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 sank 332.78 points, or 1.9%, to 17,662.94. The S&P 500 fell 35.27 points, or 1.7%, to end at 2,044.16. The NASDAQ composite lost 82.64 points, or 1.7%, to 4,859.79.
Benchmark U.S. crude fell $1.71 to close at $48.29 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $2.14 to close at $56.39 in London. Wholesale gasoline fell 5.7 cents to close at $1.818 a gallon. Heating oil fell 2.6 cents to close at $1.814 a gallon. Natural gas rose 5.4 cents to close at $2.732 per 1,000 cubic feet.
RAYTHEON AWARDED $122 MILLION US NAVY CONTRACT
TUCSON, Ariz., -- Raytheon received a contract modification for $122,443,911 to a previously awarded firm-fixed-price contract (N00019-14-C-0075) for the procurement of 114 Tomahawk Block IV All Up Round missiles for the U.S. Navy. This completes the Navy's planned purchase of 214 Tomahawk Block IV missiles for fiscal year 2015 and continues to build the inventory to support warfighting requirements. "Employed in every recent conflict, submarine and surface-launched Tomahawk missiles continue to be our nation's weapon of choice to defeat high value threats," said Dave Adams, Raytheon Tomahawk senior program director. "Raytheon continues an acute focus on maintaining affordability and enhancing the impressive capabilities of this sophisticated weapon system." Work will be performed in Tucson and across 29 states within the United States. Work is expected to be completed by August 2017.
NRF: CONGRESS MUST RESOLVE ONLINE SALES TAX DISPARITY
WASHINGTON – The National Retail Federation issued the following statement today from Senior Vice President for Government Relations David French on introduction of the Marketplace Fairness Act by Senators Mike Enzi, R-Wyo. and Dick Durbin, D-Ill.: “We welcome this effort to level the sales tax playing field between Main Street merchants and online retailers. For far too long, brick-and-mortar retailers have faced a competitive disadvantage solely because of Congress’ inability to resolve the online sales tax disparity. “Retailers should be allowed to compete for customers and sales on price, service and selection and not forced to compete on whether or not they collect state and local sales tax. “The introduction of this legislation is a welcome sign that lawmakers may finally act on this retail industry priority, and builds upon ongoing activity in the House and Senate. It also comes on the heels of Supreme Court Justice Anthony Kennedy’s admission last week that the Court got it wrong on sales tax collection two decades ago and should revisit its decision. “It is Congress’ responsibility to lay out a legislative framework on online sales tax collection and we hope that the introduction of this bill will spur congressional action to remedy this problem this year.” A similar version of the Marketplace Fairness Act passed the U.S. Senate on May 6, 2013 with a broad, bipartisan vote of 69 to 27.
MEXCIO OIL AUCTION ATTRACTS HUGE INTEREST
MEXICO CITY - The first round of Mexico's historic opening of the oil sector has attracted huge interest from private firms jostling to enter the auction despite falling crude prices, officials said Monday. Energy Minister Pedro Joaquin Coldwell said 46 companies have declared their interest, while 23 are being vetted to see if they qualify for the July 15 auction, and more could be added to the list. Mexico's Congress approved last year a landmark energy reform that breaks up the monopoly on drilling held by state-run firm Pemex since 1938 and invites foreign investors back in the country. A government website dedicated to the first round shows that global energy giants such as U.S. firm Chevron (IW 500/2), France's Total and Anglo-Dutch group Shell (IW 1000/2) are among the companies in the "pre-qualification" phase. The first round involves 14 shallow-water blocks in the Gulf of Mexico. Coldwell said the government forecasts nearly $16.8 billion in investments over five years. Sinking oil prices have forced the government to slash its budget and mull whether to delay auctions for unconventional oil projects, which include harder-to-reach deposits. Coldwell said the government "has not resolved the issue" of the timing of auctions for unconventional projects and is "evaluating" them in light of the lower oil prices.
