Real Estate Daily News Buzz – January 31, 2014

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 109.82 points, or 0.7%, to 15,848.61. The NASDAQ composite jumped 71.69 points, or 1.8%, to 4,123.13. The Standard & Poor’s 500 index rose 19.99 points, or 1.1%, to 1,794.19. Benchmark U.S. crude for March gained 87 cents to finish the day at $98.23 a barrel on the New York Mercantile Exchange.

SOLID GROWTH BRIGHTENS ECONOMIC OUTLOOK FOR 2014
WASHINGTON (AP) — Consumers will spend more. Government will cut less. Businesses will invest more. And more companies will hire. Add it all up, and you can see why expectations are rising that 2014 will be the best year for the U.S. economy since the recession ended 4 1/2 years ago. That’s why the Federal Reserve is pressing ahead with a plan to scale back its economic stimulus. The optimists got a boost Thursday from a government report that showed consumers fueled solid economic growth in the final quarter of 2013. The report lifted hopes that the economy will be able to withstand turmoil in emerging economies, a pullback in the Fed’s stimulus and mounting risks to the U.S. stock market over the next 12 months.

GOOGLE’S 4Q EARNINGS RISE 17% BUT AD RATES FALL
SAN FRANCISCO (AP) — Google’s fourth-quarter earnings rose 17% even though a long-running slump in its online ad prices deepened. The performance announced Thursday indicates that Google is still struggling to close the gap between the rates for ads shown on mobile devices and those on personal computers. Advertisers haven’t been willing to pay as much to reach prospective customers on the smaller screens of smartphones and tablets, but Google Inc. has been tweaking its digital marketing system so mobile and PC ad campaigns are bundled together. In doing so, Google Inc. is hoping advertisers eventually will recognize the advantages of reaching people on the go and gradually begin to pay higher prices for mobile marketing pitches.

BITING COLD PUTS A FREEZE ON RESTAURANT BUSINESS
TOLEDO, Ohio (AP) — The homemade matzo ball and beef barley soups are lost on customers walking into Rascals’ NY Deli — because there just aren’t very many of them. Across much of the eastern half of the country, bitter cold and snowstorms in recent weeks have put a chill on restaurants, bakeries and coffee shops, limiting the number of walk-in customers and shrinking tips. Some merchants report sales cut in half. And other businesses that rely on walk-ins and appointments are seeing a hit, including health care specialists and hair salons. They can expect to recoup some losses as people venture out in warmer weather, but for now, that’s cold comfort.

CHINA FACES OBSTACLES ON ROAD TO CONSUMER SOCIETY
BEIJING (AP) — Business should be picking up for Zhao Guoping, a Beijing shopkeeper, as Chinese leaders try to build a consumer society to replace a worn-out economic model based on trade and investment. But his financial struggle highlights the hurdles that ambitious effort faces. Squeezed by higher costs and weak sales to budget-minded shoppers, Zhao said the income from his neighborhood shop has fallen by half to 50,000 yuan ($6,000) a year. The reluctance of Zhao and his customers to open their wallets wider is one of a thicket of obstacles facing communist leaders as they try to rebalance China’s economy away from reliance on investment, a big share of which comes from the government and is losing its ability to boost growth. The government is walking a fine line, however, as an abrupt shift in the economy could hurt growth, with consequences not just for the country but the global economy. China’s economic importance was laid bare last week, when a report showing a drop in manufacturing activity caused turmoil on world markets.

TOYOTA TELLS DEALERS TO STOP SELLING 6 MODELS
DETROIT (AP) — Toyota has told North American dealers to stop selling six popular models with heated seats because the fabric doesn’t comply with U.S. safety codes and potentially could catch fire. The order affects 36,000 cars, trucks and minivans, about 13 per cent of the inventory on dealer lots in the U.S., spokesman John Hanson said. Also affected are additional vehicles in Canada, Mexico, Korea, Israel and other countries, but no total number was available. No fires or injuries have been reported, but Toyota can’t legally sell cars that don’t comply with U.S. safety codes, spokesman John Hanson said.

