Greetings, and welcome to the World Affairs Board!
The World Affairs Board is one of the premier forums for the discussion of the pressing geopolitical issues of our time. Topics include foreign & defense policy, international security, military developments, weapons proliferation, terrorism, international strategic affairs, and politics. Our membership includes many from military, defense industry, and government backgrounds with expert knowledge on a wide range of topics. Registration is fast, simple and absolutely free so why not register a World Affairs Board account and join our community today?
|
 |
11-29-2004, 05:11 AM
|
#1 (permalink)
|
|
Administrator
Join Date: 08-02-03
Location: Westwood, Los Angeles, California
Country: 
|
European Invasion: The Big Apple bargain blitz
Quote:
If you close your eyes on downtown Broadway these days during business hours, you are almost more likely to hear an English, Scottish, or Irish accent, than an American one.
The great European shopping invasion of New York is in full-swing, with Britain leading the charge.
Sterling and the Euro are riding high against the US dollar, and cheap transatlantic flights abound.
"The shopping pays for the whole trip. If you want a weekend away, for nothing - this is the place," said Gary Chute, 41, who was visiting New York with his wife Samantha, and their friends Chris and Claire Sills.
"Seven hours, and you're here. If you get the early flight you can be in the shops at lunchtime," said Chris, 33, holding up a full bag of new clothes from the discount designer store near Ground Zero, Century 21.
The foursome are veterans of the New York shopping scene: "It feels like we've spent 90 per cent of our time shopping, and around ten per cent sleeping," said Samantha.
Her prize bargain of the trip had been a pair of Diesel trainers on sale for $40 - a quarter of the price she'd have to pay back home in Surrey.
"There are loads of Brits and Irish here. I even bumped into one lady I knew," said Gary.
They arrived at their midtown hotel on Thanksgiving Day - when most stores are closed - but were in Toys R-Us at seven the following morning, to begin a full day of relentless spending.
"The bags we've got with us now - this is nothing compared with what we've got back at the hotel. We've got very big bags," said Claire, beaming but clearly exhausted.
They wandered off up Broadway in search of a long late lunch, before boarding an evening flight home.
Passing by on the same stretch of busy pavement, Graham Petherick, 46, was also laden down with goodies from several hours of intensive clothes shopping.
"It's basically the same price in dollars as in pounds back home in London," he said with a contented sigh.
He was steering clear of buying anything American that you need to plug in, for fear of electronic incompatibilities.
Clare Grantham, 29, had no such qualms. I met her coming out of the Apple Store in the heart of Soho - a busy downtown shopping district that 20 years ago, was home to New York's impoverished art crowd.
"Shortly I'm going to get a lot of clothes, trainers -possibly some records - and it's all for me!"
Having saved around £60 on her Apple purchase compared with UK prices, she said she was looking forward to a full week of letting her pounds go a long way: "I'm loving it already here - I may not be leaving."
It's not only the British and Euro-zone customer who is enjoying the current boom.
Many of New York's downtown store owners appreciate their purchasing power and its impact on their businesses.
"Over 40 per cent of our business now is coming from European tourists," said Julia Lee, who is weekend manager for an upmarket fashion store on Broadway.
"After 9/11, our figures went really down; however in the past few months we've been doing pretty well thanks to tourists," she added.
The only downside for her family-owned store is that imported goods from places like Italy now cost them more, thanks to the weak dollar.
She said: "I had one British customer who bought four pairs of shoes, and spent about $800. We can tell who comes from where by the credit cards. We're definitely getting many English, French, Italian and Spanish. They love our styles."
But while New Yorkers in the downtown shops are enjoying the influx of high-spending Britons, others in the service sector are not so chuffed.
It is a long-established practice in New York's bar and restaurant trade to leave tips of 15-20 per cent - even for a pint of beer at the bar.
"We've noticed a lot more Brits coming in, but, well - shall I be honest?" said Jennifer, one of the bartenders at Fanelli's, a beloved Soho institution that has a faithful crowd of regulars.
