All M&A news is strong support for the stock market. European shares remain attractive. Productivity gains will allow European companies to have good earnings in 2006. |
It's good news for equity markets. One can be more positive on the outlook for rates. People were wondering whether shares looked expensive. After these comments, one could stay relieved. |
M&A is a strong element of support for the stock market. It's pushing shares higher. |
Profits have been good and are lifting stocks. |
The economy is growing, and that means these companies will grow too. |
The market expects 10 per cent earnings growth for this year in Europe and I don't think it's excessive. The risk is low. We are now at fair value. |