Double-dip unlikely as M&A activity returns

ON UK INCOME

MARTIN CHOLWILL, manager of the Royal London Equity Income Trust on UK Income

So far this year, the global economy has been in recovery mode. And, though recent indicators have suggested some moderation in economic growth rates, I believe we will avoid a double-dip recession. However, the UK faces an extended period of anaemic growth, with government finances in poor shape and a highly indebted consumer likely to be weighed down by increased taxation, lacklustre wage growth and rising unemployment. Despite these challenges, there are good income opportunities in industrials, financial services and regulated utilities. In financials, I like Resolution, Close Bro...