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.
Wednesday, the Dow Jones industrial average climbed 39.05 points, or 0.2%, to 17,554.28. The S&P 500 rose 9.57 points, or 0.5%, to close at 2,032.12. The NASDAQ gained 12.58 points, or 0.3%, to 4,667.42.
Benchmark U.S. crude rose $1.31 to close at $47.78 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.04 to close at $49.03 in London. Wholesale gasoline rose 1.3 cents to close at $1.326 a gallon. Heating oil rose 2 cents to close at $1.646 a gallon. Natural gas rose 14.3 cents to close at $2.974 per 1,000 cubic feet.
DUNKIN’ DONUTS OPENED 405 NEW STORES IN 2014, PLAN EVEN MORE IN 2015
Canton, Mass. -- Dunkin' Brands Group, the parent company of Dunkin' Donuts and Baskin-Robbins, announced that in 2014 its U.S. franchisees opened a total of 422 net new Dunkin' Donuts. In 2014, Dunkin' Donuts opened 405 net new restaurants in new markets such as California, Colorado, and Nevada, with 97% of domestic growth coming from existing franchisees. California continued to be a focus on growth for the brand with five new free-standing restaurants. The company said it is on track with its plan to open approximately 250 new restaurants in California over the next several years, with the long-term goal of having 1,000 restaurants in total throughout the state. Dunkin' Donuts also signed agreements in 2014 with franchisees to open new future restaurants in markets, including Northern, Central and Southern California; Oklahoma City; Louisville, Kentucky; Phoenix; Greensboro, North Carolina; and Wichita, Kansas, among others. In 2013, Dunkin' Donuts unveiled new restaurant design options and last year Dunkin' Donuts franchisees remodeled 482 restaurants with the new image. Dunkin' Donuts also recently announced the launch of DD Green Achievement, a green building program designed to help franchisees build sustainable, energy-efficient restaurants. By the end of 2016, Dunkin' Donuts plans to have 100 new DD Green restaurants across the U.S. In 2015, the company expects its franchisees to add between 410 and 440 net new Dunkin' Donuts U.S. restaurants and continues to believe that it can achieve the long-term goal of more than 17,000 restaurants in the U.S., more than doubling its current number of domestic locations.
Also In 2014, Baskin-Robbins achieved a second consecutive year of positive net new unit growth in the U.S., opening 17 net new restaurants in markets including Kentucky, California and Louisiana. Baskin-Robbins also signed agreements in 2014 with franchisees to open new future locations in markets, including Fresno, California; San Francisco; Phoenix; Tampa; Louisville, Kentucky; and Colorado Springs, Colorado, among others. In 2015, the company said it expects its franchisees and licensees to open five to ten net new Baskin-Robbins restaurants in the U.S.
BOMBARDIER SUSPENDS LEAR JET BUSINESS
MONTREAL - Canadian manufacturer Bombardier on Thursday suspended its Learjet 85 business jet program due to "weak market demand" laying off 1,000 employees in Mexico and the United States. The company will also take a U.S. $1.4 billion special charge in sunk development costs related to the jet in its fiscal fourth quarter, and revised downward its financial guidance for the year. The company's stock fell more than 25% to Can$3.03 in morning trading in Toronto following the announcement. "The pause is due to weak demand for the Learjet 85 aircraft," the company said in a statement. "This reflects the continued weakness of the light aircraft category since the economic downturn." The new six- to eight-seat Learjet 85, built of composite materials in order to boost fuel efficiency, had been set to compete with Dassault's new Falcon 5x business jet and the U.S. luxury Gulfstream. The world's third largest aircraft manufacturer said it will continue making its slightly smaller Learjet 70 and 75 models. But its main focus going forward will be on medium-sized passenger aircraft -- the CSeries and the Global 7000/8000. The 100 to 150 seat medium-range CSeries is Bombardier's entry into airspace dominated by Airbus and Boeing.
EUROPEAN CENTRAL BANK STIMULUS FACES HURDLES
Markets are waiting to see just how much financial firepower the European Central Bank will unleash Thursday, when it is expected to announce large-scale purchases of government bonds with newly printed money to stimulate a sluggish economy. The decision to use bond purchases, or so-called quantitative easing, follows in the footsteps of the U.S. Federal Reserve — as well as the Bank of England and the Bank of Japan. Europe could definitely use a push, with weak growth is weak, high unemployment and fears of deflation. Bond purchases would fight that by pumping new money into the economy, raising inflation and making credit cheaper and easier to get. The euro would fall, boosting exports.
