From the desks of the Hotel News Now editorial staff:
- Trade issues continue market fluctuations
- Supreme Court upholds Trump’s travel ban
- Trinity looking to grow via REIT alternative
- Union standoff happening in Boston
- AAA: Gas prices lower for Fourth of July than Memorial Day
Trade issues continue market fluctuations: Another day, another 24 hours of markets reacting to the United States’ seemingly hawking trade policies, and The Wall Street Journal now reports that markets have seen “wild swings” amid conflicting messages from different parts of the U.S. government.
The newspaper reports Investors seem particularly confused about mixed messages on the approach to trade with China after Treasury Secretary Steven Mnuchin said the U.S. is not targeting China specifically but “all countries that are trying to steal our technology.” Meanwhile, White House trade adviser Peter Navarro has insisted that the efforts are not broad and are instead focused in on China specifically.
Supreme Court upholds Trump’s travel ban: In a 5-4 decision, the U.S. Supreme Court on Tuesday upheld U.S. President Donald Trump’s third travel ban, The Wall Street Journal reports. The ruling states the ban put in place last September doesn’t violate the law by restricting U.S. entry by people from Iran, Libya, Somalia, Syria and Yemen.
The current version of the ban has been in effect after the Supreme Court justices allowed the restrictions to go forward while the ban was under litigation, the article states.
The administration had argued the countries addressed by the ban don’t have identity-management and information-sharing practices that U.S. officials would need to determine whether the visiting nationals are a threat. Critics of the ban argued the ban “was inspired by Muslim animus,” citing Trump’s promise as a candidate to stop Muslims from coming to the U.S.
Trinity looking to grow via REIT alternative: Hawaii-based Trinity Real Estate Investments is continuing on its plans to grow internationally and has decided to pursue a unique publicly listed structure called a special purpose acquisition company to achieve that goal, writes Hotel News Now’s Jeff Higley.
“The SPAC provides us with a more permanent capital base, the ability to grow the business in the public markets and hold on to assets for a longer period of time as we execute on our business plan,” said Sean Hehir, a managing partner of Trinity and the president and CEO of Trinity Merger Group. “We had a lot of demand for the SPAC and right now (managing partner Steve Haggerty) and I are going to work thinking about what the business combination is going to be.”
Union standoff happening in Boston: Union workers are picketing seven Marriott International-operated hotels in Boston “to draw attention to union contract negotiations with 31 hotels around the city,” according to a report from The Boston Globe. The Globe notes similar actions are taking place in San Francisco, Honolulu, Seattle, Philadelphia and other markets.
The newspaper notes that union leaders say the purpose of the picketing is to have a say in things like pay and how technology is “poised to transform hotel work.”
AAA: Gas prices lower for Fourth of July than Memorial Day: In a sign that it could be a strong week for domestic travel in the U.S., AAA notes that gas prices are trending down heading into the Fourth of July holiday and are projected to be roughly $0.12 lower than Memorial Day.
The fate of Independence Day car travel could be impacted by decisions made in the Middle East.
“Gas prices may be poised to drop even more following OPEC’s announcement that the cartel will increase production by 1 million b/d in the second half of 2018,” a AAA announcement notes. “However, that number may be revised closer to 600,000 b/d, as there is speculation that some producers—including Libya, Venezuela and Iran—will not be able to meet the quota increase.”
Compiled by Sean McCracken.