Companies converting profits in case Euro fails.

squod · 22-05-2012 9:20am #1

Not intended to join the current megathread so posting this separately. Last nights debate didn't mention any of this. It's been so obvious to everyone that ''euro confidence'' is quite low. This is what people mean by that........

Now, with just about everyone reckoning Greece is heading for the exit, the treasury operations of multinational companies have gone into overdrive. WPP, Reckitt Benckiser and Diageo, to name just three, have taken to a daily sweep of euros from their accounts to reduce the risk of any overnight devaluation.
Sir Martin Sorrell, the WPP chief executive, confirms that the advertising giant is also converting euros it doesn’t need to safer haven currencies, notably the dollar, to minimise risk.

http://www.telegraph.co.uk/finance/comment/9278128/Multinationals-sweep-euros-from-accounts-on-daily-basis.html

So boardsies how many of us are doing the same?

http://www.independent.ie/business/personal-finance/surviving-the-recession/how-to-keep-your-money-safe-as-the-greek-crisis-gets-scary-3112666.html

Mr Benevolent · 22-05-2012 9:24am

It's fairly sensible, but the normal joe can't do it without incurring huge conversion charges. The Euro won't fail overnight, but the best thing to do would be to convert to previous/semiprecious metals. If Greece really do exit the Euro it may be the end of the currency though. And Greece isn't the only one in severe trouble.

Nothingbetter2d · 22-05-2012 9:27am

buy canadian dollars... their currency & banking system is more stable than the us dollar and the us banking system at the moment

Dravokivich · 22-05-2012 9:27am

squod wrote: »

So boardsies how many of us are doing the same?

Seriously, what fúcking good would it do for most of us boardsies here?

Green Diesel · 22-05-2012 9:33am

Too volatile to know what to do. Even gold is down 300 dollars from it's peak per ounce price last year.

squod · 22-05-2012 9:49am

Dravokivich wrote: »

Seriously, what fúcking good would it do for most of us boardsies here?

I dunno. Whats your plan? Grow your own veg? Buy canned food?

Dravokivich · 22-05-2012 9:55am

squod wrote: »

I dunno. Whats your plan? Grow your own veg? Buy canned food?

My point was I don't have the money to take such actions or make them worth my while. And I doubt I'd be far off assuming a lot of other people here are likewise.

squod · 22-05-2012 10:09am

Dravokivich wrote: »

My point was I don't have the money to take such actions or make them worth my while. And I doubt I'd be far off assuming a lot of other people here are likewise.

That aside. Seriously, when is a good time for people to talk openly about what is going on?

I'm broke. Not a washer on me. If the euro fails I'll be in the same boat as you. For other people on here, who make a surplus in their bills vs wages at the end of the month, what do they do?

Isn't it time we stopped ignoring what is goin' on and started talking about it?

GTDolanator · 22-05-2012 10:13am

buy up silver

Wibbs · 22-05-2012 10:39am

squod wrote: »

I'm broke. Not a washer on me. If the euro fails I'll be in the same boat as you. For other people on here, who make a surplus in their bills vs wages at the end of the month, what do they do?

The problem is S, you'd need a fair bit of surplus for it to be worthwhile. Sure if I was Bono I'd be offloading euros as fast as my short stacked heeled legs would carry me, but for your ordinary Joe and Josephine O'Soap it's not so easy. If you had 20 K in savings I'd probably be thinking about it alright. Either open a German bank account(any euro breakup they're still ahead and euros in their banks would hold more value) or dollars.

smokingman · 22-05-2012 10:43am

Friends of mine have cashed in their pension to buy german government bonds.

I am sorely tempted to do the same.

westendgirlie · 22-05-2012 10:49am

I have a Vodka bottle full of 1, 2 & 5 cents. I don't know what to do !!!

Jesus Shaves · 22-05-2012 10:54am

westendgirlie wrote: »

I have a Vodka bottle full of 1, 2 & 5 cents. I don't know what to do !!!

Bring it back, there should be vodka in it

kippy · 22-05-2012 10:55am

westendgirlie wrote: »

I have a Vodka bottle full of 1, 2 & 5 cents. I don't know what to do !!!

Convert it to Vodka.

mikemac1 · 22-05-2012 10:55am

Hot tip, buy pumpkins in November!

Riamfada · 22-05-2012 10:56am

Ive finally converted all my money to papermoney. Which is an achievement.

Nothingbetter2d · 22-05-2012 11:02am

Riamfada wrote: »

Ive finally converted all my money to papermoney. Which is an achievement.

now you need to change it into game of life money.... its worth more than monopoly money

Phill Ewinn · 22-05-2012 11:17am

Wibbs wrote: »

The problem is S, you'd need a fair bit of surplus for it to be worthwhile. Sure if I was Bono I'd be offloading euros as fast as my short stacked heeled legs would carry me, but for your ordinary Joe and Josephine O'Soap it's not so easy. If you had 20 K in savings I'd probably be thinking about it alright. Either open a German bank account(any euro breakup they're still ahead and euros in their banks would hold more value) or dollars.