LOW GAS PRICES, INCENTIVES CHANGE MATH FOR ELECTRIC CARS
DETROIT (AP) — Drivers trying to calculate whether it’s practical to own an electric car are facing a new math. U.S. gas prices have fallen more than $1 per gallon over the last 12 months, to a national average of $2.06, according to AAA. That makes electric cars — with their higher prices tags — a tougher sell. Automakers have responded by slashing thousands of dollars off the sticker price of electrics. That’s likely to continue.
NEW GOVT STANDARDS TARGET PATHOGENS IN POULTRY PRODUCTS
WASHINGTON (AP) — A favorite staple of American diets — chicken — could become safer to eat. Standards proposed Wednesday by the Agriculture Department aim to reduce rates of salmonella and campylobacter, another pathogen that can cause symptoms similar to salmonella, in chicken parts, ground chicken and ground turkey. The standards would be voluntary but designed to pressure companies to take steps to reduce contamination. USDA says the proposed standards could reduce raw poultry-related foodborne illnesses by about a quarter, or 50,000 illnesses a year.
S&P SETTLES WITH SEC, 2 STATES OVER MISCONDUCT CHARGES
NEW YORK (AP) — Standard & Poor’s agreed on Wednesday to pay the U.S. government and two states more than $77 million to settle charges tied to its ratings of mortgage-backed securities. In its first enforcement action against a major rating agency, the Securities and Exchange Commission accused S&P of fraudulent misconduct, saying the company loosened standards to drum up business in recent years. S&P said in a statement that it did not admit or deny any of the charges.
AMERICAN EXPRESS TO CUT MORE THAN 4,000 JOBS
NEW YORK (AP) — American Express is planning to cut more than 4,000 jobs across the company this year, a company spokeswoman reported Wednesday. The job cuts would represent about 6% of American Express’ total headcount. An American Express spokeswoman said Wednesday the cuts will span U.S. and international operations. Meanwhile, American Express announced an 11% rise in quarterly profit from a year ago.
E-BAY TO CUT 2,400 JOBS, SPIN OFF OR SELL ENTERPRISE UNIT
NEW YORK (AP) — EBay plans to cut 2,400 jobs, or 7% of its staff, in the first quarter to simplify its structure and boost profit ahead of a planned separation of its business. The e-commerce company on Wednesday also reported that its fourth-quarter net income rose 10% on continued strength of its PayPal payments business, which it expects to spin off in the second half of the year. The San Jose, California-based company also announced plans Wednesday to spin off or sell its enterprise unit, which develops online shopping sites for brick-and-mortar retailers. EBay has been under pressure to improve profitability from its largest activist investor, Carl Icahn. On Wednesday eBay said it agreed to name an executive from Icahn’s investment firm, Jonathan Christodoro, to its board.
UNITED HEALTH EARNINGS RISE 6% TOP WALL STREET EXPECTATIONS
UnitedHealth topped Wall Street expectations for the fourth quarter, and the nation’s largest health insurer brought an optimistic vibe for the new year. The Minneapolis-based insurer said Wednesday that it expects stronger enrolment growth from Medicare Advantage plans, a key product that had been pinched by funding cuts in recent years. It also has already gained more than 400,000 customers through its expanded presence on the health care overhaul’s public insurance exchanges, and operating earnings from its Optum segment, which runs several businesses outside health insurance, climbed more than 50%.
NFL PLAYERS FIND SECOND CAREERS AS ENTREPRENEURS
NEW YORK (AP) — Many pro football players would like to start their own businesses after they leave the field, and now they can seek help from programs specifically designed to help retired athletes navigate the obstacles of entrepreneurship. For some, building a business is a lifestyle choice. They want to keep working. Others need to earn a living. Although the minimum NFL salary this year is $420,000, many players don’t make the big money for very long.
TOYOTA REMAINS TOP IN GLOBAL VEHICLE SALES, BEATS VW, GM
TOKYO (AP) — Toyota stayed at the top in global vehicle sales in 2014, taking that auto industry crown for the third year straight, but was less upbeat about this year. The Japanese automaker sold 10.23 million vehicles, beating out Volkswagen and General Motors. But it expects to sell fewer trucks and cars this year, forecasting sales will fall 1% to 10.15 million vehicles, according to numbers released Wednesday. The drop is largely due to a projected 9% plunge in Japan sales. Toyota expects overseas sales to grow 2% this year to more than 8 million vehicles.