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  • Property fund manager Centuria Plans $1.5 Billion in Property Floats Amid Market Rebound

    Property fund manager Centuria Plans $1.5 Billion in Property Floats Amid Market Rebound

    Australian property fund manager Centuria has announced plans to launch up to $1.5 billion in real estate investment trusts (REITs) as the commercial property market shows signs of recovery. The firm sees improving conditions and increasing investor confidence as key drivers for the move.

    Centuria’s planned floats will focus on industrial, healthcare, and office assets, aiming to capitalize on stabilizing interest rates and a renewed appetite for listed property investments. The firm’s CEO highlighted that market conditions are becoming more favorable, with a shift in sentiment following a challenging period for the commercial real estate sector.

    With property valuations stabilizing and institutional investors re-engaging with the sector, analysts predict that Centuria’s move could signal broader market optimism. The company remains confident that its REIT offerings will attract strong demand, further boosting activity in Australia’s commercial property market.

    (By Ziqi Qin)

    (Ref:https://www.afr.com/property/commercial/property-fund-manager-centuria-flags-1-5b-in-floats-as-upswing-begins-20250227-p5lfof)

  • U.S. Economic Data Sparks Fears of Stagflation

    U.S. Economic Data Sparks Fears of Stagflation

    Recent U.S. economic data has fueled concerns about stagflation, a scenario marked by high inflation and slowing economic growth. Key indicators show that inflation remains stubbornly high, while economic expansion is losing momentum, raising fears of a challenging economic environment.

    Adding to these concerns, U.S. President Donald Trump’s proposed tariff measures are expected to drive up prices for both consumers and businesses. Analysts warn that higher import costs could lead to increased prices on essential goods, further straining household budgets and reducing corporate profit margins.

    At the same time, a new survey reveals that Americans are growing increasingly pessimistic about the economic outlook. Rising living costs, uncertainty over future Federal Reserve policies, and fears of a potential recession are contributing to declining consumer confidence. Experts caution that if these negative sentiments persist, they could dampen spending and investment, further exacerbating economic challenges.

    With financial markets reacting to the uncertainty, economists warn that prolonged stagflation, combined with protectionist trade policies, could significantly impact economic stability in the coming months.

    (By Ziqi Qin)

    (Ref:https://www.bloomberg.com/news/articles/2025-02-28/what-is-stagflation-us-data-sparks-fears-of-high-inflation-softer-growth?srnd=phx-economics-v2)

  • Zelenskiy’s Clash with Trump Raises Fears Over Ukraine’s Future Support

    Zelenskiy’s Clash with Trump Raises Fears Over Ukraine’s Future Support

    Ukrainian President Volodymyr Zelenskiy’s heated exchange with former U.S. President Donald Trump has sparked concerns among Kyiv’s allies, raising fears that a potential Trump return to the White House could drastically alter Western support for Ukraine.

    The dispute reportedly centered on Trump’s skepticism about continued U.S. military aid, with sources suggesting that Zelenskiy directly challenged Trump over his stance. Trump, who has previously expressed reluctance to provide further assistance to Ukraine, has hinted that he could push for negotiations with Russia, potentially at the expense of Kyiv’s territorial integrity.

    European and NATO leaders are now on high alert, worried that a shift in U.S. policy could weaken Ukraine’s defense efforts and embolden Russia. Some diplomats have begun contingency planning, seeking alternative strategies to sustain Ukraine’s war effort in case American support declines. Meanwhile, Zelenskiy is intensifying diplomatic efforts to secure long-term military and financial commitments from European partners.

    The fallout from this confrontation underscores growing global uncertainty about the future of U.S. foreign policy and its impact on the war in Ukraine, with key stakeholders watching closely as the 2024 U.S. presidential election approaches.

