FINANCIAL OUTLOOK 2008

SANTANDER: ALL EYES ON EMERGING EUROPE & LATIN AMERICA

Consuelo Blanco, Latin America, Santander Asset Management

In 2007 investors in Latin America have seen excellent gains. Brazil is no doubt the favourite destination for funds, but the rest of the countries in the region have done well so far, with currencies appreciating and imbalances in their economies stabilizing in a good way.

	Brazil: "no doubt the favourite destination for funds"

Inflation is possibly still the weakest link, but active monetary policies will counter this. We think 2008 can be just as positive for Latin American equities, as we forecast a 4.5pc GDP growth for the region.

Jorge Fernandez Amann, Emerging Europe, Santander Asset Management

Without doubt Russia is the centre of attraction these days, and is likely to remain so in 2008. A new Parliament and strong finance will continue to make Russian equity the main receiver of funds flows.

We believe the region will grow steadily during 2008, and oil prices should support a favourable economic background and attract investors seduced by commodities strength. Emerging Europe is not our first choice in the emerging universe, but Russia can be one of the main players next year.