Congress Eases Curbs on Foreign Real-Estate Investors

23 Dec 2015 | Author: | No comments yet »

Congress Eases Curbs on Foreign Real-Estate Investors.

Ever since the downturn, key players in the commercial real-estate industry have been trying to convince lawmakers to reverse a 1980s law that sought to curb foreign investors from scooping up U.S. property, saying it was a relic of a more protectionist era that discouraged investment. Seattle: President Barack Obama signed into law a measure easing a 35-year-old tax on foreign investment in US real estate, potentially opening the door to greater purchases by overseas investors, a major source of capital since the financial crisis.Isis Pharmaceuticals Inc. is changing its name to Ionis Pharmaceuticals Inc., giving up its steadfast defense of its former brand in the wake of a series of terror attacks linked to the Middle Eastern militant group of the same name. “When people see or hear our name, we want them to think about the life-saving medicines we are developing,” Lynne Parshall, the company’s chief operating officer, said in the statement.

Currency options show euro-dollar focus is looking past the European Central Bank and Federal Reserve meetings in January and giving a lot more attention on the March policy meetings, Bloomberg strategist Vassilis Karamanis writes. On Friday, the industry finally persevered, as the broad spending and tax measures passed by Congress relaxed the law in a move some expect to bring billions of dollars of additional foreign investment into an already-robust market for office buildings, apartments and malls across the country. Contained in the $1.1 trillion (Dh4 trillion) spending measure that was passed to avoid a government shutdown is a provision that treats foreign pension funds the same as their US counterparts for real estate investments.

While the militant group, which is also known as the Islamic State, has been operating for years, the company began weighing a name change last month because the deadly Paris attacks unnerved employees. Until then, the euro is likely to trade within a familiar territory versus the greenback, especially as year-end flows may cloud the short-term direction after the Fed liftoff.

It was initially passed in 1980, a time when there were fears that foreign investors including the Japanese might buy up large swaths of the country and its farmland. This is no coincidence as three-month options expire on March 17, the day the Federal Open Market Committee begins its policy meeting while ECB meets on March 5. A 100-carat, emerald-cut stone that’s so large it looks unreal, the gemological equivalent of clown shoes. (Very, very expensive clown shoes.) Of course, it’s one thing to be a massive colored stone; it’s another to have an equally sparkling provenance. Fed Funds futures currently show no probability assigned to a January hike, a 40.5 percent chance for a March hike and a 66.7 percent probability for a June rate increase. In addition, foreign investors will be allowed to own as much as 10% of a publicly traded real-estate company before facing additional taxes, up from the 5% allowed under the prior law.

This headliner sold for $48,468,158 at Sotheby’s, reportedly to Joseph Lau, a Hong Kong billionaire who renamed it after his 7-year-old daughter, Josephine. As inflation is now the main driver of Fed’s dot plot, traders may surmise the Fed would want more than one Consumer Price Index reading before assessing its next move. Commercial-property prices, particularly in major cities, are at record highs, propped up in part by the growing ranks of foreign investors that are targeting the country despite the tax law. ECB’s March meeting is pivotal in determining further stimulus chances, as new inflation and growth projections will be available by then to the Governing Council, according to two people familiar with the situation. This massive ruby, set between shield-shaped diamonds weighing 2.47 and 2.70 carats, set a world auction record for ruby sales and was the first “colored stone” to sell for more than $1 million per carat at auction.

Fresh catalysts for the common currency to break out of its recent $1.05/$1.11 range may not be seen for some time after Fed’s Chair Janet Yellen delivered a two-pronged message with the lift-off — the U.S. economy is performing well and the Fed is in no rush to raise rates again. Two traders in London, who asked not to be named as they are not authorized to speak publicly, say that corporate year-end orders are significantly greater than those in previous years.

But lawmakers have stalled over how to deal with the lost tax revenue that would come from a change, and Congress hasn’t passed many large tax bills in recent years. Moreover, some investors may feel more comfortable in reacting to Fed’s hike with some delay as not every market participant has a mandate to immediately act upon news releases, one of the London traders adds. The changes in the legislation passed last week are estimated to cost $4.25 billion over 10 years. “Despite broad support to do something here, the process has not accommodated these kinds of bills,” said Jeffrey DeBoer, chief executive of the Real Estate Roundtable.

This girl is going to be the best-dressed kid on the playground, hands down. (Actually, probably best to keep those hands in her pockets.) Sold for $22,090,000 at Sotheby’s. Risk reversals, a gauge of market positioning and sentiment, show euro-dollar bias is slightly skewed to the downside as bullish greenback sentiment is increasing in the short-term while holding steady on the longer tenors. The auction catalog notes that this color is “poetically referred to as ‘pigeon blood red,’” which goes to show that poets can own jewelry, but not all jewelry owners can be poets.

Sold for $15,903,422 at Sotheby’s, this stone is believed to have been part of the collection of Princess Mathilde de Bonaparte, Napoleon I’s niece; part of the murky provenance presumably has to do with the fact that it was kept in a bank vault since the 1940s. Set between two pear-shaped diamond shoulders, the ring was the second-most expensive lot of Sotheby’s November “Magnificent and Noble Jewels” sale in Geneva. The necklace was made by Etcetera, a Hong Kong-based jeweler founded by Edmond Chin, who ran Christie’s Hong Kong jewelry department for five years.

Flanked by triangular-shaped diamonds, this “fancy intense pink” diamond was mounted by Harry Winston and is merited a type IIa, the Gemological Institute of America’s designation for the most chemically pure diamonds in the world.

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