The EU debate - Part II

No the FTSE is measured in pounds. That means to a foreign investor the cost of buying shares in those companies is now 20% cheaper and so they can afford to buy more shares and get better dividend returns.
At the moment the underlying profitability of those companies is largely unchanged as we haven't left so by far the biggest factor in the shares value is currency exchange and while shares rise at the same rate the currency falls then it's cost neutral.
Effectively for the stock markets to have the same value they had pre referendum they need to be 10-20% higher to compensate for devaluation.

 

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So why can JC offer to the UK, because I cat think of anything useful

 

EU exports are a mere 12% of British economy: Trade figures show focus on Europe has steadily dropped in past five years

http://www.dailymail.co.uk/news/art...-Europe-steadily-dropped-past-five-years.html

 

Always the Daily Mail Kustard...do you read it in public places?

 

Custard, last year the pound was strong against the Euro. Therefore our exports would not have looked as attractive to countries whose currency is the Euro.

Most other major trading nations use the $US, which the pound fell against the $US in 2015, making our exports more attractive.

Incidentally, the U.K. Trade deficit for the first quarter of 2016 was £13.3bln. Price inflation will follow, especially with the £ now significantly weaker.

 

The £ has not been that strong V the Euro in the last 5 years its been quite low at times.

 

But never as weak as it currently is. That's a fact. The GBP is currently very weak.

 

Umm....wrong again!..

As this simple chart shows, the €/£ this time last year was €1.44. The highest in a number of years, since 2008 in fact!...

http://moneyweek.com/prices-news-charts/gbpeur/

 

2014

2014 was lower

 

Yes, but still not as low as it is now...

I was explaining why our exports to the EU would not have looked so attractive in 2015.

 

What this actually shows is the claim that we couldn't export to non-EU countries while in the European Union was false
What it ignores is much of the trade with non EU is done through agreements formed by the union and fails to point out that 12% of total trade is 44% of external trade and by including the 75% of trade that takes place solely within the UK and doesn't form part of the trade deficit actually falsifies the position.

 

It's a Daily Mail article. It's designed to appeal to far right simpletons who still display a framed picture of Princess Diana.

 

So Mr Kustard, we've valued your house at 300k.

But Mr Provincial Estate Agent it was valued at 500k last year.

Ah but it was only worth 400k in 2014 Mr Kustard.

Good point, I'm happy with your valuation.

Excellent Mr Kustard, these are not the droids you're looking for.

 

Ford to consider closing UK factories in Leave towns after Brexit

http://www.independent.co.uk/news/b...ies-in-leave-towns-after-brexit-a7162561.html

The good news is that the newly unemployed will have got their country back.

 

Well surely all those unemployed can now be given £350m a week instead!

It's ****ing awful this is happening, but what did people expect?

The Welsh Gov is in crisis mode at the minute trying to keep relations going with Europe while figuring out how we are going to manage without the billions of EU funding - since the UK Gov has gone strangely quite since the referendum after all the promises of Wales 'not losing a penny of money' and have not responded to calls to rework the Barnett formula.

 

The same ford that took EU money to build a factory in turkey and close UK plants.

Nothing new here, they want out of the UK for cheaper wages. Keep trying uninteresting Stan.

Ford have no reason to stay in the UK now as JLR are its own engines coming online and dont need ford units. Also JLR are increasing its staff due to huge increase in exports of its cars.

I will say again to uninteresting Stan, keep crying and blame Brexit for everything, you knob.

 

Kustard Rant!

You're probably right though. It's nothing to do with Brexit, same as the pound tanking is nothing to do with Brexit. Same as Lloyds accelerating and increasing their cuts is nothing to do with Brexit.

You're a genius Kustard!

 

Lloyds are using Brexit to make more cuts to boost profits nothing new here.

Keep trying uninteresting Stan.

 

**** wales, insignificant little pile of dirt that's full of chavvy scumbags. Hope it falls into the sea!