    (By Ziqi Qin)

    (Ref:https://www.bloomberg.com/europe)

  • China’s Foreign Trade Shows Strong Growth in Early 2025

    China’s Foreign Trade Shows Strong Growth in Early 2025

    In related developments, China has maintained open lines of communication with the United States Department of Commerce, responding to US President Donald Trump’s recent remarks that Washington may reach a new trade agreement with Beijing. The Ministry of Commerce emphasized that ongoing dialogue is crucial for resolving trade issues and enhancing cooperation between the two nations.
    China’s foreign trade has experienced significant growth in the first months of 2025, with both exports and imports rising sharply. The General Administration of Customs reported that exports, particularly in high-tech products and consumer goods, saw substantial increases. This has led to a widening trade surplus. The expansion is also attributed to China’s strategic partnerships under the Belt and Road Initiative and regional trade agreements, which continue to bolster trade. Experts predict steady growth in the coming months as China diversifies its trade partners and adapts to shifting global demand.

    (By Ziqi Qin)

    (Ref:https://www.chinadaily.com.cn/a/202502/28/WS67c10d7da310c240449d7c22.html)

  • China’s Low-Altitude Economy: A Transformative Force for the Future

    China’s Low-Altitude Economy: A Transformative Force for the Future

    China is poised to revolutionize its economy through the rapid development of its low-altitude economy. The low-altitude economy refers to the use of drones, small aircraft, and other flying vehicles operating below 1,000 meters (3,280 feet) to enhance various industries such as logistics, agriculture, and environmental monitoring. This sector is gaining momentum as advancements in technology make these flying vehicles more accessible and efficient. The government has committed to fostering innovation in this field, with new policies and regulations aimed at boosting technological advancements and ensuring safety. Experts predict that China’s low-altitude economy will significantly transform traditional industries, create new economic opportunities, and help achieve sustainable growth. This shift is expected to not only enhance productivity but also position China as a global leader in the sector.

    (By Ziqi Qin)

    (Ref:https://www.chinaservicesinfo.com/s/202501/06/WS677b38b2498eec7e1f72c6f7/chinas-low-altitude-economy-a-transformative-force.html)

  • Fed officials back another rate hike (USA)

    Fed officials back another rate hike (USA)

    Fed officials backed another rate hike as they monitored the impact of bank stress on the economy, while new emergency lending data showed continued financial focus.

    Cleveland Fed President Loretta Mester, usually one of the more hawkish policymakers, said she favours rates above 5% because inflation remains too high.
    But she tempered the message, arguing that caution was needed as tighter credit conditions could dampen hiring and spending.

    “We are closer to the end of the tightening journey than the beginning,” she said on Thursday. “How much further tightening is required will depend on economic and financial developments and progress on our monetary policy objectives.”

    Data released after her speech showed banks increased emergency borrowing from the Fed for the first time in five weeks.

    Policymakers raised borrowing costs by 25 basis points last month, raising the benchmark interest rate target to 4.75% to 5% from near zero 12 months ago.

    According to the median of their forecasts, they also see another rate hike this year, to 5.1% – a move investors are betting they will take at their upcoming May 2-3 meeting.

    Some Fed officials have said they want to pause at that point, although investors expect a rate cut by the end of the year.

    Atlanta Fed President Raphael Bostic, one of the policymakers, reiterated that message.

    Asked whether he still supported a “set and forget” approach to rate hikes, he said, “That’s my view,” noting that policy works with a lag.

    “Once we reach that point, we’re firmly in a restrictive space. Then I think it’s time for restrictive action. It’s going to take some time,” he said.

  • Alibaba Shares Surge After Historic Overhaul Heralds IPO Wave

    Alibaba Shares Surge After Historic Overhaul Heralds IPO Wave

    Alibaba Group Holding Ltd.’s US shares surged 12% after China’s online commerce leader announced plans to split its $220 billion empire into six business units, a significant restructuring that promises to yield several initial public offerings.

    The move frees up the Chinese company’s main divisions from e-commerce and media to the cloud to operate more autonomously, laying the foundation for future spinoffs and market debuts. 

