Concerns raised over impact of further rate rises on companies

With UK interest rates likely to rise from 5% in 2007, the corporate earnings outlook could be in for some headwinds, according to Charles Deptford, manager of the Barings UK Growth Trust. Deptford says: "We are more cautious than most and believe there could be some difficult times ahead for corporate earnings. Although we do not think there will be a significant slowdown, companies could be impacted by higher rates." Andrew Green, fund manager of the Bramdean UK equity portfolio, also believes companies are at the end of a long run. Although he does not think there will be a recession...