Real Estate Daily News Buzz – December 4, 2013
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.
Tuesday, the Dow Jones industrial average lost 94.15 points, or 0.6%, to close at 15,914.62. The S&P 500 index fell 5.75 points, or 0.3%, to 1,795.15 and the NASDAQ composite fell 8.06 points, or 0.2%, to 4,037.20. Benchmark U.S. crude for January delivery rose $2.22, or 2.4%, to close at $96.04 a barrel on the New York Mercantile Exchange.
BROADWAY BLVD – CITIZEN’S TASK FORCE MEETING THURSDAY
The next meeting of Tucson’s Broadway Citizens Task Force is this Thursday evening, December 5, 2013 starting at 5:30 p.m., at the Child & Family Resources building (2800 E. Broadway). An agenda and materials are available online at www.tucsonaz.gov/broadway. For questions or more information, please contact [email protected] or call (520) 622.0815. For more information about the Broadway Boulevard, Euclid to Country Club project, please visit the project on the web at www.tucsonaz.gov/broadway or call the info line at (520) 622-0815. The Regional Transportation Authority Plan includes project #17 as: widen Broadway to 6 travel lanes, plus 2 dedicated bus lanes; bike lanes; and sidewalks. The City of Tucson is leading this project, and is in the early stages of Planning & Design. Working with a Citizens Task Force, the project scope and roadway configuration alternatives are being reviewed. The Planning & Design Phase is estimated to conclude in 2015. A Final Design Phase will follow, which will bring all construction plans to 100% complete and construction-ready. Construction is not anticipated until 2016.
TUCSON CITY COUNCIL APPROVES EMPLOYEE COMPENSATION PLAN
TUCSON (NN) – Mayor and Council of Tucson voted 6-1 Tuesday to give most employees a 55-cent-an-hour pay raise, but cautioned some hard choices lie ahead in the next fiscal year. The raises will affect all permanent and probationary city employees, except 911 dispatchers and public safety personnel. Those employees received alternative salary increases. Councilman Steve Kozachik cast the dissenting vote, saying the raises were not affordable in light of current and imminent budget challenges. Mayor Jonathan Rothschild said the city has enough money right now to cover the remaining six months in this fiscal year, and budget challenges requiring both new revenues and possible cuts would need to be addressed in the near future.
2014 Employee Compensation Plan Memo to Mayor and Council: https://1.usa.gov/Iqjs4A
DOWNTOWN 2ND SATURDAYS LOSING MAJOR FUNDER
TUCSON (NN) – Providence Service Corp. says it will stop funding about half of the $12,000 a month it takes to run the monthly 2nd Saturdays after Dec. 14. Providence says it will redirect the money to causes that better support the company’s mission of creating healthier communities. Downtown Tucson Partnership CEO Michael Keith, who sits on the 2nd Saturdays steering committee, says the committee will do all it can to find alternate funding for the event.
AMERICANS TURN TO MOBILE DEVICES FOR CYBER MONDAY
NEW YORK (AP) — Millions of Americans logged on to e-commerce sites Monday to take advantage of deals ranging from free shipping to hundreds of dollars off electronics and half-price clothing on what was expected to be the busiest Internet shopping day of the year. And many of those purchases were made using mobile devices. The spending surge associated with Cyber Monday came after a disappointing Thanksgiving holiday weekend in stores. It also showed that shoppers are increasingly comfortable buying on tablets and smartphones.
JUDGE: DETROIT CAN USE BANKRUPTCY TO CONFRONT DEBT
DETROIT (AP) — A federal judge ruled Tuesday that Detroit can use bankruptcy to cut employee pensions and relieve itself of other crushing debts, handing a defeat to the city’s unions and retirees and shifting the case into a delicate new phase. Judge Steven Rhodes, who wondered aloud why the bankruptcy had not happened years ago, said pensions can be altered just like any contract because the Michigan Constitution does not offer bulletproof protection for employee benefits. But he signaled a desire for a measured approach and warned city officials that they must be prepared to defend any deep reductions. The ruling came more than four months after Detroit filed for Chapter 9 protection.
HOLIDAY WEEKEND GAVE BOOST TO AUTO SALES
DETROIT (AP) — Americans proved last month that they’re head over heels about small sport utility vehicles. They also wanted to buy more than just video game consoles and big-screen TVs on Black Friday. November auto sales rose 9% above a year ago, with a solid piece of the gains coming over the Thanksgiving holiday weekend. Sales ran at an annual pace of 16.4 million cars and trucks last month, the best in almost seven years. The numbers gave further evidence that the small SUV is replacing the car as the vehicle of choice for families and aging baby boomers.
US HOME PRICES RISE JUST 0.2% IN OCTOBER
WASHINGTON (AP) — A measure of U.S. home prices rose only modestly in October, adding to signs that prices have stabilized after experiencing big gains earlier this year. Real estate data provider CoreLogic said Tuesday that prices increased 0.2 per cent in October from September. That’s up from a 0.1% gain in September. But it is down sharply from a 0.9% increase in August. One reason for the slowdown is that the figures aren’t adjusted for seasonal patterns. Prices usually decline in the fall and winter, when sales slow.
