View more on these topics

Fidelity upbeat on Europe prospects

Fidelity’s Tim McCarron has reassured investors that despite four years of strong returns there is still scope for European growth.

McCarron, who is manager of the firm’s 4.6bn European fund, says investors should expect the market to take a breather after a prolonged rally but there are signs that the market remains in a strong position.

One reason for his optimism is the rapid fall in unemployment across Europe, now at its lowest point for 15 years, with the industrial hub of Germany a prime example of the turn-round.

He says: “German companies have been at the forefront of restructuring and have made significant changes to working practices. The still powerful German unions have been forced to acknowledge that if they do not compromise and negotiate with company management on restructuring and wage issues, they will lose jobs to Eastern countries where labour is abundant and relatively cheap.”

McCarron also believes that diversity has been and will continue to be a massive benefit to mainland Europe. Exports have been a big driver in Germany while the economies of Spain and Southern Europe have been based more on consumption but McCarron says this is starting to change.

He says: “There are signs that in 2007 and beyond, the German consumer will have more of an influence on European growth while the pace is likely to moderate in Spain. The European economy appears to be in a different stage of the cycle, namely mid-cycle, compared with the other regional economies. The cyclical divergence that remains so pronounced at a country level continues to provide a variety of attractive investment opportunities across the region and I believe European stockmarkets will perform well compared with other regions.”

Recommended

Record business for Exweb portal

The Exchange has seen a record number of 22,700 online new business transactions processed in March through its Exweb portal. Its previous record month was 17,500 in October 2006.

Half of advisers still in dark on new definitions

Nearly half of protection advisers are unaware that critical-illness definitions are changing at the end of April, according to a survey by The Exchange on behalf of Royal Liver.

Upping the anti

Implementation of anti-age discrimination laws has done more harm than good.

Can you put a hat on?

By Sarah Scott, marketing consultant You might think the question in the title is a strange one. Perhaps even more so when you learn that it’s one of several asked as part of an assessment for Employment Support Allowance eligibility in the opening scenes of the 2016 film, ‘I, Daniel Blake’. Daniel is a carpenter […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com