In the U.S.:
- USTR announced on Tuesday that the U.S. will impose 25% tariffs on $16B of Chinese imports beginning on 23-Aug.The tariffs, which mainly target industrial goods, were widely expected. China has vowed to retaliate.
- In earnings, 376 companies in the S&P 500 Index have reported, 83.5% beat, 0.7% were in-line, and 15.8% missed estimates.
The Paramount Group, Inc. (PGRE) to sell 2099 Pennsylvania Avenue in Washington DC for $220M. a 12 story, 208K sq. ft. class A office building. Albert Behler, CEO of PGRE, commented on the deal stating “Since our IPO, we have been creating value at 2099 Pennsylvania Avenue by increasing leased occupancy to 98.5% from 31.6%. With this sale, we are harvesting that value.”
In REIT earnings, 111 companies in the Wilshire U.S. REIT Index have reported, 77 beat, 10 were in-line, and 24 missed estimates.
- July export growth accelerated to 12.2% y/y versus June’s 11.2% reading.Exports to the US were resilient in the face of trade tensions, with growth only slowing to 11.2% y/y from June’s 12.5% reading.
- In the ongoing trade war with the U.S., the government omitted oil from the U.S. retaliatory tariff list.China is the biggest buyer of US crude oil and depends on imports for 70% of its energy needs.
- Q2 GDP rose 1.9% q/q, compared to a revised 0.9% q/q decline in Q1.Strong domestic private demand was cited as the main catalyst to the growth in GDP. Economists forecast that growth should stabilize in the lower 1% range until the period around a planned consumption tax hike in October 2019.
CK Asset Holdings Limited outbid Sun Hung Kai Properties, Henderson Land, and two others for the right to develop the mixed-use site sitting atop the Wong Chuk Hang station from the rail operator MTR Corp. Although the price was not disclosed, the plot is valued at as much as HK$36B.
- Turkish assets are under heavy selling pressureand the Lira hit an all-time low versus the dollar following a tweet from U.S. President Donald Trump stating that the U.S. would double tariffs on steel and aluminum imports from Turkey.
- There is strong support in the U.K. for a second referendum if Brexit negotiations with the EU fall apart. A poll, commissioned by the Open Britain campaign group, found overall support for remaining in the EU is now at 53 percent, with Leave at 47 percent (excluding those who said they did not know).
TAG Immobilien reported strong 18H1 results with a 4% increase to its 18FY FFO guidance to €0.97 (was €0.93). Vacancy was 5.5%, up 20bps from 5.3% at the beginning of the year, which was primarily due to new acquisitions and modernization projects.
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.