Why cost inflation creates a 'difficult cocktail' for profits

Putting restaurants and retailers at risk

The effect of the sharp fall in sterling post the referendum against a range of currencies had some initially predictable effects on UK equity markets.

Large-cap stocks, with on average 70% of earnings overseas, were mechanically rerated to take account of 'cheaper' valuations. For the first year since the financial crisis mid caps saw significant underperformance, a direct correlation of the much lower percentage of lower overseas earnings and lower commodity exposure. Train: Investors disappointed with Unilever are looking a gift horse in the mouth The post-crisis premium to large caps has now disappeared.  However, it is important to note that earnings growth forecasts for this year and next showing continuing strong growth ...