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Realistbear

Tractor Production Best Since 1994 -- Huge Jump In Manufacturing

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http://uk.biz.yahoo.com/03092007/325/augus...expectedly.html

Monday September 3, 10:04 AM
August manufacturing PMI surges unexpectedly
LONDON (Reuters) - Manufacturing activity surged to a three-year high in August, driven by the strongest production growth since 1994, a survey showed on Monday in
a sign that rising interest rates are not stifling industry
.

IR never do. Credit tightening will. Until the sheeple are told by the bank that they must prove sufficient income to borrow the IR might as well be 15% or any other number that comes to mind.

http://business.guardian.co.uk/economy/sto...2161541,00.html

....../

The survey is a reminder that the economy is still performing pretty well, and that an
eventual further interest rate hike is still very possible
despite the current turmoil in global credit and financial markets," said Howard Archer, an economist at Global Insight.
Edited by Realistbear

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As a mere project manager for a heavy engineering comapny in the UK(unlike some of you multi investment millionaires :rolleyes: ). I agree. IR has had no effect on our business. So why is Merv so worried about high interest rated on business. Solid businesses try to set money aside for reinvestment back into the business, bad business borrow all they can "hoping" improvements bring more money to pay back into their debts.

Surely we need low interest rates for investment banks to do business not manufacturing.

Merv needs to learn that cuting metal etc makes real economies not shuffling paper around. Personally I say raise it another 1%. That way we reward savers and solid business and punish those who rely on their debts.

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As a mere project manager for a heavy engineering comapny in the UK(unlike some of you multi investment millionaires :rolleyes: ). I agree. IR has had no effect on our business. So why is Merv so worried about high interest rated on business. Solid businesses try to set money aside for reinvestment back into the business, bad business borrow all they can "hoping" improvements bring more money to pay back into their debts.

Surely we need low interest rates for investment banks to do business not manufacturing.

Merv needs to learn that cuting metal etc makes real economies not shuffling paper around. Personally I say raise it another 1%. That way we reward savers and solid business and punish those who rely on their debts.

I suggest you arrange a meeting with your CEO and Finance Director to discuss whether interest rates have an effect on your company. Might be an eye opener for you!

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As a family owned business I regularly do! We are expanding to introduce a new product and 50% comes from our side and 50% is borrowed. However as we have already got 3 firm orders for the product, the first order will be complete within 1 year and made back the borrowing plus 20% profit. Other orders then just profit and expenses. Like I said cautious firms borrow what they know can definitely be paid back, not what is "hoped" to be paid back รก la CDO's.

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Sure at the moment you can do profitable business at current rates. But for each rate increase, your profitability on the project declines. At some point, the project would become unfeasible, so you wouldn't borrow the 50%.

Also, look at the deal in the eyes of your customer. He might not want to place an order for similar reasons.

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http://uk.biz.yahoo.com/03092007/325/augus...expectedly.html
Monday September 3, 10:04 AM
August manufacturing PMI surges unexpectedly
LONDON (Reuters) - Manufacturing activity surged to a three-year high in August, driven by the strongest production growth since 1994, a survey showed on Monday in
a sign that rising interest rates are not stifling industry
.

IR never do...

...but please, please don't raise interest rates all the same:

http://news.bbc.co.uk/1/hi/business/6975174.stm

Rising interest rates have dampened sales across the consumer services sector, CBI figures suggest.

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I understand what you are saying but; our 3 customers are buying high value equipment to which they have certain commitments to regional governments to meet. None are UK customers. Yes the interest rate rise will effect the 50% on finance, but as my colleague told me, it would need to be a 3% rise within a year to impact significantly. Plus the customers have commited 20% deposits which will not be returned.

Just as a matter of interest one of our clients on the indian continent is having no end of problems getting bank guarantee's in order for us to accept his order. So commercial paper of all types appears to be drying up.

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...but please, please don't raise interest rates all the same:

http://news.bbc.co.uk/1/hi/business/6975174.stm

If the CBI are saying consumer demand is down and the manufacturing figures (non-export) are up someone is telling porkies. Surely record highest production since 1994 implies someone is buying all those goods that are being made?

The CBI are quite wrong to suggest there is any slowdown in spending, quite the opposite. The sheeple are in a frenzy of spending and manufacturing must be straining to keep up. If Merv is paying any attention to the news he might want to consider a .50 hike as his previous hikes have been of no effect at all. IN fact, they have stimulated the consumer frenzy.

Bottom line: "We don't know."

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The people we are currently selling to are B.R.I but not C. Our product is used heavily in CHP projects and the Oil and GAs industry and judging by all the industry comics I get sent then this is where the business is. Britain still manufactures quite a few high end internationally competitive products for the energy industries and as a consequence of these companies expanding are now boosting their revenues. The only people who need to borrow money are investment banks and the small to medium businesses that need to expand to stay competitive internationally.

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