 CHANGING FORTUNES
Euro Revival
Although it has been undervalued for two years, the euro will finally find its footing in 2001. The currency's weakness was largely a reflection of the dollar's strength. Now that fewer companies are buying American firms, there is less market pressure on the European currency. How will this affect business? Euro strength spells reduced profitability at European companies with big export order books, while Asia's exports, which are largely dollar-denominated, should take off. Imports into Europe will be cheaper too. The euro, now at 94¢, could well surge past $1.10. Remember, market corrections usually overshoot fair value.
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The Year Ahead
Politics
Business
Investing
Trends
- Fewer Marriages
- The German Exception
- Italy Awakes
- More Takeovers
- Auto Rout
- Luxury Goods Sale
- Euro Revival
- Oil Pressure
- Japan Opens
- Eastern Revival
- China Boom
Viewpoint: Pass the Buck
Technology
Arts & Media
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