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.
On Thursday, the Dow Jones industrial average rose 33.27 points, or 0.2%, to 17,719. The Standard & Poor's 500 index rose 4.03 points, or 0.2%, to 2,052.75. The NASDAQ composite rose 26.16 points, or 0.6%, to 4,701.87.
Benchmark U.S. crude rose $1 to close at $75.58 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.23 to $79.33 on the ICE Futures exchange in London. In other energy futures trading, wholesale gasoline fell 1.6 cents to close at $2.028 a gallon, heating oil rose 2.1 cents to close at $2.38 a gallon and natural gas rose 11.8 cents to close at $4.489 per 1,000 cubic feet.
OBAMA’S IMMIGRATION MISSES MARK FOR TECH COMPANIES
“This holiday season, the undocumented advocacy community got the equivalent of a new car, and the business community got a wine and cheese basket,” complained one lobbyist, speaking on condition of anonymity. Instead of more temporary H-1B visas, which allow non-U.S. citizens with advanced skills and degrees in "specialty occupations" to work in the country for up to six years, the 200,000-member U.S. chapter of the Institute of Electrical and Electronics Engineers was hoping for measures to reduce the backlog of H-1B holders awaiting green cards. "If this is all there is, then the president has missed a real opportunity," said Russ Harrison, a senior legislative representative at the IEEE. "He could have taken steps to make it easier for skilled immigrants to become Americans through the green card system, protecting foreign workers and Americans in the process." For instance, IEEE and technology companies want spouses and children to be excluded from employment-based green-card allotments, thereby increasing availability for other foreign tech workers seeking green cards. Tech companies from Microsoft Corp to Intel have complained about being unable to find enough highly skilled employees and want Washington to increase the availability of visas for programmers, engineers and other specialized foreign professionals. "Our focus really is on H-1B visas and trying to expand the number of talented technical professionals that can come to the U.S.," Qualcomm CFO George Davis said ahead of Obama's announcement. "The way the regulations are drafted today there's a lot of room for improvement." Major changes would require Congressional action, however, and tech industry executives are worried that partisan rancor over Obama's unilateral action could set back chances for legislation.
NYC RETAIL RENTS BEAT OUT HONG KONG AS MOST EXPENSIVE
NEW YORK CITY—Manhattan’s Upper Fifth Avenue has overtaken Hong Kong’s Causeway Bay as the world’s most expensive shopping destination, according to a new retail research report, entitled “Main Streets Across the World,” published by Cushman & Wakefield. The report was introduced Wednesday at the MAPIC retail real estate trade show in Cannes, France. According to the research, the ranking of the most expensive retail locations in each country recorded notable movements this year. Rents in New York’s Upper Fifth Avenue hit a record $3,500 per square foot, per year as it leapfrogged Causeway Bay—which saw rents fall by 6.8%—to secure the top spot. The Americas yet again led the way as prime rental values surged ahead by 5.8%, an identical rate to that recorded in 2012/2013. The US and Mexico were the main catalysts behind this expansion, while Brazil acted as a drag on growth.
SENATORS GET NO CLEAR ANSWERS ON AIR BAG SAFETY
WASHINGTON (AP) -- There were apologies and long-winded explanations, but after nearly four hours of testimony about exploding Takata air bags, senators never got a clear answer to the question most people have: whether or not their cars are safe. During a Thursday hearing before the Senate Commerce Committee, Takata's quality chief apologized for the air bag malfunctions, and a senior Honda executive acknowledged his company didn't comply with disclosure laws. Prolonged exposure to airborne moisture can cause Takata's air bag inflator propellant to burn quickly, blowing apart a metal canister and sending shrapnel into passengers. At least five people have died worldwide. Lawmakers have called for a national recall to end confusion, but most automakers have balked. Eight million cars with Takata air bag inflators have been recalled in the U.S., and more than 12 million worldwide. Sen. Bill Nelson, D-Fla., said there could be as many as 100 million Takata-equipped cars globally and 30 million in the U.S.
SOARING GENERIC DRUG PRICES DRAW SENATE SCRUTINY
WASHINGTON (AP) -- Some low-cost generic drugs that have helped restrain health care costs for decades are seeing unexpected price spikes of up to 8,000 percent, prompting a backlash from patients, pharmacists and now Washington lawmakers. Members of the Senate meet Thursday to scrutinize the recent, unexpected trend among generic medicines, which are copies of branded drugs that have lost patent protection. They usually cost between 30 to 80 percent less than the original medicines. Experts point to multiple, often unrelated, forces behind the price hikes, including drug ingredient shortages, industry consolidation and production slowdowns due to manufacturing problems. But the lawmakers convening Thursday's hearing, led by Vermont Senator Bernie Sanders, say the federal government needs to do more to bring down prices.
5 REASONS WHY MOST UNEMPLOYED AREN’T GETTING AID
WASHINGTON (AP) -- There are still a lot of unemployed Americans, but only a fraction of them are actually receiving jobless benefits. The proportion of those out of work who are signed up for government aid has fallen to historic lows of less than 25%. That's a sharp turnaround from just after the recession, when unemployment benefits had been extended nationwide for as long as 99 weeks. That extra coverage meant that in early 2010, as many as three-quarters of those out of work received help, a record high. The drop counters a common assumption that most of those out of work get aid. But the drop also reflects the fact that state and federal benefit programs have been downsized from where they were just a few years ago.
