How to weight real estate – time to overweight – says Michael Haddock, CBRE
Michael Haddock, Senior Director, EMEA Research and Consulting, CBRE, said earlier this year in his viewpoint, that it is time to overweight real estate. "In the context of the euro zone sovereign debt crisis and sharp downgrades in economic growth forecasts, both prices and investment activity in the commercial real estate sector held up remarkably well in 2011. One might normally expect an illiquid asset such as property to perform relatively poorly under such circumstances, yet investors continue to increase allocations to real estate. This report looks at why that might be and what that means for the prospects for property over the next few years. It argues that at the moment the conventional case for property is being augmented by particular features of the current market.
Growth in Construction Sector stands still
The Production in the construction sector is down by 0.5% in euro area and down by 1.7% in EU27. In the construction sector, seasonally adjusted production1 fell by 0.5% in the euro area(EA17) and by 1.7% in the EU27 in June 2012, compared with the previous month. In May 20123, production decreased by 0.2% in the euro area, but increased by 1.2% in the EU27. Compared with June 2011, production in June 2012 dropped by 2.8% in the euro area and by 5.8% in the EU27. These first estimates are released by Eurostat, the statistical office of the European Union.
ПрочетиConsultation on benchmarks and market indices launched following LIBOR manipulation
Following the recent manipulation of LIBOR, the Commission has launched a consultation inviting stakeholders to comment on possible new rules for the production and use of indices serving as benchmarks in financial and other contracts. Commissioner for Internal Market and Services Michel Barnier said: "The international investigations underway into the manipulation of LIBOR have revealed yet another example of unacceptable behaviour by banks. Doubts about the accuracy and integrity of indices can undermine market confidence, cause significant losses to consumers and investors, and distort the real economy. It is therefore essential that steps are taken to ensure the integrity of benchmarks and the benchmark-setting process. The Commission has already acted quickly to amend its legislative proposals on market abuse (see IP/12/846). However, changing the sanctions regime alone may not be sufficient: wider work is required to regulate how indices and benchmarks are compiled, produced and used." The consultation is wide-ranging: it covers all benchmarks, not just interest rate benchmarks such as LIBOR but also commodities and real estate price indices for example and it seeks to identify possible shortcomings at every stage in the production and use of benchmarks. The ultimate objective is to ensure the integrity of benchmarks. All options are on the table but any solution should guarantee that benchmarks are not subject to conflicts of interest, reflect the economic reality that they are intended to measure and are used appropriately. Background The consultation paper comprises 5 chapters covering: • the scope, process and nature of indices and benchmarks • governance and transparency in the use of actual transaction data • the purpose and use of benchmarks • the provision of benchmarks by private or public bodies, and • the impact of potential regulation, including transition, continuity and international uses issues. The consultation will run until 15 November. Link to the consultation: http://ec.europa.eu/internal_market/consultations/2012/benchmarks_en.htm
ПрочетиFuture of the Euro – Speech by Marion Draghi, President ECB
"Across Europe, a fundamental debate is taking place about the future of the euro. Many citizens are concerned about where Europe is heading. Yet the solutions presented appear to them unsatisfactory. This is because these solutions offer binary choices: either we must go back to the past, or we must move to a United States of Europe. My answer to the question is: to have a stable euro we do not need to choose between extremes. The reason this debate is taking place is not the euro as a currency. The objectives of the single currency remain as relevant today as they were when the single currency was agreed. To spread price stability and sustainable growth to all European citizens. To reap the gains of the world’s largest single market and make the historic process of European unification irreversible. To raise Europe’s standing – not only economically but also politically – in a globalised world. The debate is taking place because the euro area has not yet fully succeeded as a polity. Currencies ultimately depend on the institutions that stand behind them. When the euro was first proposed, there were those who said it would have to be preceded by a long process of political integration. This was because sharing a currency would imply a high degree of joint decision-making. Member countries would be a “Schicksalsgemeinschaft” and would need strong common democratic underpinnings." Read the full contribution that has been published in the German Newspaper DIE ZEIT, and that is taken from the Website of the ECB. Source: http://www.ecb.int/press/key/date/2012/html/sp120829.en.html
ПрочетиEuro area inflation estimated at 2.6%
Euro area annual inflation is expected to be 2.6% in August 2012 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.4% in July. Computation of flash estimates Euro area inflation is measured by the Monetary Union Index of Consumer Prices (MUICP). To compute the MUICP flash estimates, Eurostat uses early price information relating to the reference month from Member States for which data are available as well as early information about energy prices. The flash estimation procedure for the MUICP combines historical information with partial information on price developments in the most recent months to give a total index for the euro area. No detailed breakdown is available. Experience has shown the procedure to be reliable (19 times exactly anticipating the inflation rate and 5 times differing by 0.1 over the last two years). Picture: fotolia.de
Прочети
