Lagging Real Estate Stocks Have Dropped Too Far, Analysts Say
Wall Street analysts see a double-digit upside potential for the S&P 500’s biggest losers this year: real estate stocks.
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Wall Street analysts see a double-digit upside potential for the S&P 500’s biggest losers this year: real estate stocks.
US Treasury Secretary Janet Yellen said she still sees underlying price pressures receding even as a tight housing supply has helped stall the downward path of inflation.
About $52 billion, or 31%, of all office loans in commercial mortgage bonds were in trouble in March, according to KBRA Analytics.
Central Puerto SA, Argentina’s biggest power supplier, is in talks to invest in Canadian miner McEwen Copper Inc.’s Los Azules project, according to people familiar with the matter.
Real estate transactions registered in Hong Kong nearly doubled in April, hitting a three-year high, just months after the government took steps to revive the market.
Jul 24, 2020
Bloomberg News
,(Bloomberg) -- The global economy is righting itself after a severe lashing from the coronavirus pandemic, but the pace of improvement is laboring.
In the U.S., while the housing market has bounced back with gusto, millions of Americans continue to file for jobless benefits. Europe’s service providers and manufacturers are expanding once again, while China is set to experience tepid economic growth.
Here are some of the charts that appeared on Bloomberg this week, offering insight into the latest developments in the global economy:
World
In all major advanced economies the pace of recovery has flattened as some countries approach their pre-crisis levels of activity, according to Bloomberg Economics’ daily gauges. Within that overarching trend, the gap between leading euro-area countries and the lagging U.K., U.S. and Canada has widened in the past week.
U.S.
New-home sales increased to an almost 13-year high in June, fueled by record-low borrowing costs and adding to evidence that residential real estate is the brightest spot in the economy.
While the housing market is flexing plenty of muscle, the labor market remains feeble. From weekly filings for unemployment benefits to restaurant dining to air travel, recent high-frequency data show waning momentum in the economy as the coronavirus remains formidable.
Europe
Europe’s economy is finally showing signs of growing again after months of an unprecedented slump caused by the coronavirus pandemic. Private-sector activity in the euro area rose to the highest in more than two years in July, with both services and manufacturing showing expansion.
Russia’s Covid-19 downturn is shaping up to be shallower than feared -- Bloomberg Economics now expects the economy to shrink by 5.4% in 2020, rather than the 6.3% blow predicted earlier -- but the recovery looks slow.
Asia
China’s economy will continue to rebound for the rest of 2020, according to the median economist estimate in a Bloomberg survey, but the expansion will be the weakest since 1976’s contraction.
Empty storefronts are becoming a common sight in Hong Kong’s shopping districts as vacancy rates skyrocket across the city. The city will get an update on where it stands next week when the government publishes second-quarter GDP figures.
Emerging Markets
All countries are battling the same virus, yet the downturns across emerging and frontier economies look very different: Taiwan, Botswana, South Korea and Thailand are doing best in Bloomberg Economics’ ranking of 75 economies based on confirmed deaths from Covid-19, the level of activity compared with the pre-virus normal and the policy space available to counter the damage.
©2020 Bloomberg L.P.