- Several members of the FOMC committee spoke this week with some showing support for cuts of 50 bps while other others supported no cuts. On Thursday the Wall Street Journal new Fed whisperer Nick Timiraos wrote that “officials are gearing up to reduce interest rates at their next policy meeting in two weeks, most likely by a quarter-percentage point, as the trade war between the U.S. and China darkens the global economic outlook.”
- This week had a record level of bond issuance of at least 29.65B. Apple, Deere, and Walt Disney among others issued debt to capture low rates.
- Argentina government imposed capital control to prevent a further reduction of foreign currency reserves. In the decree released on Sunday the Argentinean government said that the central bank would limit dollar sales requiring companies and bank to purchase hard currency.
Rexford Industrial (REXR) announced that it had acquired five industrial properties for $110.3M and sold two properties for $12.8M. The acquisition of the five Southern California properties was funded using cash on hand.
- Carrie Lam, the leader of Hong Kong, withdrew the extradition bill which has led to protest. Pro-democracy activist said her concession was too little too late and want their other four demands met. The protestor are demanding that Ms. Lam resigns and the resignation be approved by China, an inquiry into police brutality, the release of people arrested during the protests, and more democratic freedom.
- On Thursday it was announced that the United States and China will hold a meeting to discuss the current trade war in early October.
- North Korea said that hopes for additional peace talks with the United States are gradually disappearing and the country might resume nuclear weapons and long-term missile tests.
- On Friday China’s central bank announced that it would be lowering the required reserve ratio for banks to the lowest levels since 2007.
- The Solomon Islands announced that it intends to break ties with Taiwan and align itself with China.
- China Iron & Steel PMI for August was reported at 44.9 the lowest level since January 2016.
Hammerson (HMSO LN) rose during the week following a report that it was considering the sale of Value retail.
- A lot of news from Great Britain after Prime Minister Johnson lost a vote on a hard date of October 31st for Brexit to happen. On Thursday the Financial Times reported that Members of Parliament had voted for a bill that would require Prime Minister Johnson to ask the European Union to delay Brexit until January 21st, 2020 if no deal had been agreed to by October 19, 2019. The bill will now go to House of Lords. Prime Minister Johnson motioned for a snap election to occur on October 15th but failed to muster enough votes. In another Financial Times article it was announced the Labour Leader Corbyn was planning a no-confidence vote for Prime Minster Johnson. If the vote occurs and passes the parties would be given 14 days to form a caretaker government which would seek an extension of Article 50 from the European Union.
- Italy and-establishment 5-Star Movement and the Democratic Party unveiled a shares program that would serve as the basis of a new coalition government.
Dexus (DXS AU) announced that would sell North Shore Health Hub to Healthcare Wholesale Property Fund. Dexus will continue to manage the development and plans to make 18-22M AUD in the transaction.
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.