Why the UK consumer will remain under pressure

ON UK INCOME

Market sentiment over the short term is being driven almost entirely by politics, with macro and company level inputs playing second fiddle.

You could argue the actual investment outlook is little changed, unless we see a significant failure in political negotiations and we have a full scale default in Greece and or Italy. Even if the politicians salvage an agreement, growth in the eurozone remains under pressure, and as David Cameron recently warned, each day’s delay in Europe is having a detrimental impact on the UK economy. In spite of the rapidly changing short-term outlook, our stance on the UK equity income sector has changed little over the past few months. We continue to believe the UK consumer will remain under mo...