UK inflation rate falls to 1.7%

grizzly1911

robmatic wrote: »

So much for people not spending money on consumer electronics...

£40 quid on a licence or £400 quid for an equivelant replacement.

Large global operating system provider creating the need. I was quite happy with the old one.

Generali

BillJones wrote: »

I could, but I bow down to the forum's expertise, and am revising how I send out my daily P+L reports on my inflation trading portfolio.

Let no-one say that I'm unwilling to learn from the exerts.

Strictly speaking, when you say he's missed by 0.3% you mean 0.3 percentage points. It's just the words get (mis)used interchangeably.

That's how I understand it anyway. (link)

purch

BillJones wrote: »

my inflation trading portfolio.

Bloody hell. they trade Inflation nowadays.

I'm glad I got out when I did, much simpler when all we did was a couple of "Yours", a few "mines" and then down the Pub for lunch :eek:

BillJones

purch wrote: »

Bloody hell. they trade Inflation nowadays.

I'm glad I got out when I did, much simpler when all we did was a couple of "Yours", a few "mines" and then down the Pub for lunch :eek:

Inflation, correlations, rate of price change, options on options..

It's a bit less common to see the most complex products traded nowadays compared to five years ago (when, for example, I traded a jet-fuel hedge whose size was dependent not only on stock indices, but also on the volatility of several sets of currency pairs too), but even vanilla interest rate swaps will now tend to have their price calculated taking into account the various costs of carrying different collaterals over their life, which depends on the volatility of cross-currency adjusted overnight rates).

It's going to keep getting harder and harder for non-mathematical people to find their way through trading jobs in the future, as this complexity affects ever more products.

Generali

purch wrote: »

Bloody hell. they trade Inflation nowadays.

I'm glad I got out when I did, much simpler when all we did was a couple of "Yours", a few "mines" and then down the Pub for lunch :eek:

We have a multibillion dollar life insurance swap on our books. We trade inflation too.

BillJones

Generali wrote: »

We have a multibillion dollar life insurance swap on our books. We trade inflation too.

The one product that always felt strange to me was mortality bonds or swaps, where the coupon could apparently depend on an actual named cohort of people. This means that if a dentist from Basingstoke was hit by a bus a bod's payout in London would decrease a little bit.

AndyGuil

This inflation figure really pushes back the the date for any increase in the base rate.

Thrugelmir

AndyGuil wrote: »

This inflation figure really pushes back the the date for any increase in the base rate.

I wouldn't bank on it.

AndyGuil

Thrugelmir wrote: »

I wouldn't bank on it.

It has already gone from being predicted for the end of this year to early 2015. Now we still have deflationary pressures from europe, US gas and increased oil supply coming soon. These are going to hold back the base rate.

Thrugelmir

AndyGuil wrote: »

It has already gone from being predicted for the end of this year to early 2015. Now we still have deflationary pressures from europe, US gas and increased oil supply coming soon. These are going to hold back the base rate.

The world economy is slowing down. That's what's impacting inflation.

There'll come a turning point for the banks. Deleveraging of balance sheets has some way to go. Then they'll have a requirement for deposits. Currently the world is awash with cash looking for a return.