Real Estate Daily News Buzz – October 16, 2013

Business Matters 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 stock market to save you time. You might find anything here for a quick read and tidbit of knowledge. We also call it the reading candy store.

The Dow Jones industrial average fell 133.25 points, or 0.9%, to 15,168.01. The Standard & Poor’s 500 index fell 12.08 points, or 0.7%, to 1,698.06. The NASDAQ composite fell 21.26 points, or 0.6%, to 3,794.01.  Benchmark crude for November delivery fell $1.20 to close at $101.21 a barrel on the New York Mercantile Exchange.

WALMART PLAYING WITH NFL ON BLACK FRIDAY

Walmart has been an advertiser on National Football League broadcasts in the past, but the retail giant rarely has bought a lot of TV spots during games because of the high cost. But, all that appears to be changing as the retailer is increasing its NFL advertising this Thanksgiving to support its Black Friday sales, reports AdAge. “We’re doing more with the NFL around Black Friday than we’ve ever done,” said Walmart U.S. Chief Marketing Officer Stephen Quinn during an interview at the Association of National Advertisers Masters of Marketing Conference earlier this month in Phoenix.

TREASURY RATES RISE WITH 3-MO. BILLS HITTING HIGHEST LEVEL SINCE FEBRUARY 2011

WASHINGTON – Interest rates on short-term Treasury bills rose in Tuesday’s auction, with three-month bills reaching the highest level in more than two years. The Treasury Department auctioned $35 billion in three-month bills at a discount rate of 0.130%, up from 0.035% last week. Another $30 billion in six-month bills was auctioned at a discount rate of 0.150%, up from 0.060%. The three-month rate was the highest since three-month bills averaged 0.145% on Feb. 28, 2011. The six-month rate was the highest since those bills averaged 0.160% on Oct. 29, 2012.

FITCH PUTS US CREDIT RATING ON NEGATIVE WATCH

WASHINGTON – The Fitch credit rating agency has warned that it is reviewing the U.S. government’s AAA credit rating for a possible downgrade, citing Thursday’s looming deadline to increase the nation’s borrowing limit. Fitch has placed the U.S. credit rating on negative watch, a step that would precede an actual downgrade. The agency said it expects to conclude its review within the next six months.  Fitch says it expects the debt limit will be raised soon, but adds, “the political brinkmanship and reduced financing flexibility could increase the risk of a U.S. default.” Fitch is one of the three leading U.S. credit ratings agencies, along with Standard & Poor’s and Moody’s. S&P downgraded U.S. long-term debt to “AA” in August 2011.

HIGH-SPEED STREETCAR TESTING BEGINS ALONG UNIVERSITY BLVD

TUCSON -This week, the City’s Sun Link Streetcar will undergo tests at speeds of up to 42 m.p.h. in order to check its braking systems. It has three braking systems: disc brakes, a magnetic brake, and regenerative braking, which can be compared to a truck using its engine brake. The testing runs from Sunday to possibly Thursday.  No parking is allowed on University Boulevard from 5 p.m. to 5 a.m., and no traffic is allowed after 8 p.m.

NEW AIRLINE SEATS SQUEEZE IN 5 OR 6 MORE PASSENGERS

It’s not your imagination. There really is a tighter squeeze on many planes these days. The big U.S. airlines are taking out old, bulky seats in favor of so-called slimline models that take up less space from front to back, allowing for five or six more seats on each plane. The changes, covering some of the most common planes flown on domestic and international routes, give the airlines two of their favorite things: More paying passengers, and a smaller fuel bill because the seats are slightly lighter. It’s part of a trend among the airlines to view seats as money-makers, not just pieces of furniture. Add a few inches of legroom and airlines can charge more for tickets. Take away a few inches and they can fit more seats on the plane.

TWITTER TO LIST ON NEW YORK STOCK EXCHANGE

NEW YORK – The New York Stock Exchange is edging out its tech-heavy rival for the biggest stock debut of the year. Twitter says it will list its shares on the NYSE. The micro-blogging service does not say in its latest regulatory filing when it expects to start trading, but the debut is expected before Thanksgiving. It chose the NYSE over the NASDAQ stock exchange, which fumbled Facebook Inc.’s debut last year, damaging its reputation. Both exchanges heavily courted Twitter, which is expected to be the marquee IPO of the year.