"They're lousy tippers. Sometimes there are just a couple of dimes on the table after running up a big tab," she said with a look of mild outrage.
As we talked across the weathered dark-wood bar, another waitress walked by, nodding her head vigorously at the suggestion that perhaps UK visitors could be a bit more generous.
"That's especially true given that your currency is so strong right now. Maybe you guys could bear that in mind?" she added with a grin.
|
http://news.bbc.co.uk/2/hi/americas/4050575.stm |
|
|
|
11-29-2004, 20:03 PM
|
#2 (permalink)
|
|
Staff Emeritus
Join Date: 09-10-03
Location: Florida
Country:
|
Exchange rates are doing their thing for tourism here as well. I saw a tour bus on the beach Friday bearing the sign, "We're from France, but we think Chirac sucks too". Nice they have a sence of humor. 
__________________
No man is free until all men are free - John Hossack
I agree completely with this Administration’s goal of a regime change in Iraq-John Kerry
even if that enforcement is mostly at the hands of the United States, a right we retain even if the Security Council fails to act-John Kerry
He may even miscalculate and slide these weapons off to terrorist groups to invite them to be a surrogate to use them against the United States. It’s the miscalculation that poses the greatest threat-John Kerry
|
|
|
|
|
11-29-2004, 21:16 PM
|
#3 (permalink)
|
|
Senior Contributor
Join Date: 11-28-04
Location: The Great Southern USA, Georgia
|
Quote:
|
Originally Posted by Confed999
Exchange rates are doing their thing for tourism here as well. I saw a tour bus on the beach Friday bearing the sign, "We're from France, but we think Chirac sucks too". Nice they have a sence of humor. |
Ya... Even the french know hes a wimp. 
__________________
"Our citizenship in the United States is our national character. Our citizenship in any particular state is only our local distinction. By the latter we are known at home, by the former to the world. Our great title is AMERICANS…" -- Thomas Paine
|
|
|
|
|
11-29-2004, 21:46 PM
|
#4 (permalink)
|
|
Moderator
Join Date: 08-04-03
Location: Georgia, USA
Country:
|
Quote:
|
Originally Posted by Veni Vidi Vici
Ya... Even the french know hes a wimp. |
LOL...either that or it was a flag of surrender for fear of getting lynched.  |
|
|
|
|
11-29-2004, 23:49 PM
|
#5 (permalink)
|
|
Moderator
Join Date: 11-10-04
Location: Te Ika a Maui
Country: 
|
ain't having a low value dollar nice |
|
|
|
|
11-30-2004, 00:26 AM
|
#6 (permalink)
|
|
Moderator
Join Date: 08-04-03
Location: Georgia, USA
Country:
|
Quote:
|
Originally Posted by parihaka
ain't having a low value dollar nice |
Yes it is....as the US economist says....it's our dollar....but your problem. |
|
|
|
|
11-30-2004, 17:36 PM
|
#7 (permalink)
|
|
Senior Contributor
Join Date: 11-28-04
Location: The Great Southern USA, Georgia
|
Quote:
|
Originally Posted by Julie
LOL...either that or it was a flag of surrender for fear of getting lynched. |
Now that probobly more like it. |
|
|
|
|
12-01-2004, 00:16 AM
|
#8 (permalink)
|
|
Staff Emeritus
Join Date: 09-10-03
Location: Florida
Country:
|
Quote:
|
Originally Posted by Julie
LOL...either that or it was a flag of surrender for fear of getting lynched. |
Not around me they wouldn't. |
|
|
|
|
12-09-2004, 01:36 AM
|
#9 (permalink)
|
|
Contributor
Join Date: 08-22-04
Location: Houston, TX
|
Quote:
|
Originally Posted by parihaka
ain't having a low value dollar nice |
Until you are concerned about people actually investing their money in America. Then it is bad. And since we fund our current accounts deficit with foreign investment, it could be VERY bad. Increases in exports are not going to cover this deficit. But hey, if our pres. says its good he's probably right, because he gets his policy decisions from a higher power. So lets just go with what he says. |
|
|
|
|
12-09-2004, 02:14 AM
|
#10 (permalink)
|
|
Staff Emeritus
Join Date: 09-10-03
Location: Florida
Country:
|
Quote:
|
Originally Posted by barrowaj
Until you are concerned about people actually investing their money in America. Then it is bad.
