Pension gap expands to force UK companies to slash dividends

Beijing time May 18 morning news, according to foreign media reports, up to 220 billion pounds (about 334 billion U.S. dollars) of the pension gap may force British companies to cut dividends, thereby curbing the UK's largest European stock market recovery. UK corporate bond yields, which have fallen 1.17% per cent since last October, will force many UK companies, including BT and military company BAE Systems, to set aside more cash for future pension spending.　　BT slashed its dividend by 89% last week to prop up its pension plan.　　According to Société Générale and UBS, this is at least the biggest dividend cut in Europe since 1997, and more companies are expected to announce a dividend cut. Fund Management company Investment Solutions Ltd. Chetan Ghosh, analyst Chetan Gosh, said: "Pension fund managers are trapped in this perfect storm. Bond yields are falling and the stock market has yet to recover from last year's sell-off. This increasingly serious problem will continue until 2011. "The global recession has had a serious impact on the stock market, and companies cutting dividends will further increase the pressure on the stock market." Building)