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Headlines
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Y’day:
HSI -0.98%, SHCOMP -1.29%, KOSPI -2.38%
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Overnight:
Dow +0.52%,
SPX +1.05%, Nasdaq +1.71%
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UK: Govt tells public to work from home if possible
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UK: Coronavirus furlough program cost rises to £39.3bn
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GR: BaFin: Banks need high lvls capital for payouts; recommends banks avoid divs; but can’t forbid it
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US: Congress reaches deal on stopgap funding to avert shutdown
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US: Kudlow says Trump optimistic a/b TikTok bid, not done deal
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US: Brookfield Properties to Cut 20% of Employees in Retail Unit
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SK: 110 more coronavirus cases… back above 100
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CN: China jails outspoken property tycoon Ren Zhiqiang for 18 yrs (SCMP)
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CN: GDS Holdings announces accepted offer to acquire Beijing data center
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CN: Merchants Shekou to halt trading pending asset purchase review
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CN: Mortgage quota shortage seems to have emerged in Tier 2-3 cities, which cld weigh on prop sales
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HK: 3 local virus cases on Tuesday
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JP: Reopens after holidays
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JP: Cases fall to 312 / 319 on 21/22 Sept, from 480 on 20th
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SG: Capitaland Mall Trust EGM to be held on 29 Sep
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AU: IWG to open 10 Regus coworking spaces in Queensland, Australia
Today.
50%
of my kids are back at school!! UBS CEO says it’s hard to sustain
culture working at home… & I got the call up to go back to the
office in a month. So
– today I think we focus on recovery names (HK retail – take your pick
but Wharf REIC has now widened its underperformance to the group) &
office. This is the 1st day Japan is trading since news of PAG planning
to deploy US$8b in Japan property assets (&
their target with Spring REIT was office) so I continue to think some
of the beaten up Japan office small caps are interesting (Invesco office
a clear underperformer, -38% ytd, with no sponsor & higher volume
on Friday than we’ve seen in months). I’m also
told DXS & SCG both said y’day they’d be taken out if they continue
to trade at such discounts. Let’s see – its never that easy – but for
now equities are trading very cheap to the physical assets in most
cases. Lastly press around mortgage quota shortage
for T2-3 cities AND around off balance sheet debt etc being counted in
LTV calcs for the (yet to be confirmed) 3-4-5 rules keep me cautious on
the more highly levered China props. Let me know if you want to talk to
Eric re Jinmao as a short on these themes.
While its underperformed, its still on >6x ’20 PE per BBG.
Finally:
Do
Schools Kill Creativity? Sir Ken Robinson makes an entertaining &
profoundly moving case for creating an education system that nurtures
(rather than undermines)
creativity. We know 3 things a/b intelligence.1st is
diverse. We think a/b the world in all the ways that we experience it.
2ndly, intelligence is dynamic. If you look at the interactions of a
human brain, intelligence is wonderfully interactive.
The brain isn't divided into compartments. In fact, creativity -- which
he defines as the process of having original ideas that have value --
more often than not comes a/b through the interaction of different
disciplinary ways of seeing things. 3rd
1 is distinct. Our education system has mined our minds in the way
that we strip-mine the earth for a particular commodity. & for the
future, it won't serve us. We have to rethink the fundamental principles
on which we're educating our children. (Ted)
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