In the U.S.: The Organization for Economic Co-Operation and Development endorsed President Elect Trump’s economic plan. The organization predicted that Mr. Trump’s infrastructure plan would increase US growth, combat inequality and energize discouraged workers. Sales from black Friday were down 3.5% from the previous year. Shoppers pointed to earlier holiday promotions and the belief that deals will be available later in the season. Although the headline unemployment rate dropped to 4.6% from its previous reading of 4.9% the underlying changes to nonfarm, private, and manufacturing payroll numbers were lower than expected. In addition, average hourly earnings missed expectations. REIT Focus: Black Friday and the ensuing Thanksgiving weekend retail sales proved to be fairly tepid despite higher shopper traffic in bricks
In the U.S. November CPI rose 0.4% m/m to 53.9 versus the consensus estimate of 53.7. A better than expected rise in gasoline prices was cited as the main catalyst to the strong reading. REIT Focus: Marriott International (MAR) continued its expansion into Latin America by acquiring four Mexican hotels. The deal adds to Marriott’s current portfolio of over 200 Caribbean and Latin American hotels. In China: Traders are still waiting for the Shenzhen-Hong Kong trading link to be launched. Originally forecasted to be up and running this month, it is now expected to be delayed due to the global uncertainty caused by the latest U.S. election and the recent rapid decline of the yuan. In Japan: October Core CPI
In the U.S.: Speaking on Thursday Federal Reserve Chair Janet Yellen said a rate hike, “could well become appropriate soon if incoming data provide some further evidence of continued progress towards the committee’s objective.” The Chairwoman also address rumors that she would resign following the election of Donald Trump by saying “I was confirmed by the Senate to a four-year term, which ends at the end of January of 2018, and it is fully my intention to serve out that term.” Speculation regarding Donald Trump transition team continued this week as Jared Kushner, Donald Trump son-in-law, became a focus point in the recent removal of Chris Christie. It appears that Mr. Christie was the U.S. attorney involved in the prosecution
In the U.S.: Donald Trump won the electoral vote to become the next President of the U.S. in January 2017. The U.S. markets rallied the following day calming fears of the sharp decline that had been hinted by the futures markets the night before. However, many uncertainties exist regarding global trade, corporate tax reform, immigration, health care, civil rights and environmental policies as Mr. Trump transitions from a candidate to President. In earnings, 453 companies in the S&P 500 Index have reported, 76.2% beat, 1.4% were in-line, and 22.3% missed estimates. REIT Focus Rexford Industrial Realty, Inc. (REXR) purchased a multi-tenant industrial property in Wilmington, Los Angeles for 13M. The 134K sq. ft. property is currently 63% occupied with most
In the U.S.: As expected the Fed left rates unchanged. The Fed stated that inflation had “increased somewhat since earlier this year” which sets the stage for a December rate hike. October Nonfarm payrolls rose by 161K versus the 172K consensus estimate. The unemployment rate ticked down to 4.9% from 5.0% and labor force participation fell to 62.8% from 62.9%. Although the results were slightly lower than expected they would likely not affect the decision for the Fed to raise rates in December. In earnings, 422 companies in the S&P 500 Index have reported, 75.6% beat, 1.3% were in-line, and 22.7% missed estimates. REIT Focus: Welltower Inc. (HCN) is close to selling approximately $1B of U.S. elderly homes to China’s Cindat Capital Management.