Managers warn UK to be in firing line after Greece

Bond fund managers forecast a bleak future for the UK as the markets continue punishing Greece for its debt problems.

Stewart Cowley, head of fixed income at Old Mutual Asset Managers, says the debt woes and fiscal deficits confronting Europe's southern states will take years to resolve. As global bond markets continue their sell-off today, Cowley adds: "The cross hairs will turn then to the UK, and that is why the UK is getting hurt now, too." However, he says if UK politicans attack UK public debt and deficits, a strong pound could be the surprise package of the year. "The government has done hard things with the banks. There is good reason gilts could rally and the pound could rise, if people d...