UK vs US recovery - is either approach working?

Old Mutual Asset Manager's Stewart Cowley and Fidelity's Trevor Greetham have clashed over the success of the measures being undertaken to aid the recoveries in the UK and US.

Cowley, OMAM'S head of fixed income, said the UK coalition government's austerity package has been too lenient and could result in the market losing confidence. "The currency markets tell you everything you need to know about how subdued the UK recovery is, with sterling at a low level against the euro," said Cowley. Cowley said reducing expenditure by 4% a year was nowhere near enough to gain the confidence of investors. "The UK initially bought the confidence of the market with the spending reduction but with the cuts being nowhere near severe enough there is a danger the market ...