FTSE100 is 10% higher than 1 month ago

[Seagull58]

So you don't buy food, beer, wine, cars?

I buy them in South African Rands. In the last 6 years the rand has gone from8 to 14 against the dollar and from 12 to19 against the pound. Yet prices have not increased by anywhere near that amount, not even petrol. Retail prices won't rise by 10%.

In any case the point that was being discussed was the fact that the FTSE has gone up in sterling terms but down in dollar terms. The dollar value is pretty much irrelevant to nearly everyone on NSC (and in the UK) because their pension pots and other investments are denominated in sterling.

 

[Driver8]

I buy them in South African Rands. In the last 6 years the rand has gone from8 to 14 against the dollar and from 12 to19 against the pound. Yet prices have not increased by anywhere near that amount, not even petrol. Retail prices won't rise by 10%.

In any case the point that was being discussed was the fact that the FTSE has gone up in sterling terms but down in dollar terms. The dollar value is pretty much irrelevant to nearly everyone on NSC (and in the UK) because their pension pots and other investments are denominated in sterling.

Sorry I didn't realise you lived in SA.

However when imports to the UK become 10% or whatever more expensive then someone is going to have to pick up the cost. I agree RPI won't be 10% because not all the costs are imports but there will either be an increase in costs to the consumer or a reduction in profits for the company. If a companies profits decrease the shareholders lose out as the share price and/or dividend reduces. Shareholders like your pension fund.

 

[yxee]

Sorry I didn't realise you lived in SA.

However when imports to the UK become 10% or whatever more expensive then someone is going to have to pick up the cost. I agree RPI won't be 10% because not all the costs are imports but there will either be an increase in costs to the consumer or a reduction in profits for the company. If a companies profits decrease the shareholders lose out as the share price and/or dividend reduces. Shareholders like your pension fund.

Totally one-sided analysis. Weaker pound = windfall to exporters. We might actually retain our steel industry.

 

[warmleyseagull]

I buy them in South African Rands. In the last 6 years the rand has gone from8 to 14 against the dollar and from 12 to19 against the pound. Yet prices have not increased by anywhere near that amount, not even petrol. Retail prices won't rise by 10%.

In any case the point that was being discussed was the fact that the FTSE has gone up in sterling terms but down in dollar terms. The dollar value is pretty much irrelevant to nearly everyone on NSC (and in the UK) because their pension pots and other investments are denominated in sterling.

Oil is denominated in dollars as are many other commodities. Fuel prices are going up anyway but lower £ will exacerbate the increase.

 

[warmleyseagull]

There are three key points with the 'it ain't that bad, look at the FTSE' argument:

1. The FTSE is a poor surrogate for the true economy as many others have pointed out;
2. Yes, it may be up now but will it be in a month, year, two years etc. Of course if it goes down, Leavers will blame something else;
3. Crucially, it is not what the FTSE is now, but what it and many other economic indicators would have been had we voted Remain. We can't rewrite history, but I think it is a fair bet that it would be well on way to 7,000 had we voted Remain.

 

[Driver8]

Totally one-sided analysis. Weaker pound = windfall to exporters. We might actually retain our steel industry.

http://www.bbc.co.uk/news/business-36256358

 

[Notters]

My pension pot is in sterling. It's gone up. It's real money

But everything will cost more. How hard is this to understand?

 

[BigGully]

But everything will cost more. How hard is this to understand?

Because it probably won't, you're young arent you ..................................

 

[chucky1973]

The euro seems to be stabilising. Steady increase on last week.

 

[Notters]

Because it probably won't, you're young arent you ..................................

Of course it will. Most of our food is imported and therefore will cost more to buy. Unless you care to explain otherwise. Age is irrelevant.

 

[vegster]

Of course it will. Most of our food is imported and therefore will cost more to buy. Unless you care to explain otherwise. Age is irrelevant.

And, most of our crops are picked by cheap immigrant labour as our Brexit voters in Sunderland, Walsall and Essex aren't going to get up at 5 AM to pick Cauliflowers for 10 hours for the minimum wage.

 

[alfredmizen]

I don't think people quite understand how the financial markets work, the pound is still doing terrible and the likelihood is the FTSE has seen a rise in people purchasing the stock speculatively rather than via a sound future investment. I'd expect it to plummet when people get cold feet and pull out.


I see the Brexit campaign have gone silent on the currency situation though.




Wow.

Neither do you judging by this and some of your subseqent posts.

