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Christmas Sales Beat Expectations

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True, it is defintely called for. However, will the BoE have the balls to do it? I think not while the mesaurement of inflation they must use doesn't rise.

The had the 'balls' to drop rates after September 11th. If our economy is picking up, I doubt they'll have any worries about raising them. At the end of the day, who cares about a few million indebted people, who would propbably have gone bankrupt anyway given sufficient time.

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Yet again another bullish report. But, how much was spent with real cash and how much was on CC?

Bet the debt mountain has just grew!!!

BTW contrary to what they are saying I have to say that this Christmas and New Year was the qietest I have EVER known. We no longer have a Christmas bonus, we dont have a Christmas party and this year we stayed in Birkenhead because a lot of people could not afford to go over to Liverpool.

My time spent in the city centre showed small crowds (for Christmas anyway) and from the actions of the sales staff in the electical stores, indicated to me that sales were dire.

I'm not sure about anywhere else but Curry and Comet in Bromborough (Wirral) have lots of sales staff that hassle you as soon as you walk in, like the "suits you sir" characters.

This report is what I expected - lets see what their stance is for Q1 2006.

TB

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Sooner rates are raised and the bubble destroyed, the sooner a recovery will happen.

Leave this to go on and on and more pain will be felt!

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Sooner rates are raised and the bubble destroyed, the sooner a recovery will happen.

Leave this to go on and on and more pain will be felt!

Correct. Once the economy recovers from this soft patch, the Bank will act. A few IR raises will get people to focus on paying off their loans and result in credit tightening. That will start to reel in the credit. This simply has to happen at some point - the sooner the better.

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Below is some text from the BRC press release. The BRC always plays sales down (lobbying for interest rate cuts). Even so, there are some indications that this rate of sales growth will not continue. Most retailers are saying it has weakened already.

City economists who had been predicting an interest rate cut in February are now changing their minds.

• Retail sales in the UK during December rose 2.6% on a like-for-like basis from December 2004 when sales fell 0.4%. December’s gain was the largest since the 3.7% gain in May 2004, and the best December since 2001.

• The three-month trend rate of growth improved in December to 0.2% from -0.1% in November for like-for-like sales, and to 4.1% from 3.8% for total sales. Like-for-like sales in 2005 averaged a 0.4% fall, against a 1.7% gain in 2004.

• Sales picked up strongly in the week before Christmas, and continued in the first two days of the post-Christmas sales, but then dropped back markedly. Food sales remained good but clothing and footwear slowed a little from November.

• Shoppers remain very value-conscious and took advantage of the widespread promotions and sales discounts. Underlying trade for major purchases is still tough, with sales driven heavily by promotions.

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Just an anecdote:

I went to Ikea, Nottingham, on Saturday, expecting it to be relatively quiet. It was mayhem. I could hardly find a space in the car park, and people seem to buy (and eat!) as if there was no tomorrow! It didn't look like a recession in the waiting to me. There didn't even seem to be many discounts.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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