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 closed up 108.08 points, or 0.66%, to 16,481.94. The S&P 500 gained 9.50 points, or 0.52%, to 1,848.38. The NASDAQ composite rose 31.87 points, or 0.76%, to 4,214.88. Benchmark U.S. crude oil for February delivery rose $1.58, or 1.7%, to $94.17 a barrel on the New York Mercantile Exchange.

BANK OF AMERICA 4Q EARNING JUMP NEARLY FIVE FOLD
NEW YORK (AP) — Bank of America Corp. said Wednesday that its fourth-quarter profit jumped sharply from a year earlier, as the loans on the bank’s balance sheet continued to improve. The nation’s second-largest bank earned $3.44 billion in the October to December period, up from $732 million a year earlier. On a per-share basis, the bank earned 29 cents, beating the 26 cents expected by financial analysts. Fourth-quarter revenue rose to $22.32 billion from $19.6 billion, exceeding analysts’ forecasts of $21.2 billion. The bank’s profits got a big boost because Bank of America was able to significantly reduce the amount of money it holds on its balance sheet to protect itself from bad loans. The bank’s provision for credit losses fell to $336 million from $2.2 billion in the same period a year earlier. Even BofA’s mortgage division, which took huge losses after the housing bubble popped, improved.

SOLAR CITY TURNS TO RETAIL INVESTORS FOR CASH
NEW YORK (AP) — Solar panel installer SolarCity is turning to retail investors for cash. The company said Wednesday that it plans to sell securities directly to individuals and others interested in investing in its rooftop solar systems. The move is a novel way for the San Mateo, Calif., company to finance the enormous cost of installing panels on thousands of roofs — a typical residential system costs $25,000 — while appealing to retail investors who are on the hunt for better rates of return than they can find in savings accounts and government bonds. The securities will likely be similar to bonds or certificates of deposit. But instead of being backed by SolarCity, they would be backed by hundreds or thousands of contracts with rooftop solar customers. Wall Street has long created such products, called securitizations, which bundle assets such as mortgages or other loans into securities that can then be bought and sold. Now SolarCity wants to offer its own version through its website. SolarCity Corp. CEO Lyndon Rive said in an interview that he expects the company will offer several types of products that investors could hold for different lengths of time, or even trade. He expects eventually to raise “billions” of dollars this way.

US WHOLESALE COSTS ROSE LAST MONTH ON GAS PRICES
WASHINGTON (AP) — U.S. wholesale prices increased in December, pushed up by rising gasoline prices and energy costs. But overall inflation remained mild. The Labor Department said Wednesday that the producer price index, which measures costs before they reach the consumer, rose 0.4% last month from November. That ends three straight months of falling wholesale prices. Gas prices increased 2.2% after recent declines. Home heating oil costs grew at the fastest pace in 10 months, while diesel fuel prices increased at the biggest clip in almost four years. Excluding volatile energy and food costs, so-called core prices increased 0.3% in December. That was partly because of a one-time bump in tobacco costs. Over the past 12 months, overall prices have risen a modest 1.2% and core prices are up just 1.4%. Both are well below the Federal Reserve’s 2% inflation target. Businesses have struggled to raise prices because of historically high levels of unemployment and meagre wage growth. Low inflation has also allowed the Fed to pursue extraordinary stimulus programs to try and boost economic growth.

FED US ECONOMIC GROWTH HEALTHY OVER HOLIDAYS
WASHINGTON (AP) — A Federal Reserve survey shows economic growth remained healthy in most U.S. regions in late November and December, helped by gains in consumer spending and factory output. Nine of the Fed’s 12 banking districts described growth as moderate, according to the Beige Book survey released Wednesday. That’s up from seven districts in October through early November. And two of those districts said growth had accelerated since the previous report. The Beige Book survey is based on anecdotal reports from businesses and will be considered along with other data when the Fed meets next Jan. 28-29. The report showed little signs of the slowdown in hiring that the government reported last week. The Labor Department said Friday that employers added only 74,000 jobs last month, down from an average of 214,000 in the preceding four months.

GOV’T CHARGES WALMART WITH LABOR VIOLATIONS
WASHINGTON (AP) — Federal officials have filed a formal complaint charging that Walmart violated the rights of protesting and striking workers last year. The National Labor Relations Board says Walmart illegally fired, disciplined or threatened more than 60 employees in 14 states for participating in legally protected activities to complain about wages and working conditions. The labor board’s general counsel first laid out the charges last November, but held off on filing a complaint while trying to work out a settlement with Wal-Mart. The company has insisted its actions were legal and justified. The complaint will go before an administrative law judge. If Wal-Mart is found liable, it could be required to award workers back pay, reinstatement and reverse any disciplinary action.

