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UK Export Partners
Positive for Investment Growth (SWOT)
Negative for Investment Growth (SWOT)
Industry & Commodity Exports
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When local governments provide a favorable economic environment, the demand and value of their currencies will also increase. WikiWealth's Fundamental Currency Analysis is a combination of four different valuation methods: investment flows, purchase price parity, interest rate parity, and inflation rate parity (see Fundamental Currency Analysis). WikiWealth, and website visitors, examine the conditions for companies to prosper through the "Investor Survey." Countries with strong fundamental freedom, transparency, stability, strengths & opportunities (see Main Street Analysis), will aid the long term potential of companies. A "Buy" rating from both approaches mean a country's currency has high potential to increase in value.
UK Summary
UK Country Analysis ► (edit / improve) The UK (GBP) has a highly productive, capitalist economy with a strong financial services industry. Currency: The British Pound is slightly overvalued on a global basis. The purchase price parity indicates that the British Pound should fall in value over time. Investor Survey: The UK’s economic environment is very favorable for long term economic growth due to high scores on economic freedom, government transparency, and economic diversity. Trade: Belgium, India, the EU, Netherlands, and France are the top export partners, while the leading industry is financial services. Commodity: The UK produces a significant amount of natural gas and imports of cocoa for domestic consumption. SWOT Analysis: The leading UK strength is the London Stock Exchange, which aids the financial services industry. The main weaknesses include high consumer and fiscal deficits. Trading Strategy: An overvalued currency, moderate investment flow potential and very favorable business environment leads to a neutral outlook for UK investments.
Investment Impacts (help)
European Union Country Analysis ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. Currency: The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity. Investor Survey: the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. Trade: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. Commodity: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. Trading Strategy: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.
The European Union is the UK's biggest trading partner because of its proximity and integration with the UK's economy.
Financial Industry Analysis ► (edit / improve) The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, wealth management, and credit card companies. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis is also a Hold, with SWOT strengths much great than weaknesses, but SWOT opportunities less than threats. Trade: Some of the main centers for financial innovation include the US, Switzerland, the EU, Netherlands, Australia, Hong Kong, and Japan. Trading Strategy: The financial industry is sensitive to economic cycles. However, financial service companies increase quickly out of recessions, because interest rates tend to be low. Look for undervalued financial investments during economic recessions when stock prices are low and sell financial investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase financial investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
The UK's financial system is very advanced. It has a strong global currency trading ability and it serves as the New York equivalent for main land Europe.
Natural Gas Commodity Analysis ► (edit / improve) Natural gas is a significant fuel source used to produce electricity in the world. It primarily consists of methane gas. Commodity: Natural is rated a hold. Natural gas demanders have a high potential to increase in value, while natural gas suppliers also have high potential in increase in value. Investor Survey: Natural gas’s long term growth potential is favorable due to high scores on difficulty to expand in the short term and sensitivity to price changes. SWOT Analysis: Strength: Natural gas is a cheap fuel source, especially in the US; Weakness: natural gas produces considerable pollution. Opportunity to grow: natural gas could produce hydrogen fuel, which is a substitute for gas in cars; Threats to growth: alternative forms of clean energy may compete with natural gas. Trading Strategy: The commodity analysis hold rating indicates that natural gas should stay the same price over the short term, whereas a moderately favorable investor survey means natural gas should increase in price over the long term.
Natural Gas is the UK's most significant energy source, however, their supply of natural gas is quickly running out. Without a quick replacement, they could become dependent on volatile Russian gas supplies.
