139. Europe: Inflation, M&A and the return of the tourist

Every year, European companies source more and more of their revenues from outside the continent. In this podcast, Niall Gallagher, manager of GAM Star Continental European Equity, tells us about this, the debt-laden balance sheets of long-haul carriers, and why private equity firms find it harder to make takeover bids in Europe than in the UK. With pricing power beginning to return along with very strong wage growth, Niall also gives his views on inflation and different types of company that can benefit from rising prices and interest rates.
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GAM Star Continental European Equity invests in large companies, with the team preferring those they believe will grow faster than the index. The team looks to buy stocks at the point where they are either out-of-favour or where growth prospects are believed not to be fully reflected in the share price. The fund has a low turnover and is not constrained to an index.

Read more about GAM Star Continental European Equity

What’s covered in this podcast:

  • Where in the world European companies get their revenues [0:25]
  • Which European companies have benefitted from changing behaviour during the pandemic [1:41]
  • Why the manager believes inter-regional flights will come back faster than long-haul [3:50]
  • How the European earnings season is shaping up [5:55]
  • If higher US inflation is feeding through to Europe [7:24]
  • How to invest in a rising inflation environment [9:32]
  • If M&A activity is picking up in Europe [11:37]
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