Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz for the day will be.
Friday, the Dow Jones industrial average fell 145.91 points, or 0.8%, to 17,749.31. The Standard & Poor’s 500 index lost 12.55 points, or 0.6%, to 2,053.40. The NASDAQ composite fell 21.53 points, or 0.4%, to 4,871.76.
Benchmark U.S. crude fell $2.21 to close at $44.84 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $2.41 to close at $54.67 a barrel in London. Wholesale gasoline fell 4.8 cents to close at $1.762 a gallon, heating oil fell 6.6 cents to close at $1.713 a gallon and natural gas fell 0.7 cents to close at $2.727 per 1,000 cubic feet.
TRANS-PACIFIC TRADE DEAL ECONOMIC BONANZA OR JOB KILLER?
WASHINGTON — Washington is negotiating an ambitious trade accord with 11 other Pacific Rim countries that’s meant to ease barriers to fast-growing Asia-Pacific markets and streamline customs rules that can bedevil exporters like Hardware Sales. Yet the Trans-Pacific Partnership, or TPP, is also stirring opposition. Critics say it will destroy U.S. jobs, allow multinational corporations to sidestep laws they don’t like and let drug companies use stricter patent protections to drive drug prices beyond the reach of patients in poor countries. The trade accord is one of the few things President Barack Obama and Republican leaders in Congress seem to agree on. Visiting Tokyo last month, Rep. Paul Ryan, the Wisconsin Republican who leads the House Ways and Means Committee, predicted that Congress would vote this spring to empower the president to negotiate trade deals like TPP and send them to Congress for an up-or-down vote — no nitpicking allowed. The 12 countries involved have been negotiating this past week in Hawaii and appear to be moving toward a deal.
ARIZONA TRANSPORTATION BOARD MEETS IN TUCSON THIS WEEK
Members of the State Transportation Board will hold a public hearing and Board meeting open to the public on Friday, March 20, 2015, at 9:00 a.m. at the Pima County Administration Building, Board of Supervisors Hearing Room, 130 W. Congress, 1st Floor, Tucson, AZ 85701. The Board may vote to go into Executive Session to discuss certain matters, which will not be open to the public. Members of the Transportation Board will attend either in person or by telephone conference call. The Board may modify the agenda order, if necessary.
DOLLAR GENERAL ACCELERATES EXPANSION PLANS
The addition of 700 new stores last year and a 4.9% increase in fourth quarter same store sales helped Dollar General achieve record results and has the company looking to capitalize on the momentum by accelerating what is already the retail industry’s most aggressive new store expansion plan. Dollar General chairman and CEO Rick Dreilling said the company will add to its 2014 year end store total of 11,789 units in 2015 by opening 730 new stores and remodeling 875 others. The new store expansion target equates to square footage growth of about 6%, which Dreilling indicated will further be increased to 7% square footage growth in 2016. Net sales increased 9.9% to $4.94 billion and the 4.9% same store sale increase was the result of increases in customer traffic and average transaction size. The growth was driven by strength across all categories with the strongest growth coming from candy and snacks, tobacco, perishables and health care, according to the company. Profits increased to $355 million, or $1.17 a share, compared to $322 million, or $1.01 a share the prior year, and would have been about two cents a share higher had the West coast port slowdown not delayed the receipt of some higher margin products. For the full year, sales increased 8% to $18.9 billion and same store sales increased 2.8%. Net income increased to $1.065 billion, or $3.49 a share, compared to $1.025 billion, or $3.17 a share.
RILLITO PARK RACETRACK OPEN UNTIL APRIL 12TH
Rillito Park Racetrack horse races has resumed under new management. After 25 years, the Rillito Park Foundation has taken the reins from the Pima County Horsemen’s Association and has implemented several changes. Those changes include the purchase of 120 television sets installed in the grandstand building, as well as 2,000 tons of new sand on the racing surface. The foundation also implemented new concessions by bringing in El Charro Restaurant as the new food vendor, with a full bar during the races. On the outside of the track, new soccer fields were added with plans to add more, bringing the total to 11 planned fields. The winter and spring season will remain the main events for horse racing, but there are plans to possibly bring the live racing back in the fall. Regular simulcasts of the races run on weekends from Saturday through June 6. Live horse racing runs every weekend through April 12.
