Organisations have had to rethink their entire business models, new players have sprung up seemingly from nowhere, and consumer behaviour has completely changed. Of course, more transactions are now taking place online and the use of cash is dwindling.
But while digital payments are dominating the ecosystem in regions such as the Nordics and the UK, there are some key markets in Europe where there is still a way to go. Both Spain and Germany, for instance, still have fairly low rates of card usage and digital payment adoption with cash still used in around 40% of in-person transactions in Spain, rising to 44% in Germany, according to figures from PCM.
However, while these statistics suggest that digital payments still have a long way to go in these markets, it could also indicate that a boom is set to happen. Indeed, the growth seen in the Spanish e-commerce sector, for example, and Germany’s creation of a common standard for open Application Programming Interfaces (APIs) through the Berlin Group suggest that further revolutionary changes could be just around the corner. Kriya Patel, CEO of Transact Payments, explores the massive untapped potential of the Spanish and German markets, highlighting the opportunities for innovative incumbents and agile new players.
Spain: Modernisation will drive a boom in digital payments
Spain has a developed payments market, with 86.3 million credit, debit and charge cards used by a population of 47 million for 5.58 billion payments with a value of €210.56 billion via 1.7 million point of sale (POS) terminals and more than 115,000 online merchants. But as mentioned above, cash use remains relatively high suggesting there are still opportunities for cards to replace cash.
The foundations for huge growth in digital payments already exist. Spain’s three major payment systems merged into a single provider, SistemaPay in 2018. As well as rationalising the previously complex infrastructure, Spain’s banks and regulators have upgraded and modernised the technologies that power their payments system. This has led to the enablement of instant payments and other services, while regulatory sandboxes have provided a catalyst for trials of new payment methods between FinTechs and banks.
While all European markets saw a rise in e-commerce during COVID-19, Spain enjoyed the fastest growth in this sector among all Southern European nations at 15%, with e-commerce accounting for double the proportion of national GDP compared to the UK, at 4.5% compared to 2.25% of total GDP.
As well as e-commerce, contactless transactions for in-person payments grew during the pandemic. Spain’s smaller merchants are continuing to open up to electronic payment both in-store and online.
Having previously been something of a desert in terms of opportunities for payments players — largely because of its bureaucratic systems and standard debit-led card portfolios — the outlook is now much brighter. The modernisation of its payment systems and speed of digitisation means issuers could be set for a boom in business over the next three to five years.
Germany: Embracing PSD2 to drive massive growth
Meanwhile in Germany, the growth potential is even more obvious. While the country is unarguably Europe’s economic powerhouse and a global leader in banking, there is still relatively high use of cash, while card use is not as high as some other regions, with 153 million cards held by a population of 84 million people — just under two cards per person. These cards were used for 6.29 billion payments with a total value of €350 billion via 1.15 million POS terminals and online in 2019.
Like Spain, there are solid foundations for digital payments players to build on. Digital transactions are expected to grow at a compound annual growth rate of around 11% in the next few years. While debit cards are most commonly used to pay online, low digital wallet use at just 7% suggests an openness to new solutions other than wallets.
Germany has not sat on its hands when it comes to embracing the EU’s PSD2 regulations. The Berlin Group has created a common standard for open APIs, opening the way for innovative players to muscle into the payments market. With a high number of permissioned intermediaries now able to deliver payments services thanks to the new regulations, smaller companies in Germany now have better options for accepting payments, reducing their reliance on more expensive third-party players.
There are also plans to bring together Germany’s various instant peer-to-peer (P2P) and person-to-business payments schemes. Instant payments are experiencing very rapid growth in Germany, though with only 20% of banks offering this function the room for growth is obvious. Look out for “PayX” — a merger between schemes like Geldkart, Paydirekt and Kwitt — in the coming months and years.
Overall, there look to be plenty of opportunities for players in the payments space to take advantage of in these two key European markets. While restrictive infrastructure has previously made these two nations something of a challenge for payments innovators, recent regulatory and systemic changes coupled with public appetite for new services make Spain and Germany an exciting place to be right now.
This year, benchmark natural gas prices in Europe and the UK have tripled, with the price increase meaning higher energy costs for companies and more costly bills for consumers. It is expected that the sudden rise will eat into the profits of numerous energy companies over the coming months and will pressure net profit margins which are already at their highest since 2008.
