View more on these topics

MLIM says EU expansion is bringing corporate boost in France and Germany

Merrill Lynch Investment Managers says EU expansion is having a positive impact on corporate restructuring in France and Germany.

Cheaper labour and lower levels of corporation tax in the new EU states have helped to push down costs in mainland Europe and make them ideal investment targets.

MLIM says wage costs have been pushed down in Germany, most notably, bec-ause of a shift in employer/ employee relations.

The firm says employees within core Europe nations have become less demanding of employers as they fear potential job losses through the relocation of jobs to Eastern European countries where labour and operational costs are much cheaper.

Another factor adding to the competitive environment is the average rate of corporate tax in the 10 accession countries which is about 21 per cent compared with 31 per cent in core countries.

European equity team member Wolfram Roddewig says: “Substantial complications remain with expansion in the short term but the arr-ival of these nations is encouraging corporate reform. Substantial investment opportunities exist in the continental Europe equity market.”


Guarantees may run out

Guaranteed rates are making a comeback in the critical-illness cover sector but it could be only a short-term opportunity.

Strategies that can offer reassurance for advisers

There was unusual consensus in Investment Brief (Money Marketing, October 14) among the experts. Yvonne Goodwin, Ashley Clark and Mark Dampier all believe that regular contact from IFAs, with tailored advice, is more effective at meeting the needs of individual clients than “packages” such as the new risk-based managed funds from Scottish Life. I couldn’t […]

Winterthur launches Morrison online

Winterthur Life is expanding its website with the launch of ‘Morrison on-line’, a viewpoint page written by its pensions strategy manager, Mike Morrison.

Mark Page: “A good time to be a European fund manager”

With European markets picking up in early 2015, Mark Page, Artemis European Opportunities Fund manager, discusses the ‘macro’ drivers and whether the improvements are sustainable. Largely driven by economic stimulus by the European Central Bank, European stockmarkets have performed strongly so far in 2015. Mark discusses the relative merits and sustainability of ECB policy with […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment