STATE STREET UNDERWEIGHT IN EUROPEAN STOCKS - One of the biggest financial services companies in Ireland is State Street, which employs 2,000 people here. Last year, it completed the acquisition of Bank of Ireland's asset management business BIAM.
Today it is holding an investment strategy event in Dublin. State Street Global Advisors' investment chief Rick Lacaille said the company was expecting weakness in the euro zone economy in 2012.
He said the Irish domestic economy was still weak, but its export sector has benefited from the restoration of competitiveness and the flexibility of its workforce.
On yesterday's Greek deal, Mr Lacaille said investors were still concerned about Greek debt levels, adding that projections under the bail-out deal were "optimistic".
He said State Street was overweight in equities at the moment, particularly large US companies and emerging markets, but underweight in Europe because of concern about growth prospects in 2012.
Asked about the prospects for State Street's Irish business, Mr Lacaille said much of the company's Irish activities were in growing areas, while it was hoping to expand the BIAM stock-picking side of its business outside Ireland.
