Market chatter: Foreign investors courting Spanish real estate firms and much more

Moody’s reduced China’s real estate sector outlook from stable to negative on the grounds of sales slowdown, lower liquidity and increase in inventory. On the other hand, BANKINTER reports Spanish housing sector keeps its recovery path, specially the appeal for  institutional investors. Blackstone negotiates the purchase of a real estate assets portfolio worth €150M with properties near Madrid and Barcelona. Moreover, PSP and Drago Capital acquired a €140M building in the capital downtown and asserted they intend to invest about 260 M€.

Colonial recently increased capital for €1.26bn to reestructure debt and may plan to buy a participation in Realia.

BANKIA upgraded exchange operator BME estimations. Analysts rose by 12.7% net benefit forecast as well as increased share target price by 8.8% to €34.95. Currently, Dividend yield is 5.9%, one of the most attractive values in the Spanish market, where the trading volume significantly improved in the last months. In this line, Bankia points out that BME has taken a path of no return.

Philadelphia Federal Reserve chairman Charles Plosser says that “the Fed is sitting on a ticking bomb.”  Held liquidity reserves in large banks thanks to asset purchase program, at the time the come out to the market as credit, could prompt quick inflation. It would force the fed to prematurely rise rates. Otherwise, if the monetary authority tries to avoid it and anticipates by with draing liquidity it could harm national economic outlooks. “Plosser leaves few feasible options,” LINK analysts say.