NONBANKS SERVICING STUDENT LOANS COME UNDER AGENCY
WASHINGTON (AP) — The federal consumer finance watchdog is expanding its oversight to Sallie Mae and other companies that collect student loan payments. A rule issued Tuesday by the Consumer Financial Protection Bureau extends the agency’s supervision to nonbank companies that manage large volumes of student loans on behalf of lenders. The CFPB already oversees banks that service student loans, but it says most student loans are serviced by nonbank companies. It says the scrutiny is needed to ensure servicers comply with consumer laws at a time when more people are falling behind on their student loan payments.
J.C. PENNEY SAYS KEY SALES MEASURE UP IN NOVEMBER
PLANO, Texas (AP) — J. C. Penney Co. says a key sales measure jumped 10.1% in November, helped by a strong start to the holiday shopping season. The Plano, Texas-based company’s stock rose 5% in after-hours trading Tuesday. J.C. Penney said revenue from stores open for at least a year improved because of its merchandise selection and promotions despite a competitive retail environment. The figure is a closely watched indicator of financial performance because it strips away the impact of recently opened or closed stores.
CHICK-FIL-A WORKING TO REMOVE DYES, CORN SYRUP
NEW YORK (AP) — Chick-fil-A says it’s removing high-fructose corn syrup from its white buns and artificial dyes from its sauces and dressings as part of a push to improve its ingredients. The fast-food chicken chain says the reformulated buns are being tested in about 200 Georgia locations, while the sauces and dressings will be tested starting early next year. It says it also removed a yellow dye from its chicken soup and that the new recipe should be in all restaurants by the end of this month. It’s also testing a new peanut oil, with hopes of a rollout early next year.
INSURERS WARN OF NEXT MAJOR PROBLEM WITH OBAMACARE
(Reuters) – U.S. insurers fear that a surge in enrollments on the revamped government-run healthcare website could create more problems for insurance companies already struggling with error-filled applications for coverage three weeks before a sign-up deadline. In what could become the next major headache for President Barack Obama’s signature domestic policy, a group representing leading U.S. insurers said on Tuesday that technology fixes that will enable millions of people to sign on to HealthCare.gov have not fully addressed faulty data that the site has been sending these companies about their new enrollees. The problems include enrollment forms with erroneous personal information and duplicate or missing applications. In some cases, consumers who believe they have signed up may not have a file with the insurer. “So far we’ve been able to deal with these issues because there’s been relatively low volume,” Daniel Durham a vice president for policy and regulatory affairs at America’s Health Insurance Plans said. “But now that the floodgates are open at the front end… we’re going to see a lot more volume. And health plans just don’t have the personnel to do all this manually.” Durham said insurers need “clean” enrollment files so they can be processed by the Dec. 23 deadline for coverage to start on Jan. 1.
ASIAN MARKET SEEN TO BE PRESSURED BY REVIVED FED TAPERING TALK
TOKYO (Reuters) – Asian shares could come under pressure on Wednesday after the world’s share markets were rattled by fears of an impending reduction in the U.S. Federal Reserve’s stimulus following positive U.S. data. European shares suffered their biggest falls since August while Wall Street retreated for a third straight day on Tuesday, dropping from record levels as investors took profits. In Asia, Japanese shares are likely to open lower, with the Nikkei futures falling more than one percent from Tuesday close.
SpaceX ROCKET LIFTS OFF ON FIRST COMMERCIAL SATELLITE LAUNCH
CAPE CANAVERAL, FL (Reuters) – An unmanned Falcon 9 rocket developed by Space Exploration Technologies, or SpaceX, blasted off on Tuesday to put the company’s first commercial satellite into orbit, staking a potentially game-changing claim in a global industry worth nearly $190 billion a year. The 22-story rocket lifted off from its seaside launch pad at Cape Canaveral Air Force Station in Florida at 5:41 p.m. EST/2241 GMT. Perched on top of the rocket was a 7,000-pound (3,175 kg) communications satellite owned by Luxembourg-based SES S.A., which operates a 54-satellite fleet, the world’s second-largest. The satellite, known as SES-8 and worth more than $100 million, will be positioned to provide television, broadband and other communications services to customers in India, China, Vietnam and elsewhere in Asia. “It’s an extremely important satellite for us,” Martin Halliwell, chief technology officer of SES, told reporters before the launch. The global satellite industry had revenues of nearly $190 billion in 2012, including nearly $90 billion in television services alone, the Satellite Industry Association trade group reported in October. The U.S. share of the market is 45% the report said.
SYCAMORE IN LEAD TO ACQUIRE K&G FROM MEN’S WEARHOUSE
(Reuters) – Sycamore Partners, LLC is in advanced talks to acquire off-price chain store K&G from Men’s Wearhouse Inc, the clothing retailer embroiled in a takeover battle with Jos. A. Bank Clothiers Inc, according to four people familiar with the matter. K&G sells men’s, women’s and children’s discounted apparel and accessories from brands such as Calvin Klein, Kenneth Cole and Rocawear. It accounted for 15% of Men’s Wearhouse’s fiscal 2012 net sales of $2.5 billion.
