Friday , September 17 2021
Home / Tag Archives: Europe

Tag Archives: Europe

How is the US doing?

Tyler Cowen linked to a tweet that mentioned the fact that: On a per-capita basis, of the European majors only Germany has done better than the US in death rate The “European majors” include Spain with 46.8 million people but not Poland with 37.8 million.  So the cutoff seems to be a rather arbitrary 40 million people. Let’s start with a list compiled by Worldometer, which includes 215 “countries” (actually entities.) The US shows up 9th in Covid-19 deaths per...

Read More »

It Starts: The Corporate Mega-Bailout Bonanza in Europe, Germany on Top

Airlines, automakers at the forefront. And it has only just begun. EU waives rules banning state aid. Ryanair, which doesn’t need a bailout, is furious. By Nick Corbishley, for WOLF STREET: Governments around Europe have rolled out a dizzying array of measures, including loan programs, tax payment deferrals, and furlough schemes, to help companies, large and small, withstand the fallout of the Covid-19 lockdowns. Large companies have also benefited from massive central bank purchases...

Read More »

Student Housing, One of the Most Hyped Asset Classes, Runs Out of Students

Here’s the story of two student housing REITs in the UK that crashed. Wolf here: In recent years, student housing, a subcategory of Commercial Real Estate, became one of the hottest asset classes in the US, in the UK, and elsewhere. Big money piled in. Wall Street raked in the fees by securitizing the mortgages into commercial mortgage-backed securities (CMBS). Large firms spun off their portfolios of student housing buildings into publicly traded REITs. The article below is about two...

Read More »

What Horrified Fund Managers, Banks & UK’s Pension Minister Said About the Bank of England’s Sudden “We Don’t Rule Out” Negative Interest Rates

“The stimulus the country urgently needs is not experimental and dangerous monetary policy.” By Nick Corbishley, for WOLF STREET: Andrew Bailey, the recently appointed governor of the Bank of England (BoE), is considering going where no other BoE governor has ever gone in the central bank’s 325-year history: into negative interest rate territory. On May 20, Bailey told British MPs that the BoE is refusing to rule out cutting the benchmark interest rate below zero in response to the...

Read More »

Third Mega-Crisis in 12 Years: Eurozone Economy Plunges at Fastest Rate on Record

First the Global Financial Crisis, then the Euro Debt Crisis, now the Big One. By Nick Corbishley, for WOLF STREET: In its 21 years of official existence, the Eurozone has already been through two brutal crises — the Global Financial Crisis and one of its own doing, the Euro Debt Crisis — that nearly tore the bloc apart. Now, it is in the grip of another one that is already exacting a larger toll than the first two, despite having barely begun. The preliminary GDP in the first quarter...

Read More »

Airbnb Gets Disrupted. Hosts, “Super-Hosts” Try to Survive. Apartments in Prime Locations Suddenly Flood Rental Market

Big driver behind soaring rents — the “Airbnb effect” that removed countless properties from global cities’ long-term rental markets — reverses. By Nick Corbishley, for WOLF STREET: With many of the world’s most popular tourist destinations locked down, and many flights canceled, making international tourism all but impossible, the world’s biggest disruptor of global tourism, Airbnb, faces a starkly different market reality. As of mid-April, new bookings on the company’s portal had...

Read More »

Service Sector Falls Off Cliff in the Eurozone, Manufacturing Not Far Behind

It will likely take “several years before the output lost due to the virus outbreak is fully regained.” By Wolf Richter for WOLF STREET. “At this stage, we can only tentatively map out the scale and gravity of the coronavirus shock to our economies. While the immediate fallout will be far more severe for the global economy than the financial crisis, the depth of the impact will depend on the evolution of the pandemic, our ability to safely restart economic activity and to rebound...

Read More »

Retail Landlords Reel as Big Luxury Brands Threaten to Close Stores if Rents Aren’t Slashed

Luxury retail isn’t what it used to be, from Barcelona to Hong Kong. By Nick Corbishley, for WOLF STREET: In Barcelona, frantic backroom haggling is taking place between some of the world’s biggest luxury retailers and the owners of some of the city’s most expensive commercial real estate. That real estate is on Passeig de Gracia, a ten-block avenue that is home to two of Antoni Gaudi’s most emblematic buildings, La Pedrera and Casa Batllo. It is currently Spain’s third most expensive...

Read More »

Commercial Real Estate Already Gets Hit in Europe: Prices for Retail Properties Plunge, Office Prices Sink

“Wide bid-ask spread points to lower values” going forward. It just started. By Wolf Richter for WOLF STREET. Over the past few years, the various sectors of commercial real estate have split into different trajectories, with some property types, such as industrial and office, rising to new highs, and with retail properties dropping further and further. Then came the issues surrounding Covid-19 and the lockdowns. The trajectories suddenly turned into the same direction: down for all,...

Read More »

European Banks Reveal Scale & Complexity of Crisis. Shares Hammered Back to 1987 Level

They haven’t gotten over Financial Crisis 1 and the Euro Debt Crisis. Now there’s a new crisis. Deutsche Bank’s CEO going on TV to soothe nerves didn’t help matters. By Nick Corbishley, for WOLF STREET: The biggest European banks have started to report their earnings against a bleak backdrop of locked down economies, plunging economic activity, surging business closures and rising loan defaults. Each earnings call laid bare the scale, scope and complexity of the problems and challenges...

Read More »