Mobius: EM investment is ‘real positive' for Europe

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Emerging market corporates' interest in global brands can be a "real positive" for European companies now trading at takeover valuations, according to Franklin Templeton's Mark Mobius.

Mobius (pictured), executive chairman of Templeton emerging markets group, said Europe will see more deals along the lines of Volvo's $1.8bn acquisition by China's Geely Automobile in 2010 as EM investors put cash to work. "Active and direct investors are beginning to see the opportunity in Europe. There is a pile of emerging market FX looking for a new home," he said, speaking in London this week. "Inflation is going to be coming back. The first preference for diversification would be fixed income, but that is not very attractive at these levels. So they will diversify into equities....

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