Strong commodity and carbon prices, low gas reserves, increased global demand, and low wind output are all thought to be to blame for the sudden jump in energy prices.
Goldman Sachs has already warned that rocketing prices are exposing the risk of power outages in the winter months, with Europe already struggling to refill storage facilities in time for the colder weather.
This year, the UK’s reliance on imports has also increased. This may potentially be due, in part, to the lower demand for resources seen amid the start of the pandemic. Gas imports from Norway, for example, surpassed the UK’s own domestic production over the first half of 2021.
In July, core inflation was subdued, predominantly due to a change in the sales period last year. In August, the data headed higher with a 1.6% reading.
The change in last year’s sales period as well as an increase to German VAT were the key drivers behind the increase in non-energy industrial foods prices from 0.7 to 2.7%, according to analysts at ING. “These effects are temporary and the increase in services inflation was much smaller, from 0.9 to 1.1%. Yes, price pressures are increasing, but August’s dramatic move does overstate the underlying inflation developments,” they said.
By close in London, the FTSE was down 0.4%, while France’s CAC was 0.3% lower and Germany’s DAX dropped by 0.5%. Meanwhile, according to Lloyds’ Business Barometer, business confidence in the UK increased six points to 36% in August.
The global real estate crowdfunding market is expected to grow a CAGR of 33.4% between 2020 and 2028. The EU REC market size is currently at approximately EUR 7 billion, and with that growth rate, the EU market would be EUR 93.65 billion in 2028.
This stratospheric projection illustrates the potential of real estate crowdfunding. Stipulations protecting consumers and crowdfunding platforms provided by new EU regulations coming into play in November will foster legitimacy in the industry and draw the focus of new investors.
To determine what drives the crowdfunding community, BrikkApp recently spoke to five real estate crowdfunding industry leaders from Shojin, Reinvest24, Kuflink, Max Crowdfund, LendSecured.
New EU regulation bolsters the market
Faced with substantial industry growth, the European Union has decided to implement regulatory actions that will formalise the service provision process for crowdfunding and widen the potential pool of investors exponentially.
For Jatin Ondhia, Co-founder and CEO of Shojin, the regulations are a necessary step to gain new economic opportunities: “At times, the regulatory costs and process can become burdensome, but they are essential if we want this market to grow.”
Per the regulations’ due diligence requirements by platforms, investors will feel secure in their investment decisions. Terms on suitability and appropriateness will further enhance that sentiment. New passport and authorisation processes will make sure that platforms are held accountable for their listings and work in the best interest of their clients.
Under the new scheme, real estate crowdfunding platforms can collaborate seamlessly with developers and construction corporations across the European continent if their projects total under €5 million.
Given that the regulation works to rule out non-compliant practitioners, there will be fewer market participants—but those participants will present safer investment opportunities, according to the Latvian crowdlending platform LendSecured.
“We find it more complex to spot deals that suit the vetting process. The volume might be smaller, but you can be sure that it has the highest quality,” explains Nikita Goncars, CEO of LendSecured.
The unrelenting interest of new retail investors will bring liquidity to the market and entice developers.
Crowdfunding platforms increasingly make use of the power of collaborating
Shojin provides global investors with direct access to institutional-style debt and equity investments in the UK. Crowdfunding platforms like Shojin work best when they can balance the number of investors with a high deal flow. “Sometimes, there is an imbalance due to the economic and societal environment. This is where collaboration between platforms can be extraordinarily effective,” according to Jatin Ondhia, CEO and Co-founder.
As crowdfunding gains popularity, more and more high-quality platforms will operate in the industry. Increased cash flows and investments deepen the liquidity pool and broaden the range of projects that can meet investors’ and developers’ requirements.
Recently, most crowdfunding platforms have felt the market is too fragmented. To become a mainstream marketplace, the sector needs to attract a much broader crowd and cooperative market opportunities.
In addition, the associated costs with new EU regulations may leave several companies in a difficult position. Thus, collaborations of various platforms play a vital role in the sector. Collaboration is not simply a matter of costs but combining expert knowledge and business strengths: If the market specialists blend their skills and help each other out, this will lift the whole industry to a higher level. Potential joint areas include tech development and research to understand and predict the market’s evolution better.
