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 rose 9.92 points, or 0.06%, to 17,832.99. The Standard & Poor’s 500 index lost 0.70 points, or 0.03%, to 2,058.20. The NASDAQ composite fell 9.24 points, or 0.2%, to 4,726.81.
U.S. oil fell 58 cents to $52.69 a barrel in New York. Brent crude, the global benchmark, slipped 91 cents to $56.42 in London.
In other energy futures trading:
— Wholesale gasoline dropped 3.9 cents to $1.433 a gallon.
— Heating oil fell 3.8 cents to $1.796 a gallon.
— Natural gas rose 11.4 cents to $3.003 per 1,000 cubic feet.
AIR ASIA BOSS APPLIES DEFT TOUCH IN CRASH RESPONSE
SURABAYA, Indonesia (AP) — If AirAsia bounces back from its first fatal disaster, much of the credit will go to its effusive founder Tony Fernandes and a well-oiled communications machine. From the highly visible compassion shown by Fernandes to details such as changing the airline’s bright red logo to a sombregrey online, experts say the Malaysia-based budget carrier’s initial response to the tragedy is a textbook example of how to communicate in a crisis. AirAsia Flight 8501 crashed into the Java Sea on Sunday with 162 people on board. The airline’s handling of the disaster has drawn favourable comparisons with the bungled communications by Malaysia Airlines after Flight 370 disappeared March 8. But experts say the situations faced by the two airlines are so different it’s unfair to liken them.
US CONSTRUCTION SPENDING SLIPS 0.3% IN NOVEMBER
WASHINGTON (AP) — A sharp slowdown in government-built schools and infrastructure caused U.S. construction spending to fall slightly in November. The Commerce Department said Friday that construction spending slipped 0.3% in November, after having climbed an upwardly revised 1.2% in October and 0.6% in September. Much of the decline came from a 1.7% retreat in government expenditures. Publicly built school spending fell 2.5%, while the transportation, health care and public safety sectors also fell.
FAST-FOOD 2015 RESOLUTIONS: TRANSFORM JUNK FOOD IMAGE
NEW YORK (AP) — Fast-food chains have a New Year’s resolution: Drop the junk. As people express distaste for food they think is overly processed, McDonald’s, Taco Bell and other chains are trying to shed their reputation for serving reheated meals that are loaded with chemicals. That includes rethinking the use of artificial preservatives and other ingredients customers find objectionable. Recasting fast food as “fresh” and “real” will be tricky, in large part because it’s so universally regarded as cheap and greasy. Another problem is that terms like “fresh,” ”real” and “healthy” have nebulous meanings, making it hard for companies to pin down how to approach transformation.
McDONALD’S CAMPAIGN LOOKS TO REKINDLE “LOVIN”
NEW YORK (AP) — McDonald’s, fighting to hold onto customers, on Friday unveiled a new marketing strategy and ads it says will emphasize the “love” in its long-running “I’m Lovin’ It” slogan. The world’s biggest hamburger chain released TV ads it says will begin airing this week and is rolling out new uniforms for workers and packaging for its food that features images of popular items like Big Macs against a white backdrop. The push to identify itself with love and positivity in the minds of customers comes at a challenging time for McDonald’s, which is facing shifting eating habits, intensifying competition and growing calls by workers and labour organizers for higher pay and a union. Sales for its flagship U.S. division have continued to struggle even after McDonald’s replaced its president twice in less than two years.
MEDICAL MARIJUANA A CHALLENGE FOR LEGAL POT STATES
A year into the nation’s experiment with legal, taxed marijuana sales, Washington and Colorado find themselves wrestling not with the federal interference many feared, but with competition from medical marijuana or even outright black market sales. Officials in both states say they must do more to drive customers into the recreational stores. They’re looking at reining in their medical systems and fixing the big tax differential between medical and recreational weed without harming patients. And in some cases, they are considering cracking down on the proliferating black market.
LOW OIL PRICES UNLIKELY TO HURT RAILROADS MUCH
OMAHA, Neb. (AP) — The stunning collapse in oil prices over the past several months won’t derail the railroads’ profit engine even if it does slow the tremendous growth in crude shipments seen in recent years. But even with oil prices falling off a cliff, industry analysts and railroad executives point out that crude shipments still make up just a sliver of the overall freight delivered by rail. What’s more, because fuel is such a huge cost in the industry, railroads are a direct beneficiary of those falling prices.
LGBT-OWNED BUSINESSES GET DIVERSITY BOOST
Federal agencies, organizations such as the National Football League and more than one-third of Fortune 500 companies are now trying to expand their vendor pools by explicitly encouraging bids from gay, lesbian and transgender contractors. The little-known outreach efforts mirror long-standing “supplier diversity” initiatives aimed at creating economic opportunities for businesses owned by racial minorities, women and disabled veterans. The trend has not been without controversy.
