FTSE's defensives show strong earnings growth

Company-specific issues are being touted as the main reason for FTSE 100 falling back below the 5,000 mark recently. While it may fall back further, the more defensive areas that make up the bulk of the index are all showing solid earnings growth. Tom Elliott, strategist at JP Morgan Fleming Asset Management, says the fall in the FTSE 100 to 4,920 was led by specific problems at GlaxoSmithKline and Vodafone, which together make up about 12%-13% of the index. The more defensive areas of the index ' namely beverages, retailers, industrials and banks, which make up the bulk of the inde...