Corporate profits have significant upside

Last year featured a surge in international interest in Europe as investors began to realise how many world class technology stocks can be found there, particularly in Scandinavia, Germany, France, Italy and Spain. The economic recovery is also a new story, and forecasts for this year are comparable with the UK and the US. The pace of corporate amalgamation, too, has developed well in Europe and the influence of international shareholders has been a catalyst. Apart from improving economic fundamentals, pressure on management to maximise shareholder value is now becoming more intense as i...