RLAM's Cholwill on why sterling weakness is Brexit's 'silver lining'

Good for nominal dividend growth

UK growth has continued to be relatively robust and the latest forecasts from the Bank of England suggest GDP growth in 2017 of 1.4%, a far cry from the recession that had been widely forecast six months ago for a Brexit scenario.

A silver lining from Brexit is sterling weakness, which should be good for nominal dividend growth, given the prevalence of overseas earnings in the UK stockmarket.   It is too early to be definitive on what a Donald Trump presidency will mean, but key appointments so far suggest a clear break from many policies of the Obama administration.   Stockmarkets have focussed on the prospect of increased infrastructure spending, but it is unclear to what extent Trump will follow through with his campaign rhetoric of protectionist measures, such as taxing the outsourcing of US jobs, labelling...