TESLA DENIES REPORTS OF CONSTRUCTION DELAYS AT GIGAFACTORY
Two union job boards deleted references to construction delays or cutbacks at Tesla Motors' gigafactory site, following a story that first ran Friday on the Reno Gazette-Journal website. Tesla Motors CEO Elon Musk also deleted a critical tweet he made Sunday that called media reporting about the alleged delays "dumb." The comment kicked off a strong discussion on the Twitter thread about media coverage and the gigafactory itself, which remains shrouded in secrecy outside of information made available through public record filings. With local construction groups and companies required to sign non-disclosure agreements with Tesla, the information contained in the job board notes provided a rare peek for the public into what potentially goes on behind the scenes at the gigafactory, which will benefit from $1.3 billion in incentives over the next two decades. The Gazette-Journal first heard reports about potential delays or cutbacks in the site in early February after receiving calls from different construction workers who were interested in applying at the gigafactory site. After several area unions declined to comment on the story, the Gazette-Journal checked job listings at various union job boards. "The major project in the area has been delayed at this time," the post read. "Further updates will be posted as soon as we know more." "I can confirm that there has been a reduction in hours and that's all I can say," said Paul McKenzie, secretary and treasurer of the Building & Construction Trades Council of Northern Nevada. A spokesperson for Tesla Motors, meanwhile, disputed reports of delays at the site, and said construction is going on as planned. The spokesperson also declined to comment on reports about design changes at the gigafactory causing the alleged delay.
RESTAURANT INDUSTRY ADDED 58,700 JOBS IN FEBRUARY
The National Restaurant Association's chief economist Bruce Grindy is reporting.“Despite the challenging winter weather conditions in parts of the country, restaurants continued to add jobs at a robust pace in February, according to preliminary figures from the Bureau of Labor Statistics (BLS). Eating and drinking places added a net 58,700 jobs in February on a seasonally adjusted basis, their 60th consecutive monthly increase and strongest gain since December 2012. Combined with the solid gains in December (54,500) and January (37,400), eating and drinking places added more than 150,000 jobs during the last three months alone. If these figures hold through revisions, it would represent the restaurant industry’s strongest three-month payroll expansion on record. Looking ahead, the NRA expects eating and drinking places to add jobs at a 3.4 percent rate in 2015, which will mark the sector’s fourth consecutive year with job growth of at least 3%. It will also represent the 16th consecutive year in which the restaurant industry will outpace total U.S. job growth, which is projected to come in at 2.3% in 2015.”
HOT DOG ON A STICK FINDS NEW FRANCHISEES IN SOUTHWEST
Global Franchise Group (GFG) LLC, the strategic brand management company and franchisor of Great American Cookies, Pretzelmaker, Marble Slab Creamery, MaggieMoo's Ice Cream & Treatery, and Hot Dog on Stick, announced the signing of two franchise agreements for new Hot Dog on a Stick locations in Austin, Texas, and Las Cruses, New Mexico. The agreements mark the first new locations since GFG acquired the brand in August. GFG’s vision is to open new locations across the U.S. and is seeking experienced and qualified franchisees interested in expanding the popular quick-service restaurant specializing in fresh hand-stomped lemonade and delectable stick items and fries. Ideal franchisees have experience in restaurant management, $100,000 in liquidity, and a net worth of $250,000. They must also be committed to exceptional and friendly customer service—an absolute standard of the Hot Dog on a Stick brand.
ULTA PLANS 100 NEW STORES IN 2015
Bolingbrook, Ill. – Last week, the fast-growing beauty products and services retailer, Ulta Beauty, posted fourth quarter profit and revenue that topped Wall Street expectations, including an 11.1% jump in same-store sales. It also announced plans for 100 net new stores in fiscal 2015, for a 13% increase in total square footage. Ulta reported net earnings of $87.3 million for the quarter ended January 31, up 21.6% from $70.7 million in the year-ago period. Revenue jumped 20.7% to $1.05 billion, from $868.1 million last year. Total same-store increased 11.1%, especially impressive on top of last year’s increase of 9.2%. The growth was driven by 7.7% growth in transactions and 3.4% growth in average ticket. E-commerce sales grew 55.2%, representing 230 basis points of the total company same store sales increase of 11.1%. Ulta opened 100 stores last year, and ended the year with 774 locations. For the year, the company reported profit of $257.1 million, and revenue of $3.24 billion. For fiscal 2015, the retailer is forecasting same store sales growth of 6% to 8% and e-commerce growth of 40%.
OIL IS ON ITS WAY DOWN AGAIN, WILL GASOLINE PRICES FOLLOW?
NEW YORK (AP) — The price of oil is tumbling again, rattling an already-shaken oil industry and heralding lower prices for consumers. The price of oil fell 10 per cent this week, approaching its lowest price in six years. Many expect it to fall further in the coming weeks because supplies are rising and the summer driving season is still months away. The lower crude prices will mean gasoline prices will slide lower in the coming weeks, and many drivers will likely pay under $2 a gallon in the summertime for the first time since 2004.
TOYOTA DRIVES ONTO OLYMPIC STAGE IN RECORD SPONSORSHIP DEAL
TOKYO (AP) — The world’s biggest automaker is driving onto the world’s biggest sports stage. Toyota Motor Corp. signed on as a global Olympic sponsor Friday in a landmark deal reportedly worth nearly $1 billion, becoming the first car company to join the IOC’s top-tier marketing program. The eight-year deal underlines Asia’s growing influence in the Olympics, bolsters the IOC’s long-term financial security and gives Toyota a worldwide platform that shuts out rival auto manufacturers.