|
So, do you allways invest your money when the price is high? |
|
|
|
|
12-09-2004, 14:43 PM
|
#11 (permalink)
|
|
Contributor
Join Date: 08-22-04
Location: Houston, TX
|
Quote:
|
Originally Posted by Confed999
So, do you allways invest your money when the price is high?
|
Only when I have reason to believe it will go higher.
For an example of my previous post, lets say inflation is 10% a year, and I make a return on investment of 7%. Then, as a result, I have effectively lost money. Therefore, inflation scares away foreign and dometic capital that is needed to develop our economy. |
|
|
|
|
12-09-2004, 21:53 PM
|
#12 (permalink)
|
|
Staff Emeritus
Join Date: 09-10-03
Location: Florida
Country:
|
Quote:
|
Originally Posted by barrowaj
For an example of my previous post, lets say inflation is 10% a year, and I make a return on investment of 7%. Then, as a result, I have effectively lost money. Therefore, inflation scares away foreign and dometic capital that is needed to develop our economy.
|
But they don't live here, how are they impacted by our inflation rate? |
|
|
|
|
12-09-2004, 23:14 PM
|
#13 (permalink)
|
|
Contributor
Join Date: 08-22-04
Location: Houston, TX
|
Quote:
|
Originally Posted by Confed999
But they don't live here, how are they impacted by our inflation rate?
|
Foreigners investing in the US economy are effectively buying a stock or bond in dollars. If the value of the dollar decreases, and the price of the security (which is measured in dollars) stays the same, then they have lost money. So the rate of increase of stock prices must more than keep up with the rate of inflation for investors to make money. This makes it more difficult for investors to make money, so they are more likely to put their money somewhere else. Long story short: inflation scares away investment.
Inflation doesn't seem to be as big of a deal for the average American because their salaries usually increase along with it (albeit at a lagging pace), and prices for a lot of things have upward resistance. For example, they've had $1 burgers since let's say 1994, and now think how much that burger would actually cost in 2004 dollars. It would cost more than a dollar because of inflation, but due to the inflexibility of the $1 price point, it never really increased in price. |
|
|
|
|
12-10-2004, 00:01 AM
|
#14 (permalink)
|
|
Staff Emeritus
Join Date: 09-10-03
Location: Florida
Country:
|
Quote:
|
Originally Posted by barrowaj
Foreigners investing in the US economy are effectively buying a stock or bond in dollars. If the value of the dollar decreases, and the price of the security (which is measured in dollars) stays the same, then they have lost money. So the rate of increase of stock prices must more than keep up with the rate of inflation for investors to make money. This makes it more difficult for investors to make money, so they are more likely to put their money somewhere else. Long story short: inflation scares away investment.
Inflation doesn't seem to be as big of a deal for the average American because their salaries usually increase along with it (albeit at a lagging pace), and prices for a lot of things have upward resistance. For example, they've had $1 burgers since let's say 1994, and now think how much that burger would actually cost in 2004 dollars. It would cost more than a dollar because of inflation, but due to the inflexibility of the $1 price point, it never really increased in price.
|
Hmmm, I still don't get it. Inflation is an increase in the prices consumers pay, right? So foreigners are only impacted by the inflation rates within their own country, as they aren't paying the prices increased by our inflation. Foreigners are making their investments in US dollars, but they're getting 1.3 X Euro investment capital. This makes real estate investment, for example, from other countries very promising. I also get the impression that you don't believe the dollar's value will ever go back the other way. If the Euro was low right now, I'd be investing in Euros... |
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
| Thread Tools |
|
|
| Display Modes |
 Linear Mode
|
All times are GMT -4. The time now is 11:34 AM.
|
| 
Similar Threads
