FTB Global’s chief investment officer David Lippa has said that while a number of UK companies are on the brink of bankruptcy, they are not facing the same level of debt as many other companies.
“UK companies are not in a financial position where they are on a cliff edge.
But the world has not seen this level of financial distress before.
We’re still not in the ‘drama’ stage, but we’re seeing this type of crisis in the US, Europe, China, Japan,” Lipps said in an interview with CNBC.
He added that although the UK economy is still growing, the UK is on track to grow just 3% this year, which is below its potential.
UK stocks are still recovering from the Brexit vote, which has pushed up the value of the pound against the dollar.
The pound is down around 1% against the US dollar to around $1.1680 and a US dollar is down more than 4% against other currencies.
Investors are increasingly concerned that the UK could see a repeat of the crisis that occurred in the UK following the Brexit decision.
Brexit vote, US and Brexit: the most important questions answered article “The UK will remain a great place to do business.
It has strong economic fundamentals.
We have the skills, and the resources, to be successful in the future.
But we will need to address the issues we faced before we were able to leave the EU.
This is a challenging time for UK companies, and they will have to deal with a significant level of uncertainty in the next year or two,” Lips said.
But the UK has a strong history of investing in the financial sector, and Lipp pointed to the growth of the Royal Bank of Scotland and the investment bank UBS as key examples of this.
“The growth of financial services is a major driver of growth in the British economy.
And the growth in banking is another key driver of the UK’s economic growth.
Both are very strong sectors, and both have shown strong growth,” he added.
The FTB chief investment analyst said that he expects a “significant” recovery in the sector, although the recovery could take time to kick in.
While UK stocks are likely to have a strong bounce in the coming months, investors may see the situation worsen in the second half of this year.
Financial sector growth has been a key driver in the recovery of the economy and, if the economy slows further, investors could see the economy contract, Lipp said.
The BBC’s Jonathan Head has more on the UK financial crisis.
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