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Property and pull outs

| Posted by: Paul Donovan | Tags: Paul Donovan

  • A few more UK property funds have suspended withdrawals in the wake of the referendum decision. This is not, however, a systemic crisis in that it is neither a crisis nor is it systemic. At the moment this represents a liquidity problem for investors in UK property funds.
  • Sterling's weakness is still gathering headlines on fears foreign direct investment will disappear. These concerns do, however, tend to focus on the headline "build a factory" FDI figures, not the more mundane but important "retained earnings" sort of FDI.
  • The US Fed minutes showed the central bank to be concerned about job creation and external shocks. In light of subsequent events this is consistent with a slower pace of tightening (tightening because of the growing US inflation problem, slower because of external risks).
  • UK industrial production will be disregarded. German industrial production was unexpectedly weak – it is a volatile series, but markets are inclined towards the pessimistic at the moment. US ADP payrolls make it out as well.