Barclays is already warning investors to take cover for the coming recession…(Depression!)
Oscar Williams-Grut
BusinessInsider.com
July 4, 2016
Barclays on Monday downgraded forecasts for two UK-listed companies, blaming an expected “period of recession and uncertainty in the UK.”
Analyst Andrew Ross and his team took the red pen to the online estate agent Rightmove and the price-comparison website MoneySupermarket.com.
The investment bank says it likes both companies’ business models and believes they will win out in the long run. But both are too intertwined with the fabric of the UK economy to avoid taking a hit from the dip in the British economy that the bank expects to see as a result of the vote for a British exit from the European Union, or Brexit.
On Rightmove, analyst Ross and his team say:
“We remain structurally positive on Rightmove. But last week’s referendum changes the story near term. Our economists now expect a period of recession and uncertainty in the UK, which is likely to mean reductions in house prices and transaction volumes. Rightmove does not have a one-for-one link to these two factors. But there will be an impact if new home developments are mothballed, estate agency branches start to close and price increases for the property portals become more difficult.”
The Rest…HERE
