In the U.S.: Q2 GDP was in line at 4.1% versus Q1’s revised 2.2% reading. The strong GDP growth was led by an uptick in consumer spending and nonresidential business investment. Tensions between Iran and the U.S. ratcheted up this week following tense back and forth threats of war between President Donald Trump and President Hassan Rouhani.The tensions emerged following news that the Trump administration was looking into blocking Iranian oil exports. In earnings, 261 companies in the S&P 500 Index have reported, 87.7% beat, 0% were in-line, and 12.3% missed estimates. REIT Focus: Marriott International, Inc. Class A (MAR) announced a transaction with Flag Luxury Group to open a more than $500M Ritz-Carlton Hotel and Residence tower in NYC’s NoMad neighborhood.
In the U.S.: Republican Sen. Hatch stated that he would push legislation circumscribing Trump’s trade powersif the White House continues down its current tariff path. Via Twitter, President Trump showed his frustration with the recent Fed rate hikes. President Trump stated that the U.S. should not be penalized for doing well. St. Louis Fed President Bullard said he’s “not surprised” by Trump’s comments, but remarks are unlikely to influence policy. REIT Focus: Pebblebrook Hotel Trust (PEB) sent a letter to the Board of Trustees of LaSalle Hotel Properties (LHO) requesting that the board reevaluate the proposal as they believe it to be superior to the $33.50 per share offered by Blackstone. LaSalle shareholders have expressed their significant opposition to the Blackstone deal to the
In the U.S.: US Fed Chairman Powell gave a positive assessment of the US economy which was largely in-line with the recent FOMC minutes. However Mr. Powell warned that a sustained period of high tariffs could be harmful to growth. REIT Focus: Pebblebrook Hotel Trust (PEB) has filed a preliminary proxy statement with the U.S. SEC urging shareholders of LaSalle Hotel Properties (LHO) to vote with Pebblebrook against LaSalle’s merger agreement with BRE Landmark, an affiliate of The Blackstone Group L.P. at a price of $33.50 per share. In China: China’s June export growth slowed to 11.3% y/y from May’s 12.3% reading.The slowdown in global growth was the main catalyst to the slowdown. Of note, export growth to the U.S. grew 1% as
In the U.S.: June Nonfarm payrolls increased 213K versus an upwardly revised 244K gain in May.The unemployment rate pushed up to 4.0% from 3.8% and the labor force participation rate increased to 62.9% from 62.7%. The mixed results were in-line with expectations and are not expected to intervene with the Fed’s tightening cycle. REIT Focus: Equinix, Inc. (EQIX) and Omantel entered into an agreement to build a new Equinix Data Center in Oman. The new IBX data center will benefit from connectivity to strategic cable landing stations and subsea cable systems that will terminate directly inside the 18K sq. f. facility. Equinix and Omantel will both fund equity contributions of $10M for the 50/50 JV with additional funding coming from debt
In the U.S.: On Monday the WSJ reported that the Trump administration was crafting a new initiative that would prevent companies with at least 25% Chinese ownership from purchasing companies involved with “industrial significant technology.” On Tuesday Treasury Secretary Steven Munchin and Trade Advisor Peter Navarro made contradictory comments on the plan. Munchin said that the investment restriction would apply to all countries that are trying to steal our technology” while Mr. Navarro said there was no plan at all. Trump advocated for the immediate deportation on illegal immigrants without due process saying “we cannot allow all of these people to invade our Country… when somebody comes in, we must immediately, with no Judges or Court Cases, bring them back