FROM MUPPETS TO PUPPIES, SUPER BOWL ADS GET CUTE
NEW YORK (AP) — Call it Cute Bowl. Adorable is the name of the game this year as Super Bowl advertisers try to grab your attention. That means lots of “cute” story lines, including a family that’s expecting a new baby and a horse that forms a long-lasting bond with a puppy. The saccharine spots are partly a result of more family-friendly brands like Cheerios and Heinz advertising this year. At the same time, fewer startups that tend to have more provocative commercials are in the advertising game this year.

AMAZON 4Q EARNINGS GROW BUT MISS EXPECTATIONS
SEATTLE (AP) — Amazon’s profit and revenue both grew in the latest quarter but its results fell below what Wall Street was expecting and shares of the world’s biggest online retailer tumbled. Amazon has long focused on spending the money it makes to grow its business and expand into new areas, from movie streaming to e-readers and even grocery delivery. Investors have largely forgiven thin profit margins and zeroed in on the company’s solid revenue growth and long-term prospects. It posted losses in two previous quarters due to rising operating costs.

MERCK JOINS COMPANIES ENDING CHIMPANZEE RESEARCH
TRENTON, N.J. (AP) — Drugmaker Merck & Co. is joining two dozen other pharmaceutical companies and contract laboratories in committing to not use chimpanzees for research. The growing trend could mean roughly 1,000 chimps in the U.S. used for research or warehoused for many years in laboratory cages could be “retired” to sanctuaries by around 2020. That’s according to Kathleen Conlee of the Humane Society of the United States, which seven years ago began urging companies to phase out all chimp research.

Real Estate Daily News Buzz – January 15, 2014

The Dow Jones industrial average rose 115.92 points, or 0.7%, to close at 16,373.86 Tuesday. The Standard & Poor’s 500 index rose 19.68 points, or 1.1%, to 1,838.88. The NASDAQ composite index rose 69.71 points, or 1.7%, to 4,183.02. Bond prices fell. The yield on the 10-year Treasury note rose to 2.87%. Benchmark U.S. oil for February delivery rose 79 cents to close at $92.59 a barrel in New York.

APPEALS COURT SETS ASIDE INTERNET NEUTRALITY RULES
WASHINGTON (AP) — In a decision that could reshape consumers’ access to entertainment, news and other online content, a federal appeals court Tuesday set aside Federal Communications Commission (FCC) rules designed to ensure that transmission of all Internet content be treated equally. The anti-discrimination and anti-blocking rules have barred broadband providers from prioritizing some types of Internet traffic over others. A three-judge panel said that the FCC has the authority to regulate broadband providers’ treatment of Internet traffic. However, the judges concluded that the FCC failed to establish that its regulations don’t overreach.

WELLS FARGO CALLS MEETING TO DISCUSS BITCOIN
SAN FRANCISCO (Reuters) – Wells Fargo & Co has called finance executives, virtual currency experts and U.S. government representatives to discuss “rules of engagement” with Bitcoin amid concern about the money laundering risk of the currency, the Financial Times reported. The meeting, scheduled for Tuesday in San Francisco, focuses on the security issues surrounding banking and Bitcoin as financial regulators warn consumers on the risks of using unregulated online currencies, the London-based financial daily reported. The fourth-largest U.S. bank by assets has shown interest in dealing with a potential new Bitcoin economy, but regulatory uncertainty has deterred banks from offering services to virtual currency start-ups, the newspaper said on Tuesday.

Bitcoin, which unlike conventional money is bought and sold on a peer-to-peer network independent of any central authority, has grown popular among users who lack faith in the established banking system. Wells Fargo’s anti-money laundering chief, Jim Richards, has launched a group to examine how the bank might safely offer Bitcoin-related services or banking arrangements to virtual currency entrepreneurs, the Financial Times said, quoting people familiar with the matter. The bank aims to draw up a new set of anti-money laundering rules for financial institutions to follow when dealing with virtual currency start-ups, the paper said, citing a person familiar with the matter.

