North America In the U.S.: The WSJ discussed how the market has gone from debating whether Fed will lower rates in July to if it would be a 25bps or 50bps change. Expectations for the more aggressive 50bps move surged following the dovish commentary from NY Fed President John Williams. REIT Focus: Prologis, Inc. (PLD) announced that it would acquire Industrial Property Trust (IDDP) for $4.0B in cash. The deal, which is expected to close in 4Q19/1Q20, will expand PLD’s position in Southern California, the San Francisco Bay Area, Chicago, Atlanta, Dallas, Seattle and New Jersey. ASIA In China: Q2 GDP slowed to 6.2% from Q1’s 6.4% reading. Although the GDP reading hit a 27 year low, the reaction was

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