In the U.S.:
- The advance estimate of Q3 GDP was 3.5% q/q SAAR versus Q2’s 4.2% q/q reading. Consumer spending provided a big boost, jumping 4.0%, and private inventories were also a positive contributor, up to 2.1%.
- In earnings, 240 companies in the S&P 500 Index have reported, 72.2% beat, 5.6% were in-line, and 22.2% missed estimates.
Albert Ratner, co-Chairman emeritus and former CEO of Forest City Realty Trust, Inc. (FCE/A), is urging shareholders to vote against the Brookfield Property Partners sale up for vote on Nov. 15th. Via an open letter to Forest City shareholders, Mr. Ratner publically announced his intention to vote all of the Forest City shares he controls against the sale and stated that both the price and the timing of the deal were wrong.
In REIT earnings, 36 companies in the Wilshire U.S. REIT Index have reported, 26 beat, 2 were in-line, and 8 missed estimates.
- The yuan hit a fresh 22-month low of 6.9647 against the dollar on Friday. It is expected that the PBoC will use currency reserves to prop up the currency above the psychologically important level of 7 yuan per dollar.
- Japan and China signed a broad range of economic agreements aimed at strengthening bilateral ties amid the ongoing trade disputes with the US. The agreements covered a wide range of areas, from easing maritime tensions to cooperation in energy, infrastructure development, and technology.
- October Flash Markit/Nikkei PMI rose 53.1 versus September’s 52.5 reading. The expansion in PMI was led by strong new export orders, which expanded at the fastest rate in six months, and the muted effect of the ongoing trade frictions with the US.
Mapletree Logistics Trust has acquired a Brisbane warehouse for A$105M. The new warehouse raises Mapletree’s portfolio to ten properties with an approximate AUM of more than S$600M.
- Italy and the European Commission (EC) made little headway on the budget front this week as it was reported that the EC told Italy to resubmit its 2019 draft budget and Italy’s PM Conte stated, in a Bloomberg interview, that he could not accept changes to the substance of the budget. Amid the turmoil, Italy’s 10yr bond yield continued to rise.
- On the Brexit front, the International Trade Secretary Liam Fox said his plan to quickly normalize the U.K.’s World Trade Organization commitments had failed. Without certified WTO commitments it will be more difficult for the UK to strike new trade deals away from the European Union’s current WTO trade terms.
Unibail-Rodamco-Westfield (“URW”) provided a third quarter trading update this week. Tenant sales and footfall across URW’s European shopping centers increased by 2.3% and 2.0% in the third quarter compared to the same period last year, respectively. US specialty sales per sf increased by 5.5% during the quarter. The press release noted that “while overall tenant sales growth in the Group’s shopping centres was solid, some retailers are facing significant challenges in dealing with the changing retail environment. Many focus carefully on all elements of the business, including new store openings. Consequently, negotiations on lease terms are generally taking longer.” Year-to-date URW has disposed or entered into agreements to dispose of eight assets at a total cost of €1.92 billion at a blended net initial yield of 4.5% and a weighted average premium of +8.1% to June 30 BV’s. Finally, URW confirmed their full year guidance for Adjusted Recurring EPS to be in the range of €12.75/sh – €12.90/sh.
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.