The EU regulations hit the point of the time. Max Crowdfund, a Dutch crowdfunding platform, forecasts that if real estate crowdfunding continuously grows into the mainstream, cross-border investments and the international interest in the EU market will become commonplace. The new standards and the ability for crowdfunding agents to work seamlessly with developers all across the European continent ensure a fertile ground for the industry.
Interest Rates and Returns
A growing number of real estate platforms ultimately stimulate a higher output for aggregation platforms such as BrikkApp. For investors, it brings higher diversification between investment opportunities. From the current point of view, the size of the platform is becoming less important.
Still, the quality of the project (e.g., well-funded, location, housing prices) investors can crowdfund attracts enormous interest. If the quality of investments and returns will be the decisive factor for the crowdfunding community, this allows a fairer investment fund distribution across European real estate.
Due to the global pandemic, interest rates have been lowered worldwide to stimulate consumption. As a result, banks fear the trend going towards negative interest rates.
One of the downsides of the EU regulations could be a potential split between regulated and unregulated platforms. The latter could try to offer higher returns that don’t face restrictions by any legislation. Fortunately, this won’t stop regulated platforms from offering healthy returns, and it will establish them as more trustworthy than unregulated businesses in the long run.
Lastly, due to the global pandemic, interest rates have been lowered worldwide to stimulate consumption. As a result, banks fear the trend going towards negative interest rates.
“Facing the likelihood of negative interest rates, investors prefer P2P real estate lending platforms as a potential option for their funds. This happens because they could earn significantly higher returns,” agrees Narinder Khattoare. He is the CEO of Kuflink Group, a company developing and leveraging P2P investment models. Higher returns will positively impact the industry and create an enormous leverage effect for those who invest now.
“In our case, we are currently able to offer returns up to 16% because we are working on developing markets, with a big potential for capital growth. By developing most projects by ourselves, we are lowering the expenses as much as possible”, says Tanel Orro. Tanel is the CEO of Reinvest24, a real estate investment platform based in Estonia.
The new EU regulations will not be smooth sailing for every platform. For example, Max Crowdfund operates using blockchain technology, and banks and payment providers are still reluctant to work with the technology. Currently, Max Crowdfund can offer debt-based real-estate-backed loans to their investors.
“Once we have obtained the license per the new European regulation for crowdfunding platforms (CSPR), we will add equity-based deals and a secondary market,” reveals Mark Lloyd, CEO of Max Crowdfund.
The European crowdfunding real estate market shows promising progress. Particularly the Baltics and countries in Eastern Europe, including Estonia, Moldova, and Latvia, are attracting investors’ interests. “We see great potential in the real estate sector, as the competition is still low, due to the small size of the market,” concludes Tanel Orro from Reinvest24.
As soon as crowdlending platforms start to diversify their portfolio and collaborate with each other and developers alike, the alternative property market is ready to become a mainstream capital source.
Copenhagen-based company card start-up Pleo has raised $150 million in a financing round, which was led by Thrive Capital and Bain Capital Ventures. Pleo has said that the round, which is now the largest Series C for Danish startups, has led to the company being valued at $1.7 billion.
Pleo, which sells corporate expense management software and linked smart payments cards, has increased its valuation to $1.7 billion following a $150 million financing round, led by Thrive Capital and Bain Capital Ventures. Following its recent valuation, Pleo is now the latest European fintech firm to reach “unicorn” status.
Around 70% of Pleo’s profit comes from interchange fees from merchant bank accounts, subtracted each time a customer uses their card. Paid subscriptions are Pleo’s second largest form of revenue. The start-up has said that the coronavirus pandemic has served as an accelerator for its business model. Over the course of 2020, Pleo’s customer base doubled to 17,000 as an increase in remote working offset a decline in international business travel.
Pleo’s founders were previously employed by Tradeshift, a $1.1 billion fintech company that relocated from Copenhagen to San Francisco. Moving forward, Pleo’s founders plan to use fresh funds to increase the company’s presence in countries like the United Kingdom and boost marketing and PR.
The FTSE 100 (^FTSE) in London was down by 0.4% in noon trade, whilst the CAC (^FCHI) dropped 0.5% in France, and the DAX (^GDAXI) was 0.2% lower in Germany.
