Proving there's a silver lining to every cloud, Alistair MacDonald of the Merrion European Absolute Return Fund explains why a slumped currency can be a boon to exporting stocks held within his fund.
He argues that the weak euro has contributed to the success of German car manufacturers VW and BMW which have both reported strong earnings numbers during the month with their share prices rising 9.7% and 7.5% respectively.
“This strong demand in auto sales also saw component company GKN rise 11.3% over the month. In the year to date reporting at the micro, or company level, has been overshadowed by the events in Japan, the Middle East and the subsequent impacts on commodity and energy prices.
We feel that we are returning to a period where stock picking will be rewarded.” www.merrion-absolute.com
Smoking biggest culprit; obesity second
Average earner will gain £840 in 2018
Will also move heritage items
Responding to letter from Treasury Committee chair Nicky Morgan