APPLE WILL REFUND AT LEAST $32.5M IN APP CASE
WASHINGTON (AP) — Apple will refund at least $32.5 million to consumers to settle a federal case involving purchases that kids made without their parents’ permission while playing on mobile apps, the government announced Wednesday. The Federal Trade Commission said Apple will make full refunds for any such in-app purchases made by kids using mobile phones and other devices, and incurring charges by accident or without parents’ permission. Apple will have to change its billing practices to make it more obvious that an actual purchase is taking place during the course of the game or app. The commission said it had received tens of thousands of complaints about unauthorized charges.

SOCCER PLAYERS GATHER IN TUCSON FOR ANNUAL COMPETITION
TUCSON – Soccer players from Tucson and other cities in Arizona, New Mexico and Texas compete tomorrow through Sunday at the Tucson Association of Realtors Shootout, formerly known at the Fort Lowell Shootout. The competition at Fort Lowell Park includes an opening ceremony, bracket play, awards and more. Visit Tucson estimates the tournament’s 321 teams and 14,000 spectators bring about $5 million into the Tucson area. Tucson Association of Realtors Shootout: https://bit.ly/1iVsrYr

MINOR LEAGUE BASEBALL COULD RETURN TO TUCSON
TUCSON – An investment group behind a Texas-based independent baseball league has submitted a formal proposal to take over Kino Veterans Memorial Stadium, as early as next month. Reunion Sports LLC said in a letter to Pima County Administrator Chuck Huckelberry that a team with United League Baseball could play as many as 72 games this year, if a deal can be worked out. The proposal offers the County-run stadium district around $72,000 for year-round occupancy of team offices and seasonal use of the stadium. Reunion Sports also wants to take over concessions at the stadium, offering Pima County 20 percent of the gross revenue. Huckelberry says his staff has reviewed the proposal and is working on a response.

TUSD BUYS EMERGENCY PARENT NOTIFICATION SYSTEM
TUCSON – TUSD‘s Governing Board Tuesday night approved the purchase of ParentLink, at a cost of $72,500 a year. The system will allow all campuses to send emails, text messages and make automated phone calls. The district will upload parent contact information into the system and parents can sign up for other features. The mass notification system will be used for emergency situations, callbacks and general parent communication. The Sunnyside Unified School District has been using the same system for about three years.

HOW TO REPORT TRANSPORTATION PROBLEMS
TUCSON – Is a pothole on your daily commute bothering you? Is a street light out? Does your street need sweeping? Report these types of items to the Tucson Department of Transportation (TDOT), (520) 791-3154, or email the exact location to tdotsr@tucsonaz.gov. You also can use the SeeClickFix website and app.
TDOT Streets & Traffic Maintenance: https://1.usa.gov/1dsyPoZ
SeeClickFix website: https://seeclickfix.com/tucson
SeeClickFix app for Android: https://bit.ly/1fpHIyF
SeeClickFix app for iOS: https://bit.ly/19frEkG

TUCSON BOY DONATES STUFFED ANIMALS TO KIDS IN HOSPITALS
TUCSON- Six-year-old Garrett Tews collected approximately 300 stuffed animals during the holiday season and donated them to pediatric patients at University of Arizona Medical Center-Diamond Children’s and Tucson Medical Center. This is the second consecutive year the boy made the donations. “I want to do this forever,” Garrett said. “I want every patient to have a new bear or stuffed animal on Christmas morning.”
From Advanced Healthcare Network: https://bit.ly/1m5QS7V

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.

Friday, the Dow Jones Industrial average rose 42.06 points, or 0.3%, to close at 16,221.14. The NASDAQ composite added 46.61 points, or 1.2%, to 4,104.74. The S&P 500 index rose 8.71 points, or 0.5%, to 1,818.31. Benchmark U.S. oil rose 28 cents to close at $99.32.

APPLE SIGNS DEAL WITH CHINA MOBILE LTD.

Dec 23 (Reuters) – Apple Inc. said it has signed a long-awaited agreement with China Mobile Ltd to sell iPhones through the world’s biggest network of mobile phone users. In a deal that could add billions of dollars to its revenue, Apple said its smartphones will be available to China Mobile customers starting Jan. 17. Pricing and availability details for the iPhone 5S and 5C lines will be disclosed at a later date, it said in a statement. China Mobile, which has about 760 million customers, will begin registering orders for iPhone from Dec. 25, the company said on its account on the Sina-Weibo micro-blogging service. The tie-up between the pair, in the U.S. company’s second-largest market after its home turf, provides a much-needed boost for Apple in a market where it’s trailing rivals. It will also give Apple extra firepower in its increasing global rivalry with South Korea’s Samsung Electronics Co Ltd. Apple didn’t disclose financial terms of the agreement. Tim Cook, Apple’s chief executive, said in its statement that China is an extremely important market for the Cupertino-based company.

