Restructuring dominates eurozone

European stock markets responded positively to strong earnings results and an upturn in eurozone activity in December and January. Fourth quarter 2004 real GDP in the UK was revised up to 3.2% (quarter on quarter, annualised) representing the 50th consecutive quarter of expansion. Weakness in retail sales data failed to stem nervousness of an imminent rate hike, as wages rose 4.3% year-on-year in the final quarter of 2004, well above the 1.6% rise in consumer prices. Corporate news included the LSE seeing off a hostile £1.3bn bid from Deutsche Borse, excellent 2004 earnings growth from th...