EUR 126.73 For Business Accounts Only

BGC Partners: New Inflation Program

The program’s effectiveness will remain to be seen as companies can only maintain these price cuts for a short period of time in an environment where costs have increased substantially. The impact on October inflation is difficult to assess for the time being as it is not clear which companies will be joining the program. Perhaps more importantly, the impact of a 10% price reduction may remain limited if those companies that have already raised prices in late September or early October. That will also determine the impact on the expected decline in the gross margin of the companies that join in the price cuts. Another important point to note is the price behavior once the campaign ends by 31 December. If TL remains stable or appreciates towards 5.50 over the next three months, the currency driven cost pressure may be alleviated on companies so that their price hikes after the end of the program may be limited