International exposure keeps market buoyant in spite of cuts

ON UK GROWTH

RICHARD HALLETT, co-manager of the Marlborough UK Leading Companies fund on UK Growth

For more information on Marlborough, search Adviserhound.com George Osborne announces his economic medicine for the nation in the comprehensive spending review on 20 October and the expenditure cuts will inevitably reduce consumer spending, hitting earnings for domestically-focused companies such as High Street retailers. However, commentators who translate this into downward pressure on UK equities overlook the international nature of the UK equities market. More than 70% of total earnings for FTSE 100 companies come from overseas markets and while growth prospects for the UK, US ...