Covid-19 cases are up 59% in week-on-week figures, just seven days on from 21 June, the date on which all coronavirus restrictions across England were set to be lifted. However, the Delta variant of the virus, which was first detected in India and is understood to be more transmissible than previous strains, now makes up around 99% of reported covid-19 cases.
Sajid Javid, who was promoted to the role of UK health secretary following Matt Hanock’s recent resignation, will give an update later on when the final stage of England's roadmap out of lockdown can be safely implemented. Currently, 19 July is the anticipated date for England’s new “freedom day”. However, the prime minister has said that there will be a data review to judge whether the final stage of unlocking could happen two weeks earlier on 5 July.
According to data from EY, the UK acquired 99 investment projects in financial services in 2019. However, in 2020, just 49 were acquired, a significant drop that puts the country only 14% ahead of France.
The latest EY UK Attractiveness Survey for Financial Services found that foreign investment fell by 23% across Europe in 2020, as the pandemic impacted business confidence and foreign travel. It is expected that the UK will continue to outperform its European neighbours as global markets and economies begin to recover from the economic impacts of Covid-19. In a survey of global investors, the UK was found to be the European country with the most investment-friendly Covid-19 recovery plans. It was also labelled most attractive for financial services investments.
Germany came second on both of these assessments, with France and Switzerland coming in joint third place. London remains Europe’s most attractive destination for financial services foreign investment after Stockholm and Amsterdam.
The question is: How hard exactly will this recession be felt in the real estate market?
We are seeing that the investor response in all market segments is increasingly different and that the current crisis has exacerbated the following existing trends.
Strong office market, weakness in retail, and resilience in the industrial and logistics sector
During the first quarter of 2020, we observed a solid performance in the office sector with 3.6% rental growth YoY. We don’t expect the growth to continue during Q2 and Q3, because this sector, in particular, is highly cyclical and the insolvencies and reduced demand caused by the recession will surely put downward pressure on rent. However, considering the long-term nature of commercial leases, this part of the market is expected to remain relatively stable. Our projection is for no rental growth in the next 2 quarters.
Reduced deal volume
Investment deals were down 75% in March and the number of cancelled deals is also on the rise. Nearly 3.5% of the commercial deals have been scrapped since March, compared to a 1% average over the past five years. The dampened demand for investment will draw down prices, but on the other hand, that increases the prospect of higher yields in the future. The mean yield for prime office space in Europe was 4.2% in the first quarter of 2020. If we see downward pressure on prices in the next few months, a rise in yield will be sure to follow.
The sentiment in the retail market is a lot different
Following all the structural changes in this market in the past few years, coming primarily from the rise in online sales, the outlook has turned from bad to worse. The timing of the recession could not be any worse for this sector - after two difficult quarters with 0.1%, and 0.3% decline in rents, we are expecting the decline in rent to steepen and the fundamentals to deteriorate quickly. One of the biggest issues here is rent collection. Recently, the British REIT Intu Properties shared a press release stating that they expect to collect only 63% of the rent due in 2020. That shock has also led them to discuss some of the negative bond covenants with their investors. Another prominent player in the UK market, Hammerson plc, expects to receive only 57% of all rents for this year.
In the retail space, we can currently observe the biggest gap between “good” and “bad” properties. Most recent analysis shows that the properties that are able to collect the biggest percentage of rents are the top percent of prime high-street properties. There’s also a huge divergence between the very large shopping malls and small to medium-sized shopping centres. Smaller properties are expected to suffer the bigger part of store closures. This is why when looking at European retail REITs, the most important part will be to analyse the individual tenants and assess the default probabilities.
The Convenience/essentials space has been left relatively unscathed
Companies like France’s Carmila SA and Italy’s IGD SIIQ S.p.A which focus mostly on grocery shops and pharmacies have performed relatively well during lockdown and are expected to outperform in the near term.
There hasn’t been much change in the market from a geographical perspective
Benelux and the Nordics are the hardest-hit regions where rental income fell more than 5% year-over-year. Considering that those are some of the regions that suffered the most during the pandemic, we expect to see continued downward momentum in these markets. Germany and France seemed more robust before the crisis, with rental incomes falling a modest 0.1% during the first quarter and yields mostly stable.
