|Bid||702.06 x 900|
|Ask||728.29 x 1000|
|Day's range||700.39 - 713.23|
|52-week range||323.98 - 788.00|
|Beta (5Y monthly)||1.17|
|PE ratio (TTM)||22.36|
|Earnings date||14 Apr 2021 - 19 Apr 2021|
|Forward dividend & yield||16.52 (2.32%)|
|Ex-dividend date||04 Mar 2021|
|1y target est||840.57|
(Bloomberg) -- Bond traders keep probing the limits of central banks’ patience, and nowhere is that clearer than in Australia, where policy makers are struggling to defend their yield target.The Reserve Bank of Australia bought A$5 billion ($4 billion) of bonds Thursday, matching the record last March when it began quantitative easing. That eventually brought the targeted three-year yield down, but only after it hit a two-month high. A selloff that began in New Zealand also widened to Treasuries and Japanese debt, as the world’s sovereign bonds head for their worst month since April 2018.“The Australian bond market is in many ways caught in the crossfire of what’s happening in U.S. Treasuries,” said Chamath De Silva, a portfolio manager at BetaShares Holdings in Sydney and a former fixed-income trader at the central bank. “I don’t see it as the market deliberately testing the RBA so much as global central bank dovishness in general.”A $9 trillion rescue mission by central banks to haul the global economy out of its coronavirus recession is being tested by inflation bets that are threatening their ability to keep borrowing costs down. The intensifying bond rout is forcing a rising tally of money managers to scale back market exposures while Wall Street strategists pare back their bullish playbooks.Read: When Listening to the Central Bank Goes WrongAustralia’s 10-year yield closed at its highest since 2019, having surged more than 75 basis points this year. The benchmark Treasury yield has hit 1.4%, and is headed for the steepest monthly advance since the November 2016 bond rout set off by President Donald Trump’s election win.Yields in every major market have jumped.Policy makers are trying to push back against the rising tide of yields, from Fed speakers stressing they will look through short-term inflation spikes to European Central Bank President Christine Lagarde “closely monitoring” government debt yields. The Bank of Korea warned it’ll intervene in the market if borrowing costs jump and the Reserve Bank of India is deploying a range of tools in the face of a market revolt.That’s not enough to stop the growing challenge from bond traders, who are pushing the limits of central banks’ patience while debt auctions are starting to struggle. Investment firms including BlackRock Inc.’s research arm and Aberdeen Standard Investments are retreating from government bonds.Read: Bond Backlash Spurs Tepid Demand at Five-Year Treasury SaleIn Australia, skepticism has grown that the RBA will maintain its guidance to keep borrowing costs steady into 2024. That’s been highlighted by the unraveling of a popular trade based on selling April 2024 bonds and buying November 2024 notes in anticipation that the central bank’s target will shift to the later maturity debt.Australia’s rapid economic recovery has emboldened traders, as the country suppresses Covid-19 and massive stimulus encourages households to spend and firms to hire. A further boost has come from the price of iron ore, Australia’s largest export, which crashed through $170 a ton and is closing in on a record.What Bloomberg Economics Says...“The RBA is pulling out the stops to counter a rise in bond yields, which have been swept up in a global updraft. In a surprisingly forceful move, it announced its largest purchase of Australian government bonds since it began the program in March.”-- James McIntyre, economistFor the full note, click here.Yet, there is wide disconnect with policy makers expectations.RBA Governor Philip Lowe does not anticipate any rapid recovery in inflation. He noted that before the pandemic, when unemployment had a 4 in front of it, it still failed to generate the sort of wage gains that would be needed to return CPI sustainably to the 2-3% target. Australia’s most recent annual inflation reading was just 0.9% and the jobless rate stands at 6.4%.The central bank is expected to keep policy settings unchanged when it meets on Tuesday.RBNZ MandateNew Zealand bonds kicked off the rout in Asia on Thursday after the government announced it will require the central bank to take account of house prices when it sets interest rates. The losses accelerated as the bid-to-cover ratio at an auction dropped to the lowest since 2012.Money markets are now pricing in a rate increase in New Zealand for mid-2022, suggesting it could be the first major central bank to hike.Yields on the 10-year benchmark surged 18 basis points -- the largest move since April -- to 1.87%. Japanese bonds were also sold, with the benchmark 10-year yield rising to the highest since 2018, while the yield curve steepened.“As yields look set to still rise gradually, this isn’t an environment where investors want to buy even if levels are attractive enough,” said Naomi Muguruma, senior market economist at Mitsubishi UFJ Morgan Stanley Securities Co.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Institutional investors around the world have $1tn invested in the thermal coal value chain, according to new research.
