North America In the U.S.: June headline CPI up 0.1% m/m versus May’s 0.1% rise. Increases in shelter and used cars offset declines in energy, recreation, airline fares, and personal care. REIT Focus: Digital Realty Trust, Inc. (DLR) announced it has closed on the acquisition of a 3.5-acre land parcel located in Ferriers-en-Brie, east of Paris for $6.9M. With the building permits already in place, Digital Realty will immediately commence construction on a new 12-megawatt data center. ASIA In China: June exports fell 1.3% y/y versus May’s 1.1% y/y increase. The reading was concerning given that this was the first full month of the higher US tariff rate.Trade talks took a step back this week, after the US disclosed its

North America 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

North America In the U.S.: The Fed left rates unchanged but struck a more dovish tone. The markets rallied as the tone signaled that there will be an accommodative stance going forward.Tensions between the US and Iran were escalated this week following the shooting down of a US reconnaissance drone by the Iranian Revolutionary Guard. US President Donald Trump was said to have called back a retaliatory strike and has not issued any statement on how the US plans to respond. REIT Focus: Corporate Office Properties Trust (OFC) announced the formation of a joint venture with Blackstone Real Estate Income Trust, Inc. to acquire seven of COPT’s existing, single-tenant, data center shell properties. The properties contain 1.2M square feet of

North America In the U.S.: The US has blamed Iran for the “unprovoked attacks” on two tankers in the Gulf of Oman. Although Iran has denied the attacks, the US released a video showing an Iranian patrol boat pulling alongside one of the tankers and removing an unexploded device from its hull. The new attacks escalate tensions between the US and Iran and may affect how commerce flows through the gulf going forward. REIT Focus: Retail Value Inc., (RVI) closed on the sale of Beaver Creek Crossings (Apex, NC) for $52.8M. Net proceeds were used to repay mortgage debt. ASIA In China: May industrial production rose 5.0% y/y versus April’s 5.4% y/y growth. The drop in production marked the slowest

North America In the U.S.: May nonfarm payrolls were a disappointing 75K versus April’s revised 224K reading. The Unemployment rate was unchanged at 3.6%. The disappointing reading may increase the odds of a Fed rate cut.Although Mexico has agreed to shore up its border security, it is still not viewed as enough for the White House to hold off on tariffs set to go into effect on Monday. REIT Focus: Federal Realty Investment Trust (FRT) announced the sale of Free State Shopping Center to New Market Properties, LLC, a wholly-owned indirect subsidiary of Preferred Apartment Communities, Inc., for $72.0M. Free State Shopping Center is a 264K square foot Giant Food anchored shopping center located in Bowie, Maryland. ASIA In China: