Currency vs Brexit: GBP Losses

Discussion in 'Random Chit-Chat' started by Agent-347, Jun 24, 2016.

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  1. Agent-347

    Agent-347 Student Council President

    Ladies and gentlemen,

    welcome one and all to the doom of every importer's wallet: BREXIT. Remain lost! And the economy is globally shaken up!
    Yes, if remain won nothing would've changed and this topic would've been pointless but this thread is here to discuss the aftermath and exchange rate.

    This night I and some other AUKN'rs hung out on the Discord and have been spectating the referendum ...
    I whilst with them have been spectating the exchange rate and things are shaken up so much and collapsing to the point Nikkei futures trading has been suspended.

    Post 2 of this thread I will be posting screenshots of changes in the exchange rate the past few hours.
    However I can note already that less than 24 hours ago £1 = $1.50, at the time of writing we're looking at £1 = $1.33 ...
    You don't need to be a genius to realize that is absolutely horrible.

    This could have big effects on everybody, as this is terrible for global businesses and people importing.
    And given AUKN is full of people importing and the anime industry is hugely dependent on the exchange rate a dedicated thread felt appropriate.

    Topic of this thread? Outcome of Brexit referendum and the aftermath including the currency exchange rates.

    [hr][/hr]Referential sources and links.
    > Spreadsheet of the Brexit Referendum results
    > BBC News: Brexit Referendum Results
    > BBC News: Pound tumbles to lows not seen since 1985
  2. Agent-347

    Agent-347 Student Council President

    Exchange rate progress.
    Great Britain Pound - 24 June 2016
    24 June 2016 - 2.10 AM
    24 June 2016 - 3.55 AM (105 minutes later)
    24 June 2016 - 4.05 AM (10 minutes later)
    24 June 2016 - 4.50 AM (45 minutes later)
    24 June 2016 - 5.15 AM (25 minutes later)
    24 June 2016 - 5.30 AM (15 minutes later)
    24 June 2016 - 6.05 AM (35 minutes later)
    24 June 2016 - 7.00 AM (55 minutes later)
    24 June 2016 - 8.30 AM (90 minutes later)
    24 June 2016 - 10.00 AM (90 minutes later)

    [hr][/hr]Japanese Yen - 24 June 2016
    24 June 2016 - 5.00 AM
    24 June 2016 - 6.10 AM (70 minutes later)
    24 June 2016 - 7.00 AM (50 minutes later)
    24 June 2016 - 10.00 AM (180 minutes later)
  3. Rosencrantz

    Rosencrantz Dragon Knight

    I went to sleep looking at what had been a nice recovery of the pound against the Dollar and the Yen, and woke to a massive crash :(

    I have one expensive pre-order from Japan that'll be due sometime next week, but considerably more items priced in dollars, I'll definitely have to review things.
  4. Rui

    Rui Karamatsu Boy Administrator

    I am sad. My purchasing has been behind lately due to real life priorities but I think I'm going to hold back on buying anime for a while.

    Hopefully by then all of the magical riches the Leave campaign kept promising will materialise.

  5. Robbl

    Robbl Student Council President

    Now the pound has to drop low enough to balance out import costs to Germany and I won't care that GB left the EU anymore.
  6. serpantino

    serpantino Straw Hat Pirate

    The currency drop came as no surprise to me; it seemed inevitable if we voted to leave. It's no different than when shares drop in a company because something was recalled or there was a minor scandal. It's a big drop sure, but it's a big change and once the initial shock is over it will stabilize and hopefully within the next 5-10 years be stronger than it has been because the rising cost of importing from the EU will encourage more domestic trade, that's the idea at least anyway.
  7. Rui

    Rui Karamatsu Boy Administrator

    Except I don't want to buy things from the UK, so I'm pretty sure my costs are up across the board. The things I like don't tend to come from the UK.

  8. kuuderes_shadow

    kuuderes_shadow Vampire Ninja

    I have a built-in overreaction to currency fluctuations in my personal budget, designed to ensure that I buy stuff when I can get the most for my money. The referendum had already sent the exchange rates firmly into the reduced-purchases territory, and basically as things stand I'm looking at importing almost nothing from Japan, and purchases of stuff from the US (including every single manga and light novel) are now in reduced-purchases territory as well.

    The problem is, this could last for a long time. The damage to exchange rates won't be over until the uncertainty is gone. Which won't happen until all the trade deals are negotiated - not just with Europe but with all the other countries around the world. Which will be years, possibly even decades. And if the deals are worse for the UK than the ones we had through the EU (which they will be) then that's permanent damage done.

    And if this has ramifications in other countries, which we are already starting to see, then the damage has only just begun...
  9. serpantino

    serpantino Straw Hat Pirate

    You never know, we might still be able to retain the single market anyway, it would benefit the EU too and if other countries have their own referendums it puts more pressure on them to push out better deals.

    I've always bought anime domestically primarily but that's because I only pay attention to shows confirmed for UK release. I do very occasionally import from the US or Australia but I hate potential import fees too much to ever seriously commit.
  10. Rui

    Rui Karamatsu Boy Administrator

    Domestic anime prices will obviously rise too, though. Exchange rates will suffer so the cost of licensing will increase. The costs of production will increase. And people like me will stop buying UK because we won't have cash to spare for non-essential shows, so prices will have to rise to cover that. We'll all wonder why we ever complained at £40 for a CE.

    Fans of imported content aren't going to be isolated from the currency issues even if they only buy locally. Someone had to 'import' that material somewhere along the line, and those costs are going to be passed on.

