UK needs more export, less import to survive

ON UK INCOME

Unicorn Asset Management's John McClure says the former growth drivers are now in reverse.

Investors are aware the UK has entered a period when the former growth drivers of excessive bank lending and deficit financed public spending are in reverse. For the UK to pay its way in the world, we have to export more and import less. Clearly, businesses which can share in this renewal are set to do well. After the recessionary shock of 2008/9, our best companies retrenched; paid down debt and resolved to raise return on capital. Analysis by HSBC shows that UK corporates hold net £110bn cash. This is now being used to finance growth and higher dividends. We are also witnessing a...