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THE ECONOMIC RECOVERY IN THE
EUROZONE
CONTINUES TO GAIN MOMENTUM AS POLITICAL
RISK RECEDES FOLLOWING THE FRENCH
PRESIDENTIAL ELECTION
NO PLAN TO INCREASE INTEREST RATES
BEFORE
ADJUSTING THE PACE OF ASSET PURCHASES, WHICH
COULD BEGIN TAPERING AS EARLY AS Q4 THIS YEAR
THE MAIN IMPACT FROM
BREXIT
TO DATE HAS BEEN THE 10%
DEPRECIATION IN STERLING WHICH IS HELPING TO IMPROVE
THE COMPETITIVENESS OF UK EXPORTERS RELATIVE TO THEIR
EUROPEAN COUNTERPARTS
HIGHER
INFLATION
IS EATING INTO REAL WAGES IN THE UK WHICH
ARE NOW FALLING FOR THE FIRST TIME SINCE 2014
THE COMBINATION OF
LOW DEVELOPMENT
AND
MODERATE DEMAND
HAS
LED TO AN UNPRECEDENTED 7-YEAR PERIOD OF POSITIVE AND STABLE, YET
MODEST, RENTAL GROWTH
OFFICE COMPLETIONS
HAVE BEEN GRADUALLY INCREASING YEAR BY YEAR SINCE
2013 AND ARE SET TO MOVE ABOVE THE 10-YEAR AVERAGE IN 2017 AND 2018
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