The Ever Shrinking HKD...
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The Ever Shrinking HKD...
I would like people to post letting us know the true extent of financial damage being caused by the ever devaluing HKD. The company seems wholly uninterested in our plight. Since 04, I have seen my salary in GBP shrink by almost 40% (not sure of the exact number...too depressing to work it out!). Really appreciate the 3% offered by the company.... Funny how airlines like Emirates offer a currency compensation factor....sure that our management are working on a fix for this problem...
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When I joined 1 AUD = 4.20 HKD
F/O Pay HKD 65000 = AUD 15300
Now 1 AUD = 7.15 HKD
F/O Pay 65000 = AUD 9100
If they want to keep employing expats they need to look at this. If you are in Oz stay there, more money at VB and J*.
Yes I know most of my living costs are in HKD's but they have gone up a lot, (more than 3%) and would be nice to pay something off in Oz before you go back, but getting pretty hard now to do that now.
F/O Pay HKD 65000 = AUD 15300
Now 1 AUD = 7.15 HKD
F/O Pay 65000 = AUD 9100
If they want to keep employing expats they need to look at this. If you are in Oz stay there, more money at VB and J*.
Yes I know most of my living costs are in HKD's but they have gone up a lot, (more than 3%) and would be nice to pay something off in Oz before you go back, but getting pretty hard now to do that now.
s
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I suppose if I intend to retire in HK...then no problem... In reality, we ALL will be retiring to our home countries. It is now getting almost impossible to service a mortgage back home. If you are living here with children, forget about buying your 'dream home' back in the UK, AUS, CAN... Very depressing. Time to leave.
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Cx are laughing all the way to the bank. They are making much of their money in currencies such as the AUD, NZD, GBP etc which have appreciated immensely in the last few years. Their outgoings are mainly in USD/HKD (including staff wages). Although some outgoings have increased (e.g. fuel), the overall effect is a huge increase in revenue from exchange rates alone. Funny that none of the staff are getting any benefit from this.
We made sacrifices during SARS, have increased our cooperation efforts to enhance our new found good relationship with the company, agreed to a rostering system that has increased productivity by about 20%, but of course have gotten nothing in return. Not even inflation related increments for the last 6 years. 3% payrise? Laughable and an insult!
We made sacrifices during SARS, have increased our cooperation efforts to enhance our new found good relationship with the company, agreed to a rostering system that has increased productivity by about 20%, but of course have gotten nothing in return. Not even inflation related increments for the last 6 years. 3% payrise? Laughable and an insult!
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Preaching to the Choir
Everytime the Friday Telex says "currency worked in our favour".... it really means "currency worked against HK staff".... the company know this better than you as they have been playing this game a long time.
Revenue is generated in a mix of USD and "Other currencies". As the USD falls the "other currencies" take on greater value for the company. The company's cost are predominately based in USD being Fuel and Aircraft and staff (mainly HK based). Therefore as the USD falls, Revenue (expressed in HKD) rise; costs are broadly unchanged and profit (expressed in HKD) rises. Good news for the bottom line figure; questionable news for the UK investor(s)......
Under the new regime... if you don't like it leave.... enough guys leave and maybe.... possibly maybe.... you may see a currency mechanism in your salary. In the meantime... this is a waste of bandwidth....
Revenue is generated in a mix of USD and "Other currencies". As the USD falls the "other currencies" take on greater value for the company. The company's cost are predominately based in USD being Fuel and Aircraft and staff (mainly HK based). Therefore as the USD falls, Revenue (expressed in HKD) rise; costs are broadly unchanged and profit (expressed in HKD) rises. Good news for the bottom line figure; questionable news for the UK investor(s)......
Under the new regime... if you don't like it leave.... enough guys leave and maybe.... possibly maybe.... you may see a currency mechanism in your salary. In the meantime... this is a waste of bandwidth....
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Just thinking about the number of people who shell out the $$$ for a CX ticket and find they're boarding an MU plane instead. Don't think that would be a hit with the flying public for very long.
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Before a third of the fleet grounded, the equal number of aircraft from Air China and China Eastern will be flying around using CX callsign
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that won't buy much in YVR
Could be worse.
You could be trying to live in Canada.
In the past year, Cdn dollar up 24% to a 50 year high against the U.S/Hong Kong dollar
2002 62 cent dollar
2004 77 cent dollar
2006 86 cent dollar
Today 105 cent dollar
You could be trying to live in Canada.