 

[cirC]

There are currencies and then the euro.....
Read today that Deutche Bank has had to get from the German government a loan of 150billion euros just to stop it from going bankrupt.Another smaller bank was also bailed by the German government.http://www.bbc.co.uk/news/business-36723034
Manuel Barroso Spains Eu head has today taken over as an advisor for Goldman Sachs.Sell everything...................
http://www.bbc.co.uk/news/world-europe-36787931
Jobs for the boys,it's all going pear shaped.

 

[BigGully]

Of course it will. Most of our food is imported and therefore will cost more to buy. Unless you care to explain otherwise. Age is irrelevant.

Oh c'mon, lets see if inflation takes off, probably not or if it does it is likely to be for some obscure reason you and I didnt even know existed and if it doesnt you will cite some reason to invalidate it anyway.

Take your foot off the pedal for a while, this really isn't some new world order, its a situation that will be dealt with and if dealt with positively and well will offer us an opportunity to flourish.

We have withdrawn from a club that itself admits needs reforming, its a busted flush, no big deal your angst is driven by your vote being in the minority, now stop acting like a spoilt child for Christ sake.

 

[portslade seagull]

The #hopewefail club are still at it then. Not sure they have a positive thought for anything

 

[Pintos]

There are currencies and then the euro.....
Read today that Deutche Bank has had to get from the German government a loan of 150billion euros just to stop it from going bankrupt.Another smaller bank was also bailed by the German government.http://www.bbc.co.uk/news/business-36723034
Manuel Barroso Spains Eu head has today taken over as an advisor for Goldman Sachs.Sell everything...................
http://www.bbc.co.uk/news/world-europe-36787931
Jobs for the boys,it's all going pear shaped.

Careful what you say. An economist working at Deutsche Bank said he thinks EUR150bn stimulus is needed across all the european banks.

 

[BigGully]

And, most of our crops are picked by cheap immigrant labour as our Brexit voters in Sunderland, Walsall and Essex aren't going to get up at 5 AM to pick Cauliflowers for 10 hours for the minimum wage.

Cheap for the farmer perhaps, but quite 'lucrative' for the immigrant pickers if you acknowledge that for a single Romanian or Bulgarian worker our minimum wage is four or five times higher than what they will receive back home and topped up with in work benefits and for a family up to eight or nine times higher than at home.

To not even acknowledge this and the associated consequences of it whilst casually sneering at your perceived unskilled Brexit voting oiks says more about you than them ........................

 

[portslade seagull]

Cheap for the farmer perhaps, but quite 'lucrative' for the immigrant pickers if you acknowledge that for a single Romanian or Bulgarian worker our minimum wage is four or five times higher than what they will receive back home and topped up with in work benefits and for a family up to eight or nine times higher than at home.

To not even acknowledge this and the associated consequences of it whilst casually sneering at your perceived unskilled Brexit voting oiks says more about you than them ........................

He has never been anywhere near the minimum wage probably, so just shows contempt for those who have or currently are because they maybe, probably,could've or in the remain camp eyes definitely voted for Brexit.

 

[vegster]

Cheap for the farmer perhaps, but quite 'lucrative' for the immigrant pickers if you acknowledge that for a single Romanian or Bulgarian worker our minimum wage is four or five times higher than what they will receive back home and topped up with in work benefits and for a family up to eight or nine times higher than at home.

To not even acknowledge this and the associated consequences of it whilst casually sneering at your perceived unskilled Brexit voting oiks says more about you than them ........................

Sorry to have to confront you with real facts but have just a little think about our society at the moment. There is a huge amount of work done by immigrant labour on very low wages that keep our 5th biggest world economy from sliding down the pan.

There is no viable alternative for many farmers and growers when it comes to bringing in the crops than overseas workers, of course when the EU CAP subsidies dry up and immigration is halted or the process made more difficult this will become even more of an issue. Have a little think about where you can pick up that late night bottle of wine and 20 fags, other than the Co-Op's, Tesco's etc there are a plethora of small shops opening later or even overnight owned or staffed by people who have come from abroad to fill the need. Add to that all the Pizza and takeaway deliveries and waiting staff and KP's and taxi drivers who do the crap hours.

. All the hidden people that do the crap jobs that no one here will take because the pay,conditions and hours are crap.That's before you get in to the skilled and semi-skilled staff from abroad such as nurses and doctors who fill the jobs that we can't seem to do.
Frankly our economy runs on exploiting cheap labour from abroad doing all the jobs that we won't do.

 

[vegster]

He has never been anywhere near the minimum wage probably, so just shows contempt for those who have or currently are because they maybe, probably,could've or in the remain camp eyes definitely voted for Brexit.

Crikey, will get back to you later when I have deciphered what you are trying to say.