If a company buys contracts hedging
against price increases, but in fact the market price of the commodity is substantially lower at time of delivery, they could find themselves disastrously non-competitive (for example see: VeraSun Energy).
Either they produce the underlying product and want to hedge against price decreases or they consume the product and want to hedge
against price increases.
Not exact matches
While we wait to see how much Newfoundland is able to extract, note that Ottawa offered two other similarly vague compensation deals to get CETA through: One on drug
prices, tied to a lengthening of patent protection, and another to the dairy industry as protection
against an
increase in duty - free European cheese.
It's bad news for all British wine lovers: bottle
prices are set to
increase in 2017 as sterling continues to depreciate
against the euro.
Weighed
against unemployment, which has dropped to a 16 - year low at 4.1 percent, that weakness has puzzled economists and made some policy makers declare the Fed should hold off on additional rate
increases until
prices respond more briskly.
However, post-Brexit sterling was sharply weaker
against the dollar, and this will cause
price increases that will likely cause downward pressure on fourth - quarter sales in the U.K.
The Fed left its key short - term rate at 1.5 per cent to 1.75 per cent — the level it set in March after its sixth
increase since December 2015 — as it gradually tightens credit to control inflation
against the backdrop of a tight labour market and a pickup in consumer
prices.
If their actions
against each other's exports are big enough or go on long enough, they can have a devastating impact on each other's economies: destroying businesses,
increasing unemployment, and raising the
price of vital goods in both countries.
The former because it allows for a case in which a modest
increase in demand leads to a large
increase in
price, and the latter because it would lead investors to hedge by moving themselves into Canadian dollars (more than they would otherwise) to protect
against high oil
prices.
Rising house
prices have shielded the reality of
increasing ownership costs, but households can't live on asset appreciation, unless they sell, take a reverse mortgage, or a line of credit
against their house.
The likelihood of a United States strike
against Syria after a suspected chemical weapons attack
increased Sunday as President Trump said there would be a «big
price to pay» and officials in France vowed the country would «do its duty» in responding.
Options can help you protect
against risk, generate income,
increase profits, lower your breakeven point, reverse your strategy without selling your stock, and even potentially let you set a purchase
price for a stock below its current market
price.
Companies of consumer staples are able to
increase their
prices a little faster but competition usually limits the ability and neither sector is a good hedge
against inflation.
The Board's decision to
increase the cash rate in March was taken
against the background of strong demand pressures combined with a significant pick - up in upstream
prices during the second half of 2004.
Asset
prices reflect whatever banks will lend
against them, so easier credit terms (such as lower interest rates, lower down payments and more time to pay back loans)
increase the asking
prices of everything else.
Rather, the
increase in spreads appears to reflect both tightness in the Commonwealth Government bond market (where supply remains limited and demand by foreign investors appears to have
increased) and upward pressure on swap rates (one benchmark
against which corporate bonds are
priced) as companies have sought to lock in fixed - rate borrowings due to expected
increases in interest rates.
Fears over Greece should
increase in the coming days, so then the gold
prices, as the yellow metal will be bought as a safe haven or a hedge
against the financial turmoil that could follow a Greek default.
The
increase in cheese and dairy
prices has also helped cushion exports from the relentless rise of Australian Dollar, which now buys 76 US cents, as
against 55 US cents two years ago.
Officials from both villages have said they think Hoffman is playing one side
against the other, hoping to
increase the
price of his land.
The government must review pensions and benefits each year
against increases in
prices and uprate them by at least the same percentage.
«Will you commit today to voting
against any health care plan that allows for coverage discrimination
against or, and I emphasize this,
price increases for people with pre-existing conditions?»
«To the point where competition among the Oil Marketing Companies remains high, market
price for both Brent crude and refined oil dropping in average
price terms, added to the appreciation of the Cedi
against the U.S. dollar, and
increasing national fuel stock; the Institute for Energy Security (IES) believe that there is enough positive momentum and fundamental justification to move the
prices of Petrol and Diesel lower on the local market,» IES said in a release signed by Gilbert Richmond Rockson, Principal Research Analyst.
The Chairman, Presidential Advisory Committee
against Corruption, Prof. Itse Sagay (SAN), has faulted the planned industrial action by the leadership of the Nigeria Labour Congress (NLC) over the
increase in the
price of petrol.
Weighed
against should be the
increasing evidence that poorer drivers are being forced off the roads by expensive fuel
prices, with less money is coming into the Treasury as a result.
