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Jason

Sharp Increase In Uk Profit Warnings

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"Sharp increase in UK profit warnings

DECLINING consumer confidence and a slowdown in the economy contributed to a sharp increase in profit warnings among British firms last year.

Some 381 UK companies warned last year that profits would come in below forecasts - the highest annual total since 2001 - according to a survey by Ernst & Young. "

More: http://business.scotsman.com/index.cfm?id=68442006

"Surge in profit warnings spotlights UK economic woes

PROFIT warnings by UK-listed companies are at their highest for five years, confirming that Britain’s economic woes are intensifying, a report will warn on Monday.

The number of companies forced to issue profit warnings has surged by 23% over the past year, according to the accountant Ernst & Young. Profit warnings in 2005 totalled 381, against 294 in 2004, a rise of almost a quarter and the highest annual total since 2001. The news will come as a blow to UK Chancellor Gordon Brown."

More: http://www.thebusinessonline.com/Stories.a...2E-D07EB5AA1CEE

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"Sharp increase in UK profit warnings

DECLINING consumer confidence and a slowdown in the economy contributed to a sharp increase in profit warnings among British firms last year.

Some 381 UK companies warned last year that profits would come in below forecasts - the highest annual total since 2001 - according to a survey by Ernst & Young. "

More: http://business.scotsman.com/index.cfm?id=68442006

"Surge in profit warnings spotlights UK economic woes

PROFIT warnings by UK-listed companies are at their highest for five years, confirming that Britain’s economic woes are intensifying, a report will warn on Monday.

The number of companies forced to issue profit warnings has surged by 23% over the past year, according to the accountant Ernst & Young. Profit warnings in 2005 totalled 381, against 294 in 2004, a rise of almost a quarter and the highest annual total since 2001. The news will come as a blow to UK Chancellor Gordon Brown."

More: http://www.thebusinessonline.com/Stories.a...2E-D07EB5AA1CEE

And the FTSE at near record highs??? :huh::huh::huh:

Could all this false optimism suddenly turn and precipitate the economy into a long and painful recession? Surely, anyone who buys a house in the light of these realities is a silly billy.

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And the FTSE at near record highs??? :huh::huh::huh:

Could all this false optimism suddenly turn and precipitate the economy into a long and painful recession? Surely, anyone who buys a house in the light of these realities is a silly billy.

I don't understand why the FTSE is going so high? I know some companies are doing great, and there are alot of take overs... but...

Would anyone like to explain this?

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I don't understand why the FTSE is going so high? I know some companies are doing great, and there are alot of take overs... but...

Would anyone like to explain this?

From my reading of US articles the investors over there are looking to the DOW for profits in 2006 as there are none to be had in real estate. The FTSE may be driven by the same crowd knowing that even the best forecasts for the UK market (4-5% up) are a poor return especially in the light of a significant crash risk.

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I don't understand why the FTSE is going so high? I know some companies are doing great, and there are alot of take overs... but...

Would anyone like to explain this?

Yes

The FTSE (especially the 100) is dominated by large multi-nationals. The firms having trouble in the article seem to be those most closely aligned to the UK market.

To quote yesterday's piece in the Guardian: "The mining sector is twice as big a part of the [stock] market as the general retail sector".

Mining? - Yes, because the mining companies with listings in London are mining for all sorts of stuff all round the world.

Hence, FTSE does not necessarily correlate with UK business environment.

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Guest muttley

Yes

The FTSE (especially the 100) is dominated by large multi-nationals. The firms having trouble in the article seem to be those most closely aligned to the UK market.

To quote yesterday's piece in the Guardian: "The mining sector is twice as big a part of the [stock] market as the general retail sector".

Mining? - Yes, because the mining companies with listings in London are mining for all sorts of stuff all round the world.

Hence, FTSE does not necessarily correlate with UK business environment.

With interest rates this low it begs the question "Why aren't British companies doing better?"

Many companies have used the low interest rates to pay off debt.There are now rumours of buy back schemes for 2006.Investors are being tempted back in.

All just my opinion,DYOR.

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I recently saw one of the market commentators on one of the news programs say his performance predictions for the FTSE were way out as he had assumed a link betwen the UK economy and the UK stock market.

It would be an interesting scenario to have the country in virtual recession and the stock market flying

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I don't understand why the FTSE is going so high? I know some companies are doing great, and there are alot of take overs... but...

Would anyone like to explain this?

The money that was in shares up until 2000 and ploughed into the greedy returns offered by the housing market has moved back into shares - but now the economy is so ladened with debt that it's going to affect the companies these people have invested in the past - but they blindly ignore this because, from their recent experiences, share values have always risen above the rate of inflation

...hence the move into gold and silver by the 'smart' money - it'll sort out the 'real' investors from the 'casual' investors

Edited by dnd

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Such short memories, no wonder the same mistakes are made over & over again.

FTSE currently 5,711 with the highest recorded was 30th December 1999 when it reached 6930.2 points .Still a long way off it's highest.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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