Wednesday, July 07, 2021

When Will China Rule the World? Maybe Never

 

 

Eric Zhu and Tom Orlik - Mon, July 5, 2021, 5:00 PM

Few questions are more consequential, whether it’s for executives wondering where long-term profits will come from, investors weighing the dollar’s status as global reserve currency, or generals strategizing over geopolitical flashpoints.

Over the long haul, three factors determine an economy’s growth rate. The first is the size of the workforce. The second is the capital stock—everything from factories to transport infrastructure to communication networks. Finally there’s productivity, or how effectively those first two can be combined.

In each of these areas, China faces an uncertain future.

By 2050, Bloomberg Economics projects China’s productivity will have caught up to 70% of the U.S. level—putting it in the typical range for countries at a comparable level of development.

Global ties are starting to fray. A recent Pew survey found 76% of Americans had an unfavorable opinion of China—a record high. They aren’t alone. The blame game over the origins of Covid, mounting concern about human rights in Xinjiang, and Hong Kong’s draconian National Security Law have all helped to darken the global view of China’s rise.

If ties with the U.S. and its allies continue to fray, the cross-border flow of ideas and innovations that has done so much to accelerate China’s rise will start to dry up. Beijing is already getting a sneak peak at what that might look like. Europe is backing away from a major investment agreement, and India closing the door to Chinese technology.

A combination of stalling domestic reforms and international isolation could bring another extreme scenario into play: financial crisis.

https://finance.yahoo.com/news/china-rule-world-maybe-never-210013340.html

Tuesday, July 06, 2021

What Is the Restaurant Renaissance, and How Will It Impact Investors?

 


Apr 13, 2021 by Liz Brumer

 

The restaurant industry was rocked by COVID-19, with thousands of restaurants across the country still weathering the storm over a year later. But as the coronavirus vaccine becomes widely distributed and states start to loosen restrictions, a restaurant renaissance is set to begin.

The term "renaissance" refers to a period of resurgence. The restaurant renaissance, as it's sometimes referred to, is the revival of restaurants after the massive shutdowns the nation has faced.

Of top concern for diners is health and cleanliness standards. A recent Zagat survey found that 1 in 3 people surveyed will eat out within the first week of restaurants reopening, but outdoor seating is the No. 1 most important factor to them. Also important were social distancing being respected between tables.

Restaurants with access to large outdoor spaces will be able to best adapt to fit these needs, but other restaurant tenants will likely need to seek new spaces or modify their current space to accommodate for new design trends.

A renaissance is good news for real estate investors, particularly those who invest and/or have interest in retail or other commercial real estate through a related real estate investment trust (REIT).

Keeping an eye on which retail REITs are still offering value in their share price with room to recover during this renaissance period is the best way to capitalize on the opportunity. It may also be worthwhile to invest in retail space that offers what diners are looking for: larger spaces with outdoor seating and ease of to-go or delivery options.

 

https://www.millionacres.com/real-estate-investing/articles/what-is-the-restaurant-renaissance-and-how-will-it-impact-investors/