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.
The Dow Jones industrial average edged down 8.99 points, or 0.1%, to 15,967.03 on Tuesday. The Standard & Poor’s 500 index lost 3.66 points, or 0.2%, to 1,787.87 and the NASDAQ composite fell 17.51 points, or 0.4%, to 3,931.55. Benchmark U.S. crude for December delivery gained 31 cents to close at $93.34 a barrel on the New York Mercantile Exchange.
APPLE GETS $10 MILLION FROM ARIZONA COMMERCE AUTHORITY
Apple will get $10 million from a state business recruitment fund for its 700-worker domestic manufacturing plant planned in Mesa. The Arizona Commerce Authority announced the $10 million grant from the Arizona Competes Fund. The fund is administered by Gov. Jan Brewer and the ACA. The Competes Fund is a $25 million pool used by Brewer and ACA to close deals to bring high-wage businesses and jobs to the state. The Apple money is contingent upon job creation and capital investment by Apple and its manufacturing partner for the East Valley plant, New Hampshire-based GT Advanced Technologies. The Commerce Authority now estimates the capital investments for the Apple plant could total as much as $1.5 billion. The glass component plant will be powered by solar energy and other sources, according to Apple officials. The Salt River Project is partnering with Apple on that project. The ACA estimates the Apple plant will create 1,300 construction jobs to transform the former First Solar factory site. An Apple entity bought the plant site from First Solar on Halloween for $113 million.
RETAILERS EXPECTING 3.1% JUMP IN BLACK FRIDAY SALES
Chicago -- Retailers anticipate a 3.1% increase in sales on Black Friday this year, mirroring their projections from last year. However, a new a survey of top retail chief marketing officers by BDO USA shows that retailers have moderated their expectations for growth in Cyber Monday sales, predicting that sales will grow by 3.7% this year, down slightly from last year’s sunnier 4.3% growth projection. Only 13% of retailers plan to begin their holiday promotions ahead of Black Friday, fewer than the proportion who don’t have any promotions lined up at all (16%) and equal to the proportion that plan to concentrate their promotions over the Thanksgiving weekend. And, further highlighting the decreasing emphasis on Thanksgiving weekend, half say they will spread their promotions evenly throughout the season. Regardless of timing, consumers can expect to see a growing number of discounts this holiday season: A majority of CMOs (63%) anticipate more deals this year.
COME JOIN IN THE FUN AT TUCSON PARADE OF LIGHTS
Tucson, AZ –The Downtown Parade of Lights, now marking its 19th anniversary, is seeking entries to join the floats, brightly decorated vehicles and live music that will fill the streets on December 21, 2013, spreading joy to thousands of onlookers. All neighborhood, youth, and community organizations are welcome, along with dance troupes, families, local businesses, musical groups, and individual participants – pretty much everybody can join in on the fun. The Parade is an expression of Tucson’s community spirit over the holidays, bringing cheer to Southern Arizonans of all ages for the past nineteen years. Entries are being accepted through Monday, December 9th, with fees starting at just $35 per group. All entries are eligible to win prizes up to $500 cash. A panel of judges will make their selection of the best entries before the parade, so entries can proudly display their award-winning float along the parade route. A photo gallery of the 2012 Parade of Lights and the entry form for the 2013 Parade of Lights are available at www.DowntownTucson.org/visit/ParadeofLights. More information is available by emailing Brandi Haga at Brandi@DowntownTucson.org, or by visiting DowntownTucson.org.
COLE CORPORATE INCOME TRUST BUYS NOBLE ENERGY ONE, HOUSTON
HOUSTON-Trammell Crow Co. and partner Prudential Real Estate Investors sold Noble Energy Center One to Scottsdale-based, Cole Corporate Income Trust Inc. The JV sellers disposed of the 497,000-square-foot building only months after breaking ground on the second 450,000-square-foot Noble Energy Center Two. Noble Energy Center One is at 1001 Noble Energy Way in Houston, TX. Once part of the massive Compaq/Hewlett-Packard complex, the building has undergone a significant capital renovation, which included modifications to lobbies, elevators, landscaping, common areas, signage and other aspects of the building and parking garage. The project also obtained LEED® Gold certification from the US Green Building Council. Bernard Branca, Jared Chua and Russell Ingrum with CBRE represented the seller. In January 2012, Noble Energy Inc. signed a long-term lease to establish its global corporate headquarters in the building for more than 10 years. Noble is leasing Energy Center One, and will lease Energy Center Two, that will be complete by 2015. The company’s new campus is anticipated to employ more than 1,600 individuals by 2015. Bernard Branca, Jared Chua and Russell Ingrum with CBRE represented the seller.
JPMORGAN / GOVERNMENT FINALIZE DEAL
WASHINGTON (AP) — JPMorgan Chase & Co. reached a record $13 billion settlement with federal and state authorities, resolving claims over the bank’s sales of low-quality, high-risk mortgage-backed securities that collapsed in value during the U.S. housing crisis. The agreement is the latest chapter in the bursting of the housing bubble. The settlement announced Tuesday requires JPMorgan to pay $9 billion and provide $4 billion in consumer relief, including principal reductions and other mortgage modifications for homeowners facing foreclosure.
