Interview, Conference Presentation
Europe in Vogue: What’s Driving Stronger Flows into European Equity
- European equities are projected to deliver positive earnings growth this cycle, outperforming the previous cycle's disappointing returns.
- Earnings growth for European companies is forecast at 40 to 50 percent for the current year.
- By year-end, earnings per share (EPS) are expected to reach five percent above 2019 pre-pandemic levels, recovering all prior cycle losses within one year.
- Private equity acquisitions of listed public European equities for the full year 2021 are anticipated to be record-breaking if the first-half pace continues.
- Analysts estimate that approximately 30 percent of the European market is connected to the digital economy.
- The European recovery fund, agreed upon by Merkel and Macron in spring of the previous year, is scheduled to begin disbursements in July with a focus on Southern Europe.
- Domestic investment in European equities is expected to increase, though it will remain below levels of foreign capital inflows.
- There is a cautiously optimistic outlook for Europe attracting capital from both domestic and international sources going forward.