In the U.S.: The G7 summit concluded over the weekend with the joint message of reducing trade barriers. Unfortunately, tensions between US President Donald Trump and Canadian Prime Minister Trudeau regarding tariffs, led the US President to withdraw support for the G7 joint message via twitter. The German Chancellor Angela Merkel described the situation as “sobering and a bit depressing”. As expected, the Fed raised rates by 25 bps to 1.75%-2.0% and reiterated that the policy stance remains accommodative. Following the statement, the median dot for 2018 went up from three rate hikes to four. President Trump approved $50B in tariffs on imports from China largely focused on industries contributing to “Made in China 2025” initiative. President Trump stated that

In the U.S.: In retaliation to the US tariffs on steel and aluminum, Mexico imposed tariffs on pork, apples, potatoes, bourbon, and cheese. Although the tariffs are valued at approximately $3B, roughly only 1% of total exports to Mexico, they are expected to materially impact the targeted industries. REIT Focus: CyrusOne, Inc. (CONE) purchased nearly 70 acres in Mesa, AZ to develop its second major Data Center Campus in the state. Upon completion, the new campus is expected to have five buildings with up to 198 MW of critical power. In China: The May customs trade surplus was $24.9B versus $28.8B in April. Imports rose 26.0% y/y and exports grew 12.6% y/y primarily from stronger trade with Japan. The strong

In the U.S.: In May, the U.S. economy added 223K jobs and the unemployment rate decreased to 3.8%. Wage growth rose slightly to 2.7% y/y, as higher oil prices and faster growth globally raised demand for manufacturing and construction workers. The US imposed steel and aluminum tariffs on EU, Mexico, and Canada. Canadian Prime Minister Justin Trudeau retaliated swiftly by imposing levies on as much as $12.8B of U.S. imports REIT Focus: Simon Property Group (SPG) plans to transform former Sears locations with new and compelling ways for consumers to live, work, play, stay and shop. A combination of innovative retail, restaurant and entertainment concepts are being considered for each center. Education Realty Trust (EDR) is meeting with private-equity firms

In the U.S.: President Trump cancelled the summit with North Korean leader Kim Jong Un scheduled for June 12th in Singapore. The cancellation followed a harsh statement from North Korea condemning Vice President Mike Pence’s comments regarding the “Libya Model” for denuclearizing North Korea. However, the door was left open for future talks. May FOMC minutes seemed to confirm expectations for another rate hike in June. The Fed highlighted the symmetric nature of the inflation target and saw little evidence of the labor market overheating. REIT Focus: Blackstone Group L.P. (BX) has agreed to buy LaSalle Hotel Properties (LHO) for $33.50/share (a 5% premium to 5/18’s close) in a $4.8B all-cash deal. LaSalle preferred Blackstone’s all cash offer over rival

In the U.S.: As part of trade talks with China, President Trump offered a lifeline to telecom equipment maker ZTE Corp stating that he and Xi are working together to give ZTE “a way to get back into business, fast.” ZTE was banned from doing business with the US for violating 2017 sanctions relating to dealings with Iran, Sudan, and North Korea. The US and EU could be facing a logistical battle regarding the US decision to re-impose sanctions on Iran. Since the EU desires to stay in the deal, it will be difficult for the US to sever Iranian bank ties to foreign financial institutions via the Belgium-based Swift network, whose financial messaging system facilitates cross-border payments. In earnings,