What do you do when you don't have 20k in savings to convert? What are people meant to do?

Fully agree with OP. If we're all heading into this together why the f*** are we not talking about what to do?

Wibbs · 22-05-2012 11:21am

Phill Ewinn wrote: »

What do you do when you don't have 20k in savings to convert? What are people meant to do?

Fully agree with OP. If we're all heading into this together why the f*** are we not talking about what to do?

That's the point. If you've feck all money or like many are living close to hand to mouth financially well there's really very little you can do, so advice is gonna be scant, beyond hope and pray the shíte really doesn't hit the fan.

pawrick · 22-05-2012 11:34am

Life will go on - ordinary people with not enough money to make it worth while transferrring to a different country/currency will just have to settle for that but when the majority of the people are in the same boat it won't seem as bad. Imported goods will be more difficult to get depending on where you want to buy them from and foreign chain stores will up sticks that said there could be worse off countries then us so it's all relative.

Might be back to growing the veg in the garden though for a bit until things settle.

faceman · 22-05-2012 11:38am

Convert all your savings to shares in facebook.

oh wait....

seanmc1980 · 22-05-2012 11:54am

smokingman wrote: »

Friends of mine have cashed in their pension to buy german government bonds.

I am sorely tempted to do the same.

stupid thing to do, a well diversified pension is way safer than putting your eggs in one basket of German bonds for a return of 1% per year

seanmc1980 · 22-05-2012 11:57am

pawrick wrote: »

Life will go on - ordinary people with not enough money to make it worth while transferrring to a different country/currency will just have to settle for that but when the majority of the people are in the same boat it won't seem as bad. Imported goods will be more difficult to get depending on where you want to buy them from and foreign chain stores will up sticks that said there could be worse off countries then us so it's all relative.

Might be back to growing the veg in the garden though for a bit until things settle.

where did you get your masters in Econimics. Listern to McWilliams The Right hook has made everyone a expert nowaday.

tbh we dont know what will happen if the euro fails. thats why the larger member states are trying so hard to keep it togethers

pawrick · 22-05-2012 12:15pm

seanmc1980 wrote: »

where did you get your masters in Econimics. Listern to McWilliams The Right hook has made everyone a expert nowaday.

tbh we dont know what will happen if the euro fails. thats why the larger member states are trying so hard to keep it togethers

sorry my mistake it will be the end of the world and we'll all become like somali pirates.

Never said it would be good but yes life will go on and you don't need to be an expert to know that.

ejmaztec · 22-05-2012 12:34pm

I'm buying up all the magic beans and Stella bottle-tops.

rgmmg · 22-05-2012 12:54pm

pawrick wrote: »

sorry my mistake it will be the end of the world and we'll all become like somali pirates.

Never said it would be good but yes life will go on and you don't need to be an expert to know that.

I have a Masters in Economics and you're right, you don't have to be an expert!! There's no single economist that's consistently right - they are like politicians in that you can invariably argue the opposite viewpoint. A "joke":

Three people are stranded on a dessert island (a meringue) with only a tin of beans between them. One is a mathematician, one an engineer and t'other an economist. The mathematician estimates the weight of the can and the number of beans therein. The engineer picks up a rock and determines the optimal angle from which to open the beans so that no tomato sauce is lost in the process of opening the can. The economist's contribution? "Suppose we had a tin opener lads.."

Ahhhhhh.

:rolleyes:

Phill Ewinn · 22-05-2012 12:57pm

Wibbs wrote: »

That's the point. If you've feck all money or like many are living close to hand to mouth financially well there's really very little you can do, so advice is gonna be scant, beyond hope and pray the shíte really doesn't hit the fan.

Orly? Roll over and die folks, nothing to do but wait for doom.

If big companies are making plans, flyers offering cheaper exchange rates sre comming through the doors, well off people not payingg their mortgages or banking debts etc.......

But because your poor, none of this applies to you. That makes no sense.

Should I bother paying my mortgage? My CU loan? Buying canned food and batteries?

Whats the plan? If business people have a plan what do non business peole do. Honest question.

Wibbs · 22-05-2012 1:10pm

Phill Ewinn wrote: »

Orly? Roll over and die folks, nothing to do but wait for doom.

No because for a start I don't see doom.

If big companies are making plans, flyers offering cheaper exchange rates sre comming through the doors, well off people not payingg their mortgages or banking debts etc......

If they're not paying their mortgages the banks will take their assets.

But because your poor, none of this applies to you. That makes no sense.

Of course it does. Being poor equates to lack of choice and the poorer you are the fewer choices you have.

Should I bother paying my mortgage? My CU loan? Buying canned food and batteries?

I suppose you could go off an live in a tent in the woods, though I'd hold off for the moment. I'd keep paying the mortgage etc. It's not the last days of the Roman empire we're talking about.

Whats the plan? If business people have a plan what do non business peole do. Honest question.

Like I said rich people simply have more choice and more "stuff" to make a choice with.

22-05-2012 1:16pm

Wibbs wrote: »

No because for a start I don't see doom.

