David Buik, Senior Market Commentator for Panmure Gordon, joined Zak Mir and Alan Green on the Tip TV Finance Show to discuss the Chinese President Xi’s visit to the UK, and the situation concerning Carney and a Brexit.
UK too far behind the curve – China vital as a trading partner
Buik noted the arrival of Chinese President Xi, and was quick to highlight the importance of China as a trading partner as it is the 2nd largest economy in the world. He then commented on the UK economy, and outlined human capital as a problem in our developing economy. Buik believed that the writing has been on the wall and that the government have had time to retrain and develop workers skills into the 21st century, but instead we are largely behind the curve. He finished my expressing that 40% of the UK’s resources were put into the EU and the result has been largely counter-productive.
Buik urged the importance for the UK to take advantage of the available trading partners, and he highlighted China and the Commonwealth as key areas to develop trading with.
Brexit – what are the chances?
Buik outlined that he expects Carney to dramatize the situation concerning Britain leaving the EU. Buik himself urged that leaving the Union isn’t death and destruction, and the government would be able to deal with a Brexit positively. He highlighted that the BoE needs to have a contingency plan, which Carney doesn’t want to do, Buik commented that he would prefer to keep the status quo before he leaves 2 years down the line.