In the U.S.:
President Trump at the World Economic Forum in Davos stated that the US will consider negotiating with all countries on a bilateral basis, including those countries within the Trans-Pacific Partnership.
Apartment Investment and Management Company (AIV) filed an appeal to stop Airbnb from Illegally Renting Apartments after the US District Court for the Central District of California dismissed a lawsuit that the company filed against Airbnb in February, 2017.
- A previously announced RRR cut went into effect on Thursday creating a much needed liquidity boost as the PBoC chose to skip open market operations for the second consecutive day on Friday. The cut reduced the reserve requirements for banks engaged in lending to small businesses and agriculture.
- December Core CPI grew 0.9% y/y, unchanged from its pace in November. Although up for the 12th straight month, the lack of upward momentum helped taper the recent speculation that the improving economy and progress towards the 2% inflation target could lead the BoJ to raise interest rates later this year.
Henderson Land announced that it would pay the government HK$2.5B to convert Ma Shi Po in Hong Kong’s Fanling area into residential use. Henderson plans to construct three 16-story, two 21-story residential blocks and a two-story recreational club building.
- The ECB left its policy mix unchanged. In the statement the ECB said it would continue its current rate of monthly bond purchases through September, or beyond if necessary, and that it wouldn’t raise rates for an extended period of time.
- In the UK, Q4 preliminary GDP was 0.5% q/q versus Q3’s 0.4% q/q reading. BoE Governor Mike Carney sounded more upbeat as he expects the economy to gain ground on the global economy as more clarity emerges from the Brexit negotiations.
London office specialist Great Portland Estates issued a 3Q fiscal year update this week. Notwithstanding the future uncertainties for the London office market surrounding Brexit negotiations in the coming year, the press release provided evidence that their operational performance has continued to hold up well thus far. The volume of new leasing was slightly ahead of the year ago period with rents approximately 2.0% of March 2017 ERV (estimated rental values). Six rent reviews were settled in the quarter, 36% above the previous passing rent and 2.4% ahead of March 2017 ERV. Commercial sales of £319M for the period were 2.7% ahead of the most recent book values. The big news from the update was that it expects to return approximately £306 M (94 pence/sh) to shareholders as a result of the property sales. The LTV of the company pro forma for the property sales and return of capital would be ≈17.2%.
The views expressed in this update are as of the date of this blog entry. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The adviser disclaims any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies’ securities should not be regarded as investment recommendations or indicative of the Adelante products, strategies, or portfolios.