BlackRock revises down 'optimistic' eurozone earnings forecast

BlackRock's Nigel Bolton has revised down his earnings outlook for European corporates this year, although he is more upbeat than the consensus on the region's prospects.

The head of the group's European equity team admitted his forecast of 15% returns for 2011 were too optimistic, and said he has revised his growth forecast downwards for this year. "Our expectation for 15% market returns had been primarily driven by our initial earnings growth expectations. Weaker than expected company top-line growth and margin pressures were the main cause of earnings downgrades throughout the year," he said. "We revised our earnings expectations downwards in the early summer and moved to a zero growth forecast for 2011 by Q4." However, Bolton said although the d...