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hello and a very warm welcome for breaking the mold of breaking a mould
interview
with our investment research director Russ Mould
Clara the us this week it's all about bricks and morter and not just residential
housing that we will talk about that
but also the major infrastructure projects that keep countries running
things like power generation equipment for example
okay let's get going with the housing market yeah okay straight for the kill I
know that's the issue that really gets to investors wallets as well as their
hearts
We're gonna have a big look here Bovis numbers housebuilder
figures due today at third quarter statement Friday the 8th
three numbers to watch full consented, landbank, price increases
and also the number housees that have actually sold now the interim stage
sales of actual unit dwellings were up just two percent 963
but house prices were up fifteen percent
and also the land bank was very strong just short of 16,000 plots now that gives
very
good visibility on future earnings
okay that 15 percent increase in price is a pretty huge number, its a monster
number and interestingly
it jars a little bit with the official house price data the September figures
showed a three-point eighty percent increase
on Tuesday twelfth we have the latest house price inflation figures so let's
have a look at those
the same day we have consumer price inflation and retail price inflation
now they're red 2.7 percent and 3.2 percent respectively in September
they've been trending down now it will be be
intriguing to see this slightly more bubbling
housing market is starting to have an impact on not
okay is there a chance that inflation may finally be on the rise I'm not
holding my breath
as all of our viewers will know wage increases at the moment aren't exactly
going tonto so they're running at a national average of one to one and a
half percent
I think until that breaks out I'm not sure gonna get a huge jump in inflation
to be perfectly honest
we also need remember that although places like London a going incredibly
well
outside the m25 things are still a little bit more subdued
the average price increase their house is still one
two percent so we need to be aware that having said so
the national UK economic statistics are showing some signs been proven
sentiment indicators like the purchasing managers indices of PMI's
they are showing very strong levels of activity in
confidence construction work at its
highest level since September 07
and the service index reading if 62.9
was the best shooting teams may 1997 so
something must be happening somewhere in the pipe I think if it could not just be
a trickle-down effect on the improved housing market very very good question
it'll be interesting to seek the Bank of England's Monetary Policy Committee
minutes
on Wednesday the 20th talk about this get the banking and obviously made its
interest rate decision yesterday Thursday the 7th
and all the other people will be wanting to see trickle-down effect
will be our friends in the coalition government facing the general election
in 2015
now they'll be looking just as closely as investors some the consumer
numbers we've got coming up
the first law is Restaurant Group the owners have Frankie & Benny's, chiquitos
and Garfunkles
they got a trading statement on the 15th and they
will be looking to point I think that a strong earnings numbers again the
markets looking for about 12 percent this year
and 12 percent next year partly because it specialises in there as well as anyone
site allowed which is quite kami
things like cinemas announced its own shopping centres, you have also go majestic
wine on caulking numbers on Monday the 18th there you got growing story stay
you got online presence growing how much we didn't have that bad Summer
and hot weather generally quite good for sale to things like fizzy pop so the
market looking for
8 percent earnings growth this year 14 percent next
and dividend increases.
That still again going back to our previous discussions on Royal Mail
the yeild story was very strong there you've now got another company coming to
market where
the yield income story is a very key part investment case
now this can be called Infinis Energy and it's actually a leading
provider
renewable electricity from things like biomass and wind for example hydro for
example
that companies talking about paying out around $55 million pounds in dividends
and its first
full financial year and that equates was six to seven percent yield
again big infrastructure projects really guarantee demand for utilities
visible cash flow mean they can afford this sort of payment so the
again you'll have not battling best is giving this one a close look and also
income hounters.
There are one or two other major infrastructure funds out there
phones out I wanna miss called hitch ICL and the actual report comes on Wednesday
the 20th
as we sit here that offers a number of five percent as well
bill providing an update on their latest big projects things like power plants
that's pretty much where we came in okay thanks Russ thank you all for joining us
will be back on the screen in two weeks time to make sure you join the ticket
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