OFFICIAL VIEW OF BRITISH MARKETS

Southland Times, Issue 23498, 3 May 1938, Page 3

OFFICIAL VIEW OF BRITISH MARKETS

DECLINE IN TRADE NOT EXPECTED LONDON, May 1. Most of the Budget commentators overlooked the significant fact that the Chancellor of the Exchequer (Sir John Simon) does not expect a further decline in the activity of the markets or trade generally. A summing up of the Budget clearly shows that the Treasury, while •'•admitting business recession, thinks the state of trade sufficiently strong to withstand even the shock of additional ■ taxation. The official view of the outlook is that there will be firm, but very dull markets. Commodities had a poor week. The, wheat market is naturally watching the Government’s policy most closely. Metals and rubbers are easier as a result of disappointing American consumption. . Butter remains very firm, with good speculative inquiry in anticipation of reduced arrivals from New Zealand in July and August. Cheese belied the hopes of a similar improvement, holders becoming dissatisfied and inclined to encourage buyers with lower prices. The market is likely to be dull for some time. Bradford is more optimistic over the wool outlook. Few traders are conducting operation in expectation of cheaper wool, but there is little new business.

Retailers seem to have over-bought and have big stocks to clear, but a healthy sign is the public demand which shows no indication of diminishing.