• About Us
  • Contact Us
  • Write For Us
SMYE HOLLAND NEWS
  • Home
  • Business
  • Health
  • Lifestyle
  • Technology
  • Sports
  • Travel
  • News
  • Write For Us
No Result
View All Result
  • Home
  • Business
  • Health
  • Lifestyle
  • Technology
  • Sports
  • Travel
  • News
  • Write For Us
No Result
View All Result
Smye Holland Associates
No Result
View All Result
Home Business

Only 5 Ibex Firms Have Not Recovered Brexit Levels

admin by admin
June 22, 2021
in Business
0
Only 5 Ibex Firms Have Not Recovered Brexit Levels
0
SHARES
10
VIEWS
Share on FacebookShare on Twitter

It rains in London. It has rained a lot five years after the British, on June 24, 2016, went to the polls to decide that their relationship with the European Union had ended and that they preferred to continue alone, in addition to bilateral agreements with the rest of the economies worldwide.

The market expected and desired a different result to the one that finally occurred and hence the collapse that the European stock markets suffered that Friday.

Especially accused was the one that suffered the Ibex 35 itself as it was one of the trading floors most dependent on trade and mobility flows with the British Isles. In fact, the United Kingdom is the third most important country for the income of the national indicator, where they receive 6.9% of the total , only behind the United States and Spain itself, according to data collected by FactSet.

The national benchmark fell that day by 12% , being until then the most bearish session in the history of the index, even ahead of the bankruptcy of Lehman Brothers in 2008 when it lost 9%. Until March 12 of last year arrived and the panic over the pandemic overcame it, with a goring of more than 14%.

“One thing is the stock market reaction and another is the real impact on the economy,” says Ignacio Cantos, from Atl Capital. “Stock markets react downward to unexpected events, and this was very unexpected, as was also the case with Trump’s victory that same year. It generated uncertainty and that is why it traded like that,” he adds.

Since then, the Ibex has suffered many ups and downs, especially as a result of Covid-19, and is 3.8% above the levels prior to the referendum, so it can be concluded that the effect of the break with the United Kingdom has been muffled.

However, there are five index values ​​that are trading below that date (although they have recovered those previous prices at some point during the last five years). They are Banco Sabadell, Telefónica, IAG, Meliá and Indra.

The Catalan bank has been hit the hardest by investors since then. The endemic problems in the financial sector in recent years (zero-rate environment and low yields) have been compounded by Sabadell’s greater exposure to the British market and to the pound through its subsidiary TSB. In fact, 18% of their income comes from the islands . Although their stocks have returned to pre-Brexit levels at some point in these five years, their value has fallen by half since then.

The next most penalized company in the Spanish market has been Telefónica, with 38%. Like Sabadell, through O2 it has had exposure to the British market of around 15% of its income .

Meliá and IAG have also lost more than 30% since then, although their decreases have also been strongly justified by Covid. However, the depreciation of the pound played, a priori, against the purchasing power of the British in Spain. “However, in 2019 Spain set a record number of tourists,” recalls Cantos.

Five years of Brexit: the catastrophists were wrong
Lastly, Indra. The technology company, despite having only 2.5% of its business in the British Isles, has lost more than 20% in the last five years. However, this decline is more attributable to Covid, since in February of last year it was trading above pre-Brexit prices.

From Vontobel, Ludovic Colin believes that · a discount is being paid for the United Kingdom. The pound is undervalued, so is the FTSE, as are some credit spreads, relative to their counterparts in Europe.

Probably this discount is not large enough to pay for long-term risks, but I do believe that there is still a short-term opportunity in its stock market, “he concludes. In this sense, the British currency accumulates a depreciation of almost 11% against the euro since the day before the vote Beyond this, in London it continues to rain.

admin

admin

Related Posts

When sourcing product or labour overseas, what criteria should be considered?
Business

When sourcing product or labour overseas, what criteria should be considered?

May 23, 2022
How To Promote Your Content Writing Services Via Social Media?
Business

How To Promote Your Content Writing Services Via Social Media?

