global overview

A more benign inflationary outlook in the UK coupled with a more troubled world picture has eased pressure for a rise in interest rates while European equity income investing looks to have hit a sweet spot

UK1 The mid-cycle slowdown in the US market, driven by housing-related weakness, is not driving a slowdown in global activity, according to Tim Rees, UK equities portfolio manager for Clerical Medical. At a global level, Ress said the expectation for 2007 c ompany earnings growth was a robust 8%. "Earnings growth is expected to be weaker in the first and second quarters before accelerating in the second half. This should continue to drive positive income streams in the form of dividends for investors," he added. "Over the shorter term, the markets staged a rally in March after China fel...