threadneedle

FRIDAY FINANCE

Leading fund managers are moving to snap up ‘cheap' UK banks after a dismal year which saw them drop in value as markets raced higher.

Threadneedle's Simon Brazier said UK equities are set to rise 17% in 2011 as favourable policies from government and reasonable valuations leave plenty of upside for shares.

Threadneedle's Cormac Weldon has cut his GDP forecast for the US this year as soaring fuel costs threaten to cripple consumers.

Threadneedle has promoted Simon Brazier to head of UK equities, giving him sole responsibility for leading the firm's UK equity team.

The Monetary Policy Committee's forecasts for UK real growth are too optimistic, while concern mounts over its inaction in raising rates to stem rising inflation, says Threadneedle's Mark Burgess.

Former Threadneedle bond manager Roman Gaiser has joined Pictet Asset Management as head of high yield, while Andres Sanchez Balcazar joins as co-head of the global and regional bond team.

Inflation in the emerging markets will rise further over the next three months followed by further tightening measures, while the US has seen a rapid rise in growth expectations, says Jeremy Podger at Threadneedle.

Threadneedle's co-head of UK equities Simon Brazier has been buying into "unloved" UK domestic stocks in the view valuations are attractive compared to those with coveted emerging market exposure.

Threadneedle's CIO Mark Burgess has reduced holdings in Asian and emerging markets in expectation of inflationary pressures, adding instead to European banking stocks and Japanese equities.