The one region that looks hopeful for the upside is Central and Eastern Europe. The retail market in the region has been hot in the past few quarters, and rental income grew 4% during the first quarter of 2020. Considering that most of the countries there weren’t affected as hard during the pandemic, and measures were lifted earlier in Romania, Poland, Bulgaria and the Czech Republic, we see the possibility for quick market recovery and even a positive year-over-year growth in both rental income and rental yields.
Industrial and logistics properties have proved to be some of the most resilient
In the first quarter, we observed a Europe-wide growth in rental income of 2.5% while yields were mostly flat. The logistics sector has seen a boost, widely due to an uptake in e-commerce during the quarantine period. UK’s Tritax Big Box Reit Plc and Belgian Warehouses de Pauw have performed exceptionally well and quickly returned to pre-crisis price levels. It’s highly likely that the fundamentals for this sub-sector will continue to improve and we may see a year-over-year increase in yields for the entire 2020.
Overall the market environment remains highly uncertain. We continue to monitor the most recent developments and in the near term, press releases for Q2 results will be the biggest driver of price volatility in the EU REIT space. Office space and logistics property providers seem to be holding up quite well, and we don’t expect huge movements in this space. Companies managing primarily retail portfolios have been hit particularly hard, and prices fell broadly in the past few months, irrelevant to individual performance and fundamentals. That’s why there is plenty of opportunities to be found. As mentioned above, retail operators focused on essential shops and prime high-street real estate are great prospects for superior risk-adjusted returns. And while Western Europe will face a lot of stress in the next few quarters, perhaps now is the right time to look east!
This AI ‘arms race’ is being driven by two tech superpowers: the United States and China. The US is barrelling ahead, with Washington recently signalling its intentions to promote AI as a national priority. Last year, President Donald Trump launched a national AI strategy – the American AI Initiative – which orders funds, programmes and data to be directed towards the research and commercialisation of the technology.
Government involvement and long-term investment in AI has paid off: US companies have raised more than half (56%) of global AI investment since 2015. China, meanwhile, is catching up quickly and is now vying with the US to become the dominant force in the area. In 2017, it laid out a roadmap to become the world leader in AI by the end of the decade – and create an industry worth 1 trillion yuan (or the equivalent of $147.7 billion). As part of the three-step strategy, China has announced billions in funding for innovative startups and has launched programmes to entice researchers.
Achieving economic and political prowess is the ultimate goal. Indeed, AI is a vast toolbox of capabilities which will give nations a competitive edge in almost every field. However, the question beckons: where does Europe stand in this race, and what is at stake? Nikolas Kairinos, founder and CEO of Soffos, offers his analysis to Finance Monthly.
Europe is falling behind
Thanks to great access to home-grown talent and an inspiring entrepreneurial spirit, Europe is still a strong contender in this race. According to McKinsey, Europe is home to approximately 25% of the world’s AI startups, largely in line with its size in the world economy. However, its early-stage investment in the technology is well behind that of its competitors, and over-regulation risks stifling further progress.
Thanks to great access to home-grown talent and an inspiring entrepreneurial spirit, Europe is still a strong contender in this race.
Early last year, for instance, the European Commission announced a pilot of ethical AI guidelines which offer a loose framework for the development and use of AI. The guidelines list seven key requirements that AI systems must meet in order to be trustworthy; amongst the chief considerations are transparency and accountability.
The intentions behind such proposals are pure, albeit counter-productive. Proposing a new set of standards to be followed risks burdening researchers with excessive red tape. After all, AI remains a vast ocean of uncharted waters, and introducing ever-changing hurdles will only impede progress in R&D. Innovative new solutions that have the capacity to change society for the better might never come to light if developers do not have the freedom to explore new technologies.
Meanwhile, a European Commission white paper recommends a risk-based approach to ensure regulatory intervention is proportionate. However, this would only serve to deter or delay investment if AI products and services fall under the loose definition of being too ‘high-risk’.
Upholding human rights through proper regulation is of paramount importance. However, Europe must be careful to find the right balance between protecting the rights of its citizens and the needs of technologists working to advance the field of AI.
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The risk of ignoring AI solutions
What is at stake if AI development falls behind? The risk of ignoring AI solutions is immense, particularly for sectors like the financial services industry which must keep pace with evolving consumer habits.
