The housing market is likely to burst within the next few years, a prominent economist and former adviser to Gordon Brown will warn today, says the Daily Telegraph .
David Miles, chief UK economist at investment bank Morgan Stanley, has written a report arguing house price growth has been grounded in unrealistic expectations of double digit annual rises.
Miles says it is only possible to explain the more than doubling of house prices in the past decade if people's demand for housing has been heavily influenced by expectations rapid price rises would continue.
Once house price rises come down below expectations, Miles believes "significant" falls are likely, says the paper.
COMPANIES WILL find it easier to move their registered offices anywhere within the EU under new rules being proposed next year by the EU internal market commissioner, Charlie McCreevy, according to the Scotsman.
At present, companies which want to move to another member state where there are tax advantages or a cheaper workforce, can face costly barriers.
In some states a company must liquidate itself before it can move to another state, even though the EU is meant to be a single market with the free movement of capital.
McCreevy told the European Parliament's legal affairs committee yesterday he has asked for an impact assessment of a directive enabling companies to move their registered office from one state to another.
THE LONDON Stock Exchange (LSE) remained defiant last night after receiving a £2.7bn hostile bid from Nasdaq, the American exchange it had once identified as its saviour from unwanted takeovers, reports the Guardian.
Besides stunning the LSE with an opportunistic offer, Nasdaq snapped up 7 million LSE shares, increasing its stake in the London market by more than 3% to 28.75%.
Chris Gibson-Smith, chairman of the LSE, refused to accept an invitation by Bob Greifeld, Nasdaq's chief executive, to meet to discuss the offer, although LSE shareholders may yet force him to the negotiating table.
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