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U K Homebuilders Likely To Avoid U S-type Crash, Merrill Says

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Guest wrongmove

U.K. Homebuilders Likely to Avoid U.S.-Type Crash, Merrill Says

" May 24 (Bloomberg) -- Barratt Developments Plc, Persimmon Plc and other U.K. homebuilders are unlikely to suffer from a U.S.-style property slump or a slowdown similar to Spain, Merrill Lynch & Co. said.

An undersupply of homes in Britain, interest rates that are close to peaking and mergers and acquisitions will buoy the industry and make comparisons of the U.K. with the housing slowdown elsewhere invalid, Merrill said in a note today.

``We remain convinced that the U.K. housing market will remain broadly stable and resilient,'' said London-based analyst Mark Hake. ``Not booming, but not correcting sharply either.''

The Bank of England's interest rate increases in August, November and January have so far failed to curb inflation. Average house prices surged 11.1 percent in the first quarter, the most in two years. Limits on land use contributed to the smallest increase in housing completions in England last year since 2001, exacerbating a shortage and pushing up prices.

Merrill has ``buy'' ratings on the U.K.'s five biggest homebuilders by market value: Persimmon, Barratt, Taylor Woodrow Plc, George Wimpey Plc and Bellway Plc. ....."

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interest rates that are close to peaking

followed by

The Bank of England's interest rate increases in August, November and January have so far failed to curb inflation.

Doublethink.

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An undersupply of homes in Britain, interest rates that are close to peaking and mergers and acquisitions will buoy the industry and make comparisons of the U.K. with the housing slowdown elsewhere invalid, Merrill said in a note today.

...

Merrill has ``buy'' ratings on the U.K.'s five biggest homebuilders by market value: Persimmon, Barratt, Taylor Woodrow Plc, George Wimpey Plc and Bellway Plc. ....."

If the reason was not utter delusion, it would be close to criminal to make these statements.

Edited by Goldfinger

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http://www.ifaonline.co.uk/public/showPage...PageName=447976

Speaking at the Building Association Society (BAS) annual conference today, Briault also says it is “vitally important” firms recognise the parallels between the sub-prime markets in the UK and US.

US=UK

Crash in US

Crash here, very soon.

Edited by Realistbear

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It's unbelievable that these muppets get paid several hundred k per year for producing such rubbish. I remember having an interview at a major City bank for an equity analyst position in early 2000. The guy interviewing me was a media analyst and asked me what I thought of internet stocks. I told him they were worthless mostly and their business models didn't stack up.

He got rather pissed off and pretty muc drew the interview to a close. Needless to say I didn't get the job, but I always hoped he lost his too in the crash that followed. :P

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It's unbelievable that these muppets get paid several hundred k per year for producing such rubbish. I remember having an interview at a major City bank for an equity analyst position in early 2000. The guy interviewing me was a media analyst and asked me what I thought of internet stocks. I told him they were worthless mostly and their business models didn't stack up.

He got rather pissed off and pretty muc drew the interview to a close. Needless to say I didn't get the job, but I always hoped he lost his too in the crash that followed. :P

That's a really good story!

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It's unbelievable that these muppets get paid several hundred k per year for producing such rubbish. I remember having an interview at a major City bank for an equity analyst position in early 2000. The guy interviewing me was a media analyst and asked me what I thought of internet stocks. I told him they were worthless mostly and their business models didn't stack up.

He got rather pissed off and pretty muc drew the interview to a close. Needless to say I didn't get the job, but I always hoped he lost his too in the crash that followed. :P

Heh heh. Reminds me of an interview I had years ago at Pfizer when I reminded the backslappy HR drone that if it wasn't for an undocumented side-effect of an uneffective blood pressure drug* the company would have been fscked.

* Viagra

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It's unbelievable that these muppets get paid several hundred k per year for producing such rubbish. I remember having an interview at a major City bank for an equity analyst position in early 2000. The guy interviewing me was a media analyst and asked me what I thought of internet stocks. I told him they were worthless mostly and their business models didn't stack up.

He got rather pissed off and pretty muc drew the interview to a close. Needless to say I didn't get the job, but I always hoped he lost his too in the crash that followed. :P

I worked as a temp at boo.com back in their "heyday"

I remember people telling me what a great company they were, and how they were the future. I remember being laughed at for saying I couldn't see where the money was coming from, and it was clearly just being pissed away.

Then later I worked in online gambling, and I remember thinking that couldn't last... can't always be right.

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Guest Shedfish
An undersupply of homes in Britain, interest rates that are close to peaking and mergers and acquisitions will buoy the industry and make comparisons of the U.K. with the housing slowdown elsewhere invalid, Merrill said in a note today.

they would say that- if anything else but exactly that were to happen they'd all be out of a (non) job

they certainly can't go round saying (for example)

- a glut of M&A is always the sign of a top in anything

- 35% of flats in liverpool are unoccupied

- soft landings never happen, as the same forces that drive things up drive them down again just as fast when they engage reverse

- Greenspan has been making sense of late

etc.

in stead of all these 'financial services' 'adding value' (i.e. subtracting money) i think i'd like to see people making tangible goods again. houses for example. lots

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An undersupply of homes in Britain, interest rates that are close to peaking and mergers and acquisitions will buoy the industry and make comparisons of the U.K. with the housing slowdown elsewhere invalid, Merrill said in a note today.

The current housebuilder M&A fetish is more about increasing efficiencies and reducing build rates rather than increasing them.

The mid/long term forecasts being fed to subcontractors and suppliers by the majors suggest a fairly significant reduction in build rate is planned directly opposite to stated government policy and forecasts of increasing build rates...

Nice to see Merrill are still as out of touch as ever.

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I worked as a temp at boo.com back in their "heyday"

I remember people telling me what a great company they were, and how they were the future. I remember being laughed at for saying I couldn't see where the money was coming from, and it was clearly just being pissed away.

...

Ah, Enron in all but name!

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