CBRE Capital Markets eNews
From the CBRE Capital Markets eNews:
• Though small financial institutions with large holdings of Fannie Mae and Freddie Mac preferred stock could be hurt by a decline in share value, Federal Deposit Insurance Corp. Chairman Sheila Bair does not expect much of an impact through the banking system overall. There are no restrictions on the amount of preferred and common shares issued by Fannie Mae and Freddie Mac that can be held by banks, and the Office of Thrift Supervision reports that only 2 percent of thrifts hold Fannie Mae and Freddie Mac shares in amounts above 10 percent of their Tier 1 capital according to the MBA.
• Commercial Real Estate Direct reports, “While consumer spending is set to slow, business fixed investment looks like it will be a little more resilient during the second half of the year. Advance orders for durable goods rose 1.3 percent in July, following a similar-sized gain the previous month. Orders for non-defense capital goods, ex aircraft, which is the key component that tends to track business fixed investment, rose 2.6 percent and is up at a 13.5 percent annual rate over the past three months.”
• Crude oil and gasoline fell since Hurricane Gustav did not cause damage to platforms in the Gulf of Mexico. Oil fell 7.1 percent this week as the euro dropped to a seven-month low against the dollar. The dollar's recovery will cause the decline in oil prices to continue, OPEC President Chakib Khelil said today, adding that he expects supply to outstrip demand by as much as 1 million barrels a day in the first half of 2009.
• Nearly 40 percent of European buyers chose Florida in this year's Profile of International Home Buyers survey from the National Association of Realtors as their preference for townhouse/multifamily property locations. Meanwhile, 5 percent of European investors chose New York. The U.K., Germany and the rest of Europe account for more than $3.2 billion of foreign investment into U.S. commercial properties while the Middle East holds $2.96 billion year-to-date.
Posted by: Rich
