UBS maintains a neutral stance on UK equities, citing a supportive macroeconomic backdrop but a slow earnings recovery ahead. While domestic GDP growth is improving and interest rates are being cut, risks from higher tariffs and rising bond yields could impact valuations. The bank forecasts a -3% earnings growth in 2024, down from previous estimates, and advises broad-based exposure to the UK market, favoring sectors like IT, consumer staples, and utilities.