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UK FTSE 100 finishes week up 2%
- radicaldreamer 10y agoNot in terms of any currency except the massively devalued GBP
- LeoPanthera 10y agoBut only because of a huge fall at the start of the week. It's down 1.3% on the month.
- rayiner 10y ago1.3% on the month! It's the apocalypse.
- colechristensen 10y agoGBP/USD is down 7% on the month. We'll round up because we're being apocalyptic... according to outside investors, the UK economy lost 10% of it's value overnight.
- lhl 10y agoAs a point of reference, 7% of UK GDP (2.678T USD in 2013 [1]) is roughly 187B USD. UK M3 might be a better measure, about 2.44T GBP [2]. By that calculation, a 7% haircut comes out to about 236B USD if I did my conversions correctly. [1] http://data.worldbank.org/indicator/NY.GDP.MKTP.CD http://data.worldbank.org/indicator/NY.GDP.MKTP.CD [2] http://www.tradingeconomics.com/united-kingdom/money-supply-m3 http://www.tradingeconomics.com/united-kingdom/money-supply-...
- rayiner 10y agoThe value of currency is not a measure of the value of the economy. CAD has lost 35% versus the dollar since 2011. But the Canadian economy has grown slightly more (in relative terms) than the US over that period.
- mbgaxyz 10y agoAnd if we were to measure everything against Bitcoin since 2009...
- bpodgursky 10y agoIt's amusing how the weakened pound is being hailed in the media as the End Times, and yet the weakened pound is the reason British stocks (minus financials) are actually doing fine -- it's very good for export industries. If Greece could have just let their currency depreciate, they'd be in a far better spot than they are now, plausibly even competitive. But it was the tyranny of the Euro, driven by Germany that kept its currency strong.
- radicaldreamer 10y agoThat's fine until you realize long term, that common market won't be around for the UK to export to -- at least nowhere near as open and free as it is today.
- bpodgursky 10y agoI'm certainly not arguing that leaving the EU is good for the economy net. But what the newspapers (or at least the headlines I see) are focused on is IMO the absolute least-bad fallout.
- disordinary 10y agoGood for the countries of the Commonwealth who, despite being part of the same organisation and historical empire, and even all having the same head of state (the Queen), have been locked out of trade deals with the UK because of the EU. What's the bet the UK falls back onto the "empire" that it has so long ignored.
- gcurt2 10y agoMost commonwealth member states don't have the queen as their head of state. Only 16 of the 53. With the exception of Australia, NZ, Papua New Guinea and Canada these 16 are almost all small (in many case island) countries. You can very be sure that Pakistan, India, South Africa and Nigeria along with 33 other countries don't regard Queen Elizabeth II as their head of state.
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- mediumdeviation 10y agoThe FTSE 250, which is more representative of domestic companies instead of large multinationals[1] is still down more than 7%. https://www.google.com/finance?q=INDEXFTSE:MCX https://www.google.com/finance?q=INDEXFTSE:MCX [1]: http://moneyweek.com/ftse-100-v-ftse-250-why-have-they-diverged-by-so-much/ http://moneyweek.com/ftse-100-v-ftse-250-why-have-they-diver...
- lhl 10y agoFor those interested in a potentially more relevant number, here is the link to the FTSE 100 priced in USD: http://markets.ft.com/research/Markets/Tearsheets/Summary?s=UKXUSD%2B:FSI http://markets.ft.com/research/Markets/Tearsheets/Summary?s=... It is -10.92% this week, and -22.26% for the year. You can add in a comparison to the FTSE 100 in GBP. Note: the GBPUSD hit a 31 year low today. The GBPUSD is down about 13% for the year: http://markets.ft.com/research/Markets/Tearsheets/Summary?s=GBPUSD http://markets.ft.com/research/Markets/Tearsheets/Summary?s=...
- partiallypro 10y agoEurope as a whole has been on a similar track, Europe's economy is a hot mess. Really, you could argue that the UK was the healthiest economy in the EU (or at least, the most diverse.) Germany is a powerhouse, but really if the Euro were to strengthen it would crush their exports, which is really where they thrive. The Euro is the best thing that has happened to Germany. It artificially lowers their currency valuation because of poorer member states, and the EU itself gives Germany immense power over other member states because they have deeper pockets. Then to top it off, Germany makes the ECB policy just tight enough (from being a stronger economy) to strangle off the economy of everyone else. There's a reason many of the other countries want to leave, not having their own central bank that can loosen credit or even keep their interest rates at the market level is murdering their economies. There are other reasons, like dumb laws and regulations, but a struggling economy and a massive welfare state is a perfect combination for angst. Especially if you throw in an immigration crisis caused by external conflicts. The UK not adopting the Euro imo is one of the best decisions they had ever made economically. I don't think Brexit is going to sting the UK as much as it's going to potentially sting Germany if other member states start to think about exiting.
- partiallypro 10y agoThe pound sterling falling helps British exports by lowering their cost to international markets.
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- 2chen 10y agoWhich would be great if the UK were Japan. But it's not.
- bodyfour 10y ago...but there's big uncertainty about terms of trade, so don't expect any investment in export capacity.
- SixSigma 10y agoI wonder how long it will take to switch from being a net importer https://www.uktradeinfo.com/Statistics/OverseasTradeStatistics/Pages/OTS.aspx https://www.uktradeinfo.com/Statistics/OverseasTradeStatisti...
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- gonvaled 10y agoNo time, really. This can be achieved practically overnight, thanks to now being free from the EU hegemon. Now the UK will hapily ssil to its glorious and deserved destiny!
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