Archive for Finance

When the Trump administration unveils new details of its tax plan, promised for next week, one group of taxpayers will be under the microscope: the rich.

That’s because they take advantage of so many tax breaks that few, if any, pay the top rate of 39.6 percent. Eliminating at least some of those breaks would make it possible to reduce tax rates for the highest earners (and everyone else) while raising the same or even more in total revenue…

Tax Reform for the Rich: Reduce the Rates but Lose the Breaks

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  • 74% of high-priced London homes are bought using loans
  • Rising values and taxes are behind the jump in finance take-up

More home buyers are resorting to mortgages to purchase London’s most expensive houses and apartments as rising prices drag them into higher tax brackets.

Seventy-four percent of homes costing 1 million pounds ($1.4 million) or more in the U.K. capital were bought with a mortgage in the three months through July, up from 65 percent a year earlier, according to Hamptons International. The figure was as low as 31 percent during the depths of the financial crisis in 2009…

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  • UniSuper increases Asia equity allocation, buys U.S. banks
  • Profit growth in emerging markets is key driver for UniSuper

John Pearce has returned to Sydney from a week in Hong Kong beaming, with one clear message of where to invest his next dollar: China.

The chief investment officer who’s in charge of A$60 billion ($48 billion) at Australian pension fund UniSuper Management Pty expects returns in Asian emerging-market equities to beat developed economy peers, extending an outperformance that’s already underway. The main reason: Chinese firms are driving profit growth set to exceed that in mature stock markets as it’s coming from a lower starting point…

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Describing the results as “disappointing,” Harvard University reported on Tuesday that its $37.1 billion endowment earned an 8.1 percent return for its most recent fiscal year.

The endowment’s new chief executive, N. P. Narvekar, said that the fund was in the middle of a major revamping and that problems in the endowment would “require time to overcome.”

That return significantly trails the mean one-year return of 12.7 percent for more than 400 institutions tracked by Cambridge Associates, which manages money for many nonprofit organizations. And while many of the nation’s largest endowments have yet to report returns, this month the Massachusetts Institute of Technology posted a 14.3 percent return for its $14.8 billion endowment…

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  • 74% of high-priced London homes are bought using loans
  • Rising values and taxes are behind the jump in finance take-up

More home buyers are resorting to mortgages to purchase London’s most expensive houses and apartments as rising prices drag them into higher tax brackets.

Seventy-four percent of homes costing 1 million pounds ($1.3 million) or more in the U.K. capital were bought with a mortgage in the three months through July, up from 65 percent a year earlier, according to Hamptons International. The figure was as low as 31 percent during the depths of the financial crisis in 2009…

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U.S. household wealth increased in the second quarter to yet another record, driven by solid gains in financial assets and rising property values, figures from the Federal Reserve in Washington showed Thursday.

HIGHLIGHTS OF HOUSEHOLD WEALTH REPORT (2Q)

  • Net worth for households and non-profit groups rose by $1.7t q/q, or 1.8%, to $96.2t, according to Fed’s financial accounts report, previously known as flow of funds survey
  • Value of financial assets, including stocks and pension fund holdings, increased by $1.2t
  • Household debt increased at a 3.7% annual rate in the second quarter
  • Household real-estate assets rose by $508b; owners’ equity as share of total real-estate holdings up to 58.4% from 57.9%
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  • Banks also joining RE100, a corporate renewables initiative
  • Private sector continues to support emissions reduction

Morgan Stanley and Citigroup Inc. announced they will get all of their energy from renewables in a few years, another show of corporate support for climate action running counter to U.S. President Donald Trump’s view on the issue.

The New York-based banks are aiming for their operations to be carbon-neutral, Morgan Stanley by 2022 and Citi by the end of the decade, according to separate statements from the companies. Both plan to buy power from clean energy projects…

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For over two decades, Lev Alburt has been teaching strategy, patience, and prognostication to the finest in finance.

