Threadneedle's Kinder assesses the UK's corporate health

The most recent global economic data suggests a general softening in growth activity - led particularly by Europe.

The slowdown appears to be spreading to the UK, where services growth hit a 17-month low in October. The inflation protection embedded in equities is still a positive draw, alongside the relative cheapness of the asset class, strength of corporates compared to consumers/governments, and the rising trend of corporate profits and cashflows. These can be deployed in a range of shareholder-friendly ways, be it dividends, buybacks, growth-related capital expenditure/research and development or, selectively, via value-creating mergers and acquisitions. Disappointing earnings results have...