Companies strive for efficiency to meet concerns over inflation

Equity markets have been on a roller coaster ride over the summer months with the European excluding UK markets being no exception. Markets in this region have mirrored events in the wider world so far this year. Initially strong, they sold off in May and June because of concerns about inflation, only to recover in late summer on expectations of decent earnings results. Investors have not been disappointed: the proportion of companies in the region beating expectations is still significantly above those failing to meet them. Clearly, the pace of earnings upgrades is slowing, but whether...