Friday, 5 August 2016

FTSE 100 hits one-year high and FTSE 250 erases post-Brexit losses as UK economy grows by 0.6pc

Data collected during the referendum campaign, before the day of the vote, suggested “break-even” of the UK economy in 2016Q2 (0.6% growth, compared to 0.4% for 2016Q1).

Publication of the data resulted in the overly-emotional speculators of the FTSE100 and FTSE250 ploughing back into buying UK shares and pushing the indicies up to a level which enables a hyperbolic headline from the pro-Brexit Telegraph.

I’m guessing that this is the economic collapse that OsBo, Carno, the IMF, Obama, Miliband and all other Remainiac establishment lackeys promised.

Amazingly, the article lists out quite a few people who comment that Brexit has apparently changed nothing.  Even the Office of National Statistics commented that there was insufficient evidence to conclude that “jitters” about the vote’s outcome had hurt activity.

The BBC reported that manufacturing output grew, too.  Comment from its economics editor was more gloomy than that of the Telegraph - to be expected, because the BBC is a Remainiac institution - but there are nevertheless still fundamental structural issues within the UK economy, which the UK has repeatedly chosen not to address.  And monetary policy is still set to sabotage sustainable longer-term investment activity.

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