GOOD NEWS: PEOPLE ARE QUITTING JOBS
WASHINGTON (AP) — Quitting your job — all but unheard of during and after the Great Recession — is becoming more common again. That could mean pay raises are coming for more Americans. The trend has already emerged in the restaurant and retail industries, where quits and pay are rising faster than in the overall economy. Workers in those industries appear to be taking advantage of rising consumer demand to seek better pay elsewhere.
SOY SAUCE MAKES ‘MIRACLE’ COMEBACK IN TSUNAMI WRECKED JAPAN
RIKUZENTAKATA, Japan (AP) — When the tsunami warning sounded, workers at the two-centuries-old soy sauce maker in northeastern Japan ran up a nearby hill to a shrine for safety, and watched in disbelief as towering waters swallowed their factory. They all believed the business, started in 1807, and its precious fungal cultures that give soy sauce its unique taste were lost forever. Everyone except for Michihiro Kono, the ninth-generation son of the founding family. Four years later, Yagisawa Shoten Co. has been saved through Kono’s conviction, crowd-funding and the unexpected survival of its vital ingredient.
EARLY LOOK: HOW DOES APPLE WATCH STACK UP vs RIVAL WATCHES?
SAN FRANCISCO (AP) — Apple made a strong case for how you can use its upcoming Apple Watch, and the device stacks up well against the competition. If you’ve waited for the Apple Watch to decide on a smartwatch, here are some things to consider in weighing whether you really need one. You’ll need an iPhone 5 or newer, while the rival watches will typically work only with Android. Apple Watch is among the most expensive on the market, and it doesn’t have its own cellular connection.
APPLE’S TIM COOK CITES RECORD SALES AND UNBELIEVEABLE YEAR
CUPERTINO, Calif. (AP) — Apple CEO Tim Cook took a figurative victory lap at his company’s annual shareholder meeting, one day after he announced details about the new smartwatch Apple plans to start selling next month. A year ago, some investors were voicing frustration over Apple’s lagging stock and activist Carl Icahn was pressing Cook to return more cash to shareholders. But no complaints were heard Tuesday. Apple shares are up 65 per cent from a year ago, the company has a market value of more than $700 billion — making it the most valuable U.S. company in history — and it will soon bump AT&T to join the benchmark Dow Jones industrial average.
Q&A: A LOOK AT SOLAR PLANE ATTEMPTING ROUND THE WORLD TRIP
United Arab Emirates (AP) — Two Swiss pioneers are attempting to fly around the world in a solar-powered airplane without a drop of fossil fuel. Described by its creators as “an airborne laboratory,” the single-seat Solar Impulse 2 has 17,248 ultra-efficient solar cells that transfer solar energy to four electrical motors that power the plane’s propellers. The plane’s ideal flight speed is about 25 knots, or 45 kph (28 mph), though that can double during the day when sun’s rays are strongest.
US WHOLESALE STOCKPILES INCREASE, SALES SINK IN JANUARY
WASHINGTON (AP) — U.S. wholesale businesses increased their stockpiles by a modest amount in January as sales plunged by the largest amount in six years. Stockpiles held by wholesale businesses rose 0.3% in January after no change in December and a 0.8% November increase, the Commerce Department reported Tuesday. Sales dropped 3.1% in January following a 0.9% December decline. The January decline was the largest setback since sales fell 3.6% in March 2009 when the country was mired in the Great Recession. January marked the fourth consecutive month that sales have fallen.
SPATE OF DERAILMENTS DEEPENS FEAR OF OIL TRAIN DISASTER
WASHINGTON (AP) — Four trains hauling crude oil have derailed in the U.S. and Canada since mid-February, rupturing tank cars, spilling their contents, polluting waterways and igniting spectacular fires that burned for days. The number of accidents overall is going up because the oil boom in the U.S. and Canada has dramatically increased the amount of oil shipped by rail. The derailments have deepened safety concerns that if an oil-train accident were to occur in a populated area, the results could be disastrous.
