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Excellent Article In Ft Profit Margins Suffering

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VERY interesting article in FT today, not online as of yet. It effectively alludes that UK PLC is starting to REALLY suffer as a result of spiralling raw materials costs and corporate tax. Now, if these costs continue to rise, as they have to to meet the Chancellors spending targets (increasingly being funded via corporation tax, the population having already been squeezed dry) either

1) inflation will go up, as business profit margins cannot decrease any further. If they do decrease any further, expect some VERY significant drops in the stock market as most M+A actions are now over, thus real profits will be the main driving force for stock market price changes. EVEN IF the MPC and the ONS attempt to hide inflation through stats, its very unlikely the true effect of inflation can stay hidden from REAL TERM effects on the UK populace for much longer.

2) Productivity will shift abroad, this will happen for even those corporations who do not operate "Raw goods " manufacturing, as ALL companies are effected by taxes brought to bear by the dickhead at the top of the treasury.

3) PROFITS WARNINGS AND COLLAPSING STOCK MARKETS!!!! even tescos commented in the article that they were really starting to struggle as a result of tightening market conditions.

I personally will go for the last option. The treasury is so far removed from the real world currently that they started to believe their own spin a long long time ago. Shame you cant hide behind your own Bullcr*p and stats for a lifetime hey? You can make up the stats all day long Gordon, but you cant run away from the evil effects of Inflation. Raise Interest rates you *****.

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Just filling in for Zorn here:

But Gordon does not set interest rates, they are set by the totally independant MPC, who rely on totally independant figures from the wonderful ONS. :lol:

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Back on planet earth, as you say, they cannot hide it forever. Gordon can talk about Olympics and British days and whatever else he likes, but shortly, we are set to see more unemployment and credit tightening.

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VERY interesting article in FT today, not online as of yet. It effectively alludes that UK PLC is starting to REALLY suffer as a result of spiralling raw materials costs and corporate tax. Now, if these costs continue to rise, as they have to to meet the Chancellors spending targets (increasingly being funded via corporation tax, the population having already been squeezed dry) either

1) inflation will go up, as business profit margins cannot decrease any further. If they do decrease any further, expect some VERY significant drops in the stock market as most M+A actions are now over, thus real profits will be the main driving force for stock market price changes. EVEN IF the MPC and the ONS attempt to hide inflation through stats, its very unlikely the true effect of inflation can stay hidden from REAL TERM effects on the UK populace for much longer.

2) Productivity will shift abroad, this will happen for even those corporations who do not operate "Raw goods " manufacturing, as ALL companies are effected by taxes brought to bear by the dickhead at the top of the treasury.

3) PROFITS WARNINGS AND COLLAPSING STOCK MARKETS!!!! even tescos commented in the article that they were really starting to struggle as a result of tightening market conditions.

I personally will go for the last option. The treasury is so far removed from the real world currently that they started to believe their own spin a long long time ago. Shame you cant hide behind your own Bullcr*p and stats for a lifetime hey? You can make up the stats all day long Gordon, but you cant run away from the evil effects of Inflation. Raise Interest rates you *****.

Agreed

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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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