You may recall David Cameron commenting recently about flashing dashboards when mentioning the Eurozone and continuing austerity cuts here in the UK. So do we need a new car or does the driver just need to understand what the flashing lights actually mean? Firstly I would say that David Cameron is probably not the best qualified person to comment on the economy. The UK economy is actually doing ok, but what he probably is doing is softening us all up for the next bit of bad news that is going to emerge on government spending cuts. The data coming out of the Eurozone is reasonable as well. And there is still plenty of value in European equities, so don’t be fooled into thinking everything is doom and gloom.