the economy.

[Len Rum]

How about yesterday someone bemoaning the fact the pound had fallen making it easier for ARM to be bought out by a Japenese company when the CEO of the company said they made a swift move as it was getting more expensive to buy, not less.
Some people ought to not comment on things they no little of.

That's a bit harsh on the new Chancellor!

 

[DenisLawBackHeel74]

People might well be spending but I'll wager the vast majority of what's being spent is on credit in one of it's many and varied forms. Rather than people spending real money that they've actually earned and saved.

I think that died when the labour government relaxed rules on lending in 2007...

 

[blueish swede]

How about yesterday someone bemoaning the fact the pound had fallen making it easier for ARM to be bought out by a Japenese company when the CEO of the company said they made a swift move as it was getting more expensive to buy, not less.
Some people ought to not comment on things they no little of.

He didn't say it was more expensive he said the price was about the same:

Masayoshi Son said that although the price of the pound declined by about 16% in the past two weeks, ARM’s share price went up by about the same amount, meaning they cancelled each other out. And there were other financial factors in play as well: in recent weeks, Softbank sold a chunk of its Alibaba stake and its stake in Supercell, and today it announced a large loan for some $9 billion (¥1 trillion). “This is not opportunistic about the currency,” he joked. “I have wanted to do this but was waiting for the cash to come in.”

So that is a very specific case where the share price increased the same amount as the currency fell. Not a common occurrence, but easy enough to identify as an exception for those paying attention and not playing cheeky twat on the internet. The point I made remains, if you devalue your currency any comapnies listed in that currecny become cheaper to acquire for foreign investors.

Hermann Hauser, who helped found Arm as a spin-off from his Acorn Computers in 1990, described a SoftBank takeover of the Cambridge-based technology company as one of the “sad and unintended consequences” of Brexit. Now a partner at Amadeus Capital, Mr Hauser said SoftBank’s move was bad news for the UK tech industry, but admitted there was little the government could do to stop it. "Arm is the proudest achievement of my and it is the biggest player in the UK tech sector,” he told the Financial Times. “The future of Arm could have been determined by the UK management team. Now it will be determined in Japan. SoftBank is a reasonable acquirer, but this is sadly one of the unintended consequences of Brexit. The fall in sterling has made this very cheap, and while I suspect they were considering it for a long time, they have acted now because the opportunity is there.

http://www.ft.com/cms/s/0/e5e0cf3e-4cc4-11e6-88c5-db83e98a590a.html#ixzz4EsMCQiM

 

[hilts]

Righty in straw man not addressing the issues shocker.

I voted liberal old bean, you don't have to be right or left to ignore most of these fuckers, you just needed to pay attention most of your life

 

[Bill]

People might well be spending but I'll wager the vast majority of what's being spent is on credit in one of it's many and varied forms. Rather than people spending real money that they've actually earned and saved.

ok I take card payments but the ratio between debit and credit is about 85/15 in favour of debit cards.

 

[FanchesterCity]

We can't have it both ways. We've said the low pound is good for exports, and it's proven to be so in exporting a leading tech business, although strictly speaking, it's more tech IP akin to someone buying the back catalog of The Beatles - thanks to all the licence fees people are playing ARM.

Someone yesterday (Tory MP) was claiming that was an inward investment into the UK, but I don't see it that way. At best they'll keep the think tank in Cambridge (and a couple of other places), but how long that will last is anybody's business. It's not necessarily 'investment' in my eyes - we will have to wait and see what becomes of ARM before we can judge that, and even if it's an investment into ARM the business, it may not be one into the UK.

 

[FanchesterCity]

I think that died when the labour government relaxed rules on lending in 2007...

It really started happening when credit cards became common place - mid 70s? I can remember there being quite a bit of publicity about the 'Access' card by the early 80's.

I can distinctly remember my parent's generation being of the 'you work and save up for what you want, then go and buy it'. That changed to 'you can have it now, pay later' - via catalogues, then credit cards. If people could way 6 months or a year, they could put away that 'credit' money and actually buy it outright, but slowly everything changed to put the consumer in arrears, and it's been getting progressively worse ever since.

 

[jacko74]

ok I take card payments but the ratio between debit and credit is about 85/15 in favour of debit cards.

Just because they're paying for it on a debit card doesn't mean it's still not borrowed wonga!

 

[SWP's back]

So that is a very specific case where the share price increased the same amount as the currency fell. Not a common occurrence, but easy enough to identify as an exception for those paying attention and not playing cheeky twat on the internet.

The U.K. Equity market virtually always increases when the pound weakens. And for obvious reasons.

 

[DenisLawBackHeel74]

It really started happening when credit cards became common place - mid 70s? I can remember there being quite a bit of publicity about the 'Access' card by the early 80's.

I can distinctly remember my parent's generation being of the 'you work and save up for what you want, then go and buy it'. That changed to 'you can have it now, pay later' - via catalogues, then credit cards. If people could way 6 months or a year, they could put away that 'credit' money and actually buy it outright, but slowly everything changed to put the consumer in arrears, and it's been getting progressively worse ever since.

True, but I was referring to the formation of the FSA and resultant deregulation of borrowing to the extent anybody could get 'credit'