David Buik, Senior Market Commentator for Panmure Gordon, joined Nick Batsford and Zak Mir on the Tip TV Finance Show to discuss the current Macro outlook, zooming in on the Fed decision last week, the emissions scandal with VW, and Osbourne’s case for the nuclear project in Somerset.
Fed creating uncertainty and nervousness
Buik decided that the Fed just got silly, and though he recognised that the Federal Reserve have a horrible job and that he understands the use of forward guidance, he concluded they have only created uncertainty and nervousness. He added that the Fed is rattling the US economy’s cage. He moved on to Yellen, and questioned why she doesn’t stand up on behalf of the Fed and make the decision clear, he emphasises that it doesn’t matter if the Federal Reserve raised rates and it failed, as they could always lower interest rates come January.
VW emissions scandal terrible
Buik highlighted the current emissions scandal, and noted the 3.2% of Volkswagen (LONDON:0P6N)’s business is irrelevant compared to China which takes 40% of the business, which is very important.
Method to Osbourne’s madness?
Buik outlined the Osbourne’s case for the nuclear development in Somerset, and argued that this may bring the benefit of a possible correlation between the Shanghai Stock Exchange and the London Stock Exchange. This could see Chinese banks opening serious offices over here, according to Buik, and he noted it won’t be plain sailing, but concluded that this news is great for London.