The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Whacked in 5k yesterday at 339p. Last time my 330p went to 490 made good profit but on 4k. Previously made loads when it hit over 500p back in Feb with 70k holdings. Hoping for a good run. I see DBNO here with his oil price predictions, where's SK?
You are correct, we need to be more productive, go on job websites you will see so many jobs that can be fulfilled with these inactive sods and we don't need people from eu or other countries. I think there should be law that if these inactive people don't agree to doing a job that is available they should be deported.
Check out r/cineworldstock
Do you reckon it should be 3.5p or should it be more?
So 50000 employees, max increase 5k. Max extra wage cost on balance sheet is 250m. Given it makes 6bn a year net profit, decreases profit by 5% max, I expect interest margin rises brings in far more profit than the increase in costs, so a drop in the ocean I would say. I reckon max effect to be no more than 3%
You are not wrong it is more debt as the money institutions got a good proportion went back buy debts of different durations, such as sunaks furlough scheme so he can give money for sitting at home and watch netflix lol. It is crazy and a monetary policy that should not have been adopted. Would've been better for a longer recession post 2008 crisis or a limited amount of QE at best.
QE - other have already explained what this is, hope to expand on that. So when the 2008 financial crisis occurred, to stimulate economy again major economies reduced the interest rate. US did several cuts over 2008 from 4.75% to 0%, this still didnt get the economy up and running. QE came in as a last resort as no more room for interest rate cuts unless you wanted a negative interest rates. So the central banks bought gilts/treasury bills from banks and other financial institutions such as insurance companies and pension funds, expecting the liquidity and cheap money would make the public spend and kickstart the economy. What actually happened, these institutions used these cash and buying up other assets such as equities, corporate bonds, especially of US companies rather than UK and driving their prices up. So when you say where is this printed money its in equities with very lofty valuations like apple and tesla (fuelled by low gilt yields to value the equities) and cheap mortgages. It was handled very badly now we feel the pinch when stocks are nose diving and mortgages feel very unaffordable even though the rates are not as high pre 2007. We should've done QT much earlier on, like 2016, can understand UK not doing it due to brexit concerns, but nor did USA and there economy was in good shape, with trumps tax cuts ballooned the US stock market even further.
Last week on CNBC, they did say that people made so much money on stock markets in USA that despite rising rates and inflation they keep on spending and jobs opening are still high.
Then we move onto inflation, usually its either cost push (energy prices, supply chain issues, food import prices and imports more expensive, especially for UK due to unfavourable FX) or demand pull (money made on stocks as described above, especially US stocks, unemployment still low so disposable money still coming in especially in US, and wage increases covering more than the rise in prices - RR today announced they increased wages by 6.5% for their staff) and what we currently seeing is due to both making the situation far worse. Alot of people are saving money by working from home still like me who spent 5k on petrol pre covid for 60m round trip to work every day), now i dont and my energy prices are nowhere close to 5k, although doesnt hold true who work in shops, factories but then the distance travelled is not much usually for these workers.
In all its a convoluted mess we are in, mostly driven by Putin and our central banks acting too late making increase in rates faster now and causing a sudden shock to everyones finances - shouldve been done 4 years ago gradually and prob only upto 3%.
Well said nimshy, people forget if rates get to 4.75% as predicted by ST bond yields, its still pre below the rates we had before the 2008 crisis, and people were able to afford their mortgages. Only people who who took mortgages at 10x their salary were screwed.
"because we have to buy these things (bread, Butter, Milk, Bean etc Petrol, gas, electricity) to live."
Not necessarily you need any of things -
bread and butter just makes you fat, eat healthy foods, do intermittent fasting, improve your health, reduce burden on NHS and ni payments.
Milk - again don't need it, the Americas had no milk for 1000 of years. Vegans don't have it and still survive. Have water, don't need breakfast it was a marketing ploy by kellogs.
Petrol - use electric cars, public transport or like me cycle everywhere, invest in solar panels
Gas - again use solar power or heat pumps. Don't need it, new home builds will be without gas anyway.
We need to start thinking seriously to change the way we live and work, for a better economy, climate, healthy society.
If you don't agree I guess you are some fat ignorant selfish guy like most of the uk population