Freeing French Employers Should Benefit Adecco

Although French President Nicolas Sarkozy’s reputation as a free marketer may have been dented at the recent European Union (EU) summit, Sarkozy, armed with a solid parliamentary majority, is expected to push for labour reform. Arguably, his initiative to strike a commitment to ‘free and undistorted’ business competition from the EU's guiding principles in the recent treaty negotiations was primarily intended to please the home audience. Europe, particularly France following the recent elections, is expected to enjoy a favourable economic environment, which should benefit employment-services companies.

The Gartmore Global Focus Fund, run by Neil Rogan, recently added Switzerland-based Adecco, the world's largest employment agency, to its holdings. Neil Rogan commented. “Adecco is benefiting from industry growth as Europe recovers and, in particular, has high exposure to France, where its franchise strength bodes well following the Sarkozy election victory. Moreover, Adecco has a rapidly improving balance sheet, new management, plus attractive valuations. We also note recent broker upgrades on Manpower, the world's second-largest provider of temporary employees, due to improving trading in France”. Adecco is held by both the Gartmore Global Focus Fund and the Gartmore SICAV Global Focus Fund.