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 fell 27.16 points, or 0.15%, to 17,613.68. The Standard & Poor’s 500 index eased 5.23 points, or 0.3%, to 2,023.03. The NASDAQ composite slipped 3.21 points, or less than 0.1%, to 4,661.50.
Benchmark U.S. crude fell 18 cents to close at $45.89 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 84 cents to close at $46.59 inLondon. Wholesale gasoline fell 0.6 cent to close at $1.269 a gallon. Heating oil fell 2.1 cents to close at $1.633 a gallon. Natural gas rose 14.8 cents to close at $2.943 per 1,000 cubic feet.
FAMILY DOLLAR URGING SHAREHOLDER TO SUPPORT BUYOUT
Matthews, N.C. -- Family Dollar is urging its shareholders to support a buyout offer from rival discounter Dollar Tree with less than two weeks remaining before a vote on the pending deal. Family Dollar shareholders are scheduled to vote Jan. 22. on whether to accept the Dollar Tree offer. Family Dollar has rejected numerous approaches from Dollar General, the latest worth $9.1 billion in cash, in favor of an $8.5 billion cash-and-stock offer from Dollar Tree. It has cited risks that the Dollar General deal would be blocked because of anti-monopoly rules. In a letter to investors Monday, CEO Howard Levine said that Family Dollar may be required by federal regulators to divest itself of 310 stores if it's acquired by Dollar Tree. Levine said that the FTC has indicated that it might need to divest itself of between 3,500 and 4,000 stores for a deal with Dollar General to go through, though that is not a final figure. Based on those numbers, Levine doesn't believe the FTC's divestiture demands would be reduced to anywhere 1,500 or so stores that Dollar General Corp. previously said that it is willing to get rid of. Family Dollar could reach an agreement with the Federal Trade Commission by the end of the month, Levine said, and the company has said previously that it would be willing to divest as many as 500 stores to get the deal done.
WORLD BANK CUTS 2015 FORECAST FOR GLOBAL ECONOMY
WASHINGTON (AP) — The World Bank, citing stagnation in Europe and Japan and a slowdown in China, downgraded its forecast for the global economy this year. It also reported that world economic growth came in below expectations in 2014. The bank predicts the world economy will expand 3 per cent this year, up from 2.6% in 2014. Last June, World Bank economists had forecast 3.4 per cent global economic growth this year and 2.8% last year.
WITH CLOSINGS TUCSON COMMERCIAL REAL ESTATE REMAINS FLAT
TUCSON - As national chains announce store closures, Tucson's commercial vacancy rate is stable around 8%, according to data gathered by real estate company CBRE. Nancy McClure is First Vice President at CBRE. She leases property to stores and restaurants. She is not excited by the latest data but is optimistic about 2015. "We've really not had a lot of glut of big boxes, which is nice," McClure said. "So we've had some pent up demand from retailers that haven't been able to find space in the past." J.C. Penney is the latest company to announce it is closing locations across the country. They are joining stores like Macy's, RadioShack, Sears and Staples, which are also vacating properties. McClure said this happens every year. "January comes, they've had their selling season," she said. "They have a pretty good finger on the pulse of what's going on in their stores, and then they make some decisions." Dick's Sporting Goods is opening a 50,000 square-foot store near Park Place Mall. The 3 Staples stores that are closing are about 20,000 square feet each, according to McClure. Watch Channel 4 News interview with Nancy McClure here https://ibty.in/DJ4LsJ
TINY COKES: LESS GUILT MEANS MORE MONEY FOR MAKERS
NEW YORK, N.Y. – With people drinking less soda amid health concerns, Coke and Pepsi are pushing smaller cans and bottles that contain fewer calories and, they say, induce less guilt. That all comes at a price: Those cute little cans can cost more than twice as much per ounce. The shift means 7.5-ounce “mini-cans” and 8-ounce and 8.5-ounce glass and aluminum bottles are taking up more space on supermarket shelves. The cans and bottles have been around for a few years, but Coke and Pepsi are making them more widely available and marketing them more aggressively.
GOVERNMENT PREDICTS SHALE SLOWDOWN AS OIL FALLS
As oil’s long slide continued, the Energy Department forecast Tuesday that production from U.S. shale operators will begin to tail off in the second half of the year. The decline would mark the first such drop in what has been a 6-year boom in U.S. onshore crude production. The price of oil dipped briefly under $45 before ending down 18 cents to $45.89 a barrel. It’s down 58% over the past six months.
PROSPECT OF CHINESE CARS IN US STILL REMAIN YEARS AWAY
DETROIT (AP) — Another Chinese automaker is showing vehicles this year at the auto show in Detroit, raising the perennial question about when these companies might sell in the United States. The answer: Years from now, according to carmakers and industry observers alike. Chinese manufacturers have announced plans over the past decade to export to the U.S. only to postpone them when faced with passing U.S. safety and emissions tests and building a dealer network. They also must overcome big hurdles in convincing U.S. car buyers that Chinese cars have the quality they demand. Still, Chinese companies remain interested in eventually selling in the prestigious — and potentially profitable — market.
