Which UK companies can triumph in 2012?

ON UK GROWTH

The fiscal tightening being witnessed across Europe is likely to depress economic growth and therefore equities, and with equities closely following growth expectations and a moderate recession expected in the UK and Europe, earnings will remain under pressure.

UK equity performance will continue to be dominated by quality and growth, with those companies that fulfil these criteria seeing a structural rerating, further expanding the gap between the haves and have-nots.  Exposure to overseas earnings, particularly the US and emerging markets, will be a key growth driver and fortunately the UK equity market is not wholly representative of the domestic economy.  Despite the rapid rise in French, Spanish and Italian bond yields, equity markets have proved resilient, for three reasons. First, the equity markets had previously sold off during Sept...