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19 May 2014
UK housing sector, a challenge for the BoE? - Investec
FXStreet (Barcelona) - Jonathan Pryor, Corporate Treasury Analyst at Investec, notes the BoE will be closely watching the developments in the housing sector.
Key Quotes
"The big story over the weekend was Pfizer’s renewed £69bn bid for AstraZeneca which would create the world’s largest pharmaceutical company if it goes ahead. It remains to be seen how many overtures the UK giant can resist from its American rival and as it stands, the FX markets are yet to factor in a takeover that seems increasingly likely as GBPUSD opened where we left it on Friday."
"In other UK news, the rapid growth of the housing market is some cause for concern for market commentators who await to see how the Bank of England will look to take the steam out of the housing sector. BoE Governor Mark Carney, speaking to Sky news over the weekend, talked of ‘deep, deep’ structural problems in the sector and his concern that the BoE itself couldn’t build more houses. He again indicated the BoE would do what it could from its end, via the Financial Policy Committee, with adjustments to lending standards and loan limits on income mentioned."
Key Quotes
"The big story over the weekend was Pfizer’s renewed £69bn bid for AstraZeneca which would create the world’s largest pharmaceutical company if it goes ahead. It remains to be seen how many overtures the UK giant can resist from its American rival and as it stands, the FX markets are yet to factor in a takeover that seems increasingly likely as GBPUSD opened where we left it on Friday."
"In other UK news, the rapid growth of the housing market is some cause for concern for market commentators who await to see how the Bank of England will look to take the steam out of the housing sector. BoE Governor Mark Carney, speaking to Sky news over the weekend, talked of ‘deep, deep’ structural problems in the sector and his concern that the BoE itself couldn’t build more houses. He again indicated the BoE would do what it could from its end, via the Financial Policy Committee, with adjustments to lending standards and loan limits on income mentioned."