Last year saw a welcome return to earnings growth in the UK after a five-year absence.
The turn was led by improved metals prices and latterly a more buoyant oil price that halted the material declines we had witnessed in earnings forecasts for the sector. A tumbling sterling in the wake of the Brexit vote also provided opportunities in overseas earners. However, it has been, and will be, vital to concentrate on companies delivering momentum in their functional currency and not just accepting translational gains at face value. Further to the change of trend in earnings, we have now started to see a change in trend in GDP forecasts in the UK. Economists in the wake of t...
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