AI has given the world of banking and finance a brand new way of meeting the demands of customers who want better, safer, and more convenient ways to manage their money. And with populations confined to their homes for long periods of time in the face of the coronavirus pandemic, the demand for smart digital solutions that allow people to access, spend, save and invest their money has peaked.
Those who fail to adapt by leveraging AI are at risk of losing their competitive advantage. The real value of AI is its automation potential; AI solutions can power more efficient and informed decision-making, taking on the data processing responsibilities that would normally be left to humans. If used wisely, smarter underwriting decisions can be made by delegating the task of assessing loan and credit applications to AI. Not only is this markedly faster than performing manual checks, but the chances of making risky decisions will also be reduced: AI software can be used to build accurate predictive models to forecast which customers have a higher likelihood of default.
Accurate forecasting is needed to ensure the continuity and success of a business. Again, those businesses that utilise the AI toolsets at their disposal stand to benefit from advanced analytics. Machine learning – a subset of AI – is adept at gathering valuable data, determining trends, anticipating changing customer needs and identifying future risks. Those who turn their back on AI risk losing out on sound risk management, leaving their profits and reputation vulnerable.
Accurate forecasting is needed to ensure the continuity and success of a business.
At the heart of any bank or financial firm, however, lies the customer. Traditional bricks and mortar banking is no longer the favoured option when money can instead be managed online. Yet, while online banking is by no means a new phenomenon, AI offers the hyper-personalised services that customers seek. Indeed, a global study conducted by Accenture recently found that customers today “expect their data to be leveraged into personalised advice and benefits, and tailored to their life stage, financial goals and personal needs.” Meanwhile, 41% of people said they are very willing to use entirely computer-generated advice for banking.
There is clearly an appetite for innovation from the consumer side, and financial institutions must step up to enhance their offering. Enhanced, real-time customer insights generated by AI will optimise recommendations and tailor services to each individual. AI-powered virtual assistants that offer personalised advice and tools which can analyse customers’ spending to help them meet their financial goals are just some of the ways that financial institutions can create a better customer experience.
These are just a few of the many incredible applications of AI within the financial services sector. Not only can it enhance a business’ core proposition, but the cost-saving potential and operational efficiency is becoming difficult to ignore.
AI technologies are transformative, and those who fail to invest in new solutions risk losing out on the multitude of benefits on offer. I encourage business leaders to think carefully about the about the outcomes that they want to drive for their institution, and how AI can help them achieve their goals. I hold out hope that Europe as a whole will ramp up AI development in the coming years, and I hope to see governments, businesses and organisations working together to continue to push forward the AI frontier and pursue innovative applications of this technology.
Nikolas Kairinos is the chief executive officer and founder of Soffos, the world’s first AI-powered KnowledgeBot. He also founded Fountech.ai, a company which is driving innovation in the AI sector and helping consumers, businesses and governments understand how this technology is making the world a better place.
Give yourself something to look forward to by browsing these dream spas across Europe!
Hotel Villa Honegg, Switzerland
Nestled in the heart of Switzerland, Hotel Villa Honegg is one of the most stunning spa destinations in Europe! In addition to its outstanding facilities, the spa in this exquisite hotel offers an outdoor pool which boasts truly jaw-dropping views of the Swiss Alps and Lake Lucerne. The pool is heated at 34ºC, allowing Hotel Villa Honegg’s guests to enjoy it all year round. The spa also offers a Finnish sauna and a steam room, as well as a fully equipped gym and an extensive list of massages, facials and beauty treatments.
Aqua Dome, Austria
Skiing followed by a trip to the sauna… In Austria, the most popular country for skiers, many hotels and holiday rentals offer this service for their visitors. The combination sounds like an absolute dream! Our top spa recommendation in Austria is the Aqua Dome in Längenfeld, Tyrol where you can experience many spectacular saunas and go for a swim in its stunning thermal pools.
Löyly, Finland
The Finnish are considered to be the inventors of the sauna, they even have one up in their Parliament House in Helsinki! With saunas considered as an integral part of Finnish culture, it is clear that this is the dream destination for a spa break. Löyly (meaning steam in Finnish) is located on the Helsinki coast and offers a beautiful setting with saunas, a restaurant, a bar, and a beautiful terrace, where you can also enjoy some live music. This is an authentic hot-spot in an environment fully respectful of nature.
