European growth underestimated by the market

Europe is entering a period of sustained growth and the only risk attached is underestimating the potential rate. According to Neil Robson, head of the European team at Baring Asset Management, GDP forecasts for Europe in 2000 are 3.5% with earnings growth at 15% but they could actually come in higher, at 4% and 20% respectively. He said: "Companies are restructuring, which is generating new cashflow. Share buybacks and spin-offs are also increasing in number. This extra cashflow means that management has more options relating to acquisitions and mergers. Share prices will continue to ri...