Euro weakness offsets growth fears

EUROPE

Austerity packages are de rigeur at the moment and a raft of them have been announced.

As a result, more optimistic growth scenarios for 2010 and 2011 and beyond have come under greater scrutiny. It is fair to assume growth will be slower going forward given the deleverage we will continue to see as developed economies get used to the fact, that for the moment, the times of plenty are over. In spite of this, and with the exception of perhaps the banks where the triple headwinds of regulatory reform, funding constraints and deleverage by both the consumer and corporates are evident, European companies are in good shape. Valuations look attractive if one is willing to take a...