Another rise in the FTSE 250

Today saw another strong rise in the FTSE 250 taking it back to near the year’s  high and the high level it reached on Referendum day.

When I pointed out how well the main large company Index the FTSE 100 did after the vote, the doom mongers said the FTSE 250 smaller companies was  a better guide to the future. so would they now like to write in and tell us why the FTSe 250 has done so well in July. Were they too pessimistic before?

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14 Comments

  1. zorro
    Posted July 25, 2016 at 9:35 pm | Permalink

    I fear not John, but hopefully there will be much weeping and gnashing of the teeth from the remainiacs in the future. I just wish that they would pull themselves together. Once they stop, I will stop too….

    zorro

  2. James Munroe
    Posted July 25, 2016 at 9:37 pm | Permalink

    “Bank of England governor Mark Carney says the slumped FTSE 250 points to the economic gloom ahead, as the central bank releases its first financial stability report following the UK’s vote to leave the European Union.

    Carney says the mid cap index is a better barometer of the economic outlook than the FTSE 100 due to its domestic focus”.

    Will Carney write in?

    • alan jutson
      Posted July 26, 2016 at 6:43 am | Permalink

      James

      There will always be another index or chart somewhere if the normal reference one fails to provide what you want to suit your argument.

      You can never please some people !

      • hefner
        Posted July 26, 2016 at 11:49 am | Permalink

        And that applies to Carney and all sorts of other economic commentators, JR included.

  3. Richard1
    Posted July 25, 2016 at 9:45 pm | Permalink

    Obviously for non £ investors UK companies have become cheaper due to the currency, a clear price reduction for those companies with predominantly international earnings. I imagine if you look only at the FTSE250 companies with exposure to the UK economy, such as house builders, the picture isn’t quite so rosy.

    Even so, it’s much better that the doomsayers were forecasting. Even £ hasn’t fallen so much. It’s far too early to make a judgement based on the PMI and other business indicators.

    The preliminary conclusion should therefore be that there is no reason Brexit shouldn’t be a great success – But it will require the right policies. The Government needs to be bold and radical to bolster confidence and give positive reasons to invest, to counter an inevitable slowdown given so many decision makers have found themselves on the losing side in this debate. They need to be given reasons for optimism. I hope Mr Hammond turns out to be a radical reforming chancellor in the Nigel Lawson mould.

  4. CHRISTOPHER HOUSTON
    Posted July 25, 2016 at 11:24 pm | Permalink

    Mrs Sturgeon’s “Leap into the Dark” to Scottish Independence would immediately mean from her own perspective that the Scottish currency, whatever that might be other than our Pound, would soar due to the glories of Scottish Independence. Pity though for the Scottish Whisky Industry which due to the lower Pound has increased the profits for Scottish Whisky manufactures, worldwide wholesalers, retailers right down to the American tiny liquor store ( Scottish Whisky but of course not Irish Whiskey …not one drop of it).
    An odd fact. But the Scottish Whisky industry came out for Remain in the EU, publicly. No doubt they are conscientiously taking their increased revenue and depositing same with HM Inland Revenue. We would not wish them to get something they have indicated they wish not to have now would we?
    Perhaps Mrs Sturgeon would like to bring forward her next referendum vote on Scottish Independence. She must agree she is creating “Uncertainty” about Scottish intentions which does Scotland little good.
    Again Mrs Sturgeon should NOT be allowed asylum in England, Wales or Northern Ireland after she drags Scotland into the EU. She will be arrested by Scottish authorities quite within their law to be sure.

  5. Chris S
    Posted July 26, 2016 at 3:09 am | Permalink

    Excellent news.

    I see this morning the Telegraph are reporting that the Royal Society are debunking the recent BBC story that our Scientists are already being shunned for EU funded projects :

    http://www.telegraph.co.uk/news/2016/07/26/no-evidence-of-brexit-penalties-for-science-says-royal-society-p/

    http://www.bbc.co.uk/news/science-environment-36835566

    When will the BBC ever stop talking our country down ?

    At least Soubre is now off our screens………..

    • stred
      Posted July 26, 2016 at 12:05 pm | Permalink

      Given that we are still in the EU with no tarrifs changing and banking as before, it is ssurprising that anything should be different from before at present. The only difference seems to be in the fluctuating £, which is driven by currency speculation and hedging. We still need the same amount of foreign currency to pay for imports and holidays.

      It is good to see a top scientist telling the truth and saying something positive. He is right that we will need to issue permits for scientists from the EU to work in our institutes. They will be delighted to come. At present some non-EU scientists and medics are sometimes being hindered by the Home Office and GMC. This needs to stop if we are to keep at the top of the league.

      If it is true that some appointmnts are being hindered already by EU bodies who are jumping the gun, then those scintists experiencing difficulty should be able to apply for British funding instead and the amount deducted from our EU contribution.

    • hefner
      Posted July 26, 2016 at 12:08 pm | Permalink

      If you understand that the President of the Royal Society has debunked the story, I would be much more cautious than you are about it. As said elsewhere by JR, (in another context), we have to wait six months to one year before analysing results on a large number of projects involving a large number of UK universities and British scientists and being able to draw reasonably firm conclusions. One lab, even headed by somebody as famous as the President of the Royal Soc, is a bit under-sampling the field.

    • Lifelogic
      Posted July 26, 2016 at 1:13 pm | Permalink

      Soubry was on Any Questions yet again, endlessly interrupting and heckling Peter Hitchen with her usual drivel.

  6. alte fritz
    Posted July 26, 2016 at 8:16 am | Permalink

    Have the doom mongers replied? If not, why not!!

  7. Mark Watson
    Posted July 26, 2016 at 11:56 am | Permalink

    Hopefully Carney can be levered out as soon as possible

  8. Simonro
    Posted July 26, 2016 at 12:55 pm | Permalink

    Everyone has realised that the government has no intention of leaving the EU any time soon. It’ll be “when the time is right”, “definitely before the next election”, etc.

    Still, at least we’ve got all those trade deal announcements to keep up busy until then, eh?

  9. Lindsay McDougall
    Posted July 26, 2016 at 4:01 pm | Permalink

    I do hope that the markets are merely reflecting the return to normal conditions. However, George Osborne first preached fiscal Armaggedon and then fiscal laxity, and now Philip Hammond is threatingly laxity light. Also, Governor Carney is threatening reduced base rate and/or additional QE. These measures are totally unnecessary. Mrs May has sacked George Osborne and at least Philip Hammond has a cool head; he will wait until the Autumn Statement before changing fiscal policy. It is Mark Carney who is creating inflationary expectations. Can Mrs May not sack him too?

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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