Emerging Markets Economics Update End of the EM tightening cycle creeping closer While DM central banks are currently raising interest rates in earnest, the past week has brought signs that tightening cycles are now nearing an end in parts of the emerging world. Indeed, with... 8th August 2022 · 3 mins read
Europe Economics Weekly Heading for recession, ECB using PEPP flexibility The activity data published this week add to the evidence that the economy is heading for recession. Meanwhile, the ECB published data showing the degree of flexibility that it has applied to its PEPP... 5th August 2022 · 4 mins read
Nordic & Swiss Economics Weekly What's Danish for the "canary in the coal mine"? Denmark’s manufacturing PMI fell precipitously from 70.0 to a 27-month low of 38.0 in July. While Denmark's PMI is extremely volatile, this was its largest fall since 2008. And given that Denmark is a... 5th August 2022 · 5 mins read
Europe Chart Pack Slowing sharply amid high inflation Euro-zone GDP increased by more than we had expected in Q2 as reopening effects boosted the services sector, particularly in the southern countries. But things have already taken a turn for the worse... 4th August 2022 · 10 mins read
UK Commercial Property Data Response RICS Construction Market Survey (Q2) The latest RICS Construction Survey showed a further rise in workloads during Q2, though sentiment for the next 12 months worsened slightly. With labour and supply shortages remaining a major concern... 4th August 2022 · 2 mins read
UK Commercial Property Data Response S&P Global/CIPS Construction PMI (Jul.) The fourth consecutive decline in the headline construction PMI took the index below 50 for the first time since January 2021. While driven by an idiosyncratic drop in civil engineering activity, the... 4th August 2022 · 3 mins read
Europe Data Response EZ Retail Sales (Jun.) & Final PMIs (Jul.) The sharp fall in euro-zone retail sales in June means sales contracted in Q2 as a whole. With the final PMI surveys pointing to price pressures continuing to intensify and demand softening, we think... 3rd August 2022 · 2 mins read
Europe Commercial Property Update Better transparency provides little respite for yields While encouraging for the property risk premium, better transparency across Europe is unlikely to provide much support for property yields given the deterioration in the economic and interest rate... 2nd August 2022 · 3 mins read
UK Commercial Property Update Stretched consumers to cut back on leisure spending As the cost-of-living crisis bites consumers will be forced to cut back on discretionary spending, with the leisure sector set to suffer as a result. At the same time, operators are facing shortages... 2nd August 2022 · 3 mins read
Europe Data Response Euro-zone Unemployment (June) In June, the number of unemployed people rose in the euro-zone for the first time in 14 months. Nevertheless, we expect the labour market to remain tight even as the economy heads into recession... 1st August 2022 · 2 mins read
Europe Commercial Property Update Slowdown in European investment to continue After a strong start to the year, European investment weakened in Q2. And we expect only lacklustre activity over the second half of the year as rises in the cost of debt, tightening credit conditions... 29th July 2022 · 3 mins read
Nordic & Swiss Economics Weekly Nordic footballing woes; Record loss for SNB The 4-nil semi-final defeat at the hands of England on Tuesday will do nothing to bolster consumer confidence in Sweden, which is sinking faster than the boats that Freya the walrus climbed onto this... 29th July 2022 · 5 mins read
Europe Data Response Euro-zone GDP (Q2 2022) The chunky increase in euro-zone GDP in Q2 was due to the re-opening of the services sector which has masked a deterioration in most other parts of the economy. We expect a triple whammy of high... 29th July 2022 · 2 mins read
UK Commercial Property Data Response Lending to commercial property (Jun.) Lending activity in the commercial property sector surprised on the upside in June, driven by a rise in net lending to standing property investments. But looking ahead, rising interest rates, a... 29th July 2022 · 2 mins read
Europe Data Response Euro-zone Flash HICP (July) With headline and core inflation rising more than expected yet again, the case for the ECB to pursue further aggressive tightening of interest rates is unassailable. A 50bp hike in September now looks... 29th July 2022 · 2 mins read
UK Housing Market Data Response Mortgage Lending (Jun.) Mortgage approvals slipped back to below 2019 levels in June supporting our view that higher interest rates will cause housing market activity to slump over the next two years. Indeed, further rises... 29th July 2022 · 2 mins read
