Reasons to be cheerful in Europe

As we approach the first anniversary of the current bear market, Europeans can no longer afford to be complacent about their immunity against weakness in the US. Although exports are a small part of eurozone GDP, an increasing proportion of European profits stem from US subsidiaries. The most immediate problem is the overhang from the high level of investment in technology during the boom years of the late 1990s. Now, there is significant overcapacity, particularly in telecoms, which are also suffering from high levels of debt after overpaying for third generation mobile licences. ...