DUKE ENERGY TO PAY $146M TO SETTLE LAWSUIT OVER CEO OUSTER
RALEIGH, N.C. (AP) — America’s largest electric company said Tuesday that it will pay nearly $150 million to settle claims that shareholders lost millions when it ousted its CEO hours in a surprise move after a long-anticipated buyout. Duke Energy said its insurers and shareholders would pay $146 million — an “off the charts,” number for such a settlement, according to one expert — to end the lawsuit filed after the company’s July 2012 buyout of Raleigh-based Progress Energy Inc. Duke set aside $26 million for the amount not covered by insurance and said consumers would not pay the cost.
CREDIT SUISSE SHARES SURGE AS BANK SWITCHES CEOs
BERLIN (AP) — Shares in Credit Suisse surged after the Swiss bank sought to turn the page on a period of scandals and fines by replacing its CEO, Brady W. Dougan, with the head of British insurer Prudential, Tidjane Thiam. Dougan will step down at the end of June to give way to Thiam, who helped Prudential expand into emerging markets in recent years. Credit Suisse shares were up 8.2% on the news, trading at 25.11 francs per share in late day trading in Zurich.
TARGET LAYS OFF 1,700, WON’T FILL ANOTHER 1,400 VACANCIES
Target Corp. said Tuesday that it is laying off 1,700 workers and eliminating another 1,400 unfilled positions as part of a restructuring aimed at saving $2 billion over the next two years. The news put a number on planned layoffs first announced last week as several thousand. The company said the cuts would fall primarily on headquarters locations in Minneapolis. The layoffs would amount to about 12 ½% of the 13,500 workers there.
CHINA’S AUTO SALES GRO9WTH DECELERATES IN FEBRUARY
BEIJING (AP) — China’s auto sales growth decelerated in February despite a near doubling in purchases of Chinese-made SUVs, an industry group reported Tuesday. Sales in world’s biggest auto market rose 6.4 per cent to 1.4 million vehicles, according to the China Association of Automobile Manufacturers. That was down from January’s 10.3% expansion. Demand for autos has weakened as China’s economic growth cooled to a two-decade low last year of 7.4%. February sales also were depressed by the Lunar New Year holiday, when many businesses close for up to two weeks.
NEW ZEALAND INVESTIGATING THREAT TO POISON BABY FORMULA
WELLINGTON, New Zealand (AP) — An anonymous blackmailer threatened to poison infant formula in New Zealand to protest the country’s use of poisonous baits for pest control, and sent dairy giant Fonterra packets of milk powder laced with pesticide, police said Tuesday. Prime Minister John Key said the threat was likely a hoax, and assured parents that formula was safe for babies to drink. But the announcement prompted fears of a backlash against the country’s economically crucial dairy industry.
REPORT: SPECIALTY DRUGS DRIVE PRESCRIPTION SPENDING JUMP
Prescription drugs spending jumped 13 per cent last year, the biggest annual increase since 2003, according to the nation’s largest pharmacy benefits manager. Express Scripts Holding Co. said Tuesday that the jump was fueled in part by pricey specialty drugs that accounted for more than 31 cents of every dollar spent on prescriptions even though they represented only 1% of all U.S. prescriptions filled.
OBAMA CALLS FOR MORE RIGHTS FOR STRUGGLING STUDENT BORROWERS
ATLANTA (AP) — Issuing a clarion call to Americans saddled by student debt, President Barack Obama urged student borrowers Tuesday to stand up for their rights, and announced a medley of modest steps to bring some order to a notoriously chaotic system. Obama unveiled his “student aid bill of rights” before a gymnasium packed with nearly 10,000 students at Georgia Tech, where he said the nation must mobilize to bring about deeper changes to student loans. Not only should every American be able to afford college, Obama said, they also should be able to afford the loan payments that kick in with a vengeance once they graduate.