Can't you read? As has been said over and over again, a low pound benefits the international companies that make up the majority of the FTSE. HSBC, for example, up 30% since the referendum has around 70% of Business in Asia and the Far East. RBS and Lloyds have gone in the other direction.
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FTSE100 is 10% higher than 1 month ago
- Thread starter Poyningsgull
- Start date
Can't you read? As has been said over and over again, a low pound benefits the international companies that make up the majority of the FTSE. HSBC, for example, up 30% since the referendum has around 70% of Business in Asia and the Far East. RBS and Lloyds have gone in the other direction.
nicko31
Well-known member
No some people just post. I should add the FTSE100's all time have was in April 2015 was sterling was worth 18% more. So really we are way off the true highs of the index.
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Green Cross Code Man
Wunt be druv
A worthless pound? In that case, if it's worthless, please can you send any you may have knocking around, my way?
Exactly. I wish people on both sides would stop pissing their pants atevery slight economic indicator. We haven't f**king LEFT yet.
Papa Lazarou
Living in a De Zerbi wonderland
Sent from my iPhone using Tapatalk
Great summary of the situation.
Poyningsgull
Well-known member
- Apr 12, 2007
- 1,732
Poyningsgull
Well-known member
- Apr 12, 2007
- 1,732
- Thread starter
- #328
Sent from my iPhone using Tapatalk
When we start quoting the ONS then we are clutching at straws.
Whooooooooooooooooooosh!
nickbrighton
Well-known member
- Feb 19, 2016
- 2,147
its not just the $, its the yen, and numerous other currencies, the stock market will go up and down like the proverbiable loose womens knickers over the coming year or so. The fact that the £ is nosediving agains major currencies is a better indication, of how the rest of the world sees the UK.
Overseas profits
The FTSE 100 has benefitted from the fall in the pound since the Leave vote because the many international companies whose shares are traded in the UK tend to benefit from it.
Profits earned abroad by multinationals such as drugs giant GlaxoSmithKline and major mining companies are worth more when converted into sterling.
That makes a company's shares appear better value when compared with the higher profits it will make, prompting a revaluation of the stock.
The FTSE 250 index, however, has lagged behind the FTSE 100 since the Brexit vote because gains from the weaker pound for the outward-looking businesses have been offset by fears about the fortunes of UK-focused companies
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You never get to vote for PM unless of course he/she comes from your constituency.....
sjamesb3466
Well-known member
The weak pound is currently having major ramifications for the business I work for. Part of our business is manufacturing composite doors and since the pound has plummeted we have seen currency surcharges for all component parts between 10-15% of the cost of the component. This is due to the cost of importing metal/composite door slabs etc from abroad where the market is predominantly in dollars. In a competitive business market where we are fixed into contracts regarding price for the next 12 months our profit margin has been slashed dramatically.
So FTSE 100 results may be fine for the big boys but what about the bread and butter companies that employ millions of people across this country.
So FTSE 100 results may be fine for the big boys but what about the bread and butter companies that employ millions of people across this country.
Prince Monolulu
Everything in Moderation
Agreed. I work for a US company, selling into the U.K. My customers are buying the same product for 15% more than they did in June. Our treasury only update our forex every month or so, so hanging in there at 1.31 but suspect soon that will drop to 1.25 or so.
Impact is on my earnings, staff count in U.K etc.
Also works the other way as this winter is first time in 5 years I've not had a winter holiday in Thailand or Caribbean and reason being the prices for that have now gone up 10-20%.
The way I look at it in the short term is that startling increases in my modest portfolio of (global) funds have way more than covered the increased costs of my holidays. Swings and roundabouts as always.
D
Deleted member 22389
Guest
People won't stop buying. If people are prepared to pay £400-£500 for a phone, they are prepared to pay for anything else and any increases will hardly be noticeable. If one supermarket puts prices up another will lower their prices. Compared to Europe, we have some of the lowest prices in this country.
Mo Gosfield
Well-known member
- Aug 11, 2010
- 6,364
Indeed.
For those that export, these are the good times. Business is booming and profits are soaring. Long may it continue.
Lets see if we can find one single post where a Remainer predicted this, I remember back in June how some offered doom and gloom on the effects it would have on the markets and perhaps a few initial comments on the original dip in the pound, but as I recall not a single one predicted a fall in sterling would temporarily effect positively the markets.
Now of course its become clear as day that the positive shift in the current markets is due to the weakening of sterling, something seemingly you have just learnt.
You are all waiting for the perfect storm when sterling weakens at the same time as the market falls, can you imagine the outrage, you lot are just pissing in the wind as usual, you can add anecdotal stories of your own workplace, just a shame for balance you never offered any last week.
Now of course its become clear as day that the positive shift in the current markets is due to the weakening of sterling, something seemingly you have just learnt.
You are all waiting for the perfect storm when sterling weakens at the same time as the market falls, can you imagine the outrage, you lot are just pissing in the wind as usual, you can add anecdotal stories of your own workplace, just a shame for balance you never offered any last week.