STORES OPEN FOR 100 HOURS TO ATTRACT SHOPPERS

NEW YORK (AP) — Some stores are ending the holiday shopping season the same way they began it — with round-the-clock, marathon shopping hours. Kohl’s for the first time is staying open for essentially five days straight, from 6 a.m. on Friday through 6 p.m. on Christmas Eve. Macy’s and Kmart are opening some of their stores for more than 100 hours in a row from Friday through Christmas Eve. And Toys R Us is staying open for 87 hours straight starting on Saturday, which is typically the second biggest shopping day of the year. The expanded hours in the final days before Christmas are reminiscent of how some retailers typically begin the season on the day after Thanksgiving known as Black Friday. The strategy comes as stores try to recoup lost sales during a season that’s been hobbled by a number of factors.

FURY AND FRUSTRATION OVER TARGET DATA BREACH

NEW YORK (AP) — Potential victims of credit card fraud tied to Target’s security breach said they had trouble contacting the discounter through its website and call centers. Angry Target customers expressed their displeasure in comments on the company’s Facebook page. Some even threatened to stop shopping at the store. Target apologized on Facebook and said it’s working hard to resolve the problem and is adding more workers to field calls and help solve website issues. The fury and frustration come as the nation’s second-largest discounter acknowledged Thursday that data connected to about 40 million credit and debit card accounts was stolen as part of a breach that began over the Thanksgiving weekend. The theft is the second-largest credit card breach in U.S. history, exceeded only by a scam that began in 2005 involving retailer TJX Cos. That incident affected at least 45.7 million card users. Target disclosed the theft a day after reports that the company was investigating a breach. The retailer’s data-security troubles and its ensuing public relations nightmare threaten to drive off holiday shoppers during the company’s busiest time of year.

US ECONOMY EXPANDS 4.1% RATE

WASHINGTON (AP) — The U.S. economy grew at a solid 4.1 per cent annual rate from July through September, the fastest pace since late 2011 and significantly higher than previously thought. Much of the upward revision came from stronger consumer spending. The Commerce Department’s final look at growth in the summer was up from a previous estimate of 3.6 per cent. Four-fifths of the revision in the report released Friday came from stronger consumer spending, mainly in the area of health care. On Friday, President Barack Obama pointed to the upward revision to GDP growth as one of several signs of improvement in the economy. They include four straight months of solid job growth and a drop in the unemployment rate to its lowest point in five years.

UNEMPLOYMENT RATES FALL IN NEARLY ALL US STATES

WASHINGTON (AP) — Unemployment rates fell or were unchanged in all 50 U.S. states in November, evidence that hiring is improving across the country. The Labor Department said Friday that employers added jobs in 43 states and cut jobs in just seven. California, Texas and Indiana reported the largest job gains. The lower state unemployment rates are due in part to robust hiring nationwide over the past four months. U.S. employers added an average of 204,000 jobs from August through November, a strong pickup from earlier this year. The national unemployment rate fell to 7% last month, a five-year low. Still, the decline in state unemployment rates has occurred partly because many people have stopped looking for work. When people who are out of work stop looking for jobs, they’re no longer counted as unemployed. The unemployment rate can fall as a result. Click here for the latest Arizona jobs numbers reported Dec. 20, 2013.

ORACLE BUYING RESPONSYS FOR ABOUT $1.39 BILLION

REDWOOD SHORES, Calif. (AP) — Oracle is buying cloud-based business-to-consumer marketing software company Responsys for about $1.39 billion. Oracle, which also makes business software, said that the deal will extend its offerings of cloud businesses. It already offers cloud-based opportunities for sales, commerce, service, social and marketing activities. Earlier this week, Redwood Shores, Calif.-based Oracle reported that its fiscal second-quarter net income edged down slightly, hurt by flat revenue from new software licenses and cloud software subscriptions. The performance still beat Wall Street’s view. Under the deal announced Friday, Oracle will pay $27 per Responsys Inc. share, a 38 per cent premium to the company’s Thursday closing price of $19.52.