May 23, 2022
Gojek Clone: Build Your Multi-Service Business With 82 Different Type Of Services
Business

Gojek Clone: Build Your Multi-Service Business With 82 Different Type Of Services

May 9, 2022
Next Post
First Steps In Case Of Suspected Infertility

First Steps In Case Of Suspected Infertility

The Value Of Investing In The Best Business Trends For Your Industry

The Value Of Investing In The Best Business Trends For Your Industry

A Material With Hair Conditioner That Traps Aerosols That Bounce Off Walls

A Material With Hair Conditioner That Traps Aerosols That Bounce Off Walls

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

  • 52.2M Fans
  • 111 Followers
  • 51k Followers
  • 156k Subscribers

Recommended

The Small Tablet With Android To Watch Netflix

The Small Tablet With Android To Watch Netflix

11 months ago
Biden Administration Files Complaint Against A Former Trump Collaborator For Tax Evasion

Biden Administration Files Complaint Against A Former Trump Collaborator For Tax Evasion

1 year ago
Cryptocurrencies Must Be Declared In Personal Income Tax

Cryptocurrencies Must Be Declared In Personal Income Tax

1 year ago
Covid Patients In Ucis Drop For The First Time In Fifth Wave

Covid Patients In Ucis Drop For The First Time In Fifth Wave

10 months ago

Instagram

    Please install/update and activate JNews Instagram plugin.

Categories

  • Business
  • Education
  • Finance
  • Food & Drinks
  • Health
  • Home Improvement
  • Lifestyle
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Technology
  • Travel
  • World

Topics

Alex Syrov Attorney Marc Randazza become leaner content writing Corrupt Attorney Marc Randazza Don Juravin Dwight Schar Dwight Schar Victims exercise Florida luggage stores get fit Gojek Clone google reviews healthy eating HMO Property Designs insurance agent jewellery jewlery luggage stores Marc Randazza multi-service business Neil Debenham on-line videos overseas labour Paul Simonson PissedConsumer Randall Greene Randazza Legal Group real turquoise Spencer Schar Squarespace youtube
No Result
View All Result

Highlights

The Importance Of Hiring Crowd Control Services- Points To Note

What Should You Know About Material Takeoffs?

5 POWERFUL TIPS TO TAKE CARE OF YOUR MENTAL HEALTH

5 Tips on Incorporating A Keto Inspired Diet

Renovating Your Home in 2022: Things to Know

The Best Way to See the Monaco Grand Prix

Trending

When sourcing product or labour overseas, what criteria should be considered?
Business

When sourcing product or labour overseas, what criteria should be considered?

by Richard Seargent
May 23, 2022
0

It`s clean to oversimplify the variations among sourcing for elements regionally or the world over. When thinking...

How To Promote Your Content Writing Services Via Social Media?

How To Promote Your Content Writing Services Via Social Media?

May 23, 2022
What is the Future of Mobile Gaming?

What is the Future of Mobile Gaming?

May 23, 2022
The Importance Of Hiring Crowd Control Services- Points To Note

The Importance Of Hiring Crowd Control Services- Points To Note

May 23, 2022
What Should You Know About Material Takeoffs?

What Should You Know About Material Takeoffs?

May 23, 2022

Smye Holland Associates




We bring you the best and latest news from around the world.

LEARN MORE »





Recent News

  • When sourcing product or labour overseas, what criteria should be considered? May 23, 2022
  • How To Promote Your Content Writing Services Via Social Media? May 23, 2022
  • What is the Future of Mobile Gaming? May 20, 2022

Categories

  • Business
  • Education
  • Finance
  • Food & Drinks
  • Health
  • Home Improvement
  • Lifestyle
  • National
  • News
  • Opinion
  • Politics
  • Sports
  • Technology
  • Travel
  • World

[mc4wp_form]

© 2018 JNews - City News Magazine WordPress theme. All rights belong to their respective owners.
JNews is a top selling 2018 WordPress News, Blog, Newspaper & Magazine Theme.

No Result
View All Result
  • Politics
  • Technology
  • Business
  • Health
  • National
  • Sports
  • Lifestyle
  • World
  • Opinion

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.