FDA DRUG APPROVALS REACHED 18-YEAR HIGH IN 2014
WASHINGTON (AP) — The Food and Drug Administration approved 41 first-of-a-kind drugs in 2014, including a record number of medicines for rare diseases, pushing the agency’s annual tally of drug approvals to its highest level in 18 years. FDA drug approvals are considered a barometer of industry innovation and the federal government’s efficiency in reviewing new therapies. The record-setting number reflects the drug industry’s ongoing shift toward specialty drugs for niche conditions, which often come with extra patent protections, streamlined approvals and higher price tags.
US FACTORIES GROW AT SLOWEST PACE IN 6 MONTHS
WASHINGTON (AP) — U.S. factory activity grew at the slowest pace in six months in December, weakened by declines in orders and production. Yet growth was still healthy, a sign manufacturing may help drive the economy’s expansion in 2015 as it did last year. The Institute for Supply Management, a trade group of purchasing managers, said Friday that its manufacturing index fell to 55.5 in December from 58.7 in November. Any reading above 50 signals expansion. November’s figure was just below a three-year high reached in October. December’s reading is the lowest since June. But it is also close to the average for all of 2014 and remains at a solid level. Americans are buying more cars and appliances, boosting demand for factory-made goods. Economists also forecast that businesses may spend more on industrial equipment this year, which would also lift output.
EURO SINKS AFTER ECB CHIEF GIVES STIMULUS HINT
LONDON (AP) — The euro slid to a 4-1/2 year low against the dollar on Friday after the head of the European Central Bank hinted at plans to fight alarmingly low inflation across Europe. In an interview with Germany’s financial daily Handelsblatt, Mario Draghi, the ECB’s president, said that the bank is more at risk of failing to keep prices stable than it was just six months ago. The euro fell to levels last seen in June 2010. Back then, Europe’s financial markets were reeling as Greece, Ireland and other countries struggled under their debts.
TEAM UP TO CLEAN UP YOUR NEIGHBORHOOD
TUCSON - If beautifying your neighborhood is on your 2015 to do list, the City's Environmental Service (ES) department can help. ES will provide roll-off containers (dumpsters) for your use and will haul away the debris at no cost. To participate in this program, you and members of your association or group must be ES residential customers and an incorporated homeowners association, or an organized group of 10 or more residents. Learn more about the program, including how to apply, at the link provided below. Environmental Services Neighborhood Clean Ups - https://es.tucsonaz.gov/es/neighborhood-cleanups
START OR EXPAND YOUR BUSINESS WITH HELP FROM THE SMALL BUSINESS ASSISTANCE LINE
TUCSON - The City of Tucson Small Business Assistance Line, (520) 837-4100, helps callers with the licensing, planning, and permitting process, and connects them with additional business resources. Staff from the City Manager's Office of Economic Initiatives answer the calls from 8 a.m. to 5 p.m. Monday through Friday and assistance is available in both English and Spanish. Small Business Assistance Line: https://business.tucsonaz.gov/business/small-business-assistance-hotline
ECONOMIC DEVELOPMENT EFFORTS ADD UP TUCSON - The Tucson Mayor and City Council reestablished the City's in-house economic development efforts, tasking the team with business attraction, expansion and retention. In 2014 the City of Tucson Economic Initiatives Division, facilitated the creation of 607 full-time jobs, each with an average salary of more than $65,000. The team also facilitated an estimated total capital investment of $83,500,000 through the use of incentives, business recruitment, and small business assistance. Office of Economic Initiatives: https://1.usa.gov/1xh3KyB
TUCSON WATER RECEIVES DESIGNATION OF ASSURED WATER SUPPLY
TUCSON - The Assured Water Supply (AWS) program is designed to sustain Arizona's economic health by preserving groundwater resources and promoting long-term water supply planning. Before developers in the Tucson Water service area can record plats or sell parcels, the City must demonstrate a 100 year supply of water to meet current and future growth water demands. The State of Arizona recently issued the City a Designation of Assured Supply for approximately 183,000 acre-feet/year of available water supply through 2025. That exceeds Tucson's projected demands of approximately 155,000 acre-feet/year, which puts the City in a strong position to support future population growth and economic development. Tucson Water: https://1.usa.gov/1uo8uPh
REID PARK ZOO SETS ATTENDANCE RECORD
TUCSON - The City's Reid Park Zoo set an annual attendance record Saturday, Dec. 27, when its 606,885 visitor walked through the gate. The birth of baby African elephant Nandi was the likely cause of increased attendance in 2014. Born on Aug. 20, Tucson's 239th birthday, Nandi continues to delight Zoo visitors with her playful antics in the Expedition Tanzania exhibit. Reid Park Zoo: https://bit.ly/1B5RZMG