BOEING CONFIRMS NEW 787 BATTERY INCIDENT
Battery problems resurfaced on Boeing’s 787 on Tuesday, after gas was discovered coming out of a battery on a plane parked in Tokyo. Boeing said the problem on a Japan Airlines 787 was discovered during scheduled maintenance. No passengers were on board. The company said it appears that a single battery cell “vented,” or released gas. The incident comes a year after a fire in a lithium ion battery aboard a Japan Airlines 787 parked at Boston’s Logan International Airport. That was followed nine days later by another battery incident that forced an emergency landing in Japan by an All Nippon Airways 787. Those problems prompted the FAA and other authorities to ground all 787s for more than three months. The planes began flying again after Boeing changed the battery system, adding a tougher box to hold the battery and measures to contain any short-circuit or fire. Boeing said those changes appear to have worked as designed in the battery incident on Tuesday. It said it’s working with Japan Airlines to get the plane flying again.

GENERAL MOTORS’ QUARTERLY DIVIDEND IS BACK
DETROIT (AP) — General Motors Co. says it will resume paying a quarterly dividend, its first since the height of the financial crisis in 2008. The U.S. automaker’s CEO Dan Akerson had hinted that a dividend may be coming and the company confirmed the move Tuesday. General Motors says its dividend of 30 cents per share is payable March 28 to stockholders of record as of March 18. The Detroit-based company says investors should share in the company’s success and that the dividend is a signal of confidence for a profitable future. Competitor Ford Motor Co. halted its dividend payment in 2006 and resumed it in 2012.

HOLIDAY SALES RISE ON DISCOUNTS, ONLINE SHOPPING
NEW YORK – Severe winter weather did not dampen December retail sales as shoppers took advantage of heavy promotions and last-minute deals. According to the National Retail Federation (NRF) – December retail sales, which excludes automobiles, gas stations and restaurants, increased 0.4 percent seasonally adjusted month-to-month, and 4.6 percent unadjusted year-over-year. Total holiday retail sales, which includes November and December sales, increased 3.8 percent to $601.8 billion, which was in line with NRF’s projected forecast of 3.9 percent and $602.1 billion. In addition, non-store holiday sales, which is an indicator of online and e-commerce sales, grew 9.3 percent to $95.7 billion. It was better than the 3.5% increase in 2012 and the 3.3% average for the past 10 years.

US BUSINESSES BOOST STOCKPILES 0.4% IN NOVEMBER
WASHINGTON (AP) — U.S. companies built up their stockpiles in November as their sales improved. Continued growth in inventories suggests businesses believe consumers will increase spending in the months ahead. The Commerce Department said Tuesday that business stockpiles grew 0.4% in November. That follows a strong 0.8% gain in October. Sales increased 0.8% in November after a 0.5% gain the previous month. Rising stockpiles should help keep economic growth solid in the October-December quarter. Several economists project growth at a 3 per cent annual rate in that period after a 4.1% rate in the previous quarter. Greater restocking boosts growth because it requires more factory production. Retailers led much of the gains in inventories ahead of the holiday shopping season. Wholesalers also increased their stockpiles. Stockpiling by manufacturers was flat.

DIRECT TV CUSTOMERS LOSE THE WEATHER CHANNEL
LOS ANGELES (AP) — About 20 million DirecTV customers nationwide lost The Weather Channel because of a dispute over fees between the channel and the satellite service. The two companies pointed fingers at each other late Monday as a midnight deadline for renegotiation of carriage fees paid by DirecTV to The Weather Channel passed without an agreement. In a statement, David Kenny, CEO of the channel’s parent company, The Weather Co., said it offered DirecTV the best rate for its programming. Kenny accused the satellite provider of putting profits ahead of public safety. DirecTV called the loss of The Weather Channel “regrettable” but added that it would continue to provide weather news on its WeatherNation channel. According to a statement from Dan York, DirecTV chief content officer, the two sides haven’t stopped talking.

