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British commercial property back on the investment map – Financial Post

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LONDON — Investors expect to plow billions of pounds into UK commercial real estate this year, citing some long-awaited Brexit clarity after last week’s departure from the European Union.

Real estate investment foundered after Britain’s vote to leave the EU 3-1/2 years ago, hit by uncertainty over the move and its potential impact on the economy. But sentiment has improved with December’s resounding election victory for the Conservative party, effectively guaranteeing Brexit.

Though a trade deal between Britain and the EU has yet to be negotiated, LaSalle Investment Management told Reuters it plans to spend 1 billion pounds ($1.3 billion) on UK property this year. The company already has 12.3 billion pounds in real estate assets in Britain.

Madison International Realty, meanwhile, is “pursuing several possible transactions,” accoring to the private equity firm’s president, Ronald Dickerman. The firm said in October that it had more than $1 billion to spend on central London.

Dutch real estate developer Breevast, London-listed Intermediate Capital (ICG) and U.S. duo CA Ventures and Invesco Real Estate all told Reuters they see opportunities in Britain, with ICG’s co-head of real estate, Martin Wheeler, highlighting increased appetite from overseas investors.

Apollo Global, which lent $2.9 billion for real estate in Britain last year, is similarly upbeat. Ben Eppley, head of European commercial real estate debt at Apollo, said there has been an “an unlocking of transactions” in recent weeks thanks to greater clarity over Brexit.

Ghada Sousou, CEO of real estate recruitment agency Sousou Partners, said the business had been introducing UK real estate companies to overseas investors.

It is also helping a private equity firm to build up a UK real estate team, she said without naming the firm.

Uncertainties have by no means disappeared, however, with the trade deal negotiations and broader global economic factors having the potential to weigh on UK property.

“We are starting to hear from some European capital that maybe it’s time to think about London,” said Zach Vaughan, head of European real estate at investor Brookfield, adding that it may be too early to talk about a rise in transactions.

“If you are sitting on an investment committee in another country, you will ask what happens if there is no trade deal? More uncertainty is never helpful.” ($1 = 0.9034 euros) ($1 = 0.7688 pounds) (Reporting by Carolyn Cohn and Simon Jessop Editing by David Goodman)

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Tesla shares soar more than 14% as Trump win is seen boosting Elon Musk’s electric vehicle company

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NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.

Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.

“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”

Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.

Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.

Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.

Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.

In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.

The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.

And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.

Tesla began selling the software, which is called “Full Self-Driving,” nine years ago. But there are doubts about its reliability.

The stock is now showing a 16.1% gain for the year after rising the past two days.

The Canadian Press. All rights reserved.

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S&P/TSX composite up more than 100 points, U.S. stock markets mixed

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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.

The S&P/TSX composite index was up 103.40 points at 24,542.48.

In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.

The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.

The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.

The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.

This report by The Canadian Press was first published Oct. 16, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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S&P/TSX up more than 200 points, U.S. markets also higher

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TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.

The S&P/TSX composite index was up 205.86 points at 24,508.12.

In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.

The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.

The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.

The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.

This report by The Canadian Press was first published Oct. 11, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

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