North America In the U.S.: Although China has increased its US good purchases, it is still not expected to meet its purchase commitments for 2020. This was not surprising given the big gap between Democrats and the White House over the size and scope of the package. The drop continued the push the theme that the recovery may be decelerating. REIT Focus: Service Properties Trust (SVC) announced that it will transfer the branding and management of 103 hotels to Sonesta International Hotels Corporation from InterContinental Hotels Group (IHG). The move comes after IHG failed to make its scheduled rent payments for July and August. ASIA In China: In Japan: Abe will reportedly stay in office until a successor is named.
North America In the U.S.: Focus on a stimulus bill took a back seat again this week as states continue to grapple with how to implement President Trump’s executive orders. Some analysts now estimate talks to go well into September before any resolution or progress is made. August Flash Manufacturing PMI was 53.6, ahead of the 52.0 consensus estimate and Flash Services PMI was 54.8, ahead of the 51.9 consensus estimate. Both metrics surprised to the upside on improvements in sentiment and employment. Weekly initial jobless claims were 1.106M versus last week’s revised 971K. The drop below 1M last week was short lived and led to renewed fear that the recovery is decelerating. REIT Focus: Store Capital Corporation (STOR) announced August rent collections
North America In the U.S.: In addition, there is heightened scrutiny over the postal service as there is the appearance that the White House may be trying to undermine the election by draining post office resources. Gasoline and food services quite strong at +6.2% and +5%; motor vehicles disappointed at -1.2. The drop below 1M claimants was the first after 20 consecutive weeks above the mark. REIT Focus: Apple Hospitality REIT (APLE) announced the opening and acquisition of the new 105-room Hyatt House and 154-room Hyatt Place in Tempe, Arizona, for a gross purchase price of approximately $64.6M. Following this acquisition, the Apple Hospitality portfolio includes 235 hotels with more than 30,000 guest rooms geographically diversified throughout 34 states. ASIA
North America In the U.S.: This comes as states grapple with how to implement President Trump’s executive orders to provide coronavirus relief of roughly $400, after $100 investment by the state. The stronger data may weigh on stimulus negotiations going forward, as there maybe less appetite for a large deal. REIT Focus: Shares of Vornado Realty Trust (VNO) rallied on Tuesday following the announcement that Facebook was leasing all the office space in the Farley Building, a former post office on Manhattan’s West Side that the company is redeveloping. The news was welcomed in a sector that has been hit particularly hard during the pandemic. ASIA In China: The strong export reading reflected the re-opening of overseas economies from coronavirus
North America In the U.S.: Congress was not able to pass a fifth coronavirus relief package as a wide gap between Republicans and Democrats remained over the size of the package. House Speaker Pelosi said she expects the White House and Republicans to move off their ~$1T figure and get much closer to the ~$3T+ proposed by House Democrats. Coronavirus vaccine news dominated the week several candidates getting FDA fast track status and positive study results from both Moderna and Oxford/AstraZeneca’s candidate vaccines. REIT Focus: Terreno Realty (TRNO) announced the acquisition of an industrial property in South San Francisco for $6.3M. The property is 100% leased to one tenant. ASIA In China: The Financial Times reported that the US is