exchange rates

Have you seen today's numbers for EuroInflation ?:-)

...Jim Thompson

Something like 4%, not too radical. The longterm trend is probably up, as demographics force government spending. The high euro hurts things too, but that may just be a bubble.

Sounds like european governments are subsidizing US consumers (and airlines!) Thanks!

John

I don't know about US products. They tend to buy their own stuff mostly. US companies are cheap. Speaking as a 'partner' in some foreign private equity concerns, the pickings are starting to look pretty attractive. It'll only get better as the euro approaches US$ 2.00

Don't know about the rest of Europe but in rip-off-UK pretty much no change. As is usually the case here, our importers are using the preferential rates to take a large drink for themselves. Manufactured goods exports are predominantly to the rest of Europe and the vast majority of our country's 'trade' is in financial service functions such as currency speculation and derivatives. Unlike the US we simply don't have the population (or wealth!) to support your kind of easy product range/choice. Imported gourmet quality product such as food and drink usually has to be sought out from specialist suppliers in the larger cities, hence attracts a significant price premium, +/- exchange rate fluctuations are then just a minor issue. Standard imported household items such as cosmetics, toiletries etc may of American origin but are sourced by a number of multinationals who have effective cartel control of the UK markets and can price to suit themselves.

Electronic components from say Maxim, AD etc have not moved on pricing but lead times are increasing. Test gear such as Tek' oscilloscopes (those plastic, woman's handbag things) are still based on a 80 pence =$1 exchange rate. There again though, we're but a tiny market and probably not worth servicing competitively. I see much mention in these groups of U.S. equipment such as Simpson or B+K but we just never see it here. Likewise The German R+S W+G stuff.

Just about -absolutely everything- else in the way of manufactured product is now coming in from China, with high quality and ridiculously low prices. The importers smile as we fill our lives and houses with 'stuff' (Yep, I'm guilty as well :).

I don't know about Europe, but they are under pressure here. Particularly, books, autos and consumer electronics.

Autos are teritorially protected, dealers apparently are not allowed to sell out of their territories and the big 3 in particular are using that to try to maintain a price differential although consumer pressure is leading them to have to provide incentives.

The wide spread availability of prices on the web leads to a great deal of levelling, it's a lot harder for corporations to keep the public ignorant of price differences.

Books are a special case with pricing printed on the book in both $cdn and $us. As the dollar approached parity consumers have become increasingly unwilling to accept a 20% premium to buy locally. And are simply not buying the book industries justifications. Cross botder shopping is once more on the rise and I expect UPS and co. are doing a booming business.

There are some peculiar distortions, particularly in distribution, that add to price differentials. At some point those will need to get smoothed out.

Robert

The chocolate is probably made in the US under licence.

There is too much wine (and probably cheese) in Europe. Huge amounts of wine are distilled into industrial alcohol each year. So selling it with some loss is better than not selling it at all. French wine isn't top of the bill.

They get cheaper (especially cars) but the fuel prices are still rising. Besides, most stuff bought in Europe comes from Europe itself or Asia anyway.

The prices on Ebay get more attractive though.

Australian cheese doesn't compete with its European equivalents. There may be some good stuff around but we've never been able to find a shop that sold anything better than mediocre. One of my mates from secondary school is reputed to make very good cheeses, but he only sells directly to restaurants, like many of the best of the Australian winemakers.

-- Bill Sloman, Nijmegen

No, I checked the labels; they're made in Holland, Germany, Switzerland, Italy.

The US isn't very good at chocolate, in general. Britain isn't either.

John

Nico Coesel snipped-for-privacy@puntnl.niks posted to sci.electronics.design:

Indubitably. Moreover the cocoa prices are somewhat stabilized by long term contracts.

Sometimes and sometimes not, i have also enjoyed good wines from Italy, Spain, Germany, Czechoslovakia, Poland, and other countries notably including those from Oceania (Aus/NZ), Chile, Argentina, and elsewhere.

I would not be surprised if the generally poorer fuel efficiency of American models with the rising fuel prices is not aggravating the issue.

Just picking at a few nits.

Real nasty when they get into your hair ;-)

...Jim Thompson

An appreciating currency tends to reduce inflation by reducing the cost of imports (such as energy and manufactured goods). This also allows central banks to cut interest rates.

Fortunately, the "core rate" of inflation the way it's measured in the US excludes food and energy, so it's kept to a very reasonable number. ;-)

Best regards, Spehro Pefhany

Isn't that the whole purpose of contracts/futures trading? Farmers have been using them for ages, for the same ends. Airlines use oil contracts; same (or they wouldn't be flying).

Kentucky; Bathtub, vintage: Monday noon.

"Amewrican models" aren't sold in Europe or Asia. The "big-3" have different models (and often makes) for different markets. They're not forcing anyone to buy what's not wanted.

Sounds suspiciously cheap but it might be the very cheapest real McCoy. Mouton Cadet is his cheapest in the UK and goes for about =A35 bottle in supermarkets ($11) much lower alcohol tax in mainland Europe so $8 is possible. I doubt if they would dare to sell it in France though.

Are they allowed to sell unpasteurised cheeses in the USA?

It is becoming harder for US companies that buy components or expertise from Europe. Vendors are absorbing at least some of the differential - and/or have forward currency contracts in place to insure against these problems. Next year the full currency shift will have to be applied to prices =3D crunch.

Still holding in the UK at =A31 =3D $1 for hitech gear despite the fact that the dollar has slid by 50%. Importers cannot believe their luck. Less stuff really comes from the US even when carrying US brandnames though.

e.

Although going to New York for cheap Xmas shopping has become very attractive (and probably cheaper than staying in London for a weekend). If you can stand the queues and delightful US airport insecurity operatives.

s.

The problem is that EU legislation for protection of trademarks allows major players with big legal teams to bend the rules to suit themselves. The infamour Tesco vs Levi jeans case pretty much sums up how consumers are exploited in the EU by US manufacturers who can dictate high retail prices:

(supplies become erratic if you don't toe the line - of course it isn't a price fixing cartel as that would be illegal) The quid pro quo is that European haute couture, handbag, wine and perfume makers with serious brandnames get to rip off rich Americans in return.

Regards, Martin Brown

"John Larkin" skrev i en meddelelse news: snipped-for-privacy@4ax.com...

Ming The Implacable!

Right now corporations who still produce in the EU are trying to keep market shares in the US. Eventually they will tire of subsidising a loosing market. Probably around May which is Next Accounting Year ... and debt-loaded businesses begin to find out that they cannot renew their bonds at the same rate ... if at all.

"John Larkin" skrev i en meddelelse news: snipped-for-privacy@4ax.com...

There *are* no US products on the streets of Europe!! It's all Made in China - which allows "us" to fake the inflation numbers beacuse the rising costs of food, housing and energy are hidden behind falling prices on "manufactured con-sumer goods". In the short run - till 2008 me guesses.

Eventually the Chinese holding all those falling USD treasuries and paper while his raw materials go up & up is going to say "I dont want to be long this crap anymore". Then all that overhang is going to pour into assets and "things" i.e. gold, silver, raw materials and we will see double-digit inflation, double-digit interest rates and wipeout on investors holding anything leveraged that requires margin - like property.

We occasionally get a batch of Rothschild pauillac, really superb stuff, for about $18 a bottle. A decent California pinot noir or chardonnay costs about that. Of course, there's drinkable stuff for $5, too, or even Two Buck Chuck.

No, it's generally illegal.

Come to San Francisco. It's prettier and the weather is much better.

John

I did not know that.

It varies from state to state, and just because something is illegal doesn't mean people don't do it. In California, raw milk cheese is apparently legal if it's been aged at least 60 days. Every few years we have a burst of people made sick or killed by raw milk or cheese, or by carrot juice in one notorious case.

John

Richard Henry snipped-for-privacy@hotmail.com posted to sci.electronics.design:

I scanned through the list pretty good. In about 100 cheeses so far only 3 were American made. I think i will keep the link, though.