« Our economists have revised down Euro-area GDP to -0.5% in 2012E and just 0.5% in 2013E (a 1% downgrade).
We cut our Euro-area EPS growth forecast to -1% (from +1%, with consensus at +2%). We see 2013E EPS growth at 2% (consensus at 14%, 12% ex financials). Our view is that euro weakens c5%-10%; if that were not the case, our EPS forecast would be c5% lower (given that 54% of earnings come from outside Continental Europe). »