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 of the day will be.
The Dow climbed 218.19 points, or 1.2 per cent, to 18,807.88. The S&P 500 index added 4.22 points, or 0.2 per cent, to 2,167.48. The tech-heavy NASDAQ lost 42.28 points, or 0.8 per cent, to 5,208.80.
Benchmark U.S. crude fell 61 cents, or 1.3 per cent, to close at $44.66 a barrel in New York. Brent crude, used to price international oils, lost 52 cents, or 1.1 per cent, to close at $45.84 a barrel in London. Wholesale gasoline slid 2 cents to $1.34 a gallon. Heating oil fell a penny to $1.44 a gallon. Natural gas lost 6 cents, or 2.2 per cent, to $2.63 per 1,000 cubic feet.
Trump Can Quickly Put His Stamp on the Federal Reserve “There are two vacancies on the Fed because Senate Republicans this year blocked a vote on President Barack Obama’s two nominees to the central bank: Allan Landon, a former Bank of Hawaii executive, and Kathryn Dominguez, a professor at the University of Michigan, over a dispute over who at the Fed would oversee the central bank’s new powers to oversee Wall Street. Ian Shepherdson, chief economist at Pantheon Macroeconomics, said Trump was likely to nominate two ‘hard money’ candidates.” (MarketWatch)
Fed Still Due for Single Rate Hike, Then Hold, Says St. Louis Fed’s Bullard “The U.S. economy will remain in a low interest rate "regime" for perhaps two to three more years, St. Louis Federal Reserve President James Bullard said on Thursday, repeating his call that a single interest rate increase would be adequate for the foreseeable future. Bullard did not mention the U.S. election results or any possible effect on volatility or the economic outlook in prepared remarks at a presentation to a breakfast hosted by Commerce Bank.” (Reuters)
What Donald Trump’s Election Could Mean for Home Prices “President-elect Donald Trump started his career in real estate. His father was a real estate tycoon, and he has made a fortune building or licensing his name to luxury condominiums, hotels and casinos. But will that experience enable him to help the middle class, which faces a lack of affordable housing and rising prices? Trump had little to say on the campaign trail about housing, other than wryly observing that even if he lost his bid for the coveted 1600 Pennsylvania Ave. address he could always stay at his new glittering $200 million Trump Hotel four blocks down from the White House.” (MarketWatch)
Retail Industry Asks Trump to Choose Pragmatism over Idealogy “Trump, who scored a surprise victory against Democratic candidate Hillary Rodham Clinton on Tuesday, has repeatedly sparred with some retail CEOs. He has also threatened to slap large tariffs on items made overseas, a move that would drastically lift prices for consumers and be particularly painful for discount chains and department stores, most of whose apparel, toys, electronics and other merchandise is made in low-cost locales like China.” (Fortune)
Macy’s Commits to Wringing Value Out of Real Estate as Sales Continue to Fall “The department store will allow real estate firm Brookfield Asset Management to explore development opportunities at some 50 real estate locations, whether it’s completely redeveloping an existing store or developing strips of unused land next to Macy’s stores. These will mostly be owned and ground-leased locations in shopping malls that are not owned by major mall owners. Macy’s also said on Thursday that it will sell its Union Square men’s store in San Francisco for $250 million and its downtown Portland store for $54 million. It is continuing to look at options for its Minneapolis, Chicago and New York City locations.” (Forbes)
Real Estate Shares Close Mixed Post-Election “Real-estate investors on Wednesday took the first crack at identifying winners and losers after the election of property developer Donald Trump as the 45th U.S. president. Home builders, warehouse and healthcare-facility landlords lagged behind the 1.1% rise of the S&P 500-stock index, while certain office developers and hotel operators edged higher. Lackluster demand for U.S. government debt on Wednesday raised fears of a prolonged bout of higher interest rates in a Trump administration.” (Wall Street Journal)
What a Trump Victory Means for Christmas “The presidential election is over but the holiday season is just beginning. What that will mean in a country that was deeply divided over who would be the next commander in chief will be hashed out at the mall. Heading into retail's biggest season, ‘there will be enormous hope’ among those who supported Republican Donald Trump and ‘there will be absolute dread’ among those who supported Democrat Hillary Clinton, said Candace Corlett, president at WSL Strategic Retail, a retail consulting firm.” (CNBC)
Larry Silverstein Shares Insights on Trump Win “New York real estate magnate Larry Silverstein, who supported Hillary Clinton in the race for president, expressed optimism that fellow New York developer Donald Trump would govern from the center. Speaking at the Bisnow office market conference in lower Manhattan, the chairman of Manhattan-based real estate firm Silverstein Properties Inc. said Trump’s determination would lead him to govern as a unifying force. ‘He works hard. He is highly focused when he wants to be,’ Silverstein said, noting he has known Trump for more than 30 years.” (Commercial Property Executive)
Trump Warned Amazon Would Have ‘Problems’ Under His Presidency—Here’s What Could Happen “Trump seems to believe that Bezos' ownership of The Washington Post — owned by Bezos himself, not Amazon — is somehow helping Amazon keep its taxes low. He once called Amazon a ‘big tax shelter’ and suggested Bezos is using The Post's unprofitable business as a means for tax deduction on Amazon. He also said Amazon is getting away with ‘murder’ because Bezos is using The Washington Post's influence to keep politicians away from taxing the company properly.” (Business Insider)
Online Activewear Retailer, Fabletics, Opens Shop in Tampa “Fabletics, founded by TechStyle Fashion Group and actress Kate Hudson, was born as an online business in October 2013. While the original plan didn’t include physical locations, the activewear brand took off. Two years later, the first round of stores opened. ‘There is no substitution to actually touching and feeling the product and our customers wanted to shop in more of the traditional sense,’ said Dustin Netral, vice president of retail operations. ‘We’re an approachable activewear line with a more premium fit, feel and finish, but at approachable price points.’” (Tampa Bay Times)