Hobson: Royal Mail's Days are Numbered

THE WEEK: Rodney Hobson gives his views on the Russia Britain standoff, Phil Clark's departure from Tesco and the prospects for troubled stock Royal Mail

Rodney Hobson 25 July, 2014 | 2:00PM
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So we are back to the future. As expected, the economy improved by 0.8% in the second quarter and is now as large as it was before the crash. And it will get better, the IMF believes, with the UK’s growth forecast for the year upgraded while the world as a whole is downgraded.

It is at times like these that it is best to be cautious. The IMF’s forecasts for the UK have in the past been over pessimistic so it is wrong to take them at face value now they are optimistic. The IMF, remember, was scathing about George Osborne’s austerity programme as being too severe when in fact it has been quite lax. Government spending continues to grow and so, alarmingly, does the Government deficit.

Until this or some other government grasps the nettle of making large-scale tax dodgers pay up, the rest of us will continue to be squeezed. Attempts so far have been more window-dressing than reality.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BP PLC313.65 GBX1.70Rating
Royal Mail PLC519.00 GBX0.08
Sainsbury (J) PLC259.00 GBX-0.08Rating
Tesco PLC230.95 GBX1.56Rating

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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