David Bulteel

“Equities have taken a brighter view of the future, as the headwind from oil prices and interest rates abates. There are concerns that the slowdown in US housing could spread more widely. However, lower energy prices boost consumer incomes, as well as reducing the risk of central banks raising rates to combat inflation. This should allow economic growth to continue at comfortable levels. Although it could take some months for the inflation and growth numbers to give full reassurance about the outlook for 2007, equity valuations and merger activity remain supportive factors.”