On East 83rd Street there’s a squat brick walk-up that’s a viable contender for the least fancy apartment building on Manhattan’s Upper East Side. But for the past 25 years, Wall Street machers and captains of industry have marched up to its gray-carpeted third floor to learn the secrets of attack and defense from Lev Alburt, a three-time U.S. chess champion and one of the most prominent Soviet defectors of the 1970s. Alburt has long been giving ­patter-filled private lessons to New Yorkers from all walks of life, encouraging, cajoling, and reprimanding men and women as they attempt to learn the so-called game of kings…

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  • BOE stability officials hold quarterly meeting this week
  • Easy access to loans, credit cards fueling debt binge

Bank of England Governor Mark Carney has 200 billion reasons to keep an eye on consumer borrowing and he’s about to find out just how concerned he should be.

With household credit rising five times faster than earnings, alarm bells are ringing and regulators have fast-tracked part of their annual stress tests to get an insight into the resilience of banks to a sharp jump in defaults. Carney and his Financial Policy Committee will have that crucial information when they gather for their quarterly meetings this week…

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  • Fund has ballooned in size since first cash injection in 1996
  • Fund manages oil wealth for future generations of Norwegians

Norway’s sovereign wealth fund hit $1 trillion for the first time on Tuesday, driven higher by climbing stock markets and a weaker U.S. dollar.

The milestone valuation was reached for the first time on Sept. 19 at 2:01 a.m. in Oslo, Norges Bank Investment Management said in a statement on Tuesday…

The World’s Biggest Wealth Fund Hits $1 Trillion

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  • Endowment markdowns in natural resources have hurt its results
  • World’s biggest college fund is now valued at $37.1 billion

Harvard University’s endowment reported an 8.1 percent annual investment gain, a lagging performance its new manager said was “a symptom of deep structural problems” that will take years to turn around.

N.P. “Narv” Narvekar, who took over as chief executive officer of Harvard Management Co. in December, said in a five-page letter published Tuesday that the problems “highlight the critical impact of culture, structure, and incentives in an investment organization.”…

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The 300,000-square-foot facility is slated for completion in late 2018. Once completed, the plant is set to employ more than 100 full-time workers.

Georgia-Pacific is building a new lumber production facility in Talladega, Ala. The location for the state-of-the-art plant will be Georgia-Pacific’s former plywood plant that closed in 2008. Construction of the $100 million property will begin immediately and is slated for completion in late 2018.

Once in production, the 300,000-square-foot facility will receive 150 log trucks a day and produce 230 million board-feet of lumber a year…

GP to Invest $100M in New AL Lumber Facility

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  • Al Gore’s Generation Investment Management also backs Gogoro
  • Taiwanese startup eyes new cities and more R&D spending

Gogoro Inc., an electric scooter-maker backed by Panasonic Corp., raised $300 million from Singapore’s Temasek Holdings Pte. and other investors to pay for expansion and research and development.

Generation Investment Management LLP, co-founded by Al Gore, Japan’s Sumitomo Corp., and French utility Engie SA, also invested. The new funding brings the Taiwan-based startup’s valuation to about $800 million, including the new cash injection, according to a person familiar with the matter. That’s double the level when it last raised in 2015, the person said…

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  • Trading revenue fell to worst since first quarter of 2016
  • Investment-banking revenue at the firm surges 61% to a record

Jefferies Group, like its Wall Street competitors, is leaning on investment banking to weather a trading slump.

The firm’s revenue from trading dropped in the three months through August to the lowest in six quarters, a sign that an industrywide decline in transactions is worsening. The quarter was saved by investment banking, where fees surged 61 percent to a record $475.7 million…

At Jefferies, Like Wall Street, Trading Cedes to Banking

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  • President’s legal bills could amount to more than $1 million
  • Expenditures are legal, campaign finance lawyers say

President Donald Trump will use money donated to his campaign and the Republican National Committee to pay for his personal legal bills related to investigations into his campaign’s ties to Russia, two people familiar with the matter said.

The first payments from the campaign and RNC have already been made to Trump lawyers John Dowd and Jay Sekulow, said one person. Another person said the RNC has been working for months to figure out the legal parameters for using campaign donations for a candidate’s personal defense…

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  • Risk-on tone persists, though moves limited before Fed meeting
  • Trump set to address North Korea in first UN appearance

U.S. stocks advanced to fresh records, while the dollar halted a two-day drop and Treasuries slipped as investors remained optimistic about the economy. Gold fell as demand for havens faded.

