European markets being bolstered by strong GDP growth and M&A activity

Managers remain confident in European economies, citing accomodative corporate tax regimes and positive company restructuring

This week's Conjecture focuses on investing within the European region. Taking part in the debate were host James Tew, Standard & Poor's, Aaron Barnfather, European equity manager at Newton Investment Management, and Simon Sharp from Halbis Capital Management, HSBC's fund management business. What have been the key drivers of European performance over the past year? Simon Sharp (SS): The main positive surprise in the markets in 2006 was the rate of GDP growth, which in most of the main economies was higher than people were expecting. Another reason for the very strong performance, especi...