M&A pick-up puts European equity market back on map

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Low interest rates and increased M&A activity make the outlook for the European equity market positi...

Low interest rates and increased M&A activity make the outlook for the European equity market positive, according to Roger Guy, senior investment manager at Gartmore. Guy said there is genuine value in Europe with a long list of firms trading at less than 10 times next year's earnings. "Critical to Europe's success is the fading power of the unions," he said. "In the past when you had a pick-up in the economy, unions were demanding big pay rises. "Unions are becoming a lot less powerful, primarily because of the threat of Eastern Europe. This makes the recovery in Europe quite sustainabl...