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 Tuesday, the Dow Jones industrial average edged up 17.60 points, or 0.1%, to 17,383.84. The Standard & Poor’s 500 index fell 5.71 points, or 0.3%, to 2,012.10. The NASDAQ composite dropped 15.27 points, or 0.3%, to 4,623.64.
U.S. benchmark crude slumped $1.59, or 2 per cent, to $77.19 a barrel, the lowest price since October 2011. Brent crude, the international benchmark, fell $2.34, or 2.8 per cent, to $82.43 a barrel. Wholesale gasoline dropped 4 cents to $2.078 a gallon. Heating oil lost 4.7 cents to $2.443 a gallon. Natural gas gained 8.3 cents to $4.129 per 1,000 cubic feet.
GOP WAVE – REPUBLICANS TAKE THE SENATE
West Virginia, Montana, South Dakota, Colorado, Arkansas and Iowa, those six states, won by Republicans and previously held by Democrats, have given the GOP a majority in the United States Senate. There are a few too close to call, and some that will go to run-off, but barring a Democrat sweep of every state that's still out and a Greg Orman victory over Pat Roberts, there will be a new majority in the Senate come January.
And, of course, barring a strange power struggle, Sen. Mitch McConnell - who survived what was supposed to be a close race in and of itself - will emerge as the new Senate Majority Leader. We'll have to see what the Democrats do in the lame duck session, and what "executive powers" that President Obama will attempt to exercise, but we're looking at an entirely new governing body. A new majority, and a new paradigm. There are a few states still out that could give the GOP an incredibly powerful majority, which would be important for playing defense in 2016. Alaska, North Carolina, Georgia, and Virginia are either going to a run-off or are too close to call. We're seeing more and more calls, though - so stay tuned. Of course Arizona Congressional Districts 1 and 2 are too close to call so we’ll have to wait and see. Republicans have also been called for most of the State offices, Governor, Treasurer, Attorney General and Secretary of State while a few others are still too close to call.
US FACTORY ORDERS SLIP IN SEPTEMBER
WASHINGTON (AP) — Orders to U.S. factories declined in September, dragged by falling demand in the volatile aircraft category. The Commerce Department said Tuesday that orders retreated 0.6% in September, after having plunged 10% in August, also due largely to plummeting demand for aircraft. There are usually dramatic monthly swings in demand for aircraft, which before falling in September and August had soared by 315.6% in July. Excluding the volatile transportation sector, factory orders have been flat for the past two months. Orders at aluminum, iron and steel mills rose in September, as did demand for furniture and motor vehicles. But those gains were offset, in part, by declining orders for construction machinery, electronics products and consumer goods.
US TRADE DEFICIT EXPANDS IN SEPTEMBER
WASHINGTON (AP) — The U.S. trade deficit rose in September as exports slumped, a sign that the world’s biggest economy is starting to feel the impact of weakening global growth. The Commerce Department said Tuesday that the trade deficit rose 7.6% to $43 billion in September. That marks the first increase in four months. A deficit occurs when a country imports more than it exports. Economic slowdowns in Europe and China appear to have hurt demand for American-made goods. Since September, the dollar has appreciated in value more than 4% against the euro to $1.25, making U.S. products less competitively priced abroad. Exports fell 1.5% to $195.6 billion, led by declines in shipments of industrial supplies, consumer products and capital goods such as engines and computers.
PACE OF US HOME PRICE GROWTH SLOWS IN SEPTEMBER
WASHINGTON (AP) — The U.S. housing market cooled off in September, as home prices rose at an ever slowing pace. Prices increased 5.6% in September compared to a year ago, real estate data provider CoreLogic said Tuesday. That’s down from annual gains of 6.4% in August and 6.8% in July. Home prices had been climbing by as much as 12% annually toward the end of last year. But the acceleration out of the housing crash that triggered the Great Recession has become unsustainable. Wages have barely budged after inflation and lending standards remain relatively strict. This makes it difficult for families to pay the higher home prices. CoreLogic forecasts that the slowdown will continue, with annual home price growth slipping below 5% by September 2015. This should help bolster home sales for first-time buyers with adequate incomes and down payment savings, yet there are few signs that younger Americans are buying real estate.
A LIFETIME OF PERKS IN UAE HELP CUSHION WEALTH GAP
UMM AL-QUWAIN, United Arab Emirates (AP) — The United Arab Emirates contains the world’s tallest building, an artificial indoor ski slope and man-made islands shaped like the world. Dubai’s fleet of police cars includes a $2.5 million Bugatti Veyron and a $500,000 Lamborghini Aventador. Look past the blinding glitz, though, and you discover a gulf separating the elite and their riches from most Emiratis. Yet in contrast to much of the world, a note of complaint is seldom heard here, and the reason is simple: Most Emiratis live lives of comfort that they owe to a bounty of perks and benefits from the government. The welfare system, built more than four decades ago under Abu Dhabi’s Sheik Zayed bin Sultan Al Nahyan, helped forge long-standing political loyalty. The question is how long it will last. Officials and economists warn that the lavish government spending that has long sustained a robust Emirati middle class could eventually be curtailed. Analysts say the United Arab Emirates’ economic viability requires guiding more Emiratis into self-sustaining private businesses and weaning them from the state’s openhanded patronage.
