Europe Economics Update Underlying inflation is still low Underlying inflation pressures in the euro-zone have been building over the past five years, but so slowly that it’s barely perceptible. And rather than being the start of a new trend, the jump in... 20th January 2020 · 2 mins read
Europe Economics Weekly Outlook for euro-zone exports still subdued The Phase One trade deal between the US and China is not a game changer for Europe. We still expect euro-zone export growth to remain fairly slow this year as the global economy expands less quickly... 17th January 2020 · 6 mins read
ECB Watch Christine Lagarde’s honeymoon continues At Christine Lagarde’s second meeting as ECB President next week, the Governing Council is sure to leave the main policy settings unchanged. The increase in inflation at the end of last year means... 16th January 2020 · 7 mins read
Europe Economics Update ECB has not shut the door on further easing The account of December’s ECB meeting confirmed that the Governing Council is content to leave monetary policy unchanged for some time. But it left the option of further easing on the table – an... 16th January 2020 · 3 mins read
Europe Data Response Euro-zone Industrial Production (Nov.) The small rise in euro-zone industrial production in November was nowhere near enough to reverse the previous month’s decline, so Q4 is likely to have been yet another weak quarter for the region’s... 15th January 2020 · 2 mins read
Europe Economics Weekly Another false dawn for inflation? We doubt that the increase in core inflation late last year marks the start of a sustained upward trend. After all, inflation has risen on several previous occasions recently, only to fall back again... 10th January 2020 · 6 mins read
Europe Chart Pack Euro-zone starts the year on a weak note Hopes that the euro-zone economy will gather pace in the coming months are likely to be dashed. The latest business surveys point to growth stabilising but not recovering in the final quarter of last... 9th January 2020 · 11 mins read
Europe Data Response German Industrial Production (Nov.) While the increase in industrial production in November comes as a bit of a relief, it merely reversed the decline in the previous month and still means that output is likely to have fallen again in... 9th January 2020 · 2 mins read
Europe Data Response EC Business and Consumer Survey (Dec.) lthough the euro-zone Economic Sentiment Indicator (ESI) edged up again in December, the index still suggests that economic growth in the region was very weak at the end of last year. 8th January 2020 · 2 mins read
Europe Data Response Euro-zone Flash CPI (Dec.) & Retail Sales (Nov.) December’s inflation data will provide some relief to policymakers at the ECB, but we are still sceptical that core inflation is about to start on a sustained upward trend. In our view, the Bank’s... 7th January 2020 · 2 mins read
Europe Data Response Final PMIs (Dec.) The euro-zone’s Composite PMI for December was revised up slightly, but taken together with the other available evidence, this still suggests that the economy grew by only 0.2% q/q in Q4. And Germany... 6th January 2020 · 3 mins read
Europe Economics Weekly 2020 will be another disappointing year The latest data suggest that the euro-zone economy might have avoided a further slowdown in Q4 last year, adding to the evidence that growth is “bottoming out”. However, the economy seems to have... 3rd January 2020 · 9 mins read
Europe Economics Weekly EZ troubles likely to re-emerge in 2020s The euro-zone is ending this decade in better shape than it ended the last one. But its fundamental problems have not been resolved, so we expect the region to face serious challenges in the decade to... 20th December 2019 · 4 mins read
Europe Economics Update Predictions for the euro-zone in 2020 We think the euro-zone will continue to struggle in the first half of 2020 as Germany and Italy remain close to recession and inflation stays well below target, prompting the ECB to loosen policy... 19th December 2019 · 6 mins read
Europe Commercial Property Update What do equities suggest about euro-zone property? Although the anaemic performance of the euro-zone economy is expected to weigh on occupier demand, real estate equity markets suggest that confidence in property markets has held up. We think that... 18th December 2019 · 2 mins read
Europe Data Response Flash PMIs (Dec.) and Hourly Labour Costs (Q3) The flash PMIs for December will disappoint those looking forward to a happier New Year. Indeed, they point to euro-zone GDP being almost flat in Q4 and a continued industrial recession. Looking... 16th December 2019 · 3 mins read
