BlackRock's Wharrier: Weak sterling means M&A will continue

Targetting companies with 'pricing power'

The UK political landscape remains fragile and this is set to continue in the run-up to the election, writes Mark Wharrier, manager of the £400m BlackRock UK Income fund.

So far, this fragility has not been reflected to any great extent in stockmarkets, with the impact of higher inflation proving far more influential. The revival of inflation has changed the investment landscape. After a lengthy period where investors favoured companies with reliable earnings and cashflow, almost at any price, there has been a marked transition to areas more sensitive to the economic environment. BoE keeps rates on hold; Ups 2017 inflation forecast to 2.7% and downgrades growth This preference for more cyclical companies has often looked indiscriminate. Certainly...