COKE EXECUTIVE: DIET COKE UNDER PRESSURE

NEW YORK – Diet Coke, the country’s No. 2 soda, may be losing some of its pop. During a conference call with analysts Tuesday, a Coca-Cola executive noted that Diet Coke was “under a bit of pressure” because of people’s concerns over its ingredients, alluding to the growing wariness of artificial sweeteners in recent years. Steve Cahillane, who heads Coca-Cola’s North American and Latin American business, noted that the issue wasn’t specific to Diet Coke, but that many diet foods and drinks in the U.S. are facing the same concerns.

DEVELOPER CLAIMS COUNTY VIOLATED HIS 1ST AMENDMENT RIGHTS, IN LAWSUIT

TUCSON – Developer Michael Farley is alleging Pima County cost him and his investment group millions when it pulled out of a deal to reroute Valencia Road near Kolb Road. Farley said the move was retaliation over his political activity during the 2012 election, when he backed an unsuccessful campaign against incumbent county supervisors. The lawsuit contends that the county’s vindictive actions violated Farley’s right to free speech and to petition.

NY FIGHTS SITE LISTING HOMES FOR TOURISTS TO RENT

NEW YORK – Each night, people in apartments all over New York City are cleaning up, putting out fresh towels and clearing out — to rent their private space to strangers from around the world. Thousands of city residents are using websites such as Airbnb.com to list apartments or rooms for as little as $35 a night, a phenomenon officials say is illegal in many cases, undercuts the hotel industry, avoids taxes and threatens apartment building safety. New York’s top prosecutor is demanding that Airbnb turn over data on city dwellers who have listed on the site as part of an investigation into whether residents are breaking a state law barring sublets for fewer than 30 days if occupants are not present.

YAHOO’S 3Q RESULTS DROP ALONG WITH AD PRICES

SAN FRANCISCO – Yahoo is regaining its appeal among investors a lot faster than with the online advertisers who generate most of its revenue. The company’s third-quarter numbers released Tuesday are the latest to underscore the challenges facing CEO Marissa Mayer even as Yahoo’s stock continues to soar under her leadership. The shares have more than doubled since Yahoo lured Mayer away from rival Google Inc. 15 months ago, largely because investors prize Yahoo’s 24% stake in Chinese Internet star Alibaba Group Holding.  Alibaba is already making far more money than Yahoo while growing at a rapid pace that bodes well for the future.

CITIGROUP EARNING EDGE LOWER, MISS ESTIMATES

NEW YORK – Citigroup said its earnings fell slightly in the third quarter after a $1 billion drop in revenue from its bond trading business and a slump in mortgage refinancing. Net income for the July-to-September period fell to $3.26 billion from $3.27 billion in the same period a year ago after excluding an accounting gain and other one-time items. The earnings amount to $1.02 per share compared with $1.06 per share a year earlier. Revenue fell to $18.2 billion compared with $19.2 billion a year earlier.

WALMART ANNOUNCES DISCIPLINED STORE EXPANSION

NEW YORK – Wal-Mart Stores Inc. is embracing a disciplined approach to expansion as it responds to a challenging global economy and increasing consumer demands for more convenience. The world’s largest retailer said that it’s closing some stores in China and Brazil to boost productivity in those markets, while it’s accelerating the expansion of small stores in the U.S. at a faster pace than that of its supercenters. It aims to tether these small stores to supercenters, which will act as mini warehouse hubs for their smaller cousins.  The plans, announced at the retailer’s annual analysts’ meeting on Tuesday, come as Walmart aims to cut costs in the face of increasing pressure from expanding competition. That includes online retailers like Amazon.com as well as dollar stores, which have been rapidly adding locations and winning customers with low prices and easy access.

DEPORTATION PROTESTS STRAIN TUCOSN POLICE DEPARTMENT PATROLS

TUCSON – Last Friday, two protests condemning the government’s deportation program, “Operation Streamline,” erupted at the same time, at two locations in the City of Tucson. During the five hours the protests went on, nearly 100 Tucson Police Department Officers were dispatched to both locations. Tucson Police Public Information Officer, Sgt. Chris Widmer, says many of those officers were pulled from patrols throughout the city straining the department’s ability to protect the residents of Tucson.