    The shift to a holding company structure is rare for major Chinese tech firms and could present a template for Alibaba’s peers. Decentralizing the company’s business lines and decision-making power addresses one of Beijing’s primary goals during its sweeping technological sector crackdown.

    The US-traded shares jumped as high as $96.98 as the market opened in New York on Tuesday. 

    The government had criticized the influence of online platforms, particularly those of Alibaba and WeChat operator Tencent Holdings Ltd. That will likely mean the restructuring would draw support from government regulators concerned that technology’s concentrated power suppressed innovation. Alibaba and Tencent invested in hundreds of startups over the years, often helping to craft strategy as they grew.

    “It is one step in the direction of China’s policy to reduce the monopolistic nature of the tech giants,” said Marvin Chen, an analyst with Bloomberg Intelligence. “While China tech spinoffs are not uncommon, the move looks more encompassing, including core businesses, that may serve as a blueprint for the industry going forward.”

  • Inflation in UK Shops Hits Record High With More Pain Ahead

    Inflation in UK Shops Hits Record High With More Pain Ahead

    Prices in UK shops are rising rapidly, suggesting the cost of living crisis is far from over.

    The British Retail Consortium said store price inflation accelerated to 8.9% this month, the highest for the index since 2005 and up from 8.4% in February.

    According to one of the country’s most prominent online grocers, deflationary inflation is prompting shoppers to buy fewer items. Ocado Group Plc said on Tuesday morning that the average number of items purchased per customer in its partnership with Marks & Spencer Group Plc fell 7.5% in the first quarter.

    Ocado shoppers shrink shopping baskets under pressure from rising costs. On a call with reporters, Ocado Retail chief executive Hannah Gibson said that cost pressures are continuing and could drive up customer prices.

    UK shoppers are increasingly turning to discount grocery stores, market data shows. Lidl was the fastest-growing supermarket in the four weeks to March 19, with sales up 25.8 per cent, Kantar said on Tuesday.

    Meanwhile, Aldi’s market share hit another record high. The combined market share of the two German discounters is 17.3 per cent.
    sticky inflation
    Grocery price inflation hit another record high of 17.5%, according to data compiled by Kantar Worldpanel.

    Data released overnight by the BRC showed food prices rose by 15% in March amid shortages of fruit and vegetables.

    UK headline inflation unexpectedly rose in February for the first time in four months, led by food and drink prices.

    According to an analysis by Retail Economics, the average British household has £76 ($94) less cash idle each month than it did a year ago.
    “Store price inflation has not yet peaked,” BRC chief executive Helen Dickinson said. “Food price increases are likely to moderate in the coming months, particularly as we enter the UK growing season, but broader inflation is expected to remain elevated.”

    Chocolate, confectionery, and soda prices rose sharply in March due to rising sugar costs. Fruit and vegetables were also more expensive after a lack of supplies of tomatoes, cucumbers and peppers from Spain and North Africa left shelves empty. In addition, import prices rose due to a weaker pound.

  • SVB’S LATEST NEWS SHARING

    SVB’S LATEST NEWS SHARING

    According to reports, the $2 trillion venture capital industry could see a 25% to 30% portfolio cut in the wake of Silicon Valley Bank’s collapse — a potential $500 billion cut.

    “In the wake of SVB’s collapse, we expect greater valuation scrutiny and disclosure, especially as significant ‘trust’ capital from pension funds flows into these markets,” Bloomberg Intelligence analyst Gaurav Patankar wrote in a note Friday.

    Some venture capital and private equity firms are turning to strategies of “stretching” and “pretending,” meaning they hold assets or back capital to avoid real price discovery. Examples of this include NAV loans that allow the general partner to borrow from a group of portfolio companies within the fund, available partner-led secondary structures in which the fund sponsor invests in one or more of the funds it already manages, Asset sales to new funds, and alternative financing through private credit.

    But these approaches can only delay but not deny the underlying problem of “flaky” and “unrealistic” risk valuations.