UK stock performance gap set to widen - Ashby

The Credit Suisse Asset Management income funds head says current expectations may need to be revised down, with earnings unlikely to hit previous highs for many firms. “The immediate problem is that analysts, investors and company management are only slowly realising that corporate profitability and cash generation may have peaked,” Ashby says. “Some companies are also belatedly realising they have inappropriate balance sheets to cope with the downturn, and are being forced to raise additional capital through rights issues, asset disposals or cutting back on their dividends payable to sh...