Friday Market Recap
Weekly Assessment of Global Real Estate Trends
In the U.S.: The U.S. Senate voted 97-2 for fresh sanctions in response to a trio of Russian actions, including interference in the 2016 election, engagement in Syria, and the invasion of Crimea. Of note, the sanctions would prohibit President Trump from lifting the sanctions without Congressional approval. Amazon.com, Inc. (AMZN) announced the acquisition of Whole Foods Market, Inc. (WFM)
In the U.S.: The House of Representatives passed the Financial Choice Act aimed at undoing many of the Dodd-Frank banking reforms that limit risk taking. The bill is expected to be revised in the Senate where democrats look to preserve the Consumer Financial Protection Board and the Volcker Rule REIT Focus: Digital Realty Trust Inc. (DLR) agreed to buy
In the U.S.: May ADP private-sector employment report showed an increase of 253K jobs versus April’s upwardly revised 177K reading. Economists noted that the strong gains in employment may lead to headwinds as employers would struggle to find qualified candidates in a tightening labor market. May nonfarm payrolls were up a disappointing 138K versus April’s downwardly revised 174K reading.
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
There are a number of mitigating factors keeping a lid on the 10-Year Treasury Note yield: “monetary offset,” global yield differentials and the possibility that Trumpflation may disappoint in actuality. Thus far, the legislative accomplishments of President Trump and a unified Congress have been underwhelming. After demonizing Obamacare for the past seven years, Speaker Ryan and the Republican House
Not surprisingly, politics dominated the start to the New Year. The optimism that permeated the investment/corporate community after the election of Donald J. Trump managed to survive (i) an ill-fated immigration ban, (ii) a half-assed attempt to “repeal and replace” the Affordable Care Act and (iii) a never-ending investigation into the potential collusion between members of the victorious Trump
Reviewing the returns of the various property types in the Index subsequent to the election, it is clear that the duration of the lease term was the most important factor in determining the relative winners and loser. However, there is a ceiling to the reflation trade for even the most ardent fan of Donald Trump and a unified Republican
A Huge Win for the Donald. 2016 has turned out to be annus horribilis for establishment politics and politicians as well as pollsters who have repeatedly underestimated global populist discontent, which discontent found an unlikely champion in the US in a billionaire prone to tweeting late into the night. Perhaps even more unexpected than the election results was the