HELP WANTED: US JOB OPENINGS AT 14-YEAR HIGH
WASHINGTON (AP) — The rapid hiring that made 2014 a stellar year for job gains is showing no sign of slowing down. U.S. employers advertised the most job openings in nearly 14 years in November, the Labor Department said Tuesday. That suggests businesses are determined to keep adding staff because they are confident strong economic growth will create more demand for their goods and services. Job openings rose 2.9% to 4.97 million in November, the most since January 2001. More job vacancies generally lead to more hiring. Employers have been slow to fill their openings for most of the recovery, but that started to change last year as companies ramped up their overall hiring.
MET LIFE CHALLENGING US REGULATORS’ HIGH-RISK LABEL
In the first legal challenge to a U.S. body that arose from the financial crisis, MetLife is challenging its designation by regulators as a potential threat to the financial system. MetLife Inc., the largest U.S. insurance company by assets, announced Tuesday that it is taking the government to court to appeal its assessment by the Financial Stability Oversight Council as “systemically important”. That means regulators believe MetLife is so big and entwined with the financial system that it could threaten the economy if it collapsed. The designation brings stricter government oversight and, MetLife says, exorbitant costs.
AMAZON SIGNS WOODY ALLEN TO CREATE HIS FIRST TV SERIES
Amazon Studios is delivering Woody Allen as creator of his first-ever TV series. The Oscar-winning filmmaker will write and direct all of the episodes of the half-hour series. A full season has been ordered for Amazon’s Prime Instant Video, the company announced Tuesday. The series is expected to premiere in 2016. No details on casting were disclosed, nor was the series title announced. Allen’s signing adds yet more luster to Amazon Studios. Its freshman series, “Transparent,” on Sunday won two Golden Globes, including best comedy series, as it continues to help redefine what “television” means.
AIR TRAN LEADS US AIRLINES IN ON-TIME ARRIVALS; ENVOY LAST
AirTran Airways tops all U.S. airlines in the latest rankings for on-time arrivals, knocking off perennial winner Hawaiian Airlines. But you can’t fly on AirTran anymore. The low-fare carrier flew its last revenue flight in December. It has been folded into Southwest Airlines, which bought AirTran in 2011. The U.S. Department of Transportation said Tuesday that 80.6% of domestic flights on the 14 biggest airlines arrived within 14 minutes of schedule in November. That was better than October’s 80.0% on-time rate, but down from 83.5% in November 2013.
QUIET YEAR IN TERMS OF TAX CHANGES, BUT ACA PROVIDES TWIST
WASHINGTON (AP) — President Barack Obama’s signature health care law will bring a new twist to tax-filing in 2015. But it’s a year in which much else will seem familiar when you’re working on your return. Sure, there have been adjustments for inflation in the tax tables, standard deduction and value of each exemption. But what could have been a stunner — the expiration of a series of popular tax breaks — was forestalled by Congress in a last-minute move before it adjourned last month.
SUN LINK TO MODIFY SCHEDULE NEXT WEEK
TUCSON - Starting Monday, the Sun Link Tucson Streetcar will begin a modified schedule to better accommodate periods of high ridership. Data shows an increase in demand on Fridays and Saturdays, as well as Monday through Thursday evenings. The new schedule decreases frequency at the start of service both during the week and on the weekends, but increases frequency by five minutes in the evenings and on Saturdays. Sundays currently see the lowest level of ridership and the new schedule reflects that. The changes will not affect the hours of operation. You can see the detailed changes by following the link below. Read news release on streetcar schedule changes: https://bit.ly/1wRhhsY; Sun Link Tucson Streetcar: https://bit.ly/1mebZ7k
TASK FORCE ON 21ST CENTURY POLICING MEETS IN D.C.
TUCSON - The President's Task Force on 21st Century Policing met today in Washington, D.C. Tucson Police Chief Robert Villaseñor is a member of the panel, which was created last month. It includes law enforcement representatives and community leaders. The task force is working on ways to strengthen the relationship between police and the public. Public comments can be made by emailing comment@taskforceonpolicing.us or via Twitter (link below). President's Task Force on 21st Century Policing on Twitter: https://bit.ly/1u261i4; Read the news release about Villaseñor's appointment to the panel: https://1.usa.gov/16wYvkA; President's Task Force on Community Policing: https://bit.ly/1DDCRJd
FROM THE VIDEO ARCHIVES: DILLINGER DAYS
TUCSON - The annual Dillinger Days returns to Hotel Congress in Downtown Tucson Jan. 23-24 to mark the time in 1934 when the Tucson Police Department captured and arrested John Dillnger, who was the most wanted outlaw at the time. Back in 2008, Tucson 12 produced a video (link below) detailing the downtown event.
Tucson 12 video of Dillinger Days: https://bit.ly/1IEBibQ; Downtown Tucson Partnership article about this year's Dillinger Days: https://bit.ly/14LWf8v