The S&P 500 Index held above 2,500 to notch a fresh record after briefly losing an advance that reached 0.3 percent. The Dow Jones Industrial Average added to its all-time high. Earlier, equities from Asia to Europe gained. The dollar climbed versus the euro and pound. The 10-year Treasury yield hit 2.23 percent. Gold tumbled, while oil was little changed…

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The Class A+ property traded for one of the highest prices per square foot ever recorded outside of New York City. The deal reflects the increasingly competitive commercial market in Santa Monica, Calif.

JOSS Realty Partners sold a Class A+ creative office building in Santa Monica, Calif., to MDC Realty Advisors for $30.5 million or $1,296 per square foot. This marks one of the highest prices per square foot ever recorded for a commercial office building outside of New York City.

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  • Ex-president speaks to Carlyle, Cantor, Northern Trust
  • ‘If someone is willing to pay him to give a speech, God bless’

Hillary Clinton says she made a mistake when she gave speeches on Wall Street after leaving government. Taking money from banks, she writes in her new memoir, created the impression she was in their pocket.

Her old boss doesn’t seem to share her concern.

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  • SQN Capital financing Suniva trade case seeking solar tariffs
  • Opponents argue tariffs may double panel prices, slow installs

A little-known Wall Street lender with a background financing dump trucks and helicopters is bankrolling a trade case that’s threatening the $29 billion U.S. solar industry.

SQN Capital Management typically finances and leases crucial, if prosaic, business equipment: think cement mixers, office furniture, honey-production machines, farm equipment. A $50 million loan to Suniva Inc. was one of its biggest ever, and when that loan went south with Suniva’s April bankruptcy filing, SQN joined the Georgia-based solar manufacturer’s improbable plan: ask President Donald Trump to impose tariffs on cheap imports from Asia…

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  • During periods of central-bank purchases, Treasury yields rose
  • Fed likely to announce start of balance-sheet runoff this week

On Wall Street, the conventional wisdom is that once the Federal Reserve finally starts to whittle down its crisis-era debt investments, U.S. Treasury yields will have nowhere to go but up.

But to some bond investors, history suggests the consensus couldn’t be more wrong.

During each of the Fed’s quantitative-easing cycles, yields rose when the central bank was buying and then fell after it stopped. That ran counter to what many expected based on simple supply and demand as the Fed amassed $4.5 trillion of debt and became the single biggest holder of Treasuries…

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  • Chain was loaded with debt in buyout more than a decade ago
  • Looming Chapter 11 filing is rippling through toy industry

Toys “R” Us Inc., which has struggled to lift its fortunes since a buyout loaded the retailer with debt more than a decade ago, is preparing a bankruptcy filing as soon as today, according to people familiar with the situation.

The Chapter 11 reorganization of America’s largest toy chain would deal another blow to a brick-and-mortar industry that’s already reeling from store closures, sluggish mall traffic and the threat of Amazon.com Inc...

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  • Cash may come from Google or private-equity arm CapitalG
  • Alphabet grows closer to Lyft as Uber relationship breaks down

Alphabet Inc. has held conversations with Lyft Inc. about a potential investment in recent weeks, signalling strong support for Uber Technologies Inc.’s main U.S. competitor, according to people familiar with the matter.

An investment of about $1 billion in Lyft may come from Google or CapitalG, Alphabet’s private-equity arm, said some of the people, who asked not to be identified because the discussions are private. A deal may not come together. Alphabet and Lyft declined to comment…

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  • Bridgewater founder to share internal algos with America Inc.
  • Firm’s practices are realistic not utopian, Dalio says

Of all the hedge fund world’s secrets, few are more closely guarded than the inner workings of Bridgewater Associates Inc. Now, founder Ray Dalio plans to share his management system and corporate culture with the world.

“We’re about to take the algorithms we have, and we’re going to give them to others,” Dalio said in an interview with Bloomberg Television. “We’re figuring out how to make that fit in a number of other companies, to just pass it along.”…

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Boxing champ Floyd Mayweather found a new place to hang up his gloves and spend some of his $100 million purse from last month’s technical knockout of Conor McGregor: a mansion in Beverly Hills, California.

