More difficult
Article Abstract:
UK financial markets are difficult to forecast in 1997, argues Legal and General. Valuations for equities and bonds worldwide are beginning to appear stretched, and inflation could become a problem in the UK due to the late stage of the economic cycle. UK economic growth looks set to increase to 3.5% in 1997 and interest rates could rise to 7.5% over the year. A victory for the Labor party appears likely in the 1997 election. UK equity prices could fall temporarily by between 5% and 10% but UK pensions funds could put 16 billion pounds sterling into the market. Corporate earnings could increase by between 8% and 10% with dividends up by 8%.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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UK strategy: themes for '96
Article Abstract:
UK economic growth is likely to recover in 2nd half 1996, leading to rises in interest rates by the end of 1996. A general election is approaching which will make the government reluctant to raise short-term rates, but long-term rates will rise, argues BZW. Political uncertainty could affect the UK currency. Profit downgrades may be reversed by higher growth, but rising interest rates could affect share prices more than a recovery in earnings.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
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