(Bloomberg) -- On a chilly winter afternoon, one of the few signs of life at the Colosseum Retail Park in suburban north London is an elderly woman smoking outside the bingo hall, protective face visor slung over one arm.The BlackRock Inc.-owned center on the edge of a highway is now marked for demolition to make way for up to 1,800 homes in a group of apartment towers. It’s just one of more than 80 current projects in the capital where landlords are seeking to turn dated properties into mass housing blocks -- a big leap from the past decade when only seven such developments were built.“They’re putting up flats wherever they can,” said Brenda Calkin, 73, who was visiting Buzz Bingo in Enfield twice a week with her sisters before the latest lockdown. “It’s not fair because there’s not many bingo halls around for older people to go to, is there? We don’t get much entertainment as it is.”Half an hour’s walk away, shoppers at another mall are greeted with empty stores and offers of 50% discounts, while the benches they once rested on are now sealed off with hazard tape. DWS Group, the asset-management firm majority-owned by Deutsche Bank AG, is proposing to transform the 1980s building into a complex that includes a 26-story housing block.Saddled with commercial properties battered by the pandemic, some of the world’s biggest investors are making a wager: apartment living will make more of a post-Covid comeback than in-person retail.The bet has London’s housing shortage and high residential property values on its side. But apartment rents and sales have plunged in the capital as the pandemic spurred an exodus of Londoners seeking greenery and space, while residents have also been spooked by safety fears after the 2017 Grenfell Tower fire.“There’s certainly a lot of them being built -- I don’t think that reflects a burning demand in the marketplace for living in high-density housing,” said Kath Scanlon, a distinguished policy fellow at the London School of Economics. “Everything that’s happened in the last year is a real challenge for that model of development,” she said.For many landlords, 2020 was an unwelcome wake-up call. While office owners winced at the creeping adoption of long-term work-from-home policies, retail properties were hammered as the pandemic supercharged the shift toward online shopping. Stores are emptying at the fastest pace on record, and the resulting surplus of physical shops has spurred some owners to maximize space -- and profits -- by building up.There are currently 82 examples in London of complexes of at least 1,000 homes that are either in the planning stages or underway, according to researcher Molior London. Not all of them will be sprouting up in the near-term, and some won’t materialize at all if they fail to get permission.Still, it’s likely that swathes of London will have a new skyline by the end of this decade.Dutch pensions giant APG Asset Management NV is among investors planning apartments on the site of the recently demolished Elephant and Castle shopping centre, part of a major regeneration that’s been resisted by the area’s long-time residents for years. On Old Kent Road, the first property square on the British version of the Monopoly board game, consent has been given for more than 8,000 homes on and around the south London thoroughfare.“It’s helping hold values, knowing that we’ve got the potential to convert to residential,” said Jonathan Bayfield, head of U.K. real estate research for Aviva Investors, which has the green light to convert a retail park on Old Kent Road into a complex including a 48-story apartment block.There’s a crucial catch to all these plans: London apartments haven’t been a safe bet for some time. Some large builders, such as Crest Nicholson Holdings Plc and Redrow Plc, began pulling out of the capital in recent years as houses became increasingly unaffordable, while others resorted to bulk sales to shift unwanted homes. Developers will also be relying on rents recovering -- they slumped an annual 6.4% in London at the end of 2020, according to property website Rightmove, even while soaring to record highs across the rest of the country.The public mood has also soured against high-rise tower blocks after apartment owners in thousands of buildings across the country found out their homes were structurally unsafe, and that they would probably have to pick up the bills for repairs. The growing focus on dangerous buildings comes in the wake of the Grenfell Tower disaster in 2017, when a fire that spread on the building’s flammable cladding caused 72 deaths.To be sure, rental housing has proven a popular strategy for major real estate investors through the pandemic as they bet on the relatively stable income it provides even in periods of volatility. Greystar Real Estate Partners LLC, the U.S. private equity firm that specializes in all forms of rental housing, raised a record $6 billion in 2020, according to executive managing director of investment management Wes Fuller.Investors are also betting that some of the London’s cash-strapped boroughs will welcome the flood of apartments, even as many residents oppose the potential impact on local infrastructure. The borough of Newham, which helped host the 2012 Olympics, accounts for about 10% of London’s current large developments, despite being one of the city’s poorest boroughs.“You do get these very concentrated developments of high density schemes taking place around where people have lower incomes,” said Anthony Breach, an analyst at Centre for Cities. “Very little development is allowed in the vast majority of London’s urban area, including where lots of middle class people and homeowners live.”One south London suburb offers a potential glimpse into the future. Croydon is one of the most affordable areas in the capital and homes are being built at a speed which outpaces much of the city, with towers taking up much of the suburb’s skyline. The suburb was also tarnished by a “micro-apartment” boom, where changes to planning laws allowed developers to convert office buildings into units as small as 10 square meters.Mass development hasn’t lifted the fortunes of Croydon, where the high street was dotted with shuttered stores and empty properties during lockdown. Unibail-Rodamco-Westfield and Hammerson Plc’s plans to jointly build a new shopping mall have stalled.Back in north London, residents are wary. Community group the Enfield Society has already voiced concerns that its suburb could become the next Croydon, thanks to the scale of projects underway from the likes of BlackRock and DWS.“We understand there will always be concerns, but this is exactly the type of location that does seem appropriate for putting the housing density in,” Paul Tebbit, managing director of the BlackRock UK Property Fund, said in an interview. “Obviously there will be things that will be lost, but everything is a compromise.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.