Mayweather closed on a six-bedroom, 10-bathroom, 15,000-square-foot (1,400-square-meter) “French-modern” estate for $26 million, according to Alexander Ali, a spokesman for the home’s developer, Nile Niami. The home, which Niami built speculatively and listed for $28.95 million, comes with a two-bathroom master suite, wine cellar, gym, four-car garage, pool and guest house with a 20-seat cinema. In case the visitors’ quarters are occupied, the estate is just a short walk to the celebrity-studded Beverly Hills Hotel

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  • N.Z. dollar falls when polls show Labour leading National
  • ‘Labour is being priced as a negative event at the moment’

New Zealand’s election is too close to call but one thing is clear: financial markets don’t want change.

The kiwi dollar has dropped whenever opinion polls show the main opposition Labour Party is ahead, while the currency jumped a full U.S. cent after a survey last week put the ruling National Party in the lead. The question is whether investors, including those offshore who hold 61 percent of New Zealand government bonds, simply dislike uncertainty or really think Labour’s policies would deliver poorer economic outcomes.

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Snapping up the properties in three separate transactions, the company added nearly 400 guestrooms to its holdings, marking another big step in its national expansion plan.

Peachtree Hotel Group increased its holdings by 394 keys with the purchase of three assets. The hotels include Element Denver Park Meadows, Aloft Tempe and Hampton Inn Green Bay Downtown.

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  • Independent broker estimates $628 million in mortgages lost
  • Sweden’s biggest banks say they can see influx from Nordea

Nordea Bank AB is losing clients in Sweden in what independent mortgage brokers say appears to be a protest against the bank’s plan to redomicile to Finland in pursuit of a more accommodating regulatory environment.

The customer shift has been registered by two online home-loan brokers and confirmed by other banks operating in Sweden. Nordea says flows in the country remain “at normal levels” and that the bank’s decision to move is “not a big issue” for most clients…

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  • In tri-party repo, BNY Mellon emerges as lone clearing bank
  • ‘Single point of failure’ seen as a risk to financial system

These days, it’s virtually impossible to become a bona fide monopoly on Wall Street.

But that’s exactly what is happening in one vital part of the U.S. financial system, which has more than a few traders on edge.

Come mid-2018, just one entity — the Bank of New York Mellon Corp. — will be responsible for ensuring almost two trillion dollars of securities financed by so-called repurchase agreements are cleared and settled each and every day. With its lone longtime rival, JPMorgan Chase & Co., exiting the business, BNY Mellon began the process of moving over clients this summer…

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The world’s central banks can’t sit back and ignore the growth in cryptocurrencies as it could pose a risk to the stability of the financial system, according to the Bank for International Settlements.

It said central banks will need to figure out whether to issue a digital currency and what its attributes should be, though the decision is most pressing in countries like Sweden where cash use is dwindling.

Institutions need to take into account of not only privacy issues and efficiency gains in payment systems, but also economic, financial and monetary policy repercussions, the BIS said in its Quarterly Review…

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  • Financial shares most favored among Wall Street strategists
  • Yet their returns rank third worst in S&P 500 this year

Wall Street banks can’t stop telling investors to buy shares in Wall Street banks. It’s not been the best advice.

Financial shares have the third-worst performance among 11 S&P 500 Index groups in 2017, and are on track for the poorest year relative to the market since 2011. Yet of the 10 equity strategists surveyed by Bloomberg, nine give banks and insurers the highest recommendation and only one holds a neutral view.

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The Lowenstein Building is the first of several phases of a rehabilitation program taking place within Knowledge Park, a $200 million mixed-use development.

Monarch Private Capital and The Sherbert Group closed an equity investment in the Lowenstein Building, a former printing and finishing property that is part of a multi-million dollar redevelopment project in Rock Hill, S.C., dubbed Knowledge Park. The consulting companies set up the Moxie Investment Funds, the joint venture that provided equity and tax credit bridge financing for the Lowenstein Building transaction.

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Who will succeed Warren Buffett as chief executive officer of Berkshire Hathaway Inc.? It’s one of the most guarded secrets in the business world. That didn’t stop JPMorgan Chase & Co.’s new Berkshire analyst from placing odds on one man.

