Caution is key as the number of profit warnings increases

It is going to be a tough reporting season for UK businesses, according to Paul Findlay, manager of Threadneedle's Crescendo UK fund.As such, he remains cautious over the short-term outlook. 'We do not find valuations particularly compelling,' he says. 'Companies have been cutting costs, but there is little pricing power out there.Costs are also rising and there is pressure on the bottom line.'Findlay was speaking in the wake of recent disappointing statements from Invensys and De La Rue. 'T