Aegon: UK braced for recession

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Aegon's head of UK equity, Stephen Adam, says there is a high risk of a UK recession in the remaining six months of this year.

Stating that Aegon expects economic activity to slow, Adam said there are clearly strong negative implications for domestic profits and the loan default outlook, which means that it is too early to expect a sustained rally in banks or domestic cyclical sectors such as general retailers or home construction. "As the slowdown broadens out across different economies and sectors, it will be more important to avoid the disappointments in other sectors that have not already anticipated the downturn," he said. Adding that he thought profits growth was likely to disappoint for many stocks this...

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