S&P TAKES AWAY EUROPEAN UNION’S AAA CREDIT RATING

PARIS (AP) — The Standard & Poor’s rating agency says it has downgraded the European Union’s credit rating, stripping it of the highest grade of AAA. The agency said Friday that a bitter battle over the EU budget and worsening creditworthiness of its members are behind the decision to downgrade the bloc’s long-term issuer credit rating to AA+. The outlook is stable. A downgrade can sometimes make it more expensive to borrow money on bond markets. But a rating of AA+ is still considered very solid, so the new rating is likely to have little more than symbolic effect. The EU borrows money to lend to member states, other countries and some programs. S&P said loans to Ireland and Portugal — which received bailouts — represent 80 per cent of the EU’s outstanding loans.

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.

Monday, the Dow Jones industrial average jumped 129.21 points, or 0.8%, to close at 15,884.57. The Standard & Poor’s 500 index climbed 11.22 points, or 0.6%, to 1,786.54. The NASDAQ rose 28.54 points, or 0.7%, to 4,029.52. Benchmark U.S. crude for January delivery rose 88 cents to $97.48 a barrel on the New York Mercantile Exchange.

Report: U.S. Oil Output to Approach Record by ’16
NORTH DAKOTA – U.S. crude oil production will approach a record by 2016, climbing to the highest level in 46 years as rising output from shale formations lifts domestic supplies, reducing the nation’s need for foreign oil. Bloomberg reported that domestic output will grow annually by about 800,000 barrels a day to 9.5 million in 2016, nearing the record level of 1970, according to the U.S. Energy Information Administration’s (EIA) Annual Energy Outlook for 2014. Natural gas production will grow 56% to 37.6 trillion cubic feet by 2040, boosting liquefied natural gas exports to 3.5 trillion, the EIA said today. U.S. oil production grew 18% to a 25-year high in the past 12 months, according to the EIA, as the combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies in shale formations including the Eagle Ford in Texas and the Bakken in North Dakota. Burgeoning output has reduced domestic demand for foreign oil and spurred record exports of fuel from U.S. refineries.

MAYOR ROTHSCHILD UNVEILS TWO-YEAR PLAN FOR TUCSON
TUCSON – Reminiscent of Arizona’s “Five Cs” (copper, cattle, climate, citrus and cotton), Mayor Jonathan Rothschild wants to build on what he calls the “Five Ts” during his next two years in office. He identifies those items – technology, trade, transportation, tourism and teaching – as keys to improving Arizona’s economy. Mayor Rothschild says the centerpiece of his new plan is to create jobs and enhance the quality of life in Tucson.
From MayorRothschild.com: https://bit.ly/18LZWp

FULL URBAN LAND INSTITUTE (ULI) REPORT VIDEO AVAILABLE NOW
TUCSON – The Urban Land Institute Advisory Services Panel toured the Downtown Tucson area for a week last month and met with many downtown and community stakeholders from both the public and private sectors. At the end of the week, the independent global nonprofit that provides leadership in real estate development and responsible land use, listed some key recommendations, presenting a roadmap to the future of downtown. The full report presentation is now available to watch on City of Tucson’s YouTube channel. Watch the Report at: https://bit.ly/1k8NTdV

63RD ANNUAL WINTERHAVEN FESTIVAL OF LIGHTS
TUCSON – The community-funded holiday tradition near Fort Lowell and County Club opened over the weekend. Drive-through nights are Dec. 17, 27 and 28. All other nights, vehicular traffic is limited to residents. The festival is one of the longest running of its kind in the country. The holiday event benefits the Community Food Bank of Southern Arizona. The light displays are free, but food donations are encouraged. Last year, the Food Bank brought in nearly 34,000 pounds of food and more than $20,000. Winterhaven will be decorated through Dec. 28.
Winterhaven Festival of Lights: https://www.winterhavenfestival.org/
Community Food Bank of Southern Arizona: https://bit.ly/1cxrKze

POSSIBLE CHINA DEAL COULD PEP UP iPHONE SALES
BEIJING (AP) — Apple Inc. might have a chance to pep up cooling iPhone sales in China if it finally can reach a deal with the world’s biggest phone carrier. Once China’s must-have gadget, the iPhone has seen its explosive popularity squeezed as the market filled with lower-priced rivals from Samsung to ambitious local brands. Some analysts say anybody who wants an iPhone and can afford it already has one. That might change if Apple can gain access to China Mobile Ltd.’s network and a new pool of potential customers. After a year long courtship, there are signs the two corporate giants might finally be edging toward a deal. The Wall Street Journal said it could be announced as early as this week, though China Mobile spokespeople have said the companies were still talking.

