Real Estate Daily News Buzz – December 24, 2013
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 rose 73.47 points, or 0.5%, to 16,294.61. The Standard & Poor’s 500 index was up 9.67 points, or 0.5%, to 1,827.99. The NASDAQ composite rose 44.16 points, or 1.1%, to 4,148.90. Benchmark U.S. oil for February delivery dropped 41 cents to close at $98.91 a barrel on the New York Mercantile Exchange.
MEXICO’S OIL OUTPUT DIPS IN NOVEMBER
MEXICO CITY (Reuters) – Mexico’s Pemex produced 2.513 million barrels per day (bpd) of crude oil in November, down 1% from the previous month, the state-run oil monopoly said on Monday. Exports in November rose a slight 0.6% from October to 1.2 million bpd, according to data posted on Pemex’s website. Mexico’s crude output has fallen by about one quarter since hitting a peak of 3.4 million bpd in 2004. Mexican President Enrique Pena Nieto last week signed into law a radical reform of the country’s energy market, ending a 75-year oil and gas monopoly in the hope of attracting major investments to increase production.
TARGET STEPS UP BREACH INVESTIGATION WITH DOJ
NEW YORK (AP) — Target Corp. said the Department of Justice is investigating the security breach at the retailer that’s being called the second largest such incident in U.S. history. The DOJ declined to comment on whether it’s investigating Target, the nation’s second largest discounter. Target also said that it’s teaming up with the U.S. Secret Service in its own investigation. Target said the Secret Service has asked the company not to share many of the details of the probe. Target said earlier this week that data connected to about 40 million credit and debit card accounts was stolen in a period that began over the Thanksgiving weekend.
US CONSUMER SPENDING ROSE 0.5% IN NOVEMBER
WASHINGTON (AP) — Americans increased their spending in November by the most in five months, and their income edged up modestly. Consumer spending rose 0.5% from October, when spending had risen 0.4 per cent, the Commerce Department said Monday. It was the best showing since June. The gain was driven by a jump in spending on long-lasting durable goods such as autos. Consumer spending is closely followed because it accounts for about 70 per cent of economic activity. The strong November showing suggests solid economic growth this quarter.
JAPAN’S NIKKEI CLIMBS TO 6-YEAR HIGH AFTER WALL STREET RECORDS
TOKYO (Reuters) – Japan’s Nikkei share average climbed to a six-year high, edging closer to the 16,000-mark on Tuesday, driven by buying from long-only investors after U.S. Dow Jones and S&P 500 500 hit all-time highs. The Nikkei was up 0.8% at 15,990.20, hitting its highest level since December 2007. Driven by Tokyo’s massive fiscal and monetary stimulus, the Nikkei is up nearly 54% this year, on track for its best yearly performance since 1972.
MASS. DEAL WOULD CREATE MENINGITIS VICTIMS FUND
BOSTON (AP) — Attorneys for creditors of a Massachusetts pharmacy linked to a nationwide meningitis outbreak say they’ve reached a preliminary settlement that would set up a victim compensation fund worth more than $100 million. Attorney William Baldiga says the agreement was reached among creditors, the bankruptcy trustee and the owners and insurers of the New England Compounding Center. The deal needs approval from a bankruptcy judge. Since the contaminated steroids were discovered, 751 people in 20 states have developed fungal meningitis or other infections; 64 have died. Michigan, Tennessee and Indiana were hit the hardest. A federal investigation of the Framingham-based company is ongoing. The company’s owners say they deny liability or wrongdoing but want to play a major role in establishing the fund.
HEADPHONES, SPEAKERS TOP GIFT LISTS
ATLANTA (AP) — Headphones, speakers and other audio gear are topping the top holiday gift lists of many Americans. Audio equipment is among the top-selling electronics gifts this holiday season, accounting for 13% of the $8 billion in consumer electronics sales between Nov. 24 and Dec. 7, according to research firm NPD Group. Headphone sales rose 14%. Sales of sound bars, long, thin speakers that create surround sound, grew 80%. And wireless speaker sales nearly quadrupled. The trend is being driven in part by the economy. Audio gear, which can range from $10 for ear buds to thousands of dollars for a home theatre system, is being considered by some an affordable luxury during a still shaky economy. Americans also have spent the last several years buying tablets, smartphones and TVs. Now, many are looking for ways to squeeze better sound from those gadgets.
JOS. A BANK TURNS DOWN MEN’S WEARHOUSE OFFER
NEW YORK (AP) — Jos. A. Bank rejected a takeover offer from competitor Men’s Wearhouse, saying the $1.54 billion bid is too low. Men’s Wearhouse said Monday that it will “carefully consider all of our options to make this combination a reality.” That may include launching a proxy battle. Men’s Wearhouse said it could nominate director candidates at Jos. A. Bank’s next annual meeting. It’s the latest twist in the effort to combine the two companies. Putting the two together would create a men’s clothing powerhouse with more than 1,700 outlets.
HYUNDAI, KIA TO PAY UP TO $395 MILLION IN FUEL SETTLEMENT
Hyundai and its sister company Kia said Monday that they will pay up to $395 million to consumers as part of a proposed settlement over overstated gas mileage. The Environmental Protection Agency found inflated numbers on 13 Hyundai and Kia vehicles in November 2012. Hyundai and Kia acknowledged the problem, changed the fuel economy numbers and blamed a procedural error. Since then, Hyundai and Kia have been compensating owners with payments of around $88 annually, which is based on the amount the mileage was overstated and the average price of gasoline. Hyundai Motor Co. and Kia Motors are also offering an option of a lump-sum payment. The companies put a figure to it Monday
VEGAS CASINOS DRAW TOURISTS WITH HOLIDAY EXHIBITS
LAS VEGAS (AP) — Las Vegas has mostly shelved its attempt to rebrand itself as a family-friendly wonderland. But there’s one exception: the dreaded holiday season, when visitor numbers crater and room vacancies soar. In an attempt to lure tourists, Las Vegas casinos are staging increasingly elaborate holiday events. For example, the Bellagio has again transformed its conservatory into a faux winter wonderland featuring a 42-foot-tall Christmas tree, a life-sized candy house, a walk-through snow globe and topiary polar bears. The casino’s dancing water fountains are leaping to Christmas classics, and tourists are taking photos with a 250-pound chocolate Grinch.
BLACKSTONE’S LA QUINTA FILES CONFIDENTIALITY FOR IPO
(Reuters) – La Quinta Holdings Inc, a hotel chain backed by Blackstone Group LP, said on Monday it had confidentially filed with U.S. regulators for an initial public offering of its common stock. The company has filed with the U.S. Securities and Exchange Commission under the controversial Jumpstart Our Business Startups (JOBS) Act, which allows firms to submit registration documents to the SEC away from public eyes. Reuters reported earlier that Blackstone was seeking as much as $4.5 billion for the La Quinta chain in an auction that attracted interest from hospitality holding companies such as Choice Hotels International Inc. as well as private equity firms. With more than 830 hotels, La Quinta is one of the largest owners and operators of budget hotels in the United States. Blackstone took La Quinta private in 2006 in a $3.4 billion deal. The number of shares of common stock to be sold and the price range for the proposed offering have not yet been determined, the company said.