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 15.93 points, or 0.1%, to close at 15,755.36. The Standard & Poor’s 500 index fell 0.18 points, or 0.01%, to 1,775.32. The NASDAQ composite rose 2.57 points, or 0.06%, to 4,000.98. Benchmark U.S. crude for January delivery dropped 90 cents to $96.60 a barrel on the New York Mercantile Exchange.

ARIZONA UNEMPLOYMENT CLAIMS INCHED UP IN NOVEMBER

Arizona’s weekly initial unemployment claims have been up and down in November and for the third week they inched up to 4,654. The four-week average was also higher at 4,610. Nationally, initial claims for unemployment benefits were down sharply to a seasonally adjusted 298,000 for the week ending November 30. The national four-week moving average was also lower at 322,250.

IRELAND FACES MORE AUSTERITY AFTER END OF BAILOUT

DUBLIN (AP) — Ireland’s finance chief says the country’s exit from its international bailout this week should be celebrated as a eurozone triumph, but won’t mean an end to austerity for the debt-battered Irish. On Sunday, Ireland officially ends its reliance on a 67.5 billion-euro ($93 billion) loan program that European governments and the International Monetary Fund provided in 2010 to save the Irish from national bankruptcy. Ireland is the first country in the 17-member eurozone to regain economic sovereignty after a bailout, in contrast to Greece, Cyprus and Portugal. But Finance Minister Michael Noonan told a press conference Friday that investors in new Irish bonds would need to see the country continue to slash spending and deficits through 2015 at least.  Ireland has imposed austerity since a 2008 banking crisis.

TOYOTA TO ENTER SETTLEMENT NEGOTIATIONS

SANTA ANA, Calif. (AP) — After a four-year legal battle, Toyota is entering settlement talks on hundreds of lawsuits that allege sudden unintended acceleration problems with its vehicles led to deaths and injuries. A motion filed late Thursday in U.S. District Court in Santa Ana indicated both sides would begin an “intensive settlement process” next month. The Japanese automaker, which has recalled millions of cars since 2009 over the issue, agreed to the negotiations to make resolving the cases more efficient, spokeswoman Carly Schaffner told The Associated Press on Friday.

ARIZONA BANKRUPTCIES CONTINUE DOWNWARD TREND

There were 1,560 bankruptcy filings for Arizona in November, down 14.8% compared to November 2012. The number of filings year-to-date were 20,662, down 20% from this time last year.

US WHOLESALE COSTS FALL FOR 3^RD MONTH ON CHEAP GAS

WASHINGTON (AP) — U.S. wholesale prices dropped in November for the third consecutive month, pushed down again by cheaper gasoline and lower home heating oil costs. But excluding volatile energy costs, inflation was mostly stable. The producer price index, which measures prices before they reach the consumer, declined 0.1% last month, the Labor Department said Friday. This comes after similar decreases in October and September. Both consumer and wholesale inflation have been running extremely low in the past year. High unemployment and weak wage increases have made it difficult for businesses to raise prices.

NEW DAILY PAPER PLANNED FOR LOS ANGELES

LOS ANGELES (AP) — The owner of the Orange County Register plans a new daily newspaper in Los Angeles, the boldest step yet in an expansion across Southern California that emphasizes printed publications while others in the industry are focusing on digital. The new seven-day-a-week paper will be known as the Los Angeles Register, Freedom Communications CEO Aaron Kushner told The Associated Press on Thursday night, a few hours after announcing the move to his staff in the Orange County Register’s newsroom. In addition, Kushner said the Register would open an unspecified number of Los Angeles community weeklies.

PLANS SCRAPPED TO BUILD ‘EURO VEGAS’ IN SPAIN

MADRID (AP) — Casino operator of the Las Vegas Sands on Friday scrapped plans to build a “EuroVegas” resort near Madrid after the Spanish government rejected as illegal concessions demanded for the investment. The company, led by 80-year-old American tycoon Sheldon Adelson, had proposed a 22 billion-euro ($30 billion) project that was to include 12 hotels, six casinos, a convention center, golf courses, theatres, shopping malls, bars and restaurants. The government in Spain, where unemployment stands at 26 per cent, had hoped it might create some 260,000 jobs, especially among the young, where unemployment is around 50 per cent. But the plan had been fiercely opposed by many who feared the resort would lead to a change in non-smoking laws, promote prostitution and provide only low-paying jobs.

