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28.04.2015 16:44:37
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Three reasons why European earnings look set for strong recovery
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| James Sym, Fund Manager, European Equities With the first quarter earnings season now underway in Europe, fund manager James Sym explains why he expects strong corporate earnings growth in the region this year. Since the financial crisis of 2009, earnings from eurozone corporates have lagged far behind those of their US counterparts, which have already surpassed their previous peak levels. We see this as an opportunity for European investors as eurozone earnings have the potential to stage a strong recovery from their current depressed levels. In our view, eurozone corporates have the potential to achieve double digit earnings growth in 2015. There are three key factors that explain why we think this European earnings recovery will take place: the drop in oil prices, weaker euro and lower funding costs (...)
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