Brexit, The Economy and House Prices (Part 2)

A_Medium_Size_Jock

Herzlos wrote: »

I don't think debating a point counts as derailing any more than you usually derail things. Why is this one so different?

I admit I'm probably as bad, we usually end of wasting a page or 2 everytime I point out issues with your sources.

So they've set up a new company, EasyJet Austria. Is that likely to be a brass-plate exercise or are they going to have to run an office there? Does that increase the chances of moving any other roles over there?

As said, the operators were always going to do this, and it just means they're paying out a lot of money to continue doing what they were already doing. That money will ultimately come out of the pockets of the consumers.

So it's good that EasyJet will continue to operate in the EU. It's bad that it's increased it's costs to do so.

Were it "debating a point" I would agree.
It is not though is it, certainly if past experience is any guide?

Unforeseen increased costs are part of business and indeed part of life.
In the grand scheme of things the 10 million paid by EasyJet is probably less of an expense than fuel or indeed currency fluctuations but I see no-one crying that those will affect the costs of either airlines or indeed their passengers.

A_Medium_Size_Jock

.... if past experience is any guide?

Vince Cable has just been made Liberal Democrat leader.
Not that there was an awful lot of choice, mind.
http://uk.reuters.com/article/uk-britain-politics-libdems-idUKKBN1A5214

Thrugelmir

Herzlos wrote: »

So they've set up a new company, EasyJet Austria. Is that likely to be a brass-plate exercise or are they going to have to run an office there? Does that increase the chances of moving any other roles over there?

All the planes and staff impacted are already EU based, i.e. not in the UK. Easyjet isn't simply a domestic airline.

Thrugelmir

always_sunny wrote: »

Actually I find that quite disturbing however nothing related with Brexit.
"Household savings rate drops to record UK low of 3.3% of disposable income as consumers keep on spending"

I think it's a cultural thing though, the pound falling may contribute to the urge (i.e. better spend now before it goes down further). However it is not a good thing as many households are unprepared for financial emergencies.

Well UK consumers are spending over 120% of income once debt is factored into account. The music can only stop. Question of when. Though new car sales appear to have peaked. Suggesting that growth may be finally faltering.

Thrugelmir

A_Medium_Size_Jock wrote: »

In the grand scheme of things the 10 million paid by EasyJet is probably less of an expense than fuel or indeed currency fluctuations but I see no-one crying that those will affect the costs of either airlines or indeed their passengers.

That's simply a book entry. Easyjet also collects it's revenue in Euros.

always_sunny

Thrugelmir wrote: »

Well UK consumers are spending over 120% of income once debt is factored into account. The music can only stop. Question of when. Though new car sales appear to have peaked. Suggesting that growth may be finally faltering.

Absolutely, that's why I find it disturbing (and not really a positive indication for Brexit) but I think Compared to most other nations in Europe, I recall reading that British save the least.

Wages are stagnating, inflation is up, Brexit is going on, let's all go and spend as much money down retail! The only Brexit-related topic I can see is maybe the approach to things in life compared to Europeans (continentals), i.e. if !!!!!! hit the fan, lets deal with it then.

it's really a cultural thing. What happens when the music stops?

Herzlos

A_Medium_Size_Jock wrote: »

Unforeseen increased costs are part of business and indeed part of life.
In the grand scheme of things the 10 million paid by EasyJet is probably less of an expense than fuel or indeed currency fluctuations but I see no-one crying that those will affect the costs of either airlines or indeed their passengers.

I'm not sure EasyJet or it's customers view it as inconsequential. Bear in mind that they'll need to deal with fuel and currency fluctuations on top of this 2.5% chunk out of their pre-tax profits.

If I was a shareholder I'd be pretty annoyed at the UK Gov.

On one hand the brexiteers reckon a 2.5% drop in German car sales as devastating to the EU's position, yet write off a similar drop when it's a cost directly coming out of brexit as "inconsequential". It's either significant or it's not.

Thrugelmir

ilovehouses wrote: »

That's to try and downplay it.

£10m isn't 'simply a book entry' - it's £10m straight off the bottom line. It isn't chump change either even to a business the size of Easyjet.

In 2016 Easyjet still made £495 million despite the currency headwinds.

kabayiri

ilovehouses wrote: »

...
No point being silly about it. Some people think brexit will be net negative and some think it'll be net positive. Not a single person thinks it'll be all positive or all negative. A £10m cost so you can keep doing things exactly as you already were is a negative.

Over what time period do you think we should measure Brexit, and on what basis?

If you voted to reduce EU migration and increase Asian migration, for example, you might be expecting a relatively quick change.

If you're expecting a return of mass manufacturing, you could be waiting a good deal longer.

I bet even parliament couldn't come up with a collective set of KPI's.

gfplux

ilovehouses wrote: »

At a cost of £10m. That's £10m to ensure they can keep on doing what they were already doing.

Good news for Austria; not so good news for Easyjet customers.

Maybe not so good news for EasyJet's back office staff in the long, long term.