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Breakingviews: Build houses, not bubbles

Thursday, November 28, 2013 - 04:28

Nov. 28 - Chancellor Osborne can boast the UK economy is growing and the deficit shrinking. But the recovery is too reliant on house-price rises and finance needs to work for house building, says Breakingviews.

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On today's breaking he's ahead of the Thompson as budget update is the group for the UK economy too reliant on house price inflation. And with -- says outgoing chief executive waiving a 21 remaining Europe pension pot. We look at the perils of contract an exact payoffs Chris Hughes which is breaking these Edison joins me now Chris. Starts off with the UK. What are thinking Heinz breaking seasoning economists are split is -- bubble or is -- -- is. Well. That's him spit bubble inflate things you can Washington there's lots of variations across regions and newspaper you have seen house -- inflation. Pickup pretty pretty markedly on the continent that has to you. Won't be encouraging this -- has these schemes like they're -- to apply. Which is it is -- -- we've got a lot of us who who helped itself because of that -- hasn't output. Helps push prices up now. -- can kind of see why because normally house press inflation makes people people who I didn't feel good about feel that fuels. Fuels consumption and and that would be kind of OK if it was sustainable. But the risk is that it isn't the -- you -- student -- -- -- so appropriate productive recovery. Which is that knew that by business investment to win multiple -- To do to make it sustainable to me the UK recovery. You know -- continue. Without it busting -- list. Obviously -- which -- to kill to both Boston and deal with the UK's housing problem which is -- supply problem. A -- -- in -- really help paying the construction industry and and helping. -- -- build more items say that was. And get the supply sources in the housing handles woods it creates. It dude economic activity that was in his feed through to the economy so it. It with it seems to -- -- -- -- radical shift in policy towards kind of building -- of the income of public. But ever since he can do to encourage them. -- an accident onto the exact tale story which is really interesting because it looks like hedges outgoing chief executive. And is -- his pension -- and some say. Kids in pennants and demons Allison bosses is -- they pay out what is tell us -- exact payoffs. Well. And both cases of T gonna think about the the contracts that these sectors have been away. It just says that the Foley of political Tressel how ha. -- the relevant -- when the moment comes because. If you had. If circumstances change. I suppose it's the the minutes and it has it been a really tough time. He is is that a pretty pretty tough restructuring. And that's real pressure on him did not to walk away with the kind of outsize rewards that whatever his construction of part of what might be. In the case of Siemens -- possible. That he had a very long contract -- your conscience. Without being sprayed from the disaster. And he's entitled this in a very big number which. Feels it has to still excessive laughter I think five profit warnings say. What what this takes days. Really. Executive council was a case by case. In the -- island. The goal to defend us with up to the boards -- we didn't negotiation of the time in the board on its face it. To arrive at a -- outcome you can't really. Contractually set so construct what else Apple's timing is everything right. Well. On contracts that don't own employment contracts -- fine vehicle turn to us that the stigma of asking for trouble mean. The norms that in the UK would you won the contract. If you if you if you. How to fight the country you are setting yourself up for our program it's apparently the apartment with one -- right. Thank you very much Chris -- says from breaking piece. Full agenda assessing financial inside what -- US breaking piece and every day. At twelve says he east in seventeen that he GMT. I imagine all of this is what's his.

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Breakingviews: Build houses, not bubbles

Thursday, November 28, 2013 - 04:28