POLL: AMERICANS SEE END OF STOCK SURGE
NEW YORK (AP) — Americans aren’t expecting another bang-up year for the stock market, according to a new Associated Press-GfK poll. Of the people polled, 40% think the market will stabilize where it is now by the end of 2014, with 39 per cent predicting that it will drop, but not crash. Only 14% believe the market will rise and 5% it will crash. The Standard & Poor’s 500 index has surged 24.5% to 1,775 in 2013, putting it on track for its best year in a decade. The rally has been fueled by higher corporate earnings, a slow but steady recovery in the U.S. economy and stimulus from the Federal Reserve.

FDA: ANTI-BACTERIAL SOAPS MAY NOT CURB BACTERIA
WASHINGTON (AP) — After more than 40 years of study, the federal government said Monday it has no evidence that the anti-bacterial chemicals used in countless common soaps and washes help prevent the spread of germs, and it is reviewing research suggesting they may pose health risks. Regulators at the Food and Drug Administration said they are revisiting the safety of chemicals such as triclosan in light of recent studies that suggest the substances can interfere with hormone levels and spur the growth of drug-resistant bacteria. The government’s preliminary ruling lends new support to outside researchers who have long argued that the chemicals are, at best, ineffective and at worst, a threat to public health.

US FACTORY OUTPUT RISES A SOLID 0.6% IN NOVEMBER
WASHINGTON – U.S. factories increased output in November for the fourth straight month, led by a surge in auto production. The gains show manufacturing is strengthening and could help boost economic growth at the end of the year. Factory production rose 0.6% in November after a 0.5% gain in October, the Federal Reserve said Monday. Production of motor vehicles and parts increased 3.4%, rebounding from a 1.3% decline in October. Factories also stepped up production of home electronics and chemical products. Industrial production, which includes manufacturing, mining and utilities, rose 1.1% in November. It was the fourth straight gain.

US WORKER OUTPUT RISES AT BEST PACE IN 4 YEARS
WASHINGTON (AP) — U.S. workers boosted their productivity from July through September at the fastest pace since the end of 2009, adding to signs of stronger economic growth. The Labor Department said Monday that productivity increased at a 3% annual rate in the third quarter. That’s up from an initial estimate of 1.9% and much stronger than the 1.8% rate from April through June. Productivity rose because economic growth was much stronger than previously estimated in the third quarter. Productivity is the amount of output per hour of work. Higher productivity enables companies to pay employees more without sparking inflation. But greater productivity can also slow hiring if it shows companies don’t need more workers to boost output. However, productivity growth has been mostly flat over the past year. That’s because the gains from the past six months have been offset by declines in previous six months.

FOREIGN HOLDINGS OF US TREASURY DEBT UP IN OCTOBER
WASHINGTON (AP) — Foreign buyers of U.S. Treasury securities increased their holdings for a third month in October, despite budget battles in Washington that shut down the government for 16 days that month. The Treasury Department says total foreign holdings edged up 0.01% in October to $5.65 trillion after a 1% gain in September. Holdings had fallen from April through July, likely reflecting concerns about rising interest rates. In October, holdings were 1.2% below the record high of $5.72 trillion reached in March. China, the largest foreign buyer of Treasury debt, boosted its holdings 0.8% in October to $1.3 trillion. Japan, the second-largest buyer, trimmed its holdings 0.3% to $1.17 trillion.

AIG SELLING AIRCRAFT LEASING UNIT IN IN $5.4B DEAL
NEW YORK (AP) — AIG is selling its aircraft leasing business International Lease Finance Corp. to AerCap in a cash-and-stock deal valued at approximately $5.4 billion. International Lease Finance has almost 1,000 owned and managed aircraft and has commitments to buy approximately 330 high-demand, fuel-efficient aircraft. It will become a subsidiary of AerCap. American International Group Inc. said Monday that this is the last major sale of one of its non-core assets. AIG received the biggest bailout of the financial crisis five years ago. The insurer has repaid the bailout money and has undergone a massive restructuring that cut its size in half as it focused on its core insurance business.

GOLD FUNDS SEE 31% SLUMP AS WORLD LOSES FAITH

Investors are dumping gold-backed exchange-traded products at the fastest pace since the securities were created a decade ago, mirroring the steepest price drop in 32 years. Holdings in the 14 biggest ETPs plunged 31 percent to 1,813.7 metric tons since the start of January, the first annual decrease since the funds started trading in 2003, data compiled by Bloomberg show. The removals erased $69.5 billion in the value of the assets as prices fell by the most since 1981. A further 311 tons will be withdrawn next year, according to the median of 11 analyst estimates compiled by Bloomberg.