Exporters' pain
Article Abstract:
United Kingdom manufacturing companies have been affected by the strength of pound sterling, which is higher than Bank of England figures if Asian currencies are taken into account. The pound is overvalued, but manufacturers may not be helped by a drop in its value, partly because of a slowdown in world economic growth, with risks indicated by a drop in commodity prices. Cheap Asian exports will depress prices. European companies are likely to try to increase exports due to convergence of European prices, intensifying competition for UK companies.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Temporary relief
Article Abstract:
The value of pound sterling has dropped in relation to the German mark from summer to Sep 1997, and there is a debate as to whether it could rise again. The fall has helped UK manufacturers. It has been linked to a belief that German interest rates could rise and UK interest rates remain stable, but this belief may prove wrong, some analysts argue. Others see UK interest rates as not likely to rise sharply, and a delay in European monetary union would lead to a rise in the value of the German mark, so a drop in pound sterling.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Output not the problem
Article Abstract:
United Kingdom manufacturing industry is increasing output according to revised figures. Exports have been helped by an increase in world trade which has offset the impact of the rise in the value of pound sterling. Domestic demand is also increasing although import penetration has also increased. The problem for manufacturing companies is not so much one of output as the impact of a strong pound on profit margins since prices have to be set bearing foreign competition in mind.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Contractors' market. Premiere. Winning program
- Abstracts: Improved sound. Time to retune. Golden Rose: on the sunny side of the street
- Abstracts: Waste of space? White knuckle ride. Northern lights
- Abstracts: Bulling for Euroland. Looking for a safe haven. Getting riskier
- Abstracts: Equities dance to the devaluation tune. Question time. China's army of gambling investors