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Woodford says prospect of a double dip is rising

Invesco Perpetual income guru Neil Woodford has warned that the chances of a double-dip recession in the UK are on the rise.

He says the possibility of two quarters of negative GDP is directly linked to the increasing likelihood of more spending cuts and bigger budget deficits. He says house prices could drop significantly, claiming a fall of between 5 and 10 per cent a year for the next three years is possible.

Woodford adds that it is deflation, not inflation, that is his biggest concern in the UK. He highlights the impact of VAT increases and a lack of pricing pressure as contributors.

The fund manager, who is known for his bearish views on banks, says that Basel III will not have an impact on his holding in banks, claiming the directive has been “deferred and diluted” as banks continue to rebuild their balance sheets.

He says: “It gives the impression that banks are still in a mess, more so in Europe than the UK or the US. This is almost an acceptance that the banks are still too weak.”



Aifa could vote on restricted advice firms

Aifa says it will consider holding a member vote on whether to allow restricted advisers to join after the RDR deadline. An Aifa spokesman says a decision will need to be made about membership criteria for firms that decide to become restricted or offer a restricted service alongside independent advice. He says: “Any decision to […]


Loaded question

Our panel hit out at the practice of loading premiums and lament the continuing fallout over PPI misselling

Leading Edge – April 2017

There is little doubt 2017 will be a year of political uncertainty. Leading Edge is Royal London Asset Management’s regular review of investment markets. This edition explores some of the impacts that this uncertainty is having on investors, from the pitfalls of prediction within UK equity investing to the dangers of opting for convenience over […]


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