Filtered by Region: Europe Use setting Europe
Yesterday’s narrow loss for Germany’s current governing coalition in the state of Lower Saxony added to evidence that September’s general election could result in a change of government. While Angela Merkel will almost certainly stay in power, she might …
21st January 2013
Last week’s news that German GDP rose by 0.7% in 2012 clearly confirmed that the economy broke no records. But it did well to continue growing at all in such a weak economic and political climate. What’s more, growth last year was driven not only by …
Steeper falls in manufacturing output than in consumer spending in Spain help to explain the recent underperformance of Spanish manufacturing property rents relative to the logistics sector. And if we are right that Spain’s recession will deepen from …
17th January 2013
The Troika and the Cypriot Government have reached a stalemate, with the latter refusing to agree to the terms for a vital bail-out. An agreement should be reached after next month’s election and Cyprus reportedly has enough money to last it until then. …
While the euro may well strengthen further in the near term, we still expect it to weaken again later in the year as worries over the currency union resurface. In the meantime, though, the strong currency is another factor hindering a vital return to …
15th January 2013
Over the past year or so, investors in Austrian property appear to have switched their preference from the office to the retail sector. Against an uncertain economic outlook, we expect this preference to persist, at least until most euro-zone economies …
The latest euro-zone trade data and the 2012 German GDP figures do nothing to alter the view that the euro-zone economy ended the year on a low note. … Euro-zone Trade Balance (Nov.) & German GDP …
November’s euro-zone industrial production data provided further strong signs that the recession in the region as a whole intensified in the final quarter of last year. … Euro-zone Industrial Production (Nov. …
14th January 2013
The ECB’s comments last week dealt a blow to any hopes that it might provide more support to the euro-zone economy. With financial market conditions improving, the Bank no longer seems to be considering interest rate cuts and is unlikely to adapt its …
Recent months have seen a small, but encouraging, improvement in some euro-zone activity indicators, particularly in the peripheral economies like Greece. However, in most cases, those indicators remain consistent with very weak growth, if not deep …
10th January 2013
The European Central Bank (ECB) appears content to sit on the sidelines for now and hope that the recent stabilisation of the euro-zone debt crisis continues. Eventually, however, President Draghi’s pledge to do whatever it takes to preserve the euro will …
While the lull in the euro-zone debt crisis has continued in recent months, the news on the region’s economy has remained distinctly downbeat. Despite some improvement towards the end of last year, activity indicators remain generally consistent with a …
9th January 2013
This report is only available as a PDF. Click to download. … German Industrial Production (Nov.) …
This morning’s EC survey suggests that euro-zone commercial property markets ended 2012 on a low note. What’s more, past form suggests that the weakening in economic sentiment already seen is consistent with euro-zone all-property rents falling throughout …
8th January 2013
Despite the small rise in economic sentiment in December, the latest batch of eurozone data still presented a decidedly downbeat picture of the state of the currency union’s economy at the end of last year. … Euro-zone EC Survey (Dec.), Unemp. & Retail …
Euro-zone policymakers have created a bit of breathing space for themselves in the latter half of 2012, but we think that there are a number of potential stumbling blocks on the horizon which could potentially prompt the crisis to re-escalate … Euro-zone …
7th January 2013
The surprising recent strength of the Danish consumer sector suggests that prime retail yields in Copenhagen may have peaked. But we think that retail occupier demand will suffer this year as, among other things, rising unemployment and falling house …
4th January 2013
The news that both activity and inflation in the euro-zone remained subdued at the end of last year will increase the pressure on the European Central Bank to provide further policy support ahead of next week’s Governing Council meeting. … Euro-zone …
Having prevented catastrophe in 2012 by pledging to do whatever it takes to save the euro, the European Central Bank will have to follow words with actions in 2013. While no policy changes are likely at the first Governing Council Meeting of the year on …
3rd January 2013
The latest fiscal data support the view that both Italy and Spain will fail to meet their fiscal goals for 2012 as a whole. … Euro-zone Fiscal Monitor (Dec. …
The latest euro-zone monetary data brought no signs of any easing in the severe credit constraints facing both households and companies in the single currency area. … Euro-zone Monetary Indicators Monitor (Nov. …
Mario Monti’s widely expected decision to head a “centrist alliance” probably increases the chances of Italy continuing its reform process, but the political situation remains uncertain. What’s more, regardless of the outcome of February’s election, 2013 …
2nd January 2013
The renewed fall in the euro-zone manufacturing PMI in December underlined the weakness of activity in the region at the end of last year. 2013 looks set to be another very challenging year for the single currency area. … Euro-zone Final Manufacturing PMI …
The European Central Bank’s promises helped to prevent Armageddon in the euro-zone in 2012. But it will have to put its money where its mouth is in 2013 and the risk of disappointment is high. Meanwhile, the political and economic environments will remain …
24th December 2012
