UK Equity Risks Stay Despite Budget Relief: 3-Minute MLIV

Watch UK Equity Risks Stay Despite Budget Relief: 3-Minute MLIV - Bloomberg on Dailymotion

Transcript

00:00Skylake, we saw actually some UK stocks benefiting yesterday, the FTSE 250 quite liking what it heard by the end of the day at least.

00:08In specific sectors, real estate was a bit divided, but some of the brokers, wealth managers did pretty well.

00:14How did you see it go down with stocks?

00:16Yeah, absolutely. I think generally because the budget was pretty okay, actually, like it was quite positive, I think.

00:22For markets generally, you had premium come out across assets, including equities.

00:26Specifically, within equities, there were a couple measures that were meant to be more positive for them.

00:32So, for example, if you look at the ISA allowance, the allowance is still 20K, but only 12 of that can be used for cash now.

00:40So, hopefully that 8,000 goes into UK equities.

00:43I think the issue is, A, that's quite a small measure.

00:46It doesn't actually mean that you have to go into UK assets as well.

00:49You can still go into global assets.

00:51You also got dividend tax raises, and the overriding driver of equities is growth.

00:57And this is more growth negative than anything else.

01:00And so, I think, while you can cheer in the short term, it certainly doesn't put you on completely positive footing.

01:05That's particularly for the FTSE 250, which is more domestically oriented.

01:10I also don't think you're in the all clear on the FTSE 100, given that that's been driven in the past year largely by pound weakness,

01:16which seems more unlikely to repeat from here.

01:19So, I think it means that you need to be more defensively allocated within there,

01:22especially because I don't see the equity market globally being very strong into year end.

01:27And you also have Bank Live in England easing bets, helping those sectors.

01:31Skylar, great to see you.

01:32Thank you very much indeed for joining us up here.

01:33Thank you very much for joining us up here.