Europe Economics Update Can the ECB engage in quantitative easing? The latest signal from the US Federal Reserve that it plans to adopt an even more aggressive policy of quantitative easing has fuelled speculation over what other central banks like the ECB might do... 18th December 2008 · 1 min read
Europe Economics Focus Will quantitative easing work? Quantitative easing (QE) is a potentially very powerful tool that could pull economies out of recession and deflation. However, to work fully it may have to be combined with additional measures to... 17th December 2008 · 1 min read
Western European interest rates and bond yields set to tumble (Q1 2009) Much of Europe faces a year of contracting GDP, falling profits and rising unemployment in 2009 and, perhaps 2010. In the Euro-zone, we expect a widespread contraction in GDP, but, with the exception... 12th December 2008 · 1 min read
Europe Economics Update Is criticism of the German Government warranted? The German Government has come under attack from the press and other European leaders for its apparent reluctance to provide its ailing economy with a fiscal boost. In fact, it has done more than is... 11th December 2008 · 1 min read
Europe Economics Update SNB already considering zero interest rates After today’s expected 50bp interest rate cut, the bottom end of the Swiss National Bank’s target range for three-month interest rates has already hit zero. For now, the Bank will target a rate of... 11th December 2008 · 1 min read
Europe Economics Focus Just how heavily will Europe suffer? Despite the recent weakness in the region, there are still reasons to think that at least some parts of Europe might suffer a shallower and shorter downturn than that underway in the United States... 11th December 2008 · 1 min read
Non-Euro Europe Commercial Property Outlook Emerging Europe to underperform the Euro-zone (Q1 2009) With very few exceptions, total returns in noneuro European commercial property markets are, on average, forecast to be negative in 2009 and 2010, before recovering in 2011 and beyond. (See Charts 1... 10th December 2008 · 1 min read
Europe Commercial Property Outlook Smaller markets to outperform during the correction (Q1 2009) Over the next two years, falling capital values, generated by rising yields mean that total returns are likely to be low or even negative in many Euro-zone property markets with the smaller markets... 10th December 2008 · 1 min read
Europe Economics Update ECB steps up the pace The ECB’s 75bp interest rate cut to 2.5% is an encouraging sign that the Bank recognises the severity of the economic downturn after earlier hints that a more modest reduction was likely. Although... 4th December 2008 · 1 min read
Europe Economics Update Swedish interest rates plunge by 1.75% The decision by the Swedish Riksbank to slash interest rates by 175 basis points highlights the degree to which the economic outlook has deteriorated. With the downturn set to worsen next year... 4th December 2008 · 1 min read
Nordic & Swiss Economics Update Swedish interest rates plunge by 1.75% The decision by the Swedish Riksbank to slash interest rates by 175 basis points highlights the degree to which the economic outlook has deteriorated. With the downturn set to worsen next year... 4th December 2008 · 1 min read
Europe Chart Pack Recession spreads to services Recent data suggest that the euro-zone economic downturn is gathering pace. Not only do the latest business surveys point to further steep falls in industrial output, but they also indicate that... 3rd December 2008 · 1 min read
Europe Economics Update Economic fundamentals to keep bond spreads elevated The recent surge in the spread between peripheral euro-zone government bond yields and the equivalent German yield is to a large part down to rising risk aversion in the financial markets. But the... 2nd December 2008 · 1 min read
Europe Economics Update Italian fiscal plan not all that it’s cracked up to be The Italian Government’s announcement of an economic package to help reinvigorate the economy suggests that Prime Minister Berlusconi may have reverted to his free spending ways. But the package looks... 28th November 2008 · 1 min read
Europe Economics Update Latest Spanish fiscal package won't save the day The latest Spanish fiscal package shows that the Government is willing to pull out all the stops to prevent a steep economic contraction. But with the effects on the economy of the housing market... 27th November 2008 · 1 min read
Europe Economics Focus Where will the downturn leave the public finances? While governments across the developed world are stepping in to shore up their ailing economies, the fiscal boost in the euro-zone looks set to be fairly modest. With a gradual economic recovery... 27th November 2008 · 1 min read
