Warehouse, meet warehouse | The UK economy shrunk... again | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for June 14th in 3:09 minutes. 𥳠The day youâre most excited about this year â right? â is just around the corner: join us for the [Finimize NFT Fest]( on Wednesday, and earn your digital chops in expert workshops and intimate Q&A sessions with pros from industries far and wide. [Grab your free ticket]( Today's big stories - Warehouse giant Prologis agreed a deal to buy smaller rival Duke Realty
- Our analyst evaluated some past financial crises, and he thinks he knows what the next one will look like â [Read Now](
- The UK economy shrank again in April Final Bid [Final Bid] Whatâs Going On Here? Warehousing giant Prologis [announced]( on Monday that itâs buying smaller rival Duke Realty. What Does This Mean? Prologis already controls about a billion square feet of warehouses and distribution centers for the likes of Amazon, Home Depot, and FedEx. But hungry for more, Prologis has been courting Duke Realty for a while now: the giant first approached its smaller rival back in November, and recently made an âinsufficientâ offer worth $24 billion last month. And its determination has paid off: the two companies just shook hands on an all-stock deal worth $26 billion, with Dukeâs shareholders receiving almost half of a Prologis share for each of their existing ones ([tweet this](). The deal â Prologisâs first in two years â will see the worldâs biggest warehouse owner claim industrial real estate in some popular locations, from sunny Southern California to the vast land in Dallas, Texas. Prologis believes that could help it make up to $400 million in extra earnings every year. No wonder it was so persistent⦠Why Should I Care? The bigger picture: Buy, donât build.
Thereâs a reason Prologis was so keen to sign the deal: the ongoing online shopping boom has sent demand for warehouses through the roof, leaving only 3.4% of US warehouses vacant in the first three months of this year. And while developers have rushed to start building more, rents are already soaring for existing locations. But Prologis is ahead of the curve: it can profit more from those higher rents much faster with this deal than it could if it built them from scratch. Zooming out: Rentâs cheap.
Warehousing might be going strong, but other areas of the real estate market are cooling down. In fact, one of the biggest real estate investors in the world [says]( the US and European markets are seeing a downward shift in prices as higher interest rates dampen demand: it said itâs even seen prices fall around 5 to 10% from last year in some areas. You might also like: [Is now a good time to buy your dream property?]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Final Bid&utm_campaign=daily-global-14-06-2022&utm_source=email) Analyst Take
What Will The Next Crisis Look Like? [What Will The Next Crisis Look Like? ]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst Will it resemble the [dotcom bust]( in 2000, with its low interest rates, tech innovations, and a boom in certain speculative assets? Or the [global financial crisis of 2008](, when financial engineering increased risk around the world? Or are we going way back to the late 1970s, when low growth and high inflation created a [stagflation crisis](? As Mark Twain famously said, âHistory doesnât repeat itself, but it often rhymes.â Maybe, then, itâll be [a bit of each](. So thatâs todayâs Insight: weâre looking at past crises, and predicting [what the next one might look like](. SPONSORED BY INNOVEGA Become a visionary investor Searching for an investment that changes the way you see the world? Innovegaâs game-changing smart contact lenses and lightweight glasses use augmented reality to help the visually impaired â including the legally blind â reclaim their independence. Thatâs a big market: [217 million patients](, to be exact. And now you can [invest in Innovegaâs vision](: the company is crowdfunding on [StartEngine]( after previously raising over $16 million. Built by vision scientists, engineers, and industry leaders, Innovegaâs vision is to transform AR and VR markets that are forecast to exceed $90 billion. And this is just the beginning: [Innovega]( plans to make an impact in the metaverse too. Look to the future with Innovega: [join more than 2600 shareholders today.]( [Find Out More]( You should read the [Offering Circular]( and [risks]( related to this offering before investing. This Reg A+ offering is made available through StartEngine Primary, LLC, member [FINRA]( [SIPC](. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Bard Of England [Bard Of England] Whatâs Going On Here? Data out on Monday [showed]( that the UK economy shrunk unexpectedly in April. What Does This Mean? Economists werenât expecting much from the UK in April, especially since rising taxes and energy prices meant the country had the [highest]( inflation of any G7 country. But things were even worse than predicted: the services sector â which makes up the bulk of the UKâs economy â shrunk 0.3%, as folk spent less on healthcare and Covid test and trace activity fell off a cliff. The production and construction sectors dropped by 0.6% and 0.4% too, partly because businesses were hindered by supply shortages and higher prices. Thatâs the first time all those sectors have simultaneously dipped since January 2021, and that pushed the UK economy to shrink 0.3% in April from the month before â way off the 0.1% growth economists expected. Why Should I Care? The bigger picture: Careful, there.
The UK economy hasnât grown for three straight months, suggesting the countryâs recovery has well and truly stalled. In fact, economists now predict the economy will shrink 0.4% this quarter, well below the Bank of Englandâs (BoEâs) 0.1% growth forecast. But with energy prices set to push inflation even higher later this year, economists think the central bank will be forced to keep hiking rates. Still, since the economyâs looking so weak, itâs widely expected the BoE will stay away from big hikes and stick to 0.25% when it makes its announcement later this week. Zooming out: Up, up, and away.
Rising commodity prices have been pushing up prices of goods around the world, so much so that new research from Citi predicts consumers will pay producers $5.2 trillion more this year than they did before the pandemic. And the longer supply issues continue, the worse it could get: Citi warned of more countries hoarding supplies instead of exporting them, which would put even more pressure on prices. You might also like: [The long-term opportunity emerging from Britainâs rising interest rates.]( Copy to share story: [( ð [Ask a question](mailto:questions@finimize.com?body=Ask us a question:
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