- The United States imposed sanctions on Iran Supreme Leader Ayatollah Khamenei and eight military commanders. In retribution Iran said the door to diplomacy had been closed. President Trump commented via twitter that the United States was now independent of the Straits of Hormuz and that China gets 91% of imported oil from various Gulf States.
- Treasury Secretary Mnuchin said US-China trade deal was 90% complete and that he was confident President Trump and Chinese President Xi Jinping can make progress during the Group of 20 meeting. Later in the day President Trump commented via twitter that there would be substantial additional tariffs if no deal is struck.
- FOMC voting member James Bullard stated that cutting interest rates by 50 bps rather than 25 would be overdone.
Paramount Group (PGRE) acquired 55 Second Street in San Francisco for 480M. The property is 387,000 square foot office building. In connection with the purchase the company plans to bring in a joint venture partner.
- Assistant Minister of Foreign Affairs Zhang Jun said that China will not allow the Group of 20 to discuss the Hong Kong protests.
- In a retaliatory move for the arrest of Meng Wanzhou, a Huawai executive, China announced that they will stop importing meat products from Canada. China is the second largest customer of Canadian pork.
- RBA Governor Powell stated that global macro conditions risk are to the downside and cast doubt on the effectiveness of QE if all central banks are easing.
Hong Kong awarded the Kai Tak site to China Resources Land (1109 HK) and Swire Pacific (19 HK) for 12.9B HKD. The site is 9,481 square meters and is designated for non-industrial purposes excluding office, hotel, and petrol filling station.
- IFO institute reported German business morale at 94.7. This is the third consecutive month that morale has declined. IFO President Clemens Fuest said “The German economy is heading for doldrums.”
- Italy continued to threaten to leave the Euro-Zone and to create a new currency the mini-bot.
- Boris Johnson continued to be the favorite to replace Theresa May as Prime Minister of the United Kingdom. Mr. Johnson is confident that he can renegotiate the Brexit deal but states that UK must leave on October 31st.
Confinimmo (COFB BB) said that it signed an agreement to acquire eight nursing and care homes in Belgium. The company paid 149M EUR for the properties and sees the initial gross yield at 4.5%
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.