the sterling?

We have seen our cost prices up 30% in 6 months with the far east manufaturing costs rising and the weak pound.

Any ideas on long term projections? When may we see it start to turn round?

How long is a peice of string I hear you say....

Any 'experts' out there with a guess?

If you want it back to 2:1 then i feel it will be a very very long wait, in fact that boat has sailed..

as a side issue i think the printing presses could start to roll?