Ah you're no fun! :pac:

CinammonGirl · 22-05-2012 1:17pm

I'm keeping my overdraft maxed to the limit just in case it all goes belly up

ScumLord · 22-05-2012 1:24pm

Confab wrote: »

The Euro won't fail overnight, but the best thing to do would be to convert to previous/semiprecious metals.

It annoys me to no end that buying a load of shiny stuff is considered the smart thing to do. To me it just makes me think that people haven't really evolved all that much over the past few thousand years.

22-05-2012 1:26pm

ScumLord wrote: »

It annoys me to no end that buying a load of shiny stuff is considered the smart thing to do. To me it just makes me think that people haven't really evolved all that much over the past few thousand years.

Maybe rappers have had it right all along?

WoollyRedHat · 22-05-2012 1:53pm

mikemac1 wrote: »

Hot tip, buy pumpkins in November!

Smashing!

OneArt · 22-05-2012 1:57pm

Wibbs wrote: »

The problem is S, you'd need a fair bit of surplus for it to be worthwhile. Sure if I was Bono I'd be offloading euros as fast as my short stacked heeled legs would carry me, but for your ordinary Joe and Josephine O'Soap it's not so easy. If you had 20 K in savings I'd probably be thinking about it alright. Either open a German bank account(any euro breakup they're still ahead and euros in their banks would hold more value) or dollars.

You can use my bank account. I'll keep the money nice and safe for yah

squod · 22-05-2012 2:00pm

Wibbs wrote: »

If they're not paying their mortgages the banks will take their assets.

That's not happening. Plenty of people are in arrears. The fact that business are planning for the worst wouldn't lead you believe that banks aren't too?

Mr Benevolent · 22-05-2012 2:02pm

ScumLord wrote: »

It annoys me to no end that buying a load of shiny stuff is considered the smart thing to do. To me it just makes me think that people haven't really evolved all that much over the past few thousand years.

But we haven't evolved. Better to retain some value then none at all.

ScumLord · 22-05-2012 2:18pm

Confab wrote: »

But we haven't evolved. Better to retain some value then none at all.

I keep making this point over and over, gold is overvalued, it has some uses but the majority of people consider it to be valuable because it's shiny and everyone else says it's worth something. If you where stuck on a desert island you wouldn't bring a load of gold. I don't see how we can ever move onto anything better as long as we hold onto these silly notions of shiny things being more valuable than they actually are.

foxyboxer · 22-05-2012 2:27pm

It's hard to take any article that uses the phrase 'Eurogeddon' seriously.

squod · 22-05-2012 3:18pm

foxyboxer wrote: »

It's hard to take any article that uses the phrase 'Eurogeddon' seriously.

Oh yeah. We shouldn't take the Financial Times seriously either then.......

Multinationals have been sweeping euros out of their accounts daily to limit their risk in the event of an overnight devaluation of the currency

.
http://www.ft.com/intl/cms/s/0/3bebb40c-9f45-11e1-a255-00144feabdc0.html#axzz1vblGAJ7p

It's clearly sensible to plan ahead. The gubberment won't help you that's for sure.

foxyboxer · 22-05-2012 3:59pm

squod wrote: »

Oh
yeah. We shouldn't take the Financial Times seriously either then.......

.
http://www.ft.com/intl/cms/s/0/3bebb40c-9f45-11e1-a255-00144feabdc0.html#axzz1vblGAJ7p

It's clearly sensible to plan ahead. The gubberment won't help you that's for sure.

Can't read the article, but I'm sure such a reputable source wouldn't use such tabloid-esque language.
This is the annual 'I better open a Swiss bank account or buy german government bonds' mania, that we should be used to by now.

If you were the financial controller of a major multi national company dealing with billions, then it's the prudent thing to do to limit any risk. A major european country may leave a currency mechanism. Never happended before, so the companies are working on a "Ar eagla na h-eagla" basis. But as we know, the media get wind of this and add 2 and 2 together to get 8, and it's utter chaos and delirious uncertainty.

RichieC · 22-05-2012 4:12pm

Convert to gold, you can eat that if all else fails.

squod · 22-05-2012 8:09pm

foxyboxer wrote: »

Can't read the article, but I'm sure such a reputable source wouldn't use such tabloid-esque language.
This is the annual 'I better open a Swiss bank account or buy german government bonds' mania, that we should be used to by now.

If you were the financial controller of a major multi national company dealing with billions, then it's the prudent thing to do to limit any risk. A major european country may leave a currency mechanism. Never happended before, so the companies are working on a "Ar eagla na h-eagla" basis. But as we know, the media get wind of this and add 2 and 2 together to get 8, and it's utter chaos and delirious uncertainty.

Point is that there's a push on for members of the public and companies alike to start making plans. Don't think most companies (or people) adopting this practice are making billions either.

If you suggest we stick with plan 'A' and pretend like nothing is happening while European banks get emptier, then that might be fine for you. I'm wondering what everyone else is doing.

Companies converting profits in case Euro fails.

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