Investors – including Warren Buffett – business owners and financial analysts are united in their optimism for Brexit UK. Global funds are buying up British stocks more than elsewhere. The LSE’s profits are up and the construction sector is booming.
Reuters – UK construction buoyed by house-building: surveys
Builders registered 37,672 new homes for warranties and insurance with the National House-Building Council (NHBC) between January and March, up 3% on the previous year.
FT – Wealthy UK investors optimistic on Brexit impact, survey shows
A report from UBS Global Wealth Management has found 41% of high net worth investors believe Brexit will have a positive impact. This optimism is shared with UK business owners (44%). 28% of business owners do not believe leaving the EU would have any impact on their business. Mark Goddard of UBS Wealth Management added: “UK investors and business owners have a much more positive mindset than towards the end of 2018”
BBC – Buffett seeks UK investment despite Brexit
Stock-market mastermind Warren Buffett has said he wants to invest more in the UK economy but has little hope for the flagging Eurozone. https://twitter.com/LeaveEUOfficial/status/1122170622350696449
Two-thirds of funds investing in global stock markets hold more in British stocks than the market average, the Telegraph has found. More evidence London will always be an attractive investment opportunity.
Financial analysts are slightly puzzled to see the Bank of England opt not to raise interest rates on the back of hiked economic forecasts. “We’re quite bullish on sterling actually, as we think it’s got plenty of room to rise against the dollar,” said David Bloom, HSBC’s global head of foreign exchange strategy, who thinks the BoE “might turn a little more hawkish” if output continues on its upward trajectory – i.e. raise interest rates to stop Britain’s high performing economy from overheating.
Finance chief George Culmer noted the economy was enjoying “record levels of employment, record low levels of unemployment and real wages growing ahead of inflation”.
The London Stock Exchange’s total profits increased by 5% in the first three months of the year. The LSE reported, “no discernible change” to customer behaviours. Lloyds Bank enjoyed profits of £1.6bn in 2018.