JOHNSON & JOHNSON TO PAY OUT $2.5 BILLION IN SETTLEMENTS
WASHINGTON (AP) — Johnson & Johnson said late Tuesday that it will pay $2.5 billion to settle thousands of lawsuits brought by hip replacement patients who accuse the company of selling faulty implants that led to injuries and additional surgeries. The agreement presented in U.S. District Court in Toledo, Ohio, is one of the largest for the medical device industry. It resolves an estimated 8,000 cases of patients who had to have the company’s metal ball-and-socket hip implant removed or replaced. J&J pulled the implant from the market in 2010 after data showed it failed sooner than older implants. The deal provides roughly $250,000 per patient and covers those who had their implants removed or replaced before Aug. 31 this year. The company expects to make most of the payments to patients in 2014.
US SAFETY AGENCY OPENS PROBE INTO TESLA FIRES
DETROIT (AP) — The U.S. government’s auto safety watchdog is investigating whether Tesla’s Model S electric car is vulnerable to fires because roadway debris can pierce the car’s underbody and battery. The National Highway Traffic Administration, which announced the probe early Tuesday, is looking into two incidents in which Model S drivers struck metal objects on highways. The objects penetrated the bottom of the car, punctured the battery and caused fires. Both drivers were warned of a problem by the car and escaped safely.
CORPORATION DEAL-SHY EVEN WITH STOCK SURGES
NEW YORK (AP) — A surging stock market usually comes with a boom in corporate deal-making, but deals are lagging this year, even as the market notches a series of record highs and is headed for its best year in a decade. Deal levels are sluggish for a number of reasons. The U.S. economic recovery has been slow and unsteady. Investors are concerned that growth could falter if the Federal Reserve withdraws its huge stimulus program too quickly. Stock valuations are getting pricier. There are also fears of more budget fights in Washington and a possible default by the U.S. government.
FLORIDA LOOKING TO MIDEAST FOR AVIATION BONANZA
DUBAI, United Arab Emirates (AP) — Tucked near the back of one of the world’s largest airshows is a modest pavilion for the state of Florida, where a handful of businesses are trying to get a piece of the billions being invested in the aviation industry by wealthy Arab governments. Facing stagnation and even economic downturn back home, 11 Florida companies are hawking aviation equipment and training services at the Dubai Airshow, located in a sprawling Arabian desert site that will soon be home to the region’s newest mega-airport. The industry’s most lucrative deals are increasingly being inked in the Middle East, and the biennial airshow gives businesses a chance to promote their products globally. Nearly $200 billion in deals have been announced over the first two days. Florida, which has more than 2,000 aviation and aerospace companies operating there, is the only U.S. state represented.
BUTTERBALL MYSTERY: WHY DON'T TURKEYS PLUMP UP?
NEW YORK (AP) — Butterball apparently has a big fat mystery on its hands: The company says it doesn’t know why some of its turkeys wouldn’t plump up in time for Thanksgiving this year. CEO Rod Brenneman says in an interview that it’s the first time it happened and that the company is investigating what went wrong. Butterball had announced last week that it will have a limited supply of large, fresh turkeys that are 16 pounds or heavier for the holidays. Butterball, a privately held company based in Garner, N.C., declined to say whether it made any changes to its feed formula this year. But the problem seems to have come up rather recently.
BEST BUY POSTS Q3 PROFIT, SALES FLAT
NEW YORK (AP) — Best Buy says it is committed to “winning” the holiday season with price matching, doorbusters and deals as well as its earliest ever opening hours on Thanksgiving — even if that means profit pressure for the electronics retailer in the fourth quarter. Best Buy CEO Hubert Joly has been cutting costs, adding employee training and matching online prices to get customers into stores as it faces competition from discounters and online retailers. On Tuesday the Minneapolis company reported it returned to a profit in the third quarter as the busy holiday season revs up. But the company says it expects a tough competitive environment during the last two months of the year, which can account for up to 40 per cent of a retailer’s annual revenue.
KICKING CAMPBELL SOUP'S CAN
NEW YORK (AP) — Americans’ shift toward fresh foods is kicking Campbell Soup right in the can. The company on Tuesday said its quarterly profit fell 30% as U.S. sales of soups and V8 beverage declined. A recall of its recently acquired Plum Organics products also hurt results and the company cut its outlook for the year. Campbell Soup, based in Camden, N.J., has been trying to reshape its image as a purveyor of shelf-stable canned and other packaged products that are sold in the center aisles of supermarkets. The push comes as people increasingly reach for foods they feel are fresh, migrating toward the perimeters of grocery stores where produce, meats and dairy are sold.
HOME DEPOT Q3 RESULTS UP
ATLANTA - Home Depot’s fiscal third-quarter profit climbed as sales at its U.S. stores strengthened amid the improvement of the housing market. The results for the nation’s biggest home improvement company beat analysts’ estimates and the chain also lifted its full-year forecast again on Tuesday. Its shares briefly touched an all-time high. Home improvement companies have been benefiting from record-low interest rates and rising home prices, spurring customers to spend more to renovate their homes.
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