Unexciting firms favoured in gloomy economy

UK INCOME

In recent months, widely publicised government debt problems have helped underline the fragility of the economic recovery.

Record amounts of borrowing mean governments and central banks continue to walk a narrow tightrope, balancing the desire to sustain economic momentum with reducing record fiscal deficits and withdrawing vast amounts of quantitative stimulus. Before the UK coalition government could warm their feet under the table of No.10, the first steps of reducing the nations’ record borrowing has been taken – an early signal of more widespread cuts to come. Over the next few years, we will see a clear differentiation between winners and losers in the UK economy with a focus on those companies that ca...