“The most likely successor in our view, who Warren Buffett regularly praises, is Greg Abel,” JPMorgan’s Sarah DeWitt said in a note released Thursday, initiating coverage of the company…

Who’s Warren Buffett’s Successor? JPMorgan Thinks It’s Greg Abel

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Deka Immobilien purchased the hotel from Murphy Development Group. HFF represented the seller in the transaction for the 257-key asset.

Murphy Development Group sold the Hyatt Centric The Loop Chicago Hotel to Deka Immobilien for $110 million.

The hotel is centrally located in Chicago’s Loop in the heart of the financial district and within walking distance to transportation, restaurants, shopping and entertainment. Located 28 minutes from O’Hare International Airport, the building is within close proximity to attractions such as the Chicago Board of Trade, State Street, the Art Institute of Chicago, Millennium Park, the Magnificent Mile, Museum Campus and Willis Tower.

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The funds ensure the firm’s continued public-private partnership development of the 450,000-square-foot New Brunswick Performing Arts Center, which will feature mixed-income apartments, office space, and two theater venues.

The New Brunswick Performing Arts Center is nearing completion in downtown New Brunswick, N.J., now that Pennrose LLC has completed the financing for the $171 million mixed-use project, which the company is developing in a public-private partnership.

“This will be an iconic development for New Brunswick and New Jersey adding a rich cultural center to an already established hub for the performing arts,” Richard Barnhart, chairman & CEO of Pennrose LLC, said in a prepared statement…

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  • Financial Services Forum has hired HSBC lobbyist Fromer
  • Exclusive group limits membership to biggest financial firms

Wall Street’s most elite trade association has hired a former Treasury Department official as it seeks to reestablish its lobbying heft in Washington.

Kevin Fromer, executive vice president in HSBC Holdings Plc’s public policy office, was named the president of the Financial Services Forum today. As head of the Treasury’s legislative affairs office under George W. Bush, Fromer helped push a $700 billion bank bailout through Congress during the 2008 financial crisis…

Wall Street’s Lunch Club Is Planning a Reboot in Trump’s D.C.

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DowDuPont, the chemicals giant, said on Tuesday that it would shift the focus of its reorganization plan after shareholders opposed a proposal to break up the company.

The decision is the latest response by a big company to activist shareholders who have taken on ever-larger targets in recent years, demanding changes to corporate strategies. Household names like Procter & Gamble, Nestlé and Samsung have all found themselves in the sights of such investors…

DowDuPont Revises Breakup Plan Opposed by Activist Investors

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  • First loans for project at former airport come up in November
  • Existing lenders are reluctant to extend or provide new loans

When HNA Group Co., the Chinese conglomerate that’s been buying up companies worldwide, spent $3.5 billion in Hong Kong earlier this year on land for its first luxury real estate development, it had no problems getting bank funding.

But now HNA needs more: to refinance the short-term loans it used for its purchases, which start coming due in November, and then to actually build the towers that will lure high-end buyers and start generating money…

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Social Finance, an online lender that is one of the more prominent financial technology start-ups, said on Monday that its co-founder and chief executive Mike Cagney planned to step down by the end of the year.

The resignation follows a lawsuit over claims of sexual harassment at the San Francisco-based start-up, which is known as SoFi. Several former employees said that Mr. Cagney, 46, had inappropriate relationships with SoFi employees, which helped foment a toxic workplace culture…

Chief Executive of Social Finance, an Online Lending Start-Up, to Step Down

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  • Vikram Pandit says AI, robotics reduced need for some staff
  • Pandit now CEO of New York-based investment firm Orogen Group

Vikram Pandit, who ran Citigroup Inc. during the financial crisis, said developments in technology could see some 30 percent of banking jobs disappearing in the next five years.

Artificial intelligence and robotics reduce the need for staff in roles such as back-office functions, Pandit, 60, said Wednesday in an interview with Bloomberg Television’s Haslinda Amin in Singapore. He’s now chief executive officer of Orogen Group, an investment firm that he co-founded last year.

