Welcome!

News Feed Item

Russell Investments Questions Strength of UK Economic Recovery Despite Strong Recent Relative UK Equity Market Index Performance Relative to Other Developed Europe Countries as of July 8

SEATTLE, WA -- (Marketwired) -- 07/11/14 -- UK equities performed well in the second quarter 2014 and in July-to-date according to the Russell Global Indexes, although Russell Investments is cautious of the sustainability of the UK economic recovery.

The United Kingdom country constituent within the Russell Developed Europe Index returned 0.5% in July as of July 8, making it and Norway the two strongest performing developed Europe constituent markets this month, and leading the parent index which has lost (-0.5%). This performance follows a strong second quarter when the UK constituent returned +4.3%, outpacing the 3.9% return of the Russell Developed Europe Index.

Despite its recent strong performance versus its developed market peers in Europe, Russell believes the recovery that is driving this positive performance is potentially not as sustainable as recent economic data suggests.

Russell Investments Europe investment strategist Wouter Sturkenboom commented:

"Despite a certain level of optimism in recent months with respect to the strength of the UK economy, reflected in UK equity market performance as reflected by Russell Developed Europe Index country constituent returns, we believe investors should not get ahead of themselves in their expectations for UK growth going forward. Recent UK GDP growth has been driven by less substantial measures such as consumer spending out of savings and rising housing prices and is still trying to transition to fundamental factors such as spending out of wage growth and business investment."

Later this month, Sturkenboom and the team of global strategists at Russell will issue their latest quarterly outlook update, elaborating on Russell's market view for the remainder of 2014. For more information on the Russell Indexes, go to the Russell Indexes website.

Russell Index Returns

----------------------------------------------------------------------------
Russell Index/Index   July Month-to-  2nd Quarter  1st Quarter  2014 YTD as
Country Constituent  Date as of July     2014         2014       of July 8,
                         8, 2014                                    2014
----------------------------------------------------------------------------
Russell Developed         -0.5%          3.9%         2.9%          6.3%
Europe Index
----------------------------------------------------------------------------
United Kingdom             0.5%          4.3%         -0.5%         4.4%
----------------------------------------------------------------------------
Norway                     0.5%          8.2%         2.7%         11.8%
----------------------------------------------------------------------------
Ireland                    0.4%          9.0%         5.8%         15.8%
----------------------------------------------------------------------------
Switzerland                0.2%          3.3%         5.0%          8.8%
----------------------------------------------------------------------------
Luxembourg                -0.4%          1.9%         -0.4%         1.0%
----------------------------------------------------------------------------
Netherlands               -0.7%          6.4%         2.3%          8.0%
----------------------------------------------------------------------------
Finland                   -0.7%          6.0%         3.5%          6.7%
----------------------------------------------------------------------------
Germany                   -0.7%          3.0%         0.3%          2.5%
----------------------------------------------------------------------------
Sweden                    -1.1%          0.9%         4.4%          4.2%
----------------------------------------------------------------------------
France                    -1.7%          3.1%         3.5%          4.9%
----------------------------------------------------------------------------
Spain                     -1.7%          7.9%         5.8%         12.2%
----------------------------------------------------------------------------
Italy                     -2.5%          -1.1%        15.8%        11.7%
----------------------------------------------------------------------------
Portugal                  -4.0%          -4.7%        16.4%         6.5%
----------------------------------------------------------------------------
Austria                   -4.7%          1.0%         0.7%         -3.1%
----------------------------------------------------------------------------

Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in euros.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment. The Index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries.

Russell Developed Europe Index country constituents Belgium and Denmark had an insufficient number of company constituents to meet external performance reporting requirements.

Opinions expressed by Mr. Sturkenboom reflect market performance as of July 8, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

Forecasting is inherently uncertain and may be incorrect. It is not representative of a projection of the stock market, or of any specific investments

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Copyright © Russell Investments 2014. All rights reserved.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
Choosing the right cloud for your workloads is a balancing act that can cost your organization time, money and aggravation - unless you get it right the first time. Economics, speed, performance, accessibility, administrative needs and security all play a vital role in dictating your approach to the cloud. Without knowing the right questions to ask, you could wind up paying for capacity you'll never need or underestimating the resources required to run your applications.
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
"Software-defined storage is a big problem in this industry because so many people have different definitions as they see fit to use it," stated Peter McCallum, VP of Datacenter Solutions at FalconStor Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
As companies gain momentum, the need to maintain high quality products can outstrip their development team’s bandwidth for QA. Building out a large QA team (whether in-house or outsourced) can slow down development and significantly increases costs. This eBook takes QA profiles from 5 companies who successfully scaled up production without building a large QA team and includes: What to consider when choosing CI/CD tools How culture and communication can make or break implementation