Major UK Trade Partners ► Press "Edit / Improve"
European Union Country Analysis ► (edit / improve) The European Union (EUR) is a single market and currency group of countries, which creates one of the largest and most diverse markets in the world. Currency: The EUR is fairly valued versus other major global currencies. They have a positive investment flow and negative purchase price parity. Investor Survey: the economic environment is favorable for long term economic growth due to favorable scores on government transparency and SWOT opportunities. Trade: Belgium, Hungary, China, Saudi Arabia, Russia, China, Norway and Japan are the top trading partners. Commodity: The EU does not produce many commodities, but they import many energy-related commodities from Russia and the Middle East. SWOT Analysis: The leading EU strength is their single currency and internal market, while the main weaknesses include a declining birth rate, labor restrictions and language barriers. New energy proposals have the opportunity to propel growth; there were no major threats to report. Trading Strategy: A moderately-valued currency, high investment flow potential, but low purchase price potential and negative SWOT weaknesses lead to a slightly negative outlook for EU investments.
USA Country Analysis ► (edit / improve) The United States (US) has a highly productive, capitalist economy and is the largest and most diverse market in the world. Currency: the US dollar (USD) has the potential to increase in value especially versus the Australian and Canadian dollar because of the significant potential of undervalued companies. Investor Survey: the economic environment is very favorable for long term economic growth due to high scores on economic freedom and economic diversity. Trade: China, Japan, Mexico, and Canada are the top US trading partners, while the leading export and import are electrical machinery and vehicles, respectively. Commodity: The US produces a significant amount of coal and wheat for use at home and as an export. However, the US consumes a larger amount of oil, which contributes to their trade deficit. SWOT Analysis: The leading US strength is its entrepreneurial culture, while the main weakness is high health care cost. Energy independence has the opportunity to propel growth, while the major threat is the housing crisis, which will lower growth. Trading Strategy: An undervalued currency, high investment flow potential and favorable business environment lead to a positive outlook for US investments, which will also benefit from positive international actions.
Germany Country Analysis ► (edit / improve) Germany (EUR) is the largest economy in Europe and relies on a strong and sophisticated industrial base to drive their exports. Currency: Germany is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: Germany’s economic environment is favorable for long term economic growth due to high scores on economic freedom, economic diversity, and government transparency. Trade: The UK, France, and USA are the top export partners, while the leading export industry is industrial goods. Commodity: Germany imports many commodities to feed its industrial base: crude oil, coal, copper, aluminum, lead, zinc, and natural gas. SWOT Analysis: The leading German strength is their engineering expertise, while the main weakness is their declining birth rate. Trading Strategy: An overvalued currency, moderate investment flow potential and favorable business environment lead to a slightly positive outlook for German investments.
France Country Analysis ► (edit / improve) France (EUR) has a capitalist economy with significant government intervention. Currency: France is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: France’s the economic environment is moderate for long term economic growth due to high scores on government transparency, but low scores on economic diversity. Trade: Finland, Belgium, the UK, Germany, and Italy are the top export partners, while a significant import is uranium. Commodity: Uranium powers France’s nuclear energy industry. SWOT Analysis: The leading French strength is their nuclear energy experience, while the main weakness is a declining birth rate. Trading Strategy: An overvalued currency, moderate investment flow potential and moderate business environment lead to a slightly negative outlook for French investments.
Netherlands Country Analysis ► (edit / improve) The Netherlands (EUR) has an open, capitalist economy with a flexible labor market. Currency: The Netherlands is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity analysis. Investor Survey: The Netherlands’ economic environment is very favorable for long term economic growth due to high scores on government transparency, economic diversity, and the SWOT analysis. Trade: Finland, Belgium, France, Germany and USA are the Netherlands' top export partners, while the leading industry is financial services. SWOT Analysis: The leading Dutch strength is their flexible labor market, while a potential weakness is judicial corruption. A major threat to long-term economic growth is global warming, which could trigger rising sea levels that could flood much of the country. Trading Strategy: An overvalued currency, low investment flow potential, but very favorable business environment leads to a neutral outlook for Dutch investments.
