Friday Market Recap
Weekly Assessment of Global Real Estate Trends
North America In the U.S.: Bloomberg reported that President Trump wants to reach a trade deal with Chinese President Xi when they meet later this month and asked key US officials to begin drafting potential terms. The news followed a recent call between the leaders and would be a strong step forward to ending the trade war. However, critics
North America 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.
North America In the U.S.: The economic ties between the US and Saudi Arabia were strained this week following the disappearance and apparent death of Washington Post journalist Jamal Khashoggi. Khashoggi was last seen entering the Saudi consulate in Istanbul where it is suspected he was murdered and dismembered during an interrogation by members of the Saudi government. In
Featured Global Market Reports
Browse finance headlines from around the globe we’re keeping an eye on
With 2013 behind us, it is worth noting that Europe was the top performing global region within the FTSE EPRA/NAREIT Developed Index. Europe’s total return greatly exceeded those of Asia and North America, for dollar denominated investors, although Asia was the best performing region on a local currency basis. Europe’s strong performance comes on the heels of a good
We conducted three days of due diligence on the nascent REIT industry in Mexico (two days in Mexico City and one in Monterrey), our itinerary filled with back-to-back meeting with management teams of five of the seven exiting Mexican REITs, called Fideicomisos de Infrastructura y Bienes Raices or Fibras for short. Our discoveries: Mexico is experiencing a manufacturing renaissance.
A Greek Tragedy… or is it a Comedy? Clearly, it is a little of both. As the new Greek government fails to form a coalition, the entire “progress” of the Troika’s (IMF/ECB/EC – and Germany) negotiations reverts back to uncertainty and talk of a Greek exit from the Euro. It is comical that Greece can hold the entire Eurozone
Our European analyst recently attended the BAML UK Real Estate conference in London. One of the panel discussions involved five CEOs of prominent UK REITs talking about the state of the London real estate market. The panelists were John Burns (DerwentLondon), Chris Grigg (BritishLand), David Atkins (Hammerson), David Fischel (Capital Shopping Centers), and now retired Francis Salway (Land Securities).
Domestic & Capital Market Insights
What’s happening at home, outlooks & reviews
Make no mistake; the US economy is doing well. The third estimate of Second Quarter GDP growth came in at 4.2% compared to 3.0% for Second Quarter 2017 and the latest estimate for Third Quarter GDP growth from the Federal Reserve Bank of Atlanta is 4.2%. According to the Bureau of Labor Statistics, changes in total nonfarm payroll in
In an era of rising rates, proponents of sectors like Utilities and REITs which are perceived to be interest rate sensitive can only offer two arguments in their defense: (i) interest rates (on the long end) aren’t going to go up much further or (ii) the afore-mentioned sectors aren’t really negatively impacted by rising rates. On September 25 last
To a certain extent, all of the headwinds confronting the asset class are still gusting against the bow of USS REITs but perhaps the 13% decline to start the new year was overdone. Retail REITs still comprise 18% of the Index but sentiment has certainly shifted in favor of the tenants and, by extension, the landlords. The message coming
US equity investors spent most of Second Quarter wondering if the various indices would revisit the lows made in February. From a top down perspective, they had every reason to worry: (i) an activist FOMC, (ii) trade wars all around and (iii) mega-cap tech companies under regulatory threat; however, the balance or risk did seem more favorable within the