In the past year, Cdn dollar up 24% to a 50 year high against the U.S/Hong Kong dollar
2002 62 cent dollar
2004 77 cent dollar
2006 86 cent dollar
Today 105 cent dollar
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Nice to know that not only does the house in Vancouver cost 3 times more than 5 years ago but also my money is worth half. So property in CAN is now 5 times more expensive if you are on a CX salary in HKG? Not even taking higher interest rates or the effect of inflation on my expendable income into account - you figure I could still get that place in Whistler?
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Working overseas always requires factoring in potential FX shifts and to be realistic, you can't expect the upside to last forever. Markets have the lousy habit of adjusting themselves in a way that levels out unrealistic differences in relative costs.
An undersatnding of how the currency market works will tell you that money moves around the globe looking for a fast and high return like sheep looking for long grass. Just like the Aus dollar was at unrealistic levels about four years ago, ie US$0.47, it now is getting to unrealistic levels at US$0.90. Political changes in Australia and the US over the next 12-18 months will bring the US$ back to a more realistic level.
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Nice to know that not only does the house in Vancouver cost 3 times more than 5 years ago but also my money is worth half. So property in CAN is now 5 times more expensive if you are on a CX salary in HKG? Not even taking higher interest rates or the effect of inflation on my expendable income into account - you figure I could still get that place in Whistler?
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A financial expert on CNN this morning predicts the USD will slide to half of its present value.
The global market is moving away from the greenback and turning to gold and putting other currencies such as the Euro in the basket.
Earning USD (or anything tied to it) but investing outside the USD system is doomed.
The global market is moving away from the greenback and turning to gold and putting other currencies such as the Euro in the basket.
Earning USD (or anything tied to it) but investing outside the USD system is doomed.
oicur12
I didn’t see this so called expert but I am always very wary of anyone that comes on TV or anywhere else for that matter and talks crap like this. 90% of the time they have a vested interest in wanting this particular outcome come to fruition. Most carry on about US foreign debt, both private and public to support their argument. The reality is that most of Europe, Australia and New Zealand have the same if not worse debt problems than the US. Australia, while having government debt under control has a private debt crisis. The only western country that currently is in good shape is Canada and that is because of oil. Now while I think the US$ still has further to decline, we are now reaching a level that the US$ is considerably undervalued. When we see a proper correction in global equity markets in the next 12 -18 months, we will see an unraveling of currency trading positions similar or worse than what we saw in August, and remember August was just a bump in the road. When we see the proper correction it will be long lasting and pronounced. Some of the emerging markets like China and Vietnam from my point of view are a train wreck waiting to happen.
While we are talking about the currency market, it is interesting look and see how the dynamics have changed in the last thirty years or so. In 1975, about 80% of foreign exchange transactions (where one national currency is exchanged for another) were to conduct business in the real economy. For instance, currencies change hands to import oil, export cars, buy corporations, invest in portfolios, or build factories. Real transactions actually produce or trade goods and services. The remaining 20% of transactions in 1975 were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake. Today, the real economy in foreign exchange transactions is down to 2.5% and 97.5% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.
I didn’t see this so called expert but I am always very wary of anyone that comes on TV or anywhere else for that matter and talks crap like this. 90% of the time they have a vested interest in wanting this particular outcome come to fruition. Most carry on about US foreign debt, both private and public to support their argument. The reality is that most of Europe, Australia and New Zealand have the same if not worse debt problems than the US. Australia, while having government debt under control has a private debt crisis. The only western country that currently is in good shape is Canada and that is because of oil. Now while I think the US$ still has further to decline, we are now reaching a level that the US$ is considerably undervalued. When we see a proper correction in global equity markets in the next 12 -18 months, we will see an unraveling of currency trading positions similar or worse than what we saw in August, and remember August was just a bump in the road. When we see the proper correction it will be long lasting and pronounced. Some of the emerging markets like China and Vietnam from my point of view are a train wreck waiting to happen.
While we are talking about the currency market, it is interesting look and see how the dynamics have changed in the last thirty years or so. In 1975, about 80% of foreign exchange transactions (where one national currency is exchanged for another) were to conduct business in the real economy. For instance, currencies change hands to import oil, export cars, buy corporations, invest in portfolios, or build factories. Real transactions actually produce or trade goods and services. The remaining 20% of transactions in 1975 were speculative, which means that the sole purpose was an expected profit from buying and selling currencies themselves, based on their changing values. So, even in the days when the real economy was dominant, some currency speculation was going on. There had always been that little bit of frosting on the cake. Today, the real economy in foreign exchange transactions is down to 2.5% and 97.5% is now speculative. What had been the frosting has become the cake. The real economy has become just a small percentage of total financial currency activity.