Alpha Real Trust Limited

Next week's memo includes the release of economic data from multiple countries: January 19th is a holiday in the United States, Australia’s TD-MI inflation index, Japan's core machinery orders, industrial output data, the UK Rightmove house asking price index, China's GDP and total retail sales of consumer goods, Eurozone HICP data, and Canada's CPI

AASTOCKS

Next Week's Memo

BofA Research highlights significant upside potential for European real estate stocks, citing 20-year low valuations and doubled returns on equity. The firm upgrades LondonMetric and Shurgard to 'buy' due to strong earnings growth and appealing valuations. Conversely, Colonial is downgraded to 'underperform' due to risks from its shift to life science offices and political uncertainties in France. BofA also downgrades Segro, British Land, and Great Portland to 'neutral' as higher UK rates diminish the attractiveness of low rental returns.

Reuters

BUZZ-BofA sees upside potential for European real estate; ups LondonMetric, Shurgard

The FTSE 100 remained flat on Thursday, hindered by falling oil and metals prices affecting major commodity stocks like BP and Shell. Precious metals also retreated after President Trump hinted at delaying military action against Iran. In contrast, Schroders saw an 8% rise in shares due to positive earnings forecasts. Homebuilders struggled, particularly Taylor Wimpey, which issued a cautious outlook. Additionally, UK GDP grew by 0.3% in November, surpassing expectations, driven by robust services activity.

Trading Economics

BP PLC-Spons

Taylor Wimpey plc

FTSE 100 Little Changed on Thursday

On January 15, the UK's FTSE 100 index fell by 0.05%. Key corporate updates include Schroders forecasting annual adjusted operating profit above expectations, while Robert Walters anticipates a slight dip in net fee income for fiscal year 2026. Dunelm expects profits at the lower end of analyst forecasts, and Ashmore reported $2.6 billion in net inflows. Taylor Wimpey warned of a decline in operating profit margin for 2026. Additionally, the Serious Fraud Office is investigating a £300 million bribery case involving Home REIT. Oil prices dropped over 3%, and copper retreated from record highs.

UK Stocks-Factors to watch on January 15

UK housing market shows signs of stabilization, with RICS reporting improved sales expectations despite weak current activity. The house price balance remains steady at -14, but optimism for future sales has risen. Factors contributing to this sentiment include easing fiscal uncertainty and anticipated interest rate cuts. Additionally, Britain has climbed to third in global FDI rankings, driven by strong inflows in AI and clean energy, though investment in advanced manufacturing lags behind.

- The RICS report indicates initial signs of stability in the UK housing market despite ongoing weak activity, with more optimistic sales and price forecasts among surveyors.  
- The expectations for sales volume over the next three months have risen to the highest level since October 2024, attributed to improved fiscal clarity and anticipated interest rate cuts.  
- In global foreign direct investment rankings, the UK climbed to third place, primarily due to strong inflows in artificial intelligence and clean energy, though investment in advanced manufacturing remains low.

Investinglive

UK housing outlook brightens. Also, Britain climbs global FDI rankings.

The RICS UK Residential Market Survey indicates that the house price balance remained steady at -14% in December 2025, unchanged from November but an improvement from October's low of -19%. While a modest national decline persists, the trend is stabilizing. London and the South East show significant declines, while Scotland and Northern Ireland see price increases. The three-month outlook has improved, with expectations of price growth rising to +35% over the next year, up from +16% in October.

UK House Price Balance Steadies in Dec

Arsenal owner Stan Kroenke has become the largest private landowner in the US, with an estimated worth of $21.3 billion. Following his recent acquisition of nearly 1 million acres in New Mexico, Kroenke now owns 2.7 million acres nationwide. His investments include the $5.5 billion SoFi Stadium and the Arsenal football club, which has seen its value double since he took control in 2018. Kroenke's land purchases reflect a growing trend of capital moving into American land for investment returns.

cityam

Arsenal owner Stan Kroenke becomes largest private landowner in US

The FTSE 100 rose to near record levels above 10,160, driven by strong gains in mining stocks due to rising metal prices. Endeavour and Fresnillo saw gains of nearly 3% and over 2%, respectively, while Glencore climbed around 1.5%. AstraZeneca also contributed with over 1% increase. However, oil majors like Shell and BP underperformed, with BP announcing $4–5 billion in impairment charges. Vistry Group and Pearson fell over 4% and 3%, respectively, despite profit guidance confirmations, citing market uncertainty.

FTSE 100 Rebounds to Near Record High

This week in the FX market starts quietly with no major economic events on Monday. Key releases include Australia's Westpac consumer sentiment index, U.S. inflation data, ADP employment, and new home sales. The U.K. will publish GDP figures, while the U.S. will release unemployment claims and manufacturing indices. Analysts expect core CPI to rise to 0.3% m/m, with annual inflation trending lower. New home sales are forecasted to ease, and retail sales are expected to rebound. The U.K. GDP is anticipated to show a modest improvement, but the broader economic outlook remains weak, prompting potential rate cuts by the Bank of England.

Alpha Real Trust Limited(ARTL.UK)

Next Week's Memo

BUZZ-BofA sees upside potential for European real estate; ups LondonMetric, Shurgard

FTSE 100 Little Changed on Thursday

UK Stocks-Factors to watch on January 15

UK housing outlook brightens. Also, Britain climbs global FDI rankings.