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Sep
13

Anchor Health Acquires $23M MOB

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The company purchased the 71,401-square-foot Cross Street Medical Center in Norwalk, Conn. Newmark Knight Frank represented the seller, Marcus Partners, in the transaction.

Marcus Partners sold Cross Street Medical Center to Anchor Health Properties for $23 million.

Newmark Knight Frank’s Executive Managing Director Frank Nelson, Senior Managing Director Michael Greeley and Director Danielle DeMarco, oversaw the building transaction…

Anchor Health Acquires $23M MOB

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In their sixth joint venture, the partners purchased a group of assets totaling 2.5 million square feet spanning eight states. Locations include Chicago, Milwaukee, Minneapolis and more.

Brennan Investment Group and Arch Street Capital Advisors continue to expand their net-lease industrial portfolio holdings with the purchase of a 2.5 million-square-foot collection of assets spanning eight states. The partners formed their sixth industrial joint venture to acquire the properties for a total of $100 million.

Brennan and Arch Street’s attraction to the 11-building portfolio was clear. “Geographic diversity, attractive price per square-foot, attractive tenant roster. We are buying mission critical properties in good markets at a compelling price per square-foot and with the opportunity to create significant value,” Bob Vanecko, managing principal, Brennan Investment Group, told Commercial Property Executive

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  • Quant strategist warns of regulatory risk after Chinese moves
  • Valuation not possible under traditional currency measures

Well, it ain’t Jamie Dimon, but there’s another heavy hitter at JPMorgan Chase & Co. who isn’t a fan of cryptocurrencies.

Global Head of Quantitative and Derivatives Strategy Marko Kolanovic (also known as “Gandalf” and “Half-Man, Half-God”) echoed many of his boss’ warnings about digital currencies in an assessment of the asset class on Wednesday.

Bitcoin is down roughly 8 percent since being called a “fraud” by Dimon on Tuesday afternoon…

JPMorgan’s Marko Kolanovic Joins His Boss in Bashing Bitcoin

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The construction of the dual-branded Marriott Hotel broke ground in 2015, and will bring a total of 338 guestrooms to the borough’s Jamaica neighborhood.

Chris Xu’s United Construction and Development Group has received a $44 million financing for its upcoming Marriott Hotels in Queens. The non-recourse loan was funded by an affiliate of Latitude Real Estate Investors, with full-term interest-only payments and two one-year extension options, according to public records. Cushman & Wakefield acted as exclusive advisor to the borrower.

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Lincoln Property Co. and Chile-based Stars Investments acquired 625 Massachusetts Ave., a 122,104-square-foot office and retail property in the supply-constrained Central Square district.

In a $75 million deal, a joint venture between Lincoln Property Co. and Stars Investments has acquired 625 Massachusetts Ave., a 122,104-square-foot, first class office and retail building in Cambridge, Mass. The seller was L&B Realty Advisors.

Dave Pergola and Brian Doherty of CBRE/New England’s capital markets team represented both parties in the transaction.

The property houses retail tenants such as Boston Sports Clubs, Walgreens and TD Bank and is home to WeWork’s Cambridge’s location…

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  • Gap between emerging credit risk, Mideast spread at 2007-low
  • 50% of Mideast bonds have S&P ratings of A- and higher

There’s a burgeoning opportunity in Middle East debt markets.

Abdul Kadir Hussain, a Dubai-based fund manager who weathered the emirate’s near default almost 10 years ago, has been plotting the average credit risk of emerging-market bonds against the extra yield investors demand to hold debt in the Arab world.

The two have been converging, which means the potential reward for holding riskier developing-nation bonds has almost vanished when compared with Middle Eastern debt, said Hussain, the head of fixed income at Arqaam Capital Ltd…

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  • Company chairman Fredriksen spent 18 months chasing debt deal
  • New plan calls for extending maturity on $5.7 billion in debt

Seadrill Ltd., the offshore driller controlled by billionaire John Fredriksen, filed for bankruptcy protection after working out a deal with almost all its senior lenders to inject $1 billion of new money into the company.

Under the proposal, lenders will extend the maturity on $5.7 billion in debt, with no amortization payments due until 2020. Should lower-ranking creditors join the proposal, $2.3 billion in unsecured bonds would be converted into a 15 percent stake in the company, Seadrill said in a statement

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The company represented The Hewson Co. in the sale of a 266,607-square-foot industrial portfolio. The properties are located in Scottsdale and Tempe, Ariz.

