European corporates: Adapting, restructuring and innovating

Fund flow data shows European equities have posted 29 consecutive weeks of outflows, the worst run since 2008.

Bonds, emerging markets and infrastructure are in vogue, while scepticism on Europe remains. The rationale for caution on Europe is rarely due to stock specific concerns or valuations; more often than not it is economic and political issues that weigh on sentiment. If it is not the fallout from the UK's referendum on the EU occupying investor concerns, then there is no shortage of other potential political landmines. Far-right parties are gaining ground in many European countries, most notably in Austria. Italy has an important constitutional referendum in November, while France an...