MacRae calls end of eurozone crisis as capital flows reverse

The worst of the eurozone debt crisis is over, according to Alliance Trust Investments' Fiona MacRae, as capital flows in the region start to reverse.

The manager predicts Europe will outperform through a repricing of risk assets and a pickup in earnings growth. The co-manager of the European Equity fund said the exit of capital from southern to northern Europe is starting to reverse and discrepancies in labour costs are appearing. “In the last ten years, German productivity increased very sharply against other European countries, but the gap is closing quickly, especially in Spain. “Northern Europe can no longer think it is fine. Belgium had wage indexation linked to inflation, but that is going. They suddenly realise they have ...