The truth about Asian investment banking
The money network:

The money network:

Why crowdfunding threatens traditional bank lending

April 2006

European equities: JPM queries the bullish mood

by Peter Koh

There is a consensus view that European equities are cheap and that M&A will continue to drive the market up and keep the liquidity flowing. This rosy vision is built on the assumption that earnings will remain strong, that global growth is re-accelerating, that the risk from inflation is minimal and that interest rates are therefore likely to remain low.


JPMorgan, however, thinks that there might be good reasons to view these assumptions as somewhat optimistic.

In 2005 European profit margins widened by an impressive 12%, more than at any time including 2000, when the figure was “just” 11.6%. This was helped by supportive factors including accelerating top-line growth, restructuring potential, low depreciation...


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