Equity managers cut risk assets as economists warn UK faces prospect of double-dip recession

Some UK equity fund managers are taking risk off the table in the belief Britain is facing a double-dip recession, following lacklustre GDP figures released last week.

Leading economists, as well as Prime Minister Gordon Brown and Vince Cable, the Liberal Democrat Shadow Chancellor, have warned that the UK could slip back into recession. Economists have pointed to the risk unemployment will rise and the pound weaken amid fears of a hung parliament, causing the economy to contract. Many are becoming concerned about Britain’s Budget deficit, which at 12.6% for 2009 is now almost on a par with that of Greece, at 13.6%. Q1 GDP showed growth of 0.2%, falling short of analysts’ expectations of 0.4% growth. Britain came out of recession in Q4 2009 with G...