government

ON ASSET ALLOCATION

The UK government borrowed a record £16.2bn in September to repair the nation's finances, a figure which surprised economists.

Special situations managers believe the Comprehensive Spending Review provides an entry point back into the UK equity market as they prepare to take advantage of businesses hit by government cuts.

F&C's head of UK equities Peter Lees is urging investors not to sell their UK holdings if this week's Government Spending Review is more negative than expected, as he says UK stocks are "not a UK story".

THE ALCHEMIST

TIP OF THE WEEK

Following the Conservative Party conference, Glendevon King's Peter Baum analyses how the Chancellor's strategy for reducing the budget deficit will work

COMMENT

The IMF has broadly backed the Coalition Government's spending cuts and efforts to tackle the deficit.

UK public borrowing rose to a record high in August, at £15.9bn, dwarfing the £12.51bn economists had predicted.