Recent falls in Italian office rental values are likely to be extended next year. But with a 10% drop in public sector jobs in the pipeline, occupier demand and thus rents, are likely to fall further in Rome than Milan. … Will office rental values in …
20th December 2012
The intervention of the European Central Bank helped to prevent the euro-zone debt crisis from escalating further in 2012. But the currency union still faces a number of major challenges in 2013. … 2013: Another challenging year for the …
The narrowing of the southern euro-zone economies’ current account deficits implies that economic imbalances within the region are shrinking. But the rebalancing process is far from complete. … How encouraging are recent current account …
19th December 2012
December’s small rise in the German Ifo business survey is moderately encouraging news. But the index still points to economic stagnation in the near term. … German Ifo Survey …
Our fears that 2012 could be the “crunch year” for the euro-zone were not borne out – barring catastrophe in the next week or so! However, the fact that the economic news has been largely as we anticipated suggests that the day of reckoning might merely …
18th December 2012
Ireland’s small rise in GDP in the third quarter underlined its status as the healthiest of the euro-zone’s peripheral economies. But it still faces considerable challenges in 2013 and beyond. … Ireland GDP …
Given the dubious benefits and possible costs of cutting deposit rates below zero, we still see ECB interest rates remaining on hold for the foreseeable future. … Negative ECB rates might do more harm than …
We doubt that the latest interest rate reduction by the Swedish Riksbank will be the last in the current cycle. While the Bank has concerns about the longer-term effects of a prolonged period of low interest rates, renewed problems in the euro-zone may …
October’s euro-zone trade data confirmed that the region continues to run a large trade surplus by historical standards. But the recent fall in exports is another reason to believe that the consensus forecast for GDP growth in 2013 is too optimistic. … …
17th December 2012
The European Council finally managed to reach some important compromises last week, allowing progress to be made towards setting up an EU-wide bank supervisor in the form of the ECB. But, presumably due to German insistence, the ECB will supervise only …
Despite rising for a second month running in December, the euro-zone composite PMI remained well below the “no-change” level, consistent with a deepening recession in Q4. … Euro-zone Flash PMIs (Dec.), Final CPI (Nov.) & Emp. …
14th December 2012
Our forecast that 2012 European commercial property volumes would be as much as 20% lower than in 2011 looks to be on track. Unfortunately, the conditions are not in place for a rebound in 2013. If the euro-zone recession deepens as we expect, investment …
13th December 2012
The news that Greece will get its next and long-awaited bail-out loan payment within days will provide Greek and euro-zone policymakers with a bit of breathing space. But we doubt that this will bring a period of lasting calm. … How long will the Greek …
October’s euro-zone industrial production data provided further strong evidence that the recession in the single currency area has deepened in the fourth quarter. … Euro-zone Industrial Production (Oct. …
12th December 2012
The relatively strong rise in Helsinki retail rental values seen since 2010 is not difficult to square with the underlying health of the Finnish economy. But it is less straightforward to justify recent rises in Amsterdam retail rents. Nevertheless, we …
11th December 2012
Recent actions by euro-zone policymakers and the ECB in particular have prompted some commentators to conclude that the region has turned a corner. But we still expect the crisis to deepen again soon, perhaps resulting in the start of some form of …
December’s rise in ZEW investor sentiment provides only limited hope for the German economy given clear signs of a downturn in the recent hard data and the latest developments in Greece and Italy. … German ZEW Survey (Dec. …
The intended resignation of Italian technocrat Prime Minister Mario Monti is a timely reminder thatthe euro-zone debt crisis still goes way beyond the problems of Greece. … Italy back in the …
10th December 2012
October’ trade and industrial production figures for the euro-zone’s largest three economies brought further evidence that the recession in the region will deepen in the fourth quarter and that it has spread to the core countries. … German Trade/French & …
Suggestions that last week’s downgrades to the ECB’s economic projections have left it too gloomy look wide of the mark. Against a background of weak global activity, continued austerity and high and rising unemployment across large parts of the region, …
The further drop in industrial production in October to its lowest level in two decades raises the chances of a triple dip recession in the wider economy. … German Industrial Production …
7th December 2012
At its press conference today, the ECB again refused to make any firm commitments about the amount of support that it might be prepared to offer the Spanish Government if it requested a bailout. And while the Bank conceded that euro-zone GDP is likely to …
6th December 2012
The breakdown of euro-zone GDP in the third quarter brought little cause for optimism regarding the outlook for the region. With timelier indicators giving a universally negative picture, the recession is set to deepen in Q4 and beyond. … Euro-zone GDP …
Recent hard data have confirmed that euro-zone GDP fell for a second quarter running in Q3 and more timely indicators suggest that the recession deepened in the fourth quarter. September’s drop in industrial production showed that activity weakened as Q3 …
5th December 2012
Credit Suisse’s announcement that it will charge other banks for holding large Swiss franc deposits with it has helped to ease the pressure on the currency for now. But while we have revised down our near-term forecast for the franc, we still see it …
4th December 2012
