economy

Daily Economy Thread

Started by Economy with 517 replies so far

Brexit ...........

 

Long term .... ???

 

Short term..... Trade agreements and import/export companies are gonna have to scramble to get buisness since they were operating under the EU rules.... all their trade and commerce has to be re-done ....

All countries doing buisness with Britain have to do things over too ...

The property values will be impacted too since foreign investment will have to look at the new laws....

The rest of the EU will have to adust since Britian was a big contributer and that revenue is now gone.

 


like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

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12 hours ago, Economy said:

What about job quality?

 

Here in North America it aint too hard to find a job. But finding a decent paying job (that pays more than $45,000 a year) is difficult

 

exports do indeed help in that regard usually as manufacturing tends to get better pay

For now it's less important to have a productive workforce. With an unemployment of over 10% and very low percentage of labor force participation, the focus shouldn't be on raising productivity and getting more high-paying jobs. Focus should be on getting rid of trade deficit, flexibilising and raising funds for infrastructure and lower taxes.

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17 hours ago, Woolfsmck said:

Brexit ...........

 

Long term .... ???

 

Short term..... Trade agreements and import/export companies are gonna have to scramble to get buisness since they were operating under the EU rules.... all their trade and commerce has to be re-done ....

All countries doing buisness with Britain have to do things over too ...

The property values will be impacted too since foreign investment will have to look at the new laws....

The rest of the EU will have to adust since Britian was a big contributer and that revenue is now gone.

 

I have a feeling that if they do leavr in 2 years, not much will change. Its more speculation than anything

 

They already dont use the Euro. And if they leave they likely will try to maintain free trade with Europe anyway

 

Also the UK was never fully integrated in EU. That had some soverenty still over stuff like immigration for example

 

I dont think in practical terms that much will really change from their leave.

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25 minutes ago, Economy said:

I have a feeling that if they do leavr in 2 years, not much will change. Its more speculation than anything

 

They already dont use the Euro. And if they leave they likely will try to maintain free trade with Europe anyway

 

Also the UK was never fully integrated in EU. That had some soverenty still over stuff like immigration for example

 

I dont think in practical terms that much will really change from their leave.

@Woolfsmck

Of course a lot will change. The UK will either join the single market or not. If they do, not a lot will change. The UK will no longer have a say in EU decision making, they will still pay a large amount to the EU for development funds and farmers and they will still have to take over many of the regulations. For this they would have to join a club of countries consisting out of Norway, Liechtenstein, Switzerland and Iceland. It's not likely that these countries want the UK in their non-EU single market access club called EFTA, so that might not be possible. The UK would also have to join the freedom of movement principle, which allows migrants to enter the UK anyways. The EFTA has free trade agreements with more countries than the EU, for example Mexico and Canada.

The other option is not joining the single market. In that case the UK would have to renegotiate all trade deals, including a trade agreement with the EU. Political pressure from the public in the EU is high, and the public wants the EU to be strict towards the UK. The EU might not be easy in negotiations for a trade deal, and it could thus take many years. The UK has no trade agreement staff, and employees of the EU on trade from the UK are likely to stay working in the EU because a job in the EU pays way better than in the UK. For the years with no trade deal WTO regulations would be applied. This means tariffs. These would have a detrimental effect on the UK economy because the UK relies heavily on imports.

On migration: the UK would likely get fewer Polish migrants. This means that the UK will have a labour shortage in low-income jobs. This doesn't mean that wages will improve however. Wages in the sectors with the most migrants are expected to grow 0.2% to 0.6% overall. The Brexit itself is likely to reduce wages by 2%, so even english cleaners and truck drivers will see a decline in wages most likely.

Tourism to Britain is likely to suffer. Especially Italians are less likely to go on vacation to the UK.

Scotland, Wales and North Ireland will suffer the most. They lose a lot of regional development fundings from the EU. The UK government only wants to compensate for half of these funds.

For the world economy brexit isn't really that bad. The EU economy would suffer if the UK leaves the single market and even more if there's tariffs. The EU would also lose about 9 billion euros in funding, but the effect on the EU economy is likely to be low. No political uncertainty in the EU. Investors not really worried and first numbers show that Brexit vote had no effect on economy of Germany/France.

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https://www.thestreet.com/story/13700569/1/ford-drives-towards-buses-and-bikes-with-latest-deals.html?puc=yahoo&cm_ven=YAHOO

Ford Motor company is the first and oldest US auto company and the only one to resist the gov bailout program.

So their move towards mass transit and bicycles is interesting ....

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like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

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58 minutes ago, Woolfsmck said:

https://www.thestreet.com/story/13700569/1/ford-drives-towards-buses-and-bikes-with-latest-deals.html?puc=yahoo&cm_ven=YAHOO

Ford Motor company is the first and oldest US auto company and the only one to resist the gov bailout program.

So their move towards mass transit and bicycles is interesting ....

They could merely be expanding their business maybe no?

 

Plus some figures suggest car sales in America may be peaking for this economic cycle which might make them want to expand elsewhere to continue to grow

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On 9/9/2016 at 4:25 PM, Economy said:

They could merely be expanding their business maybe no?

 

Plus some figures suggest car sales in America may be peaking for this economic cycle which might make them want to expand elsewhere to continue to grow

 

I think your right.  They think auto sales are going to flatline, so they are looking to reinvest their profits in other  transportation segments.   Kinda makes me think that Ford is  solid company under the hood.

Edited by Woolfsmck
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like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

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