Belgium Country Analysis ► (edit / improve) Belgium (EUR), part of the European Union, is a capitalist economy with a large service industry. Currency: Belgium is part of the Euro economic zone, whose currency has the potential to decrease in value on a global scale per the purchase price parity. Investor Survey: the economic environment is very favorable for long term economic growth, due to high scores on economic diversity and SWOT strengths. Trade: Finland, UK, Netherlands, France and Germany are the top trading partners. Belgium’s economy has a strong focus on the industrial sector. Commodity: Belgium does a large trade in diamonds. SWOT Analysis: European membership is Belgium’s most significant SWOT strength. Trading Strategy: An overvalued currency, low investment flow potential, but very favorable business environment leads to a neutral outlook for Belgium's investments.
Major UK Production ► Press "Edit / Improve"
Major UK Consumption ► Press "Edit / Improve"
Natural Gas Commodity Analysis ► (edit / improve) Natural gas is a significant fuel source used to produce electricity in the world. It primarily consists of methane gas. Commodity: Natural is rated a hold. Natural gas demanders have a high potential to increase in value, while natural gas suppliers also have high potential in increase in value. Investor Survey: Natural gas’s long term growth potential is favorable due to high scores on difficulty to expand in the short term and sensitivity to price changes. SWOT Analysis: Strength: Natural gas is a cheap fuel source, especially in the US; Weakness: natural gas produces considerable pollution. Opportunity to grow: natural gas could produce hydrogen fuel, which is a substitute for gas in cars; Threats to growth: alternative forms of clean energy may compete with natural gas. Trading Strategy: The commodity analysis hold rating indicates that natural gas should stay the same price over the short term, whereas a moderately favorable investor survey means natural gas should increase in price over the long term.
Cocoa Commodity Analysis ► (edit / improve) Cocoa is the seed from which chocolate is made. Commodity: Cocoa is rated a Hold. Cocoa demanders have an average potential to increase in value. Unfortunately, there is not enough information to find the potential for cocoa suppliers. Investor Survey: Cocoa’s long term growth potential is moderately favorable due to high scores on sensitivity to price changes, short supply and substitute products. SWOT Analysis: Strength: Cocoa has many uses, such as a moisturizer in cocoa butter; Weakness: cocoa has fluctuating farming cost that has increased over time. Opportunity to grow: the consumption of cocoa could increase as the world’s population increases; Threats to growth: global warming could hurt cocoa production in the future. Trading Strategy: The commodity analysis hold rating indicates that cocoa should stay the same price over the short term, whereas a moderately favorable investor survey means cocoa should increase in price over the long term.
Important UK Industries ► Press "Edit / Improve"
Financial Industry Analysis ► (edit / improve) The financial services industry includes companies whose sales come from the management of money for individuals and institutions. Financial services companies include banks, insurance companies, brokerage, wealth management, and credit card companies. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis is also a Hold, with SWOT strengths much great than weaknesses, but SWOT opportunities less than threats. Trade: Some of the main centers for financial innovation include the US, Switzerland, the EU, Netherlands, Australia, Hong Kong, and Japan. Trading Strategy: The financial industry is sensitive to economic cycles. However, financial service companies increase quickly out of recessions, because interest rates tend to be low. Look for undervalued financial investments during economic recessions when stock prices are low and sell financial investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase financial investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Discretionary Industry Analysis ► (edit / improve) The consumer discretionary industry includes companies whose sales come from consumer discretionary income purchases. Discretionary income = gross income less taxes and necessities such as rent, mortgage and food. Valuation: Based on WikiWealth's Wall Street analysis, this industry is a Hold. The Main Street analysis says a Buy, with SWOT strengths great than weaknesses and SWOT opportunities greater than threats. Trade: Some of the main trade hubs include China, Mexico, Germany and Japan, while the main discretionary commodities include gold, silver, platinum and diamonds. Trading Strategy: The consumer discretionary industry tends to be very sensitive to economic cycles. Look for undervalued discretionary investments during economic recessions when stock prices are low and sell discretionary investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase consumer discretionary investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
