The Intelligence Report – 14 August 2017

14 Aug 2017

  • How big an influence does central bank policy have on listed real estate? – reviewing the Federal Reserve’s 2014 tapering experience for clues on how European Central Bank tapering might play out this time around.
  • How far could the Amazon-Whole Foods Market deal disrupt the retail landscape? – examining this transaction and discussing whether it has the potential to be transformative for the grocery sector and the broader retail sector.

The prospect, and subsequent reality, of central banks winding down asset purchase programs has been a recurring theme in global markets since the “taper tantrum” first exploded into investor consciousness in May 2013. More recently, and particularly in the light of European Central Bank President Mario Draghi’s comments at Sintra, markets have focused on the likely pace and timing of European Central Bank (ECB) tapering. Many are expecting further hints at the upcoming Jackson Hole convention on August 24 and 25.

In the first of our articles, Shaun Stevens reviews the Federal Reserve’s (Fed) 2014 tapering experience, and the run up to the first rate hike in December 2015, for clues on how ECB tapering might play out this time around, and the implications for listed European real estate.

Most of our Intelligence Report articles look at the bigger picture, analysing macroeconomic and political events, and their impact on financial markets. Our second article differs from this pattern in examining a single transaction (albeit a large one) – Amazon’s pending acquisition of Whole Foods Market – but one which, as Pam Woo argues, has the potential to be transformative, not only for the two companies involved, but for the grocery sector and even the broader retail sector more generally.

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