Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Mark Biffert - Oppenheimer.
Mark Biffert - Oppenheimer
Colin I was wondering if you can expand on your thoughts for each of the segments or sectors. In EMEA obviously it was weak, it sounds like you think that EMEA is kind of at a trough right now and that you think that it should recover in the fourth quarter and possibly the first half of next year, you would see an improved performance, is that correct?
Colin Dyer
Well, you said you referred to all regions and sectors. We have given you a fair amount of detail but just a quick summary. Asia we are pleased with we have been reducing costs as we have across the business. What we are seeing there is the beginnings of some recovery and confidence in activity, probably leading the regions around the world in terms of economic recovery both broad economy and real estate sector.
In Europe, we have, as we have explained on previous calls, picking aggressive cost-cutting measures. We sized the business down to a level which is we believe right for the recoveries that gather space into 2010. The teams which we have in place, particularly in the capital markets business have been severely reduced. We do not intend further major cost cuts in Europe. We think we have got to levels which are sustainable over the next phase of the cycle.
We want to retain the key revenue generating skills which we have in place, and we believe that the sizing of the market, the business which we have carried out in Europe has achieved that. By the way, we have not limited our European or any of our businesses in terms of the restructuring spent, which we have budgeted for them based on the levels of trade they believe appropriate to size the business correctly.
In the US, the business has maintained a robust quarter three, markets are too headed downwards in terms of leasing demand. But as we described, we have countered that trend and produced significant share growth in our leasing activity.
Our corporate business continues to grow strongly as that corporate market has grown throughout the recession, and although capital markets in the US are at horribly weak levels, it always was a relatively small proportion of our US business and of course it’s become even smaller through this part of the cycle. We saw a really strong annuity based flows in our advisory income stream. Again, we sized the business down, we’ve reduce the cost base we are comfortable with where we are at.
- To read the full transcript on Seeking Alpha, click here »
