Monday Real Estate & Finance Report

Rate markets started unchanged early this morning; the US stock indexes pointed to a strong open at 9:30. No scheduled economic data today, this week’s calendar is thin on data after the stronger than expected Sept employment report last Friday. In the geo-political situations: Honk Kong protestors split on how to continue, with some wanting to move out of blocking commercial streets and consolidating at government buildings; The bombs continued to fall in Iraq and Syria but ISIS so far has foiled the hoped for effect by moving away frm military sites that are the targets, thwarting the bombs’ impact.

More decline in EU economic data; Germany’s factory orders declined to the lowest since 2009. Orders, adjusted for seasonal swings and inflation, fell 5.7% in August, the Economy Ministry in Berlin said today. Economists predicted a 2.5% decline. Export orders dropped 8.4% in August, while domestic demand slid 2%. The World Bank lowered its forecasts for growth in developing East Asia this year. The region is projected to grow 6.9% in 2014 and 2015, down from 7.1% seen in April. That compares with global growth of 2.6% in 2014.

Is the world headed for a currency war? Looks more and more likely that it is; the ECB is on record wanting the euro to decline, Japan also in the mix and now news that China is considering weakening its yuan. Exports in those areas and emerging markets are declining, forcing measures designed to make each country and region more competitive. The US dollar is at a 4 yr high against the euro currency, the stronger the dollar becomes the less competitive for US exports. No one wins in a currency war escalates but economic leaders around the world are without much choice---or so they believe. Economic growth globally is not improving, most economies are slowing. In the US we benefit by being the strongest growth region although we are not setting any records in growth. The US Fed, World Bank, the IMF all continuing to revise growth forecasts lower each time they put out data.

Johnson Development Corporation and Fidelis Realty Partners finalized the acquisition of a 112-acre tract planned for future retail development at the former site of Camp Strake.

“The opportunity to create a regional shopping experience at such a prominent location was very appealing,” said Lynn Davis, principal and chief marketing officer of Fidelis Realty Partners. “We’re looking forward to working with Johnson Development on this project.”

The retail tract marks the first major property sale at Strake–The Grand Central Park, located about 4 miles north of The Woodlands at the southwest corner of I-45 and Loop 336 in Conroe. Fidelis Realty Partners plans to develop a regional shopping, dining and entertainment hub spanning 750,000 square feet. Construction is slated to begin in late 2016 with an opening to the public by early 2017.

The estimated 2,046-acre Strake property is planned to include a mix of residential units, retail areas, corporate offices and green space. For about 70 years, the Boy Scouts of America owned and managed Camp Strake before the Johnson Development Corporation acquired it in 2013.

This Week’s Calendar:

Tuesday,

10:00 am August JOLTS job openings (4.71 mil compared to 4.673 mil n July)

1:00 pm $27B 3 yr note auction

3:00 pm August consumer credit (+$20.0B frm +$26B in July)

Wednesday,

7:00 am weekly MBA mortgage applications

1:00 pm $21B 10 yr note auction

2:00 pm FOMC minutes frm Sept meeting

Thursday,

8:30 am weekly jobless claims (+6K to 293K)

10:00 am August wholesale inventories (+0.3%, July +0.1%)

1:00 pm $13B 30 yr bond auction

Friday,

8:30 am Sept import and export prices (imports 0.8% ex ags; export prices -0.1% ex oil)

2:00 pm Sept Treasury budget (+$72B, and the 2014 fiscal total)