Buxton: UK growth could disappoint this year

Old Mutual Global Investors' (OMGI) Richard Buxton discusses why the recent market correction was welcome, and why UK growth could falter later this year if global growth scares are echoed in this country.

Complacency spread last year and the market setback in 2014 has been a much-needed correction. In a world of fewer dollars – due to a narrowing US current account deficit and Fed tapering – emerging markets with current accounts deficits have been hit.  With Japan printing money to weaken the yen, it will not be easy for these countries to price themselves back into surplus through gaining share of global trade.  But when currency weakness raises energy costs in local currency terms too, it is difficult to see any easy way out. However, if the worries about a growth scare in the US ea...