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January 16th - According to sources familiar with the matter, Ford Motor Company is in talks with BYD regarding the supply of batteries for its overseas hybrid vehicles. Anonymous sources indicated that BYD is one of several battery suppliers Ford is in talks with. They stated that no deal has been reached yet. The negotiations reportedly aim to supply batteries for Fords expanding hybrid vehicle lineup to its international plants. Sources noted that hybrid vehicles produced at Fords overseas plants will be sold globally, including in the US market, but most hybrid vehicles sold in the US will still be produced at Fords North American plants. BYD has not yet responded. A Ford spokesperson stated that the company communicates with numerous companies on various matters and does not comment on rumors or speculation related to its business.On January 16th, Minister of Commerce Wang Wentao stated in a recent interview that this year, my country will focus on key and potential sectors such as transportation, domestic services, performances, and sports events to actively cultivate new growth points in service consumption. This year, my country will also focus on new sectors and offline entities, optimizing the implementation of the trade-in policy for consumer goods. Support policies will be improved, unreasonable restrictive measures will be eliminated, and new growth points in service consumption will be actively cultivated. In 2026, the trade-in program for consumer goods will provide stronger support for green and intelligent products, requiring home appliances to meet first-level energy efficiency or water efficiency standards for trade-ins, and subsidies for new purchases will be included for smartwatches, smart bracelets, and smart glasses. We will also actively support offline physical retail, encouraging offline stores to leverage their comparative advantages, create diversified consumption scenarios, enhance the consumer experience, and promote balanced development between online and offline channels.January 16th - The US dollar is poised for its third consecutive weekly gain on Friday. This followed positive US economic data that reduced market expectations for a near-term interest rate cut by the Federal Reserve. The federal funds futures market has pushed back its expectation of the next rate cut to June, citing improved employment data and concerns from central bank policymakers about inflation. Capital Markets analyst Kyle Rodda wrote in a report, "The dollar has been relatively strong at the beginning of the year. Better-than-expected weekly US jobless claims and some manufacturing surveys have reduced the probability of an imminent Fed rate cut."On January 16th, Minister of Commerce Wang Wentao stated in a recent interview that this year, my country will comprehensively promote trade in goods, services, and digital trade to stabilize foreign trade. Expanding diversified markets is crucial. We will successfully host important exhibitions such as the Canton Fair to attract more overseas buyers and increase support for enterprises participating in overseas exhibitions. We will guide the healthy and standardized development of new forms and models of foreign trade, such as cross-border e-commerce. my country has reached 23 free trade agreements with 30 countries and regions, and we will support and guide enterprises to make good use of these agreements to expand trade. This year, my country will also vigorously develop trade in services, improve the negative list management system for cross-border service trade, and orderly relax market access in the service sector. Following the principle of "one policy for one industry," we will promote the introduction of a series of more effective policies and measures to accelerate the export of productive services, encourage professional service institutions to improve their international service capabilities, and leverage innovation advantages in artificial intelligence, the digital economy, and biomedicine to expand the export of emerging services such as R&D, design, consulting, testing, and maintenance, thereby cultivating new growth points for foreign trade.On January 16, Chuanyi Technology stated on its interactive platform that the first phase of its sodium-ion battery project went into production in 2023, while the second phase is still under construction; the company currently has no cooperation with Unitree Technology.

Blackstone's $69 Billion REIT Bans Redemptions, Harming Business

Aria Thomas

Dec 02, 2022 11:57

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Blackstone Inc halted withdrawals from its $69 billion unlisted real estate income trust (REIT) on Thursday due to an increase in redemption demands, a first-of-its-kind blow to a franchise that helped it become an asset management giant.


The constraints for the day were not imposed by Blackstone (NYSE:BX), but rather because redemptions had reached specified limits. However, they heightened investor worry over the future of the REIT, which accounts for around 17% of Blackstone's revenue. The announcement resulted in a 7.1% decline in the closing price of Blackstone shares.


According to a source close to the fund, investors in the REIT are dissatisfied with Blackstone's reluctance to adjust the vehicle's valuation to that of publicly traded REITs that have been negatively affected by rising interest rates. Increasing interest rates have a negative effect on property values since they increase the cost of financing.


Blackstone has reported a net return of 9.3% for its REIT year-to-date, compared to a decline of 22.19% for the Dow Jones U.S. Select REIT Total Return Index for the same period.


Alex Snyder, portfolio manager at CenterSquare Investment Management LLC in Philadelphia, commented that some investors are wondering how Blackstone evaluates the REIT's valuation in light of this outperformance.


Snyder added, "People are selling their Blackstone REIT shares at the price at which Blackstone feels they are trading."


A spokesperson for Blackstone declined to comment on how the business evaluates the value of its REIT, but did highlight that its portfolio consists mostly of rental housing and logistics and is underpinned by a long-term fixed-rate debt structure, making it resilient.


Our business is based on performance, not cash flow, and performance is rock-solid.


The REIT's target market is wealthy individual investors. According to two individuals with knowledge of the issue, the redemptions were the result of market turmoil in Asia, which was fueled by concerns about China's economic outlook and political stability. The majority of redeeming investors, they said, were from Asia and demanded cash.


After receiving more than 2% of its monthly net asset value and 5% of its quarterly net asset value in November redemption requests, Blackstone warned investors in a letter that it will limit withdrawals from its REIT. Consequently, the REIT allowed investors to redeem $1.3 billion in November, which corresponds to around 43% of investor repurchase demands.


According to some analysts, if Blackstone's REIT cannot regain investor confidence, it risks entering into a loop of selling assets to fund redemptions. The REIT has struck a deal to sell its 49.9% ownership in two Las Vegas casinos for $1.27 billion, the firm reported on Thursday.


In a report, analysts at BMO Capital Markets stated, "The impact on Blackstone will depend on whether the REIT is able to stabilize its net asset value over time or is forced to enter a protracted run-off position, with substantial asset sales and a continuous redemption backlog — it's too early to tell."

BLOW TO BLACKSTONE'S PLANS

The REIT disruption is a setback for two of Blackstone's strategies that helped it become the world's largest alternative asset manager with $951 billion in assets: real estate investing and targeting high net worth individuals.


Blackstone established the REIT in 2017, riding the success of its real estate business, which had by then surpassed its private equity firm. As a result of his success in real estate investing, the company's president, Jonathan Gray, was appointed to the position of CEO and succeeded Stephen Schwarzman.


The REIT was also an attempt to attract rich investors who believe that private market items perform better than public market ones.


Blackstone has pushed to expand its investor base after decades of marketing its products to institutional investors such as public pension funds, insurance corporations, and sovereign wealth funds.


Credit Suisse analysts projected in a study that Blackstone's fee-related income and managed assets would be negatively impacted by the REIT's troubles. They noted, "These issues will continue to impose downward pressure on the premium valuation of Blackstone."

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