Strong FTSE, strong UK? Not necessarily: CNBC’s UK Exchange newsletter

Footsie has left its comparison twice in 2016 and 2022 since the explosion of the global financial crisis 18 years ago. This reflects not only the dynamism and growth potential of the technology sector’s components, but also the perceptions of the feet in high -circular sectors such as financial and consumer staples by many investors and in high -circular sectors such as defense sectors and energy and mining.

Accordingly, even after the last performance, while still sitting on a price/earnings above the average long-term 15, the S&P is traded on the floor of the 30th week.

These ratings reflect many different factors that direct returns. While capital discretion has exceeded two -thirds of the total return of S&P over the years, the roughly half of the total return of the feet came from dividends.

It is pronounced that the UK investors are regularly connected to dividends that are underestimated as ‘coupon clipping’.

Last week, Footsie’s robust show was for reasons similar to other rallies in other places: the relief in the United States proved that something similar to Japan and the European Union could be achieved, at least when it comes to European stock markets.

However, there are other factors in 2025.

Footsie’s heavy gears for defense stocks, investors played a good shelter of Trump -based volatility this year. In addition, there are many anecdote evidence that some investors benefit from the fields outside the United States – especially in the first four months of the year, especially in the Wall Street Journal ‘IBUSA (any place outside the US) trade’ is a summarized.

And for individual sectors, most importantly, defense has been a significant increase following the commitments of a number of Western government to increase defense expenditures.

Rolls-RoyceThe aircraft engine manufacturer, an important defense business, has seen that their shares have increased by 75% so far. UAE SystemsEngland’s largest defense contractor has increased by 59% since the beginning of the year. The couple is currently the sixth and 11th largest company in the index.

The day Footsie hit the last record last week, certain elements, strong earnings updates from a number of components, most importantly ObsceneHousehold Products Group; Howden JoineryKitchen and Joinery Supplier and Lloyds Banking Group.

Even CT, which is a series of disappointment, rose sharply after three months of results. That day, at the same time, the pound saw a decrease-Footsie components, a factor that benefits the index because they maintain four-fifth of their earnings abroad as US dollar and euro.

This was a point that was not greatly appreciated by some investors until the EU voted on June 23, 2016, and the Pound fell 10% against Greenback within a few hours.

Initially, his feet fell sharply in accordance with other UK beings. However, since the index was walking and a week after the referendum, a weaker pound was 2.6% higher than the referendum.

And this leads to the most important reality lost in many ordinary British investors. Footsie is generally perceived as the barometer of economic and absolutely corporate health.

With the beginning of globalization – this, of course, before the fall of the Berlin Wall – even the financial services companies on the feet, the commercial union of the insurance companies and the general accident (now both are part of the Aviva group), the Royal Bank Bank, the HSBC and now the HISBC (now a part of the HSBC) and now focused on a large extent (now the HSBC). It was the most closely related activities.

At birth, it included only a handful of companies, including a pair of HarrisonS & Crosfield, founded in South Africa in 1887, including a couple returning to the former British Empire, including a pair of expert chemical facilities established by HarrisonS & Crosfield and later with the best Malaysia detection.

Later, globalization came and a series of public offering of a series of foreign companies, especially from South Africa, who wanted to touch the more liquid capital markets of London, came.

Footsie, focused on internationally, is no different from the DAX-40, which has become four-fifth of its members from outside Germany or CAC-40 from the CAC-40, and its founders make about three quarters of their earnings from outside France.

However, it should not be taken as a barometer of corporate Britain’s health – but well, it makes some feel when it reaches new peaks.

– Ian King

Natwest Chief Finance Manager Katie Murray is discussing British Bank’s earnings, stock renovation and the current British economic picture.

Silvia Amaro of CNBC reported that European leaders expressed their frustrations with the conditions of the US-EU trade agreement and the pressure on the block economy.

Storm Uru, a Lontust Asset Management Fon Manager, discusses its latest technology gains and explains some of the company’s opposing calls on seven magnificent.

– Sophie Kiderlin