Sanduny Bath House, Russia
Cold in Russia? This is a well-known fact. And maybe that's why in this country the traditional sauna, known as banya, reaches up to 100 degrees at least. The Sanduny Bath House is the oldest sauna in Russia. With its magnificent architecture and fairytale decoration, you will feel like royalty whilst enjoying all the benefits of the sauna and the thermal pools.
Vabali, Germany
Germans are also addicted to spas, which is reflected in the tremendous amount of public saunas available, especially found linked with swimming pools and gyms. To escape the hustle and bustle of Berlin, take a sauna session at Vabali, which is within close proximity to the central station, but feels isolated at the same time. Once there, you will find different types of saunas, from a Russian banya to a panoramic sauna that will transport you into a perfect setting with its unbeatable garden views.
Colmar, France
Famous worldwide as a leading destination for wine tourism, Colmar offers more than just wine! With its cobblestone streets, markets, festivals, scrumptious food and picturesque buildings, Colmar promises to quickly become one of your favourite French towns!
Where to stay?
For a true taste of Colmar, stay at La Maison des Têtes. Housed in a lavish 17th-century mansion, it offers chic rooms, creatively prepared food and unmatched luxury.
What to do?
Visit Unterlinden Museum, La Petite Venise, the numerous amazing châteaus in the area (don’t miss Château du Hohlandsbourg which dates back to the 13th century), and obviously - drink all the wine.
Athens, Greece
Although it’s the capital of Greece, Athens is not necessarily the first destination that springs to mind when thinking about a holiday to the land of quaint island villages of squashed-together white houses, olive trees and endless sunshine. However, with its vibrant streets, ancient wonders, booming art scene and electrifying nightlife, Athens is definitely a city worth adding to your travel bucket list.
Where to stay?
Located in close proximity to the Acropolis and Plaka (the Old Town), AthensWas Hotel is a boutique hotel offering amazing views, modern decor and five-star luxury.
What to do?
Visit the Acropolis, the Pantheon, wander the streets of Plaka and Monastiraki and indulge in all the feta cheese and dips Greece is famous for.
Rijeka, Croatia
Named European Capital of Culture for 2020, Rijeka is Croatia’s third biggest city and is the perfect answer to those who don’t want to have to choose between a beach holiday or a city break. Combining history, pretty beaches and trendy restaurants, Rijeka is the ideal destination for travellers who have toured all major European cities and are looking to experience something different.
Where to stay?
Hotel Bonavia Plava Laguna benefits from a super central location and offers everything you could desire!
What to do?
Visit Trsat for breathtaking views of the city and Kvarner Bay, go to The Peek and Poke Museum, go shopping on Korzo and don’t forget to check what exhibitions, shows and concerts are on this year before your visit.
Plovdiv, Bulgaria
The second biggest city in Bulgaria and the oldest continuously inhabited town in Europe, Plovdiv is an ancient city built around 7 hills, which offers a lot to history and art lovers! With its history, architecture, funky bars and restaurants and delicious Bulgarian cuisine, Plovdiv will be sure to exceed your expectations.
Where to stay?
Residence City Garden Hotel is a stunning five-star hotel close to central Plovdiv, which guarantees elegant decors, fine dining and utmost luxury.
What to do?
Visit the Ancient Theater of Philippopolis, the Regional Ethnographic Museum and the Old Town. The vibrant Kapana District is the best place for a drink and a meal after a day of exploring Plovdiv’s colourful streets.
Negative interest rates and a slowing economy are forcing lenders, in this case banks, to reduce costs. In a new four-year strategic plan UniCredit has announced it will be cutting back 8,000 more bank jobs as chief executive officer Jean Pierre Mustier rewards investors with EUR 2 billion (£1.7 billion) worth of share buybacks.
UniCredit plans on boosting shareholder remuneration via dividends and share repurchases. The job cuts, which make up around 7% of the bank’s entire workforce, will happen through the closure of around 500 branches worldwide.
In a statement, Mustier said the plan's targets are "pragmatic and achievable… They are based on a realistic set of macroeconomic assumptions, being more conservative than those assumed by the market."
According to Bloomberg’s recent report, these job cuts push the overall banking job losses worldwide, this year, past 73,400, most of which have happened/will happen in Europe (86%).
