COSTS AND PRICES DEMAND MONEY & FINANCIAL MARKETS LABOUR MARKET OVERALL SUMMARY PRESENTED BY: EDWARD KENNY – COSTS AND PRICES LUKE JONES – DEMAND DAVID HULSE – MONEY AND FINANCIAL MARKETS SCOTT WATSON – LABOUR MARKET WIRRAL GRAMMAR SCHOOL FOR BOYS TARGET 2.0 TEAM COSTS AND PRICES PRESENTED BY: • Oil Prices • Gas Prices • Food Prices • VAT • CPI • Producer Prices This Section Covers: EDWARD KENNY Wirral Grammar School
WIRRAL GRAMMAR SCHOOL FOR BOYS. COSTS AND PRICES. TARGET 2.0 TEAM. PRESENTED BY:. EDWARD KENNY. Wirral Grammar School. This Section Covers:. COSTS AND PRICES. PRESENTED BY: EDWARD KENNY – COSTS AND PRICES LUKE JONES – DEMAND - PowerPoint PPT Presentation
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COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
PRESENTED BY:
EDWARD KENNY – COSTS AND PRICESLUKE JONES – DEMANDDAVID HULSE – MONEY AND
FINANCIAL MARKETS SCOTT WATSON – LABOUR MARKET
WIRRAL GRAMMAR SCHOOL FOR BOYS
TARGET 2.0 TEAM
COSTS AND PRICES
PRESENTED BY:
• Oil Prices• Gas Prices• Food Prices
• VAT• CPI
• Producer Prices
This Section Covers:
EDWARD KENNYWirral
Grammar School
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
Oil price hits six-month high of $83.45
• “Oil price to continue to rise” (Ali Al-Nuami; 01/11/10)
Overall trend is slightly decreasing – 1.64 down to 1.60 over the whole period
Exchange Rates
OVERALL SUMMARY
WirralGrammar
School
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
General trend over the period is increasing – from 1.11 to 1.15
6 month period – 1.15 to 1.14
Exchange Rates
OVERALL SUMMARY
WirralGrammar
School
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
The pound per dollar is expected to experience a steady rise into 2011
The pound per Euro is expected to experience a steady drop to .75 by 2012
Exchange Rates
WirralGrammar
School
• Unemployment• Employment• Productivity
• Earnings Growth
LABOUR MARKET
PRESENTED BY:
This Section Covers:
SCOTT WATSON
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
Summary
OVERALL SUMMARY
WirralGrammar
School
Increased Confidence
Investment levels increasing
Strength of the £
International Uncertainty
Infl
ati
on
ar
y
Pre
ssu
res
Defl
ati
on
ar
y
Pre
ssu
res
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
Unemployment
WirralGrammar
School
●Unemployment - 2.47 Million
● Decline of available jobs
●Companies strive for productive efficiency
●Deflationary effect as consumer spending is lowered
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
Employment
WirralGrammar
School
●Spending cuts and VAT rise
Cuts to cost estimated 1.6 million jobs
900 000 private sector jobs could go.
inevitable public sector job cuts
sharp increase in part time jobs as apposed to full time jobs
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
Productivity
WirralGrammar
School
The growth of GDP per hour worked is highest for the UK
Relative to other countries the UK is becoming more productive
Therefore lower costs relatively and more appealing exports
This is an Inflationary pressure
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
Earnings Growth
This is below the rate of inflation at the moment meaning that people have less disposable income , which means lower consumer spending and as a result is a deflationary pressure
Here we can see that the average earnings of employees has risen by 2.0 %
WirralGrammar
School
OVERALL SUMMARY
Infl
ati
on
ar
y
Pre
ssu
res -25% devaluation of the £ - Since Mid-
2007
- Increasing food, commodity & energy prices
- VAT to 20% in January
Defl
ati
on
ary
P
ressu
res - Spare capacity – 7.7%
unemployment
- Fiscal Tightening
- International Uncertainty
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
SummaryThe future shows no signs of improvement due to events such as spending cuts and a rise in vat
We can that there are mainly deflationary pressures in the form of:● Unemployment● Earnings growth
●As opposed to the inflationary pressure of increased productivity
WirralGrammar
School
Infl
ati
on
ar
y
Pre
ssu
res
Defl
ati
on
ar
y
Pre
ssu
res
COSTS AND
PRICES
DEMAND
MONEY & FINANCIAL MARKETS
LABOUR MARKET
OVERALL SUMMARY
WirralGrammar
School
I N T E R E S T R A T E S 0 . 5 %
Q U A N T A T I V E E A S I N G £ 5 0 B I L L I O N