"Overall business confidence among small and medium-sized enterprises has weakened significantly in July, the Confederation of Finnish Industries (EK) said on Wednesday."
"According to EK's survey, already more than one third of SMEs expected the business situation to deteriorate in the coming months. Construction companies were the most pessimistic."
No Surprise, the Nordic region is on the brink of recession. I heard that the South of Europe was called "the Pig", wonder why?, nevetheless they are all plunging in recession : Spain, Italy, Portugal and Greece. Now it's all about Germany and France..after all Europe has been messed up in the past century with this two power fighting each other. Let's hope that social stability is not eroded in those two sleeping giants, a good reason to have price stability as stamped and promised by the ECB.
UK figures are really horrible, unemployement is soaring so is inflation while the economy is collapsing. The english or best know as European Real estate speculators are now slowly disapearing...
"The Swedish publication Dagens Industri wrote in late July that the figure indicating the ratio between the price of construction companies and their result is exceptionally low.
This can be an indication either that the stock is undervalued, or that the market expects the result of the companies to fall sharply."
Let me remind you that the P/E or ration described above was very low, single digit for construction builders in the U.S. in 2006. In 2008, most of them have shed about 80% or more of their stock price value...so undervalued? no...One could argue that they could be overvalued and are pretty optimistic on the outlook of the real estate in the Nordic region or globally...
1 comment:
Housing Finland said
"UK figures are really horrible, unemployement is soaring so is inflation while the economy is collapsing."
"We don't know who's funding the municipal elections," he says. "It could well be banks, construction companies, retail co-operatives, or unions. But we just don't know."
"Obviously, data could change in both direction delaying either a rate cut or even triggering a rate increase, today the world is probably impredictable."
"all the Nordic region is on the brink of recession"
Ok Lets say that Finland is one of the least corrupt countries in Europe.
Lets say that no bank or construction company wants a recession now and will do all they can to prevent one happening. This means they will apply pressure before the recession arrives to ensure that an easy money policy is in place.
So lets say that as recession arrives that an increasingly easier money policy will be in place throughout Europe.
Lets say that the PIGS is an abbreviation for Portugal, Italy, Greece and Spain and that for the time being their problems are being taken seriously by the ECB and whatever inflation problems might be happening elsewhere are of relatively less importance. And we might as well add in Ireland and France too.
Lets say that ideally here in Finland we would prefer a different economic and policy environment.
Lets say that we get what we are given and we will be grateful for it because after all "it would be much worse without the Euro and the ECB."
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