GM GLOBAL SALES HIT 9.7M LAST YEAR, BEATS VW
DETROIT (AP) — General Motors sold 9.71 million cars and trucks last year, probably not enough to beat out Toyota for the global sales crown, but about 200,000 better than Volkswagen. Toyota, the sales champion in 2012, will report its sales next week. It only needs to show a little growth to beat GM again. GM said Tuesday that sales of light vehicles worldwide grew 4 per cent in 2013, led by growth in China and the United Kingdom. The company’s sales in China rose 11 per cent to set a record. U.S. sales were up 7%, slightly below the market’s growth of nearly 8%. Volkswagen said Monday that it sold 9.5 million light vehicles last year, setting a company record for overall sales. Toyota sold roughly 9.7 million cars and trucks in 2012, recapturing the lead it ceded to GM in 2011. GM was the top-selling carmaker for more than seven decades before losing the title to Toyota in 2008. But GM retook the sales crown in 2011 when Toyota’s factories were slowed by an earthquake and tsunami in Japan. The disaster left Toyota dealers with few cars to sell. The Japanese company has since recovered.

BEANIE BABIES CREATOR GETS PROBATION, NO PRISON
CHICAGO (AP) — The billionaire creator of Beanie Babies was sentenced to two years of probation, but no prison time, on Tuesday for tax evasion on $25 million in income he had stashed away in Swiss bank accounts. H. Ty Warner, 69, appeared sombre but composed as he made a brief statement before receiving his sentence in a Chicago federal courtroom, apologizing and saying he felt “shame and embarrassment” for what he had done. He could have been sentenced to up to five years in prison, and prosecutors were seeking prison time for Warner, who pleaded guilty last year to a single tax evasion count. U.S. District Judge Charles Kocoras, however, sentenced Warner to probation and 500 hours of community service, praising the toy magnate for the charity work he’s done.

GOVERNMENTS SEEK TO AVOID TECHNOLOGY PROBLEMS
With well-publicized glitches in the federal government’s new HealthCare.gov website last October, experts who follow how government acquires, develops and deploys computer-based services, were not surprised. Problems occurred when New York City watched the costs of its payroll modernization project grow from $63 million to $700 million before stopping the project. The State of Texas had a seven-year, $863 million outsourcing deal with IBM that was plagued by problems. One IT expert says it sounds obvious, but problems could be avoided when more assumptions are tested before launch, stakeholders are identified, and people on staff have the capability to manage work across departmental boundaries. From Governing: https://bit.ly/1d3zYOZ

STREETCAR CELEBRATION TOMORROW AT UA
TUCSON – The Sun Link Modern Streetcar will be on display tomorrow at Main Gate Square at the University of Arizona. Take your picture with the streetcar, enjoy live music and take advantage of specials and promotions provided by area merchants along the streetcar route. The celebration, sponsored by Friends of the Tucson Streetcar and others, runs from 4 p.m. – 7 p.m. The Downtown Tucson Partnership reports the American-made streetcar already has helped generate $800 million in public and private investment along the route, through downtown and the UA.

Real Estate Daily News Buzz – January 6, 2014

On Friday, the Dow Jones industrial average rose 28.64 points, or 0.2%, to close at 16,469.99.The Standard & Poor’s 500 index declined 0.61 of a point, or 0.03%, to 1,831.37. The NASDAQ composite fell 11.16 points, or 0.3%, to 4,131.91. Benchmark U.S. oil for February delivery fell $1.48 to close at $93.96 a barrel in New York.

DECEMBER AUTO SALES FALL; 2013 STILL BEST IN 6 YEARS

DETROIT (AP) — December U.S. auto sales slowed a bit from the brisk pace earlier this year, but automakers still were on target to finish 2013 with the best numbers in six years. Nissan posted an 11% gain for December and Chrysler managed a 6% increase. But General Motors, Toyota, Ford and Volkswagen each posted disappointing numbers. Still, most major automakers reported at least a 7% increase for 2013, and analysts expect full-year sales to be up around 8% to 15.6 million when all the numbers are in. That would be the highest sales figure since 16.1 million in 2007. But automakers may need to do more to lure shoppers into showrooms. Analysts say discounts rose in December, and there were signs that automakers were beginning to lower prices to match competitors. That could foreshadow better deals in the new year, especially on pickup trucks and midsize cars.