JLL negotiated a $24.5 million industrial portfolio sale on behalf of previous owner, The Hewson Co. The four properties, which are located in Scottsdale and Tempe, Ariz., have 266,607 square feet combined, and are 96 percent occupied. The buyer is TA Realty.

Both the Tempe and Scottsdale submarkets benefit from low vacancy rates and strong rental rate growth. The quality of the assets and tenant diversity made this portfolio an exceptional opportunity for investors,” said Mark Detmer, JLL managing director.

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  • JPMorgan, Citigroup, Bank of America Forecast Declines
  • Goldman Sachs’s Schwartz sees ‘challenging environment’

Wall Street executives had a worrisome message for investors this week: The lack of client activity that sunk trading results in the second quarter has continued.

JPMorgan Chase & Co., Citigroup Inc. and Bank of America Corp. are seeing declines ranging from 15 percent to 20 percent in the third quarter from the same period a year ago, executives announced at an investor conference hosted by Barclays Plc in New York. Goldman Sachs Group Inc. didn’t put a number on its performance, even as co-President Harvey Schwartz lamented “a pretty challenging environment.”…

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  • Democrat says she’s ‘done with being a candidate’ after 2016
  • Clinton angered by Trump’s embrace of bankers as advisers

Former Democratic presidential nominee Hillary Clinton pointed to her willingness to speak to Wall Street firms and the poor “optics” of those highly-paid appearances as a contributing factor for her loss to Donald Trump in the 2016 election.

Clinton takes responsibility for what she termed a “mistake” in “What Happened,” her memoir of the campaign that goes on sale Tuesday. In the book and a TV interview ahead of its release, Clinton said she doesn’t intend to run for office again but will not step back from political life…

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The facility, developed by Matrix Development Group, is set to bring 2,250 full-time job opportunities for employees to engage with advanced robotics.

Amazon unveiled its plans to open a new fulfillment center in Staten Island, N.Y., its first in the state. The 855,000-square-foot project is being developed by Matrix Development Group.

The facility is set to bring 2,250 full-time job opportunities for employees to engage with advanced robotics. Employees will work alongside robots to pick, pack and ship customer items, such as household essentials, toys and books…

Amazon to Open First Fulfillment Center in NY

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Here’s something else for policy makers to worry about as they attempt to engineer a soft landing in Australia’s property market.

The country’s lenders could be sitting on A$500 billion ($402 billion) of “liar loans,” or mortgages obtained on inaccurate financial information, according to an estimate from UBS Group AG.

A survey by the firm of 907 Australians who took out a mortgage in the last 12 months found only 67 percent stated their application was “completely factual and accurate,” down from 72 percent the previous year. The most common inaccuracies were overstating income and understating living expenses, the survey found…

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Madison Marquette commenced construction of One Light Street in January, and now the developer has landed $169 million in loans to complete the project.

The lending community is looking favorably upon One Light Street, a mixed-use project in downtown Baltimore. Developer Madison Marquette recently obtained $169 million in financing for the 800,000-square-foot building, which has been under construction since January 2017.

Natixis acted as lead arranger and administrative agent on a $125 million senior loan for One Light Street, the construction of which commenced in January 2017, with M&T Bank and CIT as participants. Additionally, with the assistance of commercial real estate and capital markets services HFF, Madison Marquette reeled in $44 million in bridge financing through Bridge Investment Group Holdings…

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A 360-degree video tour through the last available penthouse at Herzog & de Meuron’s TriBeCa skyscraper, 56 Leonard

To view 360-degree video, use Chrome or Firefox. (Sorry, Safari users.) If you’re using a mobile device, click through to your YouTube app.

