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trompe le monde

R4 Today Program 27/02/06 - Questionable Comments On Interest Rates

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http://www.bbc.co.uk/radio4/today/listenagain/

Check out the 7:21am business slot for Monday 27th Feb.

You'd expect the Chairman of this construction business to be talking up his business - if I was a shareholder, I'd expect nothing less. However, his comments on effects of possible rises to interest rates seem irresponsible at best, and the BBC interviewer not challenging any of his comments amount IMO to a dereliction of duty, especially as the programme begins with the assumption of a downturn in house prices.

Anyone got info on Persimmon?

Think I may e-mail the programme producers to this effect.

TLM

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http://www.bbc.co.uk/radio4/today/listenagain/

Check out the 7:21am business slot for Monday 27th Feb.

You'd expect the Chairman of this construction business to be talking up his business - if I was a shareholder, I'd expect nothing less. However, his comments on effects of possible rises to interest rates seem irresponsible at best, and the BBC interviewer not challenging any of his comments amount IMO to a dereliction of duty, especially as the programme begins with the assumption of a downturn in house prices.

Anyone got info on Persimmon?

Think I may e-mail the programme producers to this effect.

TLM

Hi,

I have to say it, persimmon have been a heavy share tip for a good year or two. I've stayed away from residential property shares so I didn't pay much attention, I think if you go on several popular online share dealers, you'll get the low down on their above market performance (it was maybe sharecast or digitallook that were tipping them heavily a while back - that would be a good source to start because I can't remember why they were a hotstock).

Boomer

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Hi,

I have to say it, persimmon have been a heavy share tip for a good year or two. I've stayed away from residential property shares so I didn't pay much attention, I think if you go on several popular online share dealers, you'll get the low down on their above market performance (it was maybe sharecast or digitallook that were tipping them heavily a while back - that would be a good source to start because I can't remember why they were a hotstock).

Boomer

Thanks Boomer, will check them out - don't think I'll be buying at the moment, though....

I've sent the following to the beeb; I'll get back with any replies....

Sir/madam

Re: Today Programme 27/02/06 7:21am business slot

The slot began with a general statement of the downturn in housing prices, though the company Persimmon had bucked the trend and made profits during 2005.

The Chairman of Persimmon, quite reasonably was very positive about his business, if I was a shareholder in his company, I would expect no less from him.

However, his comments went completely unchallenged by Greg wood. The most obvious was the interviewer's request for an opinion on the impact of an interest rate rise. The reply that a 0.5% increase would have little impact on the markets while interest rates were so low, seemed, to me, to be highly irresponsible. Obviously when rates are low, any increase will have a correspondingly higher impact. This is happening in a current environment where credit in the secured and unsecured markets is stretched to the absolute limit - the fact that banks are now beginning to announce losses due to bad debts, whilst reigning in their borrowing is a clear sign. It is also clear, as reported by the BBC that general bankruptcy and applications for IVAs are soaring. The Chairman is obviously entitled to his opinion, but I believe that the BBC was derelict in it's duty in not challenging some of these comments, and this comment on interest rates in particular. I would be interested to know whether any member of the production team has an interest in Persimmon, or holds stock in this company.

TLM

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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