18, Societe Generale SA and EPFR Global data show, even as investors withdrew $16.9 billion from funds buying U.S. stocks. This is the year of the European equities story, said Klaus Hessberger, co-head of equity capital markets for Europe at JPMorgan Chase & Co. in London . It helps that there is still a valuation discount here versus in the U.S. and Asian markets. The last quarter should see about 10 to 15 more IPOs with an average deal size of as much as $500 million, he said. Italian clothing maker Moncler plans to list shares as early as November in a sale that could raise about 1 billion euros ($1.35 billion), people familiar with the matter have said. French cable-TV operator Numericable SAS also plans an IPO in the third quarter and could be valued at as much as 5.5 billion euros in the sale. Moncler, Numericable Gross domestic product in the 17-nation euro area rose in the second quarter, bringing to a close six straight quarters of contraction, the longest slump since the euros debut in 1999. The euro meanwhile had gained 5.5 percent against a basket of nine major peers in 2013 before today, the biggest jump in the group and poised for its first annual gain in five years, Bloomberg Correlation-Weighted Currency Indexes show. Still, risks remain. While the European Central Bank raised its 2013 euro-zone economic projection this month, it still sees a 0.4 percent contraction and expects only a gradual pickup in activity. A possible resurgence of political tensions, upcoming bank balance sheet assessment and deleveraging all could constrain the regions recovery next year, according to Philippe Gudin, chief European economist at Barclays in London.
What Africa can learn from medieval Europe
energy policymakers can learn a lot from the lessons Europe has to offer. Here is what I picked up from the leaders in the field. A Large Commercial Industry. Compared to the U.S. where we have no turbines in the water, in Europe offshore wind is serious business. Total installed capacity of offshore wind power from 55 wind farms (1,662 turbines) in ten European countries by the end 2012 was 4,995 MW megawatts , the combined capacity of several nuclear plants. More than $15 billion in investments has been made in the industry over the last 8 years. There were about 58,000 jobs in the industry in 2012, with growth expected up to 191,000 in 2020. Many of the major European public investment banks like the European Investment Bank, and public pension funds, are investing in the space. Long-term Policy. Europe’s offshore wind surge did not happen by accident. The simple and strong message from industry leaders was plain: The only way a country (or a state) can develop a strong offshore wind industry is through a long-term policy in favor of offshore wind. Public officials and private sector representatives emphasized that targets committing to build large installations in stages over a twenty-year period have created the industry in Europe and are essential.
Offshore Wind in Europe: Lessons for the U.S.
The creation of strong and stable states in nineteenth-century Europe enabled investment in canals and railways, which increased growth rates there. The development of professional civil services and judiciaries, where promotion was based on merit rather than corruption, also helped too. These types of reforms contributed towards creating open access societies where all groups of the population have equal opportunity to access state services, such as the courts system to enforce property rights. Mr Broadberry and Ms Gardner argue that failure to fulfill these threshold conditions in most African countries have resulted in them being trapped in the cyclical pattern of growth reversals seen over the last 60 years. They argue policy makers should encourage both democratization as well as the expansion of “state capacity”in order to escape from the threat growth reversals still pose to Africa’s current phase of growth. But perhaps other lessons could be learned from this sort of economic history as well, aside from the importance of good institutions for growth. Social conditions could also be important in explaining development. Both modern Africa and medieval Europe suffered growth reversals after long-lasting epidemics: after HIV/AIDS hit Africa and after bubonic plague spread into Europe. Perhaps higher expenditure on healthcare and preventative measures against future epidemics could boost growth. And as growth took off in Europe after the invention of the printing press and the spread of mass literacy, higher spending on education may matter too. New explanations of underdevelopment are putting increasing stress on sociological factors as well. Pro-poor policies, which boost economic aspirations, might also be an effective way of kick starting economic growth in third-world countries. Theories like these may go some of the way to explaining why growth took off fastest in north-west Europe where the destruction of feudal structures that prevented social mobility occurred first. How far institutions were involved in these complex processes is a moot point.