Also, 100 kg of groundnut recorded an
increase of N500; it now sells for N24, 000, as
against its former
price of N23, 500.
But it then decided the move was too risky, and warned Mr Cable
against increasing the share
price — advice which he followed.
«It's practical, but all that stuff could boomerang
against them in the general election, because the idea of
increasing the
price on anything could be poison.»
Audi will almost certainly get the Q3 to India and
price it
against the BMW X1 as it looks to
increase its market share in the country.
FCA has gone
against the tide of
price hike which we have seen since the start of 2017 with major auto manufacturers
increasing its product
prices due to the rising input costs.
The introduction of the 2.0 - litre model hugely
increased the F - Type's appeal — the previous entry - level 3.0 - litre V6 looked rather expensive, but the 2.0 - litre is far more competitively
priced against the four - cylinder Porsche 718 Cayman, as well as the Ford Mustang V8, whose iconic design makes it a left - field alternative.
Limited to just 300 editions at a
price of # 24,995, the Impreza UK300 stood out
against standard Subarus with its UK300 cockpit and engine badging, 18 - inch Prodrive / OZ Racing gold alloys, WRC cluster headlamps and a Prodrive front splitter and rear spoiler that actually
increased aerodynamic benefit.
In order to compete
against other tablet computers, and
increase conversion from traditional e-readers to iPads, Amazon, Sony, and Barnes and Noble drastically lowered their entry level
prices, in order to sell more units.
Both European and US authors working directly with Amazon can now access a royalty of 70 % of the cover
price on their titles (as
against c. 7 % working through a publisher) which
increases the chance that authors may choose this route.
On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York
against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers» freedom to compete on
price by taking control of
pricing from e-book retailers and substantially
increasing the
prices that consumers paid for e-books.
It's true that a majority of respondents in the Winter 2010 Kindle Nation Citizen Survey is ready to take a stand
against anticipated
increases in Kindle Store ebook
prices above the $ 9.99 figure that Amazon has associated with bestsellers and new releases since the Kindle's launch over two years ago, but inside the numbers are some indications of flexibility:
Going
against the retailers (and to our advantage) is the fact that there are ongoing
price wars to get those sales numbers to
increase.
When house
prices are rising, you will have
increasing equity in your home that will allow you to borrow more
against it, since the time you originally arranged your mortgage.
The blue line in Chart 2 shows the total stock value resulting from an instant 50 %
increase in the
price that remains constant
against that same 50 % decline represented by the previously mentioned red line.
The Over 50s
Increasing Life Insurance Plan is designed to help protect your cash sum
against inflation, your premiums and cash sum are reviewed each year in line with the change in the Retail
Prices Index (RPI).
Traders not only will be able to participate in Bitcoin's
price increase via long positions in the Bitcoin futures contract, they can also play the short side or hedge
against outright Bitcoin positions.
The companies will still provide a hedge
against inflation as their sales
increase on higher commodity
prices and you will earn a dividend yield while you hold the shares.
When the stock
price moves
against profits, reanalyze and either a) go flat, recognizing your mistake, and being grateful that it was small, or b)
increase the bet to a full position, and be grateful that you didn't put a full position on initially.
A long hedge involves buying futures contracts to protect
against possible
increasing prices of commodities.
Typically hard assets are an excellent hedge
against inflation, meaning their value rises as the general
price levels for goods and services increases (known as Consumer Price Index or
price levels for goods and services
increases (known as Consumer
Price Index or
Price Index or CPI).
You should be aware that the regulatory protections applicable to your account are not intended to insure you
against losses you may incur as a result of a decline or
increase in the
price of a security futures contract.
But if you're looking to take up a contrarian position
against continued gold
price increases, there are a few ways you could do so.
Shares offer some protection
against inflation because most companies can
increase the
prices they charge to their customers.
The risk for bond investors that the issuer will default on its obligation (default risk) or that the bond value will decline and / or that the bond
price performance will compare unfavorably to other bonds
against which the investment is compared due either to perceived
increase in the risk that an issuer will default (credit spread risk) or that a company's credit rating will be lowered (downgrade risk).
Corn has appeal as an investable asset because it can serve as a hedge
against inflation brought about by
increases in food
prices.
Short sales that are not made «
against - the - box» theoretically involve unlimited loss potential since the market
price of securities sold short may continuously
increase.