US UNEMPLOYMENT AID APPLICATIONS FALL TO 291,000
WASHINGTON (AP) -- The number of people applying for U.S. unemployment benefits declined slightly last week, suggesting that job gains should remain solid. Weekly applications for jobless aid fell 2,000 to a seasonally adjusted 291,000, the Labor Department said Thursday. The four-week average, a less volatile measure, rose 1,750 to 287,500. Employers are laying off fewer workers and have stepped up hiring this year. The weekly applications are a proxy for layoffs, and have fallen 16 percent in the past 12 months. They are close to the lowest levels since 2000, a sign companies are more confident in the economy and willing to hold onto their staffs.
THANKSGIVING GETAWAY: 46.3 MILLION TO HIT THE ROAD
NEW YORK (AP) -- The good news for Thanksgiving travelers: the price of gas is at five-year lows. The bad news: a lot more people will be on the road. During the long holiday weekend, 46.3 million Americans are expected to go 50 miles or more from home, the highest number since 2007, according to travel agency and car lobbying group AAA. That would be a 4.2% increase over last year. While promising for the travel industry, the figure is still 8.5% short of the 50.6 million high point reached in 2007, just before the recession. Like on every other holiday, the overwhelming majority of travelers — almost 90% — will be driving.
REPORT: GLOBAL OBESITY COSTS HITS $2 TRILLION
LONDON (AP) -- The global cost of obesity has risen to $2 trillion annually — nearly as much as smoking or the combined impact of armed violence, war and terrorism, according to a new report released Thursday. The McKinsey Global Institute consulting firm's report said that 2.1 billion people — about 30% of the global population— are overweight or obese and that about 15% of health care costs in developed economies are driven by it. In emerging markets, as countries get richer, the rate of obesity rises to the same level as that found in more developed countries. The report offers the stark prediction that nearly half the world's adult population will be overweight or obese by 2030 should present trends continue. The report's authors argue that efforts to deal with obesity have been piecemeal until now, and that a systemic response is needed.
US HOME SALES RISE IN OCTOBER
WASHINGTON (AP) -- Americans bought homes in October at the briskest pace this year, a sign that the sluggish housing market is turning around. Sales of existing homes rose 1.5% to a seasonally adjusted annual rate of 5.26 million last month, the National Association of Realtors said Thursday. That's up from a revised pace of 5.18 million in September. October marked the first month in 2014 when sales increased compared to a year ago, registering a 2.5% gain. Still, the Realtors project that 2014 sales will fall below 2013 levels.
POLLS: EMPLOYERS STILL PRIORITZE HEALTH COVERAGE
Employers squeezed by years of rising medical costs and pressure from the health care overhaul are still making employee health insurance a priority, but that coverage may grow skimpier in the coming years. A poll from The Associated Press-NORC Center for Public Affairs Research found that companies that offer health insurance see it as a key tool to attract workers and keep them on the job. But they're also sweating the expense, with 86 percent citing the cost of coverage as a key factor in picking a plan. A separate survey from the benefits consultant Mercer found that only 4 percent of all large employers say they will likely drop their employee health plans within the next five years, a figure that has trended down over the past few years. The survey results run contrary to speculation among benefits insiders that more companies would consider dropping insurance coverage for their employees.
L.A. BECOMES STAGE FOR HIGH-SPEED LUXURY CARS
Few people need an SUV with 567 horsepower that can scream around a racetrack and go from zero to 60 in four seconds. A small but growing number want one. These drivers aren't satisfied any longer with an ordinary luxury car. They crave speed and handling, and they're willing to pay for it. That's why BMW, Mercedes, Cadillac and Porsche are introducing six new high-performance versions of existing vehicles at the Los Angeles Auto Show, which opens to the public on Friday. Although these super-fast models make up only around 3% of luxury automakers' sales, the cars and SUVs bring big profits and give brands an aura of race-car performance that boosts their image with many buyers.
VENEZUELAN CONSUMERS GET CREATIVE AMID SHORTAGES
CARACAS, Venezuela (AP) -- Cloth diapers, baking soda to make deodorant and vinegar to mop the floor. That's not the shopping list of an eco-friendly hipster, it's how an increasing number of resourceful Venezuelans are making do in a time of severe shortages. With the South American country entering what looks to be a third year of empty store shelves amid a deepening economic crisis, Venezuelans are turning to old-timey, all-natural methods to replace their favorite products. Home to the world's largest proven oil reserves, Venezuela is nothing if not a consumerist culture, despite the anti-materialist ideology proffered by the nation's 14-year-old socialist revolution. And with the highest per-capita gas consumption in Latin America, the country isn't about to win any recognition for its environmentalism. But that same oil dependence has led to a cycle of booms and busts that make Venezuelans especially adept at improvising during tough times.
EL TOUR HEALTH EXPO UNDERWAY AT TCC
TUCSON - The El Tour Bicycle, Fitness & Health Expo opened Thursday morning at the Tucson Convention Center (TCC) and will stay open until 9 p.m. The two-day, free event leads up to Saturday's big cycling race. The Expo is a trade show with cycling and health-related vendors and exhibitors. In addition, cyclists will be picking up their rider packets, timing devices and other items. The event is open to the public. The start and finish line for Saturday's race is located at Armory Park, across the street from Children’s Museum Tucson, on South 6th Avenue at 13th Street. El Tour de Tucson https://bit.ly/13EZqxV
NANDI CELEBRATES 3-MONTH BIRTHDAY
TUCSON - Reid Park Zoo's baby elephant is three months old today. Nandi weighs more than 465 pounds, and she received her first vaccine (tetanus) last Thursday. Nandi is still figuring out how to manage the 40,000 muscles in her trunk, entertaining visitors to the Zoo. The Zoo is having a Facebook photo contest (link below) to find the best baby picture. Reid Park Zoo Facebook page: https://on.fb.me/1tpk10T