  11. serpantino

    serpantino Straw Hat Pirate

    I wonder if Andrew will make any comments on this all. I'd be interested to know any of his predictions on the matter as he's the bridge who engages the most with the community.

    I'm just going to wait and see myself for now. I've watched everything sky rocket in price (and shrink.... here's looking at you choccie) since I was a kid anyway, the only thing I've seen that has actually decreased in price has been anime lol.
  12. Emulsion

    Emulsion Thousand Master

    I'm hoping the exchange rate recovers a bit by August. Got a figure coming out then.

    Already felt the drop though, even just over a week before the votes. Had to pay for a different figure on the 13th of June. Price had gone up around £20 from when I pre-ordered the figure back in January. In fact if it gets done by customs it might end up costing more than buying from UP1USA.

    I knew the price would have gone up a bit as the exchange goes up and down, but I wasn't expecting it to be a huge difference when I pre-ordered.
  13. HdE

    HdE Comic Book Guy

    Having been impacted by fluctuating exchange rates in my line of work since daay one (fun fact: most comic book freelancers are paid in dollars due to the majority of work opportunities being Stateside) I've been looking for signs that the catering of the pound might not be SO bad.

    But I can't find any. We're talking about the steepest drop in the pound's value in just over 30 years. We're going to see a LOT of turbulence before it improves. And I don't think it'll improve very quickly at all.

    The cost of living's going to go sky high. To be honest, much as I love it, anime isn't even anywhere near the list of things I'm concerned about right now. This might even be the end of the road for me.
  14. Buzzkillington

    Buzzkillington Pokémon Master

    I felt physically sick when I read the result this morning. I can't believe that this has actually happened, although truth be told how much I'm going to have to pay for cartoons is the least of my worries.
  15. IncendiaryLemon

    IncendiaryLemon Captain Karen AUKN Staff

    Definitely might have to rethink buying imports from now on. Haruhi and AoA's Madoka set may be off the table for me, they've both gone up insane amounts, like £10+. Kiniro Mosaic S2 though, I'll just take the hit for that one.
  16. HdE

    HdE Comic Book Guy

    I can relate. All the more demoralising when we looked like we were going to remain. It's awful to think that we might be in this situation today because of misplaced nationalism, racism and gullibility. Seeing that gonad Farage on Breakfast TV pretty much admitting the claim that the £350 mil we supposedly (but do not) send to the EU regularly would go back into the NHS was a bare faced lie made me literally want to rip his tongue out.

    The public will never learn, sadly.
  17. Blaize

    Blaize Adventurer

    Totally gutted by the result over night. I cannot believe what this country has just done. Voted ourselves out of the common market and it'll be a damn miracle if Scotland is still part of the UK in the next 5 years.

    I cannot for the life of me understand why people have voted as they have. Those squeezed by austerity will only be squeezed harder now, even as an overdue FU to the establishment as alot of journalists are spinning it this has to be the absolute worst time/way to have done it. Why couldn't they have done that at the General Election 12 months ago!?

    I imagine stats will come out about the demographics of voters in the coming days, what saddens me the most is my huge expectation is that a huge majority of OAPs have just given another giant blow to the generations who have come after them. For them a Leave vote doesn't really change much for them, they are already quite secure in life and what they have left of it. A life they obtained by greedily stealing the futures of the next generations. The single silver lining to that is just maybe House prices will go down enough for our generation to get in, but honestly with how volatile the Market is going to be here for awhile I'm not sure that'll make a difference.

    I can't help feeling right now that this result is less about the EU itself and more about screwing the establishment and frankly racism.

    Sad times indeed :( I have 4 pre orders on UP1 who of course have already raised their prices recently and I can only imagine them doing it again within the next week.
  18. Rui

    Rui Karamatsu Boy Administrator

    I agree that for a lot of people this wasn't actually about the EU. I have a friend who was one of the uncertain voters, and not once in his discussions did he bring up the EU itself; it was how the Remain camp didn't seem trustworthy, or how the Leave camp seemed hard done by. Yes, ok, but what do you actually think about the EU? I still don't know his answer.

    Oh well.

    Word on the street from the capital is that house prices will actually rise in popular areas for the time being, because they're a lot cheaper for offshore investors right now thanks to our currency falling apart. My boss is currently selling a place and his estate agent has said business is booming today.

    But I'm less worried about the financial impact and more concerned with the way the ongoing trend towards blind nationalism is probably going to play out in future. If I have to cancel a few UK box sets to accommodate the extra cost of Osomatsu-san discs, that's just how it goes; I'm going to be very selective about any spending, local or offshore, for a while. If the country keeps headed down a dark path in other respects, I'm not going to want to live here any more at all.

  19. thedoctor2016

    thedoctor2016 Dragon Knight

    I believe the pound will stabilise as we are still a long away from exiting and I also believe some people voted leave as they think we will get a better deal if we threaten with leaving what a load of rubbish, I will still be buying AoA sets and JP sets as the pound will eventually recover for the time being at least ( for 2 years it will be alright i believe)
  20. ShipTeaser

    ShipTeaser Dandy Guy, in Space

    From a historical standpoint drops always overcompensate to start with. I daresay we'll rise to around $1.40 per pound soon and it'll hover there for a while. markets hate uncertainty, but when they realise that the actual exit is a few years off it'll rebalance.

    Of course any drop is bad for us importers, but that's life, i doubt anyone (not even me heh) would decvide their vote on the cost of anime *grin*
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