The case for European banks and telecoms

ON EUROPE

J.P. Morgan's Alexander Fitzalan explains why he is keen on European banks and telecoms for income.

Europe has never been far from the headlines at the political level during 2013, whether it has been elections in both core and peripheral countries, allegations of corruption in Italy or phone tapping in Germany. But it is important not to confuse politics  with what is happening in Europe at the corporate level, where we believe there are many attractive opportunities for income seekers. There are three areas we currently see as being of particular interest for income investors in Europe. In financials, we have been overweight insurers primarily because balance sheets are very stron...