1. Europe New Leaders wake sleeping giants

2. Overview The upturn in Europe’s traditional cyclical productivity is stronger and better than before because: a.New leaders are running Europe’s businesses; and b.New leaders are running key European economies

3. Europe – Productivity Cyclical economy Productivity has recovered from a depressed level Productivity now similar to the US

4. New leaders are running Europe’s businesses Globalisation of business flows New managements embark on corporate restructuring Dramatic fall in units labour costs

5. Corporate example - MAN

6. New leaders are running key European economies New political leaders introduce supply side reforms Labour markets become more flexible, labour participation rates rise

7. Will the Giants remain alert? Probably – corporate culture has changed Historic complex cross-shareholdings web has been broken

10. Will the Giants remain alert? Corporate managers remunerated for generating shareholder returns Privatisation has severed historic links between companies and governments/states New shareholders focused on higher returns