BERNANKE: 2014 MIGHT BE BETTER YEAR FOR US ECONOMY

WASHINGTON (AP) — Federal Reserve Chairman Ben Bernanke on Friday predicted a stronger year possibly for the U.S. economy in 2014, saying several factors that have held back growth appear to be abating. Americans’ finances have improved and the outlook for home sales is brighter, Bernanke said. He also expects less drag from federal spending cuts and tax increases. The combination “bodes well for U.S. economic growth in coming quarters,” Bernanke said during a speech to the annual meeting of the American Economic Association in Philadelphia. Bernanke made a similar assessment of the economy at a Dec. 18 news conference after the Fed’s last meeting. At the meeting, the Fed announced it would begin in January to reduce its monthly bond purchases from $85 billion to $75 billion, noting signs of an improving economy. The bond purchases are intended to keep long-term interest rates low and encourage more borrowing and spending. Friday’s appearance was expected to be one of Bernanke’s final speeches as Fed chairman. He is stepping down at the end of this month after eight years leading the central bank. The Senate is expected to confirm Janet Yellen on Monday to be the next Fed chairman.

COMBIE USA RECALLS MORE THAN 33,000 CHILD SEATS

DETROIT (AP) — Combi is recalling more than 33,000 child car seats made before January 2013 because the harnesses aren’t strong enough to meet federal safety standards. The Charlotte, N.C., company is recalling the Coccoro, Zeus Turn and Zeus 360. The National Highway Traffic Safety Administration says the seat straps don’t meet minimum strength requirements. If there’s a crash, children may not be properly secured. A company spokeswoman says the seats are still safe to use because the harness as a whole meets safety standards. She says one part of the harness that includes a plastic button failed strength tests. Seats made after January 2013 don’t have the same problem. Combi will notify registered owners and send out free harness replacement kits starting in February.

4 DEAD AFTER CAMBODIAN POLICE FIRE ON PROTESTERS

PHNOM PENH, Cambodia (AP) — At least four people were killed Friday when police outside Cambodia’s capital opened fire to break up a protest by striking garment workers demanding a doubling of the minimum wage, police and human rights workers said. Chuon Narin, deputy chief of the Phnom Penh Municipal Police, said the four were killed and about 20 others wounded in a southern suburb of the capital after several hundred workers blocking a road began burning tires and throwing objects at police officers. Witnesses said some officers fired AK-47 rifles into the air and that others shot at ground level. Workers at most of Cambodia’s more than 500 garment factories are on strike, demanding an increase in the minimum wage to $160 a month, double the current rate. The government has offered $100 a month. The local human rights group LICADHO said described it as “the worst state violence against civilians to hit Cambodia in 15 years.”

EUROPEAN LENDING LAGS, SIGN RECOVERY REMAINS WEAK

FRANKFURT, Germany (AP) — New figures show that European banks are lending less to companies — another sign the continent’s economic upswing remains less than robust. The European Central Bank reported Friday that loans to companies slipped by 3.1% in November from a year earlier. The drop was sharper than the previous month’s 3.0%. Analysts say banks can be reluctant to lend given uncertain growth prospects that mean increased risk they won’t be repaid. Some companies, meanwhile, may not want to risk borrowing. Others don’t need credit because they are sitting on adequate cash reserves — but don’t yet see a reason to invest that cash in new production. The economy of the euro currency union — a bloc that grew from 17 to 18 members in the new year with Latvia’s accession — expanded by only 0.1% in the third quarter last year, with Unemployment at 12.1%. Governments’ efforts to reduce debt by cutting spending and raising taxes have weighed on growth.