David Buik, Senior Market Commentator for Panmure Gordon, joined Zak Mir and Alan Green on the Tip TV Finance Show to discuss the UK economy, specialising on housing and the banking sector.
Key Points:
Buik noted that the ECB are expected to announce 60 billion worth of extra QE and stimulus packages, plus a 10 basis point cut in rates.
He also commented that retail stocks and healthcare didn’t perform as well as expected on Black Friday.
Indices are overvalued, and Buik doesn’t think the FTSE 100 should go any higher.
He moved to the UK banks, where all banks passed the recent stress test, with Standard Chartered (L:STAN) passing but requiring to acquire further tier one capital.
Buik outlined how Carney expressed worry that the buy-to-let market was getting out of hand, and that no UK banks are participating in M&A.
He continued that stamp duty was not helping people – and in the centre of London business has fallen 19%, with very little business being above £2 million.
Buik highlighted the planned building of 400’000 new houses, and he concluded that they will be too expensive to solve the current housing crisis in the UK.