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Daily Market Update

Latest Economic & Market Update 30th October 2020

Good afternoon, it is October 30th 2020 and here is your economic and market update from BlackBee. 

Today’s focus:

  • German investment in Dublin commercial property
  • Highest US quarterly growth in post-war history

Deka Immobolien, the real estate investment arm of Deka Group, has acquired 129,700 square footage of Dublin commercial real estate for $165.4 million (€141m). The Baggot Plaza site building was purchased from Kennedy Wilson, and is leased by Bank of Ireland. The Irish Times reports that the net initial yield is 4%. This is in line with CBRE’s Q3 report stating that prime yields in Dublin were holding firm at 4% despite the pandemic. The acquisition follows Deka Immobolien’s 2019 purchase of the Reflector office building on Hanover Quay. 4% rental yields and ongoing foreign investor commitment to Dublin commercial property support BlackBee’s view that office real estate in Ireland’s capital will remain attractive, particularly in a European context. (Sources: Business Wire, Irish Times, CBRE)

Q3 2020 saw the largest quarterly real GDP growth in US post-war history. The Bureau of Economic Analysis (BEA) reported Q3 GDP growth (on an annual basis) of 33.1%. This record gain follows the downturns of -5% and -31.4% from Q1 and Q2 respectively. Ahead of next week’s election and even more so following Wednesday’s equity market slide, Donald Trump fully welcomed the BEA’s positive GDP figures. On Thursday afternoon he tweeted “GDP number just announced. Biggest and Best in the History of our Country, and not even close. Next year will be FANTASTIC!!! However, Sleepy Joe Biden and his proposed record setting tax increase, would kill it all. So glad this great GDP number came out before November 3rd.”. However, 75.8 million Americans (36% of registered voters) have already gone to the polls ahead of Election Day on November 3. The number of early votes has been fast tracked by the pandemic but it is likely that voter turn-out will be higher than the 2016 election. 4 years ago, 136.5 million total ballots were cast in the US Presidential election. (Sources: Bureau of Economic Analysis, FT, CNN)

Best & Worst Performers of Large Cap US Stocks on Thursday
Click image to enlarge

Global Market Update
(as at close of markets 29/10/2020)