- The Wall Street Journal noted that UN world leaders sounded alarms over the widening rift between the US and China, warning that a lack of cooperation could worsen the coronavirus pandemic, slow a global economic recovery or even lead to outright conflict. President Xi Jinping stated that Beijing has “no intention to fight either a cold war or a hot one with any country.”
- Bloomberg reported that the Trump administration was ordered to postpone the ban on TikTok set for Sunday or respond by Friday to a request by ByteDance for a court order temporarily blocking the ban. The move comes as the potential sale of TikTok’s US operations has become a political tool between both nations.
- BOJ Governor Kuroda told reporters that the BOJ was highly likely to extend emergency support measures for companies facing financial difficulties amid the coronavirus pandemic if necessary. The current round of support is currently set to end in March.
- Nikkei reported that Newly elected Prime Minister Yoshihide Suga indicated to BOJ Governor Kuroda that he wants to continue with Abenomics, including unconventional monetary easing. Governor Kuroda told Suga they will continue to communicate closely and agreed to close cooperation in policy management.
All signs point to the merger between Singapore’s CapitaLand Mall Trust and CapitaLand Commercial Trust to be approved. The merged company should find more favorable conditions going forward as Singapore looks to ease virus measures and allow more social gatherings to take place.
- Covid 19 infection numbers across Europe continued to rise this week with Montenegro, Spain and the Czech Republic seeing the fastest increases of new infections. fears that another full lockdown would be necessary.
- September Eurozone flash manufacturing PMI ticked up to 53.7 versus August’s 51.7 reading and services PMI fell to 47.6 versus August’s 50.5 reading. Taken together they showed a stagnating economy that may dip back into contractionary territory given the uptick in Covid 19 infections in the region.
Two European listed property companies, French listed Icade SA and UK listed SEGRO Plc, announced this week that they had signed preliminary agreements to acquire land for the redevelopment of the Gobelins rail station in the 13th district of Paris. The two REITs were selected by the French national rail company SNCF and the City of Paris in a competition to redevelop the site. The two would combine to collectively deliver a mix of above ground and below grade commercial uses. Icade would develop two office buildings totaling 14,000 sq. m, 4,600 sq. m. dedicated to sport (including climbing facilities and basketball courts), as well as greenhouses and a 1.3-hectare garden and café on the Olympiades esplanade. SEGRO would develop a 75,000 sq. m. underground logistics center intended for urban distribution and last-mile delivery. The proposed development is an example of the challenges and creativity required of development in urban, infill sites such as Paris.
In the U.S.:
- September flash manufacturing PMI rose 0.4 points m/m to 53.5 from August’s 53.1 reading. New orders and output expanded more quickly with the resumption of normal operations from Covid-19 restrictions continuing to help drive growth.
- Weekly initial jobless claims were 870KM versus last week’s revised 866K. The slight uptick continues to the push the theme that the recovery may be decelerating.
- Following the passing of Supreme Court Justice, Ruth Bader Ginsburg, President Trump and Senate Majority Leader Mitch McConnell are quickly looking to fill the empty seat prior to November’s election. The move is angering house and senate democrats who believe the move to be highly hypocritical given the stance that was taken by republicans with Obama’s court pick Merrick Garland, that the public should choose via the November election who should fill the seat.
Investors Real Estate Trust (IRET) announced it has acquired Parkhouse Apartment Homes in Thornton, Colorado, for an aggregate purchase price of $144.8M. The homes were constructed in 2016 and consist of 465 homes on 24.2 acres of land.
The views expressed in this update are as of the date of this blog entry. These views and any portfolio holdings discussed in the update are subject to change at any time based on market or other conditions. The adviser disclaims any duty to update these views, which may not be relied upon as investment advice. In addition, references to specific companies’ securities should not be regarded as investment recommendations or indicative of the Adelante products, strategies, or portfolios.