FTSE 250 rather than FTSE 100 give a better picture of UK's situation

(14 Posts)
Pangurban1 Mon 27-Jun-16 14:25:37

Quite a few reports are just showing the situation wrt FTSE 100. These are the larger international/multinational businesses. They don't have as much exposure are they are not exclusively based in UK.

The FTSE 250 are medium and smaller businesses which have much more exposure to what happens in the UK.

The 100 is not doing so badly. The 250, however, is down 12% and I don't know if it is still falling.

Are the news reports not giving much time to the 250 that because they want to talk the country up in light of all the uncertainty?

sorenofthejnaii Mon 27-Jun-16 14:29:21

You can use whatever data you want and data points to make your point as you want.

I love the way the way they show dramatic falls by zooming in on the fall so it looks really big.

Pangurban1 Mon 27-Jun-16 14:32:51

Barclays and RBS shares suspended from trading.

I found this amusing from twitter

"Next step will be a referendum for the return to the 4 main kingdoms of Anglo-Saxon England: get in there Boris!"

PattyPenguin Mon 27-Jun-16 14:33:26

If preferred, there are graphs and commentary on the website of that well-know left-wing rag, the Financial Times
www.ft.com/cms/s/0/314ed068-3c2d-11e6-8716-a4a71e8140b0.html#axzz4CmogBwzA

Theoretician Mon 27-Jun-16 17:32:08

I think they talk about FTSE 100 because most of the population aren't really aware of FTSE 250.

I agree that there's not much reason for FTSE 100 to react to Brexit. I read recently that 77% of its turnover comes from abroad. And FTSE 100 already looked cheap before Brexit. (Unless there are special reasons why past ten years profits are no indicator of the future.)

I agree there's more reason for FTSE 250 to be down, if Brexit harms the economy.

Peasandsweetcorn Mon 27-Jun-16 19:57:17

I agree that it's the FTSE 250 which we should be looking at and all of the talk of the FTSE 100 is masking it.

Peasandsweetcorn Mon 27-Jun-16 19:58:55

By "masking it", I mean not making people aware of the full extent of the extent of the issues, indeed maybe lulling them into a false sense of security by thinking "it's not that bad" when it is bad!

colouringinagain Mon 27-Jun-16 20:00:33

really interesting, thanks for highlighting this

GhostofFrankGrimes Mon 27-Jun-16 20:03:13

UK has lost its triple A rating.

www.theguardian.com/business/2016/jun/27/property-and-financial-shares-slide-as-referendum-fallout-hits-stock-markets

wowfudge Mon 27-Jun-16 20:11:23

I work for a FTSE250 company. The share price has tanked even though the weak pound is actually favourable for our business.

nauticant Mon 27-Jun-16 20:12:17

Yep, it's the FTSE 250 rather than the FTSE 100 or Sterling that gives a far better view of the long term outlook for the UK economy.

But then we need to bear in mind that we're now at the start of Project Denial. We now need to adjust our mindsets so that all apparent set-backs to the UK economy will be:
1) nothing unusual and to be expected;
2) actually better than we would have seen had the result been Remain;
3) good news in disguise;
4) caused by the negativity of bitter Remainers;
5) as a result of EU Wrecking; or
6) anything else that cannot be said to be related in any sense to Brexit.

All is good. All you have to do is believe.

Mistigri Mon 27-Jun-16 21:06:43

As others have said, many FTSE 100 companies are not that exposed to the UK economy, and the collapse in the pound may even be (temporarily) good for them. My FTSE 100 employer will do well out of this in the short term, as our revenues are primarily in foreign currencies. Of course any hit to the global economy is bad for us, but at the moment the market consensus is that brexit is much worse for Britain than for anywhere else, and most of our revenues come from outside the UK.

FTSE 250 companies are more likely to be UK businesses who rely more heavily on selling goods and services in the UK. That's why it's seen as a better pointer to the potential implications for the UK economy.

I was expecting a leave vote to cause problems, but the market's reaction has been worse than I expected. And there are now serious people out there who think that the markets have not yet woken up to exactly how much of a clusterfuck this is. It's no longer brexit that is the real issue (since we'll end up in the EEA anyway) but the complete absence of a functioning government or opposition.

specialsubject Mon 27-Jun-16 21:13:14

It's no longer brexit that is the real issue (since we'll end up in the EEA anyway) but the complete absence of a functioning government or opposition.

yes. Markets crash and markets recover, and I believe we were already in a recession that we weren't acknowledging, but both parties apparently collapsing into infighting is the last thing we need.

sorenofthejnaii Mon 27-Jun-16 21:28:20

It's already interesting how the media are reporting the market changes. The spin is fascinating depending on what paper you read.

People will see the reality when / if the Government isn't get enough income from various sources and has to either raise more money, borrow more or spend less. That's a reality the media can't spin.

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