EU CUTS GROWTH FORECASTS AS BIG ECONOMIES FALTER
BRUSSELS (AP) — The European Union cut its already low economic growth forecasts further on Tuesday, indicating the recovery will remain sluggish amid problems for the bigger countries, particularly France and Germany. The official forecast for growth this year in the 18-country eurozone was cut to 0.8% from a prediction of 1.2% made in the spring. Indicating little good was expected next year too, it reduced the 2015 prediction from 1.7% to 1.1%. Unemployment in the currency union was forecast to decrease at a painfully slow rate — after 11.6% this year, it is expected to dip to 11.3% next year and 10.8% in 2016. The broader 28-nation EU, which includes non-euro members like Britain and Sweden, was expected to grow 1.3% this year from a previous 1.6% forecast.
ALIBABA PROFIT DOWN, INVESTS IN MOBILE, MARKETING
NEW YORK (AP) — Alibaba’s financial results in its first quarter as a publicly traded company highlight its strategy of plowing its profit back into investments, particularly in mobile commerce and marketing. The Chinese e-commerce powerhouse said net income fell 39% in the July-September period despite a 54% surge in revenue on strong user demand. The results released Tuesday show that Alibaba has a similar strategy as U.S. e-commerce retailer Amazon: Invest profit back into the company to spur long-term growth. Last month, Amazon.com Inc. reported a large loss in the third quarter despite a 20% increase in revenue. But the two companies operate differently. Amazon works with third-party sellers but it also sells and distributes products directly, while Alibaba does not compete with its merchants or hold inventory. Instead, Alibaba serves as a conduit that links buyers and sellers of all kinds. It makes money from transaction fees and marketing services.
ARBY’S CEO ON CUSTOMIZED ORDERS, QUALITY MEATS
NEW YORK (AP) — Arby’s, the chain known for its roast beef sandwiches, is trying to stand out in the crowded fast-food industry. It’s marketing its meats as being of superior quality and pushing to let customers know they can order sandwiches sans onions or mayo. It launched TV ads this summer featuring close-ups of its meats on a carving board. Actor Ving Rhames provides a voiceover: “We have the meats!” And next week, it’s introducing a line of steak sandwiches for the suggested price of $5.49. The efforts come after the struggling chain was jettisoned by Wendy’s in 2011 and acquired by private equity firm Roark Capital Group. The year before, Arby’s had said sales tumbled 9%, following a 6% drop the previous year. Deteriorating franchisee finances led to the closure of many locations.
FORD ISSUES 5 RECALLS COVERING 202,000 VEHICLES
DETROIT (AP) — Ford is recalling more than 202,000 cars, vans and trucks in North America in five separate recalls to fix gas leaks, air bag sensors, stalling and other issues. The company says the problems have caused one accident, but it’s not aware of injuries in any of the cases. The biggest of the recalls announced Tuesday affects about 135,000 F-150 pickups and Ford Flex family haulers from the 2014 model year. Faulty passenger seat weight sensors can stop air bags from inflating in crashes. Dealers will widen a gap between the seat frame and track, and then recalibrate the sensors. Also covered are some 2009 through 2014 F-150s that were serviced for seat track problems this year.
BICYCLING MAGAZINE NAMES TUCSON A BIKE-FRIENDLY CITY
TUCSON - Bicycling magazine calls Tucson a favorite winter training destination for pro cyclists, while also highlighting the city's sunny, dry climate, and its proximity to mountains. The magazine, which ranks Tucson 18th overall in its 2014 Top 50 Bike-Friendly Cities report, also mentions a robust network of bike boulevards for pros and casual riders, shared-use bike paths, and plenty of bike shops that cater to riders. From Bicycling magazine: https://bit.ly/1rSpbz7
SPEEDWAY PAVEMENT IMPROVEMENTS CONTINUE
TUCSON - Beginning tomorrow, crews from Southern Arizona Paving and Construction Co., under contract with the City of Tucson Department of Transportation (TDOT), will begin work to improve pavement conditions on Speedway Boulevard, from Greasewood Road to Silverbell Road. The pavement improvement is part of the voter-approved $100 million, five-year Road Recovery bond project. Crews will start the project by lowering manhole and water valve covers. Work hours will be 9 a.m. to 4 p.m., with scheduled completion by this Friday. Crews will return to the area on Monday, Nov. 10 to begin milling (removing asphalt) and paving operations, scheduled to be finished on Thursday, Nov. 13. Work hours for that portion of the project will be 7 a.m. to 5 p.m.
Read the news release: https://1.usa.gov/13DQQPW