It’s hard to miss 56 Leonard, the new 60-story glass tower that dominates an otherwise low-key corner of Manhattan’s TriBeCa neighborhood. When the design was unveiled in 2008 by the building’s architect, Herzog & de Meuron, the favored description of the building’s shape was “Jenga-like,” and its cantilevered floors did indeed look like a precarious, dynamic, almost impossibly complicated pile of glass and steel building blocks…

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  • Chan tells buyers to be ‘very careful’ taking on mortgages
  • Comments come after his June warning of ‘dangerous situation’

Hong Kong’s Financial Secretary Paul Chan warned potential buyers to be careful buying property in the world’s most expensive housing market, as moves by the Federal Reserve to unwind its balance sheet may shrink money supply.

Chan warned in June that Hong Kong’s property market is in a “dangerous situation” and vulnerable to a correction. Hong Kong Chief Executive Carrie Lam describes housing as citizens’ No. 1 concern and recently set up a task force on increasing land supply as she tries to rein in ever-escalating prices…

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  • Authors find no evidence of premium specific to ‘vice’ stocks
  • Outperformance comes from factors such as profits, investment

Ethical fund managers don’t have to be envious of the market-beating returns of so-called sin stocks. They should be able to match them without dabbling in vice, according to a study in the Fall edition of the Journal of Portfolio Management.

The study debunks the popular theory that shares in the alcohol, tobacco, gaming, and weapons industries outperform because investors shun them, enabling those with fewer moral scruples to earn a “reputation risk premium.” …

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It’s been a rough year for Wells Fargo. And most of the bank’s problems have come from self-inflicted wounds driven by an incentive system that rewarded appalling behavior.

To review: There was the scandal that resulted from bankers opening (and then closing) millions of unauthorized accounts to meet sales goals, with the hope of getting bigger bonuses. Originally thought to involve 2.1 million accounts from 2011 to 2015, the bank disclosed last week that as many as 3.5 million unauthorized customer accounts, dating to 2009, had been opened — nearly 70 percent more than originally announced…

Wells Fargo Should Focus on Its Actual Misbehavior, Not on Perceptions

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  • Oaktree co-chairman sees value in alternative currency claims
  • Bearish billionaire says bitcoin still a speculative bubble

Billionaire investor Howard Marks, who ignited a fierce backlash from cryptocurrency advocates after dubbing bitcoin a “fad” in July, has a had change of heart. Well, sort of.

Bitcoin, in fact, boasts a key attribute that may spur the digital method of exchange to serve as an alternative to legal tenders and as a store of value in the years to come: the simple fact that people believe in it…

Howard Marks Issues a Mea Culpa on Bitcoin, But He’s Still Not Investing

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The firm hired Robert Israel, Domenick DiNizo and Elena Zaika to assist in the $2 billion redevelopment of 1568 Broadway in Times Square.

Shortly after joining the $2 billion redevelopment of the Doubletree Suites Times Square Hotel property in Manhattan, L&L Holding Co. has expanded its development and construction team by hiring Robert Israel as senior vice president, Domenick DiNizo as project manager and Elena Zaika as project controller. Effective immediately, Israel will oversee the project’s construction, working closely with Senior Vice President of Development David Orowitz. DiNizo and Zaika will be in charge of construction operations and daily accounting and reporting activities, respectively.

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  • Bondholders say builder didn’t disclose previous defaults
  • ‘Thorough’ research needed in China: Fidelity’s Froehlich

Foreigners have been slow to warm to China’s domestic bond market, the world’s third-largest by value. A look at the latest corporate default may explain why.

Wuyang Construction Group Co., a builder in the eastern province of Zhejiang, defaulted on two put-able notes totaling 1.36 billion yuan ($209 million) last month. Bondholders are now up in arms, claiming in an Aug. 23 filing posted on the Shanghai Stock Exchange’s website that the company didn’t disclose a raft of transgressions in sale documents for the bonds, which were sold in 2015. Three phone calls to Wuyang Constructions’ headquarters in Hangzhou went unanswered, and the company didn’t respond to a fax from Bloomberg News…

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An evolving wage structure, an influx of young professionals and the boom in hospitality and development are helping the metro’s multifamily market keep its head above water.

An evolving wage structure, influx of young professionals and boom in hospitality and development are helping Philadelphia’s multifamily market keep its head above water. In an effort to attract employment, the city lowered its wage tax again in July. For the first time in 25 years, the metro is adding jobs at a faster pace than its regional peer New York City, with education and health services remaining the city’s economic backbone.

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