20230922-0926 Newsletter

Macro & Business Matters?in the Globe

Global equity funds draw big inflows as inflationary pressures ease

Global equity funds attracted substantial inflows in the week ending Sept. 13, buoyed by hopes the Federal Reserve might halt its rate increases amidst easing inflationary concerns, potentially boosting risk assets.

According to LSEG data, investors channelled approximately $9.95 billion into global equity funds, marking the most substantial net weekly acquisition since June 14.

By sector, consumer discretionary funds saw an influx of about $867 million and tech sector funds garnered around $474 million. Other sector-focused fund remained out of favour.

Contrastingly, the allure of global money market funds appeared to wane. They registered a net intake of $10.65 billion, a sharp decline from the $60.5 billion in the preceding week.

Global bond funds recorded $531 million in outflows, a reversal from the inflows seen over the past three weeks. High-yield funds reported around $899 million in outflows, breaking their two-week buying streak. But both corporate and government bond funds observed inflows, netting $1.09 billion and $831 million, respectively.

Spain January-July trade deficit narrows 44% year-on-year

Spain's trade deficit in the first seven months of 2023 narrowed by 44% from the same year-ago period to 21.32 billion euros ($22.70 billion), as its exports rose and it imported less quantities of oil and natural gas, and at cheaper prices, the Industry Ministry said.

Over the period, the value of exports rose 3.3% to 230.40 billion euros, while imports fell 3.7% to 251.72 billion euros, the ministry said on Thursday.

The value of energy imports, mainly oil and natural gas, fell 30% in the first seven months of the year compared with the same period a year ago as Spain bought 19% less volumes at a price 14% lower.

Greece plans Athens airport listing in 2024

Greece plans to list the Athens International Airport, the country's biggest, on its stock exchange next year, Finance Minister Kostis Hatzidakis said on Tuesday.

After coming out from a decade-long financial crisis and three international bailouts worth about 260 billion euros in 2018, Greece has divested stakes in ports and energy companies to help boost competition and cut down debt, still the euro zone's highest.

The nation has also fixed its finances and its economy has outpaced European peers since. This month, it regained an investment grade credit rating after 13 years, though not from one of the three major ratings agencies.

"We stick to achieving our fiscal targets...regaining an investment grade by the remaining rating agencies, and cutting down public debt further", Hatzidakis said.

Athens is set to achieve a primary budget surplus of 0.7% of its gross domestic product (GDP) this year, a goal set in its 2023 budget, he said, while announcing a series of measures to crack down on a shadow economy.

SOURECE: REUTERS,?Daily News, Daily Sanah

Global CRE & Tourism?

Golden visas continue to be granted in Portugal

In August, investment raised through the?Residence Permit for Investment Activity (ARI)?program, also known as the golden visa, totalled more than 32.8 million euros, which represents a drop of 12.5% compared to the same month in 2022 (37.5 million euros).

Between January and August, investment raised through the golden visa program totalled more than 493 million euros, 24% more than that recorded in the same period last year.

In the “top 5” of nationalities for the golden visa, the list is led by citizens from the USA who obtained 12 golden visas, followed by China, with nine, and Brazil, with eight. Six golden visas were also granted to Russian citizens and another six to Turkey. During the period under analysis, 72 visas were granted to reunited family members.

Nuveen Secures Investment from TIAA for U.S. Impact Housing Fund Dedicated to Affordable Housing

Nuveen, the?$1.1 trillion?asset manager of TIAA?and one of the world's largest real estate investment managers, today announced it has secured a?$250 million?commitment from the TIAA General Account to seed the Nuveen Real Estate U.S. Impact Housing Fund.

The core-plus, open-end fund is focused on generating strong risk adjusted returns and creating housing opportunities for low-income residents across the U.S., primarily by investing in a geographically diverse portfolio of properties, including housing with rent subsidies, rent restrictions, income restrictions and Naturally Occurring Affordable Housing (NOAH) assets. The fund also intends to invest in regenerative development and financing that supports minority and women developers of affordable housing.

Affordable housing is a compelling portfolio allocation, offering consistent income streams though different market cycles, strong demand and limited supply, due to guaranteed subsidized rent payments for a large portion of residents.

Greek Airports Handle Over 50m Passengers in First 8 Months of 2023

The upward dynamic of passenger flows through Greece’s airports continued into August reaching over?50 million in the first eight months of the year, according to tentative data released this week by the?Hellenic Civil Aviation Authority (HCAA).

More specifically, Greek airports including?Athens International Airport (AIA), the 24 airports managed by the HCAA and?the?14 regional airports?run by?Fraport Greece, handled 50.15 million passengers (including domestic and international arrivals and departures) in the?January-August?period, marking a?14.5 percent rise over 2022?and 43.78 million and an 11.7 percent increase compared to 2019?and?44.89 million passengers.

In?August, Greek airports welcomed 11.3 million passengers, a 5.7 percent increase over 2022 and 10.7 million and a 10.8 percent rise compared to August in?pre-Covid 2019?and?10.2 million.

At these rates and based on figures to date, Greek?aviation and airport experts are expecting 2023 to be a record year.

SOURECE: Google News, GTP, Greek City Times, PORTUGAL NEWS, Daily News, Daily Sabah

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Market Performance & Institution Views

Blackstone buys Cascade Wellness resort in Portugal

Blackstone has purchased the Cascade Wellness resort in Lagos, Portugal through a Luxembourg based subsidiary, Magma Pledgeco. Reports in the Portuguese press suggest Blackstone?paid €50 million.

The acquisition encompasses all shares of Cascadeinvest and Sunseasand, which were bought from Fliptrel Portugal.

Located close to the Dona Ana beach, the five-star resort has 164 rooms and apartments, three restaurants and two bars, as well as three pools, a spa, two tennis courts and a gym. The resort also has meeting rooms with a 500 person capacity, a multi-use room and a kid’s club.

Cascade Wellness reopened in 2019 following a €6 million refurbishment project which lasted two years and was part financed by Portugal 2020. The property will be managed under Blackstone's pan-European resort platform – Hotel Investment Partners (HIP) – which has 73 hotels.

This acquisition further expands Blackstone’s presence in Portugal? with two hotels now in the Algarve. One of Blackstone’s assets in the region is the Domes Lake Algarve, which it bought in 2020. Portugal continues to be an attractive investment destination, and according to?research from Cushman & Wakefield, five-star establishments are expected to make up 48% of hotel room supply over the next three years.

SOURECE: HNR, CRE HERALD, Hospitality Investor ? ? ? ?