International News 04/09
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Blackstone Consortium to Acquire AirTrunk for US$13.53 Billion
Blackstone, in collaboration with its partner the Canada Pension Plan Investment Board (CPPIB), is in the final stages of acquiring Australian data centre AirTrunk for A$20 billion. The transaction, which includes debt, is anticipated to be announced in the coming days. Blackstone and CPPIB were selected as the preferred buyers, having emerged as the most competitive bidders. The final details of the transaction are currently being negotiated by AirTrunk owner Macquarie Group and the Canadian Public Sector Pension Investment Board. Last week, bidding groups led by Blackstone and IFM Investors submitted their final offers to purchase AirTrunk. The consortium led by IFM includes DigitalBridge, GIP, Mubadala's MGX and Silver Lake. Macquarie and the Canadian Public Sector Pension Investment Board currently hold 88% of AirTrunk, but the respective holdings have not been disclosed.
China plans to allow mortgage refinancing of up to US$5.4 trillion
The Chinese government is contemplating the possibility of authorising mortgage refinancing of up to $5.4 trillion, with the objective of reducing borrowing costs for families and stimulating domestic consumption. Homeowners will have the opportunity to renegotiate terms with banks before the usual January deadline for mortgage interest rate resets. Additionally, homeowners will have the option to refinance with different banks, which has not been permitted since the global financial crisis. It is not yet clear whether this plan will apply to all homes. The latest initiative follows on from the Chinese authorities' ongoing efforts to reduce mortgage costs, which were prompted by encouragement from the central bank last year, resulting in interest rate cuts by banks. Despite the reduction in interest rates, state-owned banks in China are experiencing a decline in profitability. Raymond Cheng, Head of China property research at CGS International Securities, believes this move signals the government's commitment to supporting the overall economy, protecting household wealth, and promoting consumption, which will indirectly benefit the real estate sector.
Caixin PMI: China's Manufacturing Returns to Growth in August 2024
The latest figures show that China's manufacturing sector expanded in August, driven by a surge in new orders that led to increased production. This has had a positive impact on employment levels and contributed to a sense of confidence in the economic outlook. However, there are concerns that the drop in new export orders for the first time in eight months, which follows weak export data from July, may have an adverse effect on the market. These concerns are particularly noteworthy given the imminent start of the peak shipping season for Christmas. The Caixin/S&P Global Purchasing Managers' Index (PMI) for manufacturing reached 50.4 in August, exceeding analysts' expectations. While the Caixin/S&P Global Purchasing Managers' Index (PMI) for manufacturing mainly covers small export-oriented firms, it painted a more positive picture than the official PMI survey, which indicated a continued decline in manufacturing activity. While new orders increased and production rose for the tenth consecutive month, falling external demand led to the decline in new export orders at the fastest pace since November 2023.