The lack of investment alternatives, coupled with the fact that prices and returns are good, are two strong enough reasons for people to take their money out of bank deposits and fixed income securities and buy property.
Iberdrola’s subsidiary in the UK, Scottish Power, expects to win contracts worth a record 3 billion pounds (3.530 billion euros) in 2016, thanks to an increased interest in investing in renewables, smart meters and electricity networks.
Nick Malkoutzis via Macropolis | Since the European Union and Turkey agreed on a formula in March to manage refugee flows in a more orderly manner, by removing any incentive for migrants to cross the Aegean on their own, the crisis has faded into the background. Aided by the closure of borders in the Balkans and central Europe, the EU–Turkey agreement triggered a significant enough fall in arrivals to make the flow manageable and give much of Europe peace of mind.
BoAML | Central banks have learned the power of global spillovers the hard way in recent years. This is particularly true for the Federal Reserve, which paused planned policy tightening after the taper tantrum in 2013 and again after the sharp US dollar appreciation in 2014 and early 2015. In both cases US financial conditions deteriorated appreciably and the Fed responded by signalling a more gradual normalization.
Repsol and La Caixa, via Criteria, have closed the sale of 20% of Gas Natural Fenosa to the US fund Global Infraestructure Partners (GIP) for €3.803 billion. GIP will now become one of the core shareholders of the energy multinational.
Spain’s pensions ‘nest egg’ is bleeding cash. Figures show this. But when included in a ranking which compares it with other countries, then the result is even worse. The Social Security’s Reserve Fund has gone from 67th place in the world ranking of pension funds by volume of assets to not even being in the top 100, explains BS Markets.
Hu Shuli via Caixin | China has overhauled its fiscal budgeting process several times since the late 1970s by adjusting how local and central governments share public service cost responsibilities. Now, top policymakers have released new guidelines that reflect a determination to push forward long-overdue government spending reforms.
UBS | Post 2008, there is evidence that real growth has slowed down on a trend basis. Long-term expectation s of inflation have also fallen globally. In the long run and beyond cyclical swings, earnings growth is also likely to decline on average from pre-crisis norms of 10-11% to ca. 6 -7% in Europe and the US (in our estimates).
James Alexander via Historinhas | It’s taken a while but the evidence is now in. Euro Area NGDP growth has overtaken US NGDP growth. Congratulations to the ECB, commiserations to the Fed. Go Europe!
BoAML | As the impeachment is no longer an obstacle for President Michel Temer’s government to go ahead with its economic agenda, we believe focus will likely shift back to the timing of the presentation of reforms and the start of the monetary policy easing cycle.