On Tuesday, Recticel will organize an extraordinary shareholders’ meeting and Retail Estates will publish annual results. Friday we will get new inflation figures.
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1. How much is Fed’s favorite inflation indicator rising?
The US Department of Commerce will publish inflation figures on Friday, measured by the central bank’s (Fed) favorite gauge. Economists expect inflation to rise to 3.5 percent in April, from 2.3 percent in March. Core inflation, excluding food and energy, may have increased to 2.9 percent, versus 1.8 percent. The Fed is aiming for an average inflation of 2 percent. Still, the central bank has no plans to phase out its stimulus any time soon. Some directors do want to start a discussion about a reduction in bond purchases in the coming months.
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2. How did the new lockdown affect Retail Estates?
Retail Estates will publish on Tuesday 25 May
are annual figures. The fourth quarter was again hit by mandatory store closures, especially in the Netherlands. That will yield several million euros less in rent. In the first three quarters, the decline in profit was limited to 7.2 percent, while the value of the portfolio held up well. Retailers were less affected than city shops during the pandemic. Nevertheless, the occupancy rate fell by 1.63 percentage points to 96.29 percent. Investors are particularly curious whether Retail Estates will keep its promise of a dividend of 4.40 euros.
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3. How does Recticel’s shareholders’ meeting proceed?
Normally, little attention is paid to an extraordinary meeting (EGM), but it is with Recticel on Tuesday
a bit different. The day before, Recticel met the Austrian candidate acquirer Greiner. Greiner takes over Bois Sauvage’s interest in Recticel and offers EUR 13.5 per share on the remaining shares. “After the meeting, the board of directors will give its views on the proposed transaction,” it says. On the agenda of the EGM, an authorization for the board of directors is planned to increase the capital as a defense mechanism. The chance is virtually nil that Recticel will receive this ‘poison pill’.
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