27 Jun 2019

Yew Grove: Q2 dividend announcement

In a statement released yesterday, Yew Grove REIT (YEW) announced that its board had approved the payment of an ordinary dividend (PID) in respect of the period from 1 April to 25 June of 1.37c and a special dividend of 1.86c.

The special dividend relates to the recent lease surrender agreement at its Cork Airport Business Park property. The dividend will be paid on 24 July to shareholders on the register on 5 July with a corresponding ex-div date of 4 July.


These distributions will bring aggregate year to date dividends to 4.33c per share.


Bank of England’s Carney hints at stimulus

The Bank of England’s top policy setters were questioned by the UK parliaments Treasury select committee yesterday, and faced questions on how they would respond to a No deal Brexit. Carney and co stated that the response “would not be automatic”. The committee will not commit themselves to a path of either stimulus (to boost a weakened economy) or possible hikes (to combat inflation driven by a weaker currency) until the fallout from Brexit becomes more certain, however Carney did say that on the balance, it was more likely that they would provide some stimulus in the event of the UK crashing out without a deal in place. Carney acknowledged that the risks of a no deal Brexit had risen in recent weeks, and that the concern over the prospect was already weighing on business investment and the housing market. He also acknowledged that if the UK secured a deal and fears over Brexit softened, that there “would be a requirement for limited and gradual rate increases”, which would put the bank at odds with most major central banks who have recently shifted towards a more dovish stance.


US-China trade talks

Yesterday, the White House confirmed that US President Donald Trump will meet with his Chinese counterpart Xi Jinping in Osaka on Saturday at 11:30am local time (03:30am Irish time) on the side-lines of the G20 Summit. Ahead of this, the South China Morning Post reports that the two sides have agreed a tentative truce which would place a moratorium on tariffs being applied on a further $300bn of Chinese imports by the US. One source quoted by the newspaper claimed this was Beijing’s price for holding the tête-à-tête but cautioned that Mr Trump may still have a change of heart. However, the individual did observe that “the truce cake seems to have been baked”. Treasury secretary Steve Mnuchin also described the situation as “hopeful” yesterday, claiming that they were 90% of the way towards getting an agreement.


Investors have gobbled up the sweet news; Asian equities are broadly up in today’s session, with the Shanghai Composite seeing a rise of 0.5%. Meanwhile, S&P 500 futures point to the US index rising 0.3% at the open.


Boris at odds with bookies

Boris continues to zig-zag between hardest of Brexit stances and a softer view in his attempt to appeal to all members of the Tory party ahead of the leadership vote. In his latest comments yesterday, he puts the odds of a No deal Brexit at “a million-to-one”, a sharp turnaround from Tuesdays statement that he would take the UK out of the EU “do or die, come what may”.


His forecasts put him at odds with bookmakers, who currently show odds of a no deal Brexit around 2/1 – 3/1 (or 25-33%% change). Bookies continue however to show Boris in a commanding lead, with his odds tightening slightly after an initial push by his rival Hunt. Paddy Power currently have him at 1/7 on to win (almost 90% probability).


Meanwhile the list of moderate Tories who have committed to fight a no deal Brexit continues to grow, with defeated leadership hopeful Rory Stewart committing yesterday to voting against his party to block a no deal Brexit. Fellow Tory, Dominic Grieve, who has been amongst the most rebellious of the Tory’s on Brexit has proposed a cross party amendment to severely curb government spending powers if there is a No deal exit without parliamentary approval. This is expected to be voted on Tuesday of next week, and could give the pound a significant boost if it is seen to hamper attempts at a no deal Brexit.


Economic Releases

13.00    GE        CPI
13.30    US        GDP (Q1)
13.30    US        PCE (Q1)
17.00    EC        ECB’s Nowotny speaking