Economic backdrop good for growth

Notwithstanding recent bond market weakness, European equities have risen by almost 10% since the start of this year, helped by continued good corporate profitability, improved prospects for European and global economic growth and further corporate restructuring and merger and acquisition activity Earnings growth is set to rise by an underlying 15%-20% in 1999, GDP is forecast to grow at 2.6% next year (up from 2% this year) and of the largest 100 companies at the end of 1998, more than a third have been involved in major corporate activity so far this year. It therefore seems reasonable t...