US AT ODDS WITH GOOGLE ON COMPUTER SEARCH-WARRANT PROPOSAL
WASHINGTON (AP) — A Justice Department proposal that could make locating and hacking into computers that are part of criminal investigations easier is raising constitutional concerns from privacy groups and Google, who fear the plan could have broad implications. Federal prosecutors say their search warrant proposal is needed at a time when computer users are committing crimes in online anonymity while concealing their locations. But civil libertarians fear the rule change, under consideration by a federal advisory committee, would grant the government expansive new powers to reach into computers across the country. The proposal would change existing rules of criminal procedure that, with limited exceptions, permit judges to approve warrants for property searches only in the districts where they serve. The government says those rules are outdated in an era when child pornographers, drug traffickers and others can mask their whereabouts on computer networks that offer anonymity. Such technology can impede or thwart efforts to pinpoint a suspect’s geographic location.
US WHOLESALE PRICES DOWN FOR 4TH STRAIGHT MONTH
WASHINGTON (AP) — Wholesale prices fell for a fourth straight month in February as a decline in food prices offset an increase in gasoline prices. The Labor Department said Friday its producer price index, which measures inflation pressures before they reach consumers, dropped 0.5 per cent in February. The figure follows a 0.8% fall in January, which had been a record decline in a government series that goes back to 2009. Core producer prices, which exclude volatile food and energy costs, also fell 0.5 per cent during the month. Over the past 12 months, producer prices have shed 0.6 per cent while core prices have climbed a modest 1 per cent.
AUTONOMOUS CAR PREPARES FOR 3,500-MILE US ROAD TRIP
AUBURN HILLS, Michigan (AP) — Call it a preview of the cross-country road trip of the future. An autonomous car developed by Michigan-based auto supplier Delphi Automotive will soon be making a 3,500-mile journey across the U.S. A person will sit behind the wheel at all times but won’t touch it unless there’s a situation the car can’t handle. The car will mainly stick to highways. Companies both inside and outside the auto industry are experimenting with technologies that take more and more responsibilities away from the driver — right up to the act of actually driving the car. Most experts say a true driverless vehicle is at least a decade away.
LAWSUIT SHOWED GM HID IGNITION SWITCH PROBLEM SETTLED
DETROIT (AP) — A Georgia lawsuit that helped expose General Motors’ failure to disclose a deadly defect in small-car ignition switches has been settled out of court for a second time. Lawyers representing the parents of crash victim Brooke Melton announced the settlement Friday morning, but did not reveal terms. Engineers hired by lawyers working for Ken and Beth Melton found that GM modified the switches after finding problems, but failed to disclose that in legal depositions or to government safety investigators. Later, congressional staffers found GM documents showing the company knew about switch problems for a decade, yet it failed to recall the cars until last year.
KIA TO RECALL SOME SOUL SUVS, GAS PEDALS CAN BEND OR BREAK
DETROIT (AP) — Kia is recalling nearly 209,000 Soul small SUVs because the gas pedals can bend or break. The recall covers certain Soul and Soul electric vehicles from the 2014 and 2015 model years. If the gas pedal bends or breaks, it can be hard to accelerate the SUVs, increasing the risk of a crash.
LUMBER LIQUIDATORS TO SELL CHINA-MADE FLOORING
NEW YORK (AP) — The founder and chairman of Lumber Liquidators said Friday that the retailer currently has no plans to stop selling laminate flooring made in China, even as it continues to face fallout from a “60 Minutes” report that questioned the safety of such laminates. The “60 Minutes” report earlier this month said that Lumber Liquidators’ laminate flooring made in China contained high levels of formaldehyde, a carcinogen. The report said Lumber Liquidators’ laminate flooring fell short of California’s standards. The company denies that, and says it complies with all regulations for its products. In a telephone interview with CNBC Friday, Lumber Liquidators founder and Chairman Tom Sullivan said that there are certain laminates that China is better at. With the attention the “60 Minutes” report has drawn to the China-made laminates, Sullivan said the market will determine if Lumber Liquidators continues to sell such laminates in the future.
FDA: 3 PEOPLE DIE FROM FOODBORNE ILLNESS LINKED TO ICE CREAM
DALLAS (AP) — Officials say three people have died after developing a foodborne illness linked to Blue Bell ice cream products. That prompted the first product recall in the Texas creamery’s 108-year history. The U.S. Food and Drug Administration says five people in all developed listeriosis in Kansas after eating products from one production line at the Blue Bell creamery in Brenham, Texas. The FDA says listeria bacteria were found in samples of Blue Bell Chocolate Chip Country Cookies, Great Divide Bars, Sour Pop Green Apple Bars, Cotton Candy Bars, Scoops, Vanilla Stick Slices, Almond Bars and No Sugar Added Moo Bars.