Is Europe's 'fiscal impulse' enough to help boost earnings growth?

clock • 2 min read

GAM's Niall Gallagher explains why he believes markets are only half way through the European recovery, with the next phase likely to focus on earnings growth.

The conditions for earnings growth are now firmly in place and the structural improvements in European economies are very real. Austerity is coming to an end and Europe is benefitting from a positive 'fiscal impulse', which will support economic growth. The fall in the oil price is also a major positive. Most European countries are net oil importers and this will have a positive trade impact on current accounts.   The European banking sector's problems are largely fixed. There will still be a move towards higher capital standards but the rate of capital accumulation will decline, and ban...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Europe

FundCalibre's Schooling Latter: The shifting sentiment in Europe

FundCalibre's Schooling Latter: The shifting sentiment in Europe

Portfolio picks

Juliet Schooling Latter
clock 27 March 2024 • 4 min read
Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Timing of ECB rate cuts in doubt as core eurozone inflation measure disappoints

Services price inflation remains sticky

Valeria Martinez
clock 01 February 2024 • 1 min read
Eurozone inflation rises to 2.9%

Eurozone inflation rises to 2.9%

Driven by energy prices

Elliot Gulliver-Needham
clock 05 January 2024 • 1 min read
Trustpilot