Sports Direct Hit By Slide In Pound

[mikey4444]

http://www.bbc.co.uk/news/business-37588020

So, it isn't because Mike Ashley had to brought kicking and screaming before the Commons Select Committee, to explain why he was breaking employment law then ?

[jno]

well, maybe, but it sounds as if their attempt at hedging against the present currency swings went haywire because of a suspiciously erratic opening in the Asian currency markets just as the exchange rate was being fixed. Blame Brexit...

[mikey4444]

jno....I am merely pointing out that all the bad publicity concerning Sports Direct and its highly questionable employment practises, may have a lot to do with the companies present difficulty.

[ToraToraTora]

you'll be having a go at Tescos next

[youngmafbog]

I'm sure there is an element of truth in what you say Mickey but i suspect the real reason is that they import goods from sweat shops and pay in green backs meaning their goods will cost more.

The sliding pound helps exports but hammers those that only import. This could be a good thing as in some cases it may lead to an increase in manufacture in this country and with the exports being cheaper it will help us establish business in countries other than the EU if they get too arsey.

[jno]

the trouble is, ymb, we are all importers whether we buy gear from Sports Direct or Primark or just take holidays abroad. It's not only about manufacturers.

[Old_Geezer]

One does not blame a vital intelligent act for the idiocy of money manipulators getting jittery over what might or might not happen.

And indeed, if a company has not had the foresight to set the company up as a viable concern without the continued availability of unreasonably cheap labour, then it has only itself to blame when the money manipulators send exchange rates up and down and they catch a cold as a result.

Board level management are there to do the risk analysis and ensure bases are covered, not go for the max profit and hang any possible pitfalls; because they can simply go off and mismanage elsewhere.

[jno]

OG, this does appear to have been the sort of freakish money movement that couldn't be predicted. I'm not a fan of Sports Direct but the Asian market wobble yesterday seems to have everyone scratching their heads.

The authorities should be doing a lot more than scratching their heads, imo, they should be finding out what happened, though I don't suppose they will.