GM GETS ABOUT $343 MILLION FOR PSA PEUGEOT CITROEN STAKE

DETROIT (AP) — General Motors Co. got about $343 million for its 7 per cent stake in French automaker PSA Peugeot Citroen. The Detroit company on Friday said that it completed the private placement sale of 24.8 million PSA shares for 250 million euros. GM bought the PSA stake in March 2012 for $402 million when the companies announced a car-building and purchasing alliance. That means the company will lose about $59 million on the deal.

END OF YEAR SHAPES UP TO BE PRIME CAR-BUYING TIME

DETROIT (AP) — If the spirit of giving — or of treating yourself — has inspired you to buy a car this holiday season, you’re in luck. Many local auto dealerships are overflowing with sedans, trucks and SUVs, so there are deals to be had. Most dealers have abundant supplies of 2013 models, and 2014s are arriving as automakers keep factories humming. Since dealers pay interest on money borrowed to buy the cars, they’re probably anxious to sell them soon. The December holiday season normally is a good time to buy as dealers clear out old models and sales people feel pressure to meet year-end targets. Some sales ran early this year as automakers tried to get a piece of the Black Friday retail holiday action.

 

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 lost 66.21 points, or 0.4%, to 15,900.82 on Wednesday. The Standard & Poor’s 500 index lost 6.50 points, or 0.4%, to 1,781.37. The NASDAQ lost 10.28 points, or 0.3%, to 3,921.27. Benchmark U.S. crude for December delivery fell 1 cent to close at $93.33 a barrel on the New York Mercantile Exchange.

FEWER BUYERS FOR NEW HOMES vs EXISTING INVENTORY

IRVINE, CA-Surprisingly, fewer homebuyers than ever are purchasing new homes vs. existing inventory, according to consumer-research company iHave5Questions. The firm reports that new-home sales represent less than 7% of all homes sold this year, a figure significantly below historic levels of 16% to 17% for newly built. The firm also reports that 90% of people visiting new homes today are on a mission to buy, according to a study of 67,000 new-home shoppers surveyed in 150 cities across the nation. This makes the motivators behind their purchase decision all the more important to understand, and it means that now more than ever, homebuilders need to listen to what shoppers are saying, the firm says.

SAHARA GROUP SELLING PLAZA HOTEL IN NEW YORK

NEW YORK CITY-The Sahara Group, which only last November acquired a majority stake in the Plaza Hotel, is now trying to sell the iconic New York City hotel property, along with the Dream Downtown Hotel and the Grosvenor House in London. The Mumbai-based investment group has already received a $1.6-billion offer from a Mideast group, according to the New York Post. Sahara, led by billionaire Subrata Roy, acquired a 70% ownership interest in the Plaza from Elad for $600 million a year ago. The company is facing pressure from Indian securities regulators, who contend Sahara illegally sold $4.8 billion in bonds, and by the Bank of China, which holds nearly $1 billion in debt on the three Sahara properties.

HYDORGEN CARS COMING SOON TO A SHOWROOM NEAR YOU

DETROIT (AP) — Cars that run on hydrogen and exhaust only water vapor are emerging to challenge electric vehicles as the world’s transportation of the future. At auto shows on two continents Wednesday, three automakers were unveiling hydrogen fuel cell vehicles to be delivered to the general public as early as spring of next year. Korea’s Hyundai Motor Co. will be the first to the mass market in the U.S. with a hydrogen-powered Tucson small SUV for lease next spring. Details were to come later Wednesday at the Los Angeles Auto Show. Honda also revealed plans in Los Angeles for a car due out in 2015. Earlier, at the Tokyo Motor Show, Toyota promised a mass-produced fuel cell car by 2015 in Japan and 2016 in the U.S.

J.C. PENNEY’S Q3 LOSS WIDENS – SALES EVEN OUT

NEW YORK (AP) — Even though J.C. Penney’s latest results show the beleaguered retailer is hardly out of the woods, investors still see reasons to cheer. The department store chain’s shares rose 6 per cent on Wednesday after it reported its seventh straight quarter of big losses that together total more than $2.4 billion. So why are investors celebrating? The company began its big downward spiral during an ill-fated transformation strategy under former CEO Ron Johnson, who was fired in April after 17 months on the job. Now, experts say investors are encouraged that Mike Ullman, who took the top job after having led the retailer for seven years before, is beginning to stabilize the business.

MINUTES: FED COULD SLOW BOND BUYS IN COMING MONTHS

WASHINGTON (AP) — Members of the Federal Reserve agreed last month that they would likely start reducing their bond purchases in coming months if the job market improved further. They also weighed the possibility of slowing the purchases even without clear evidence of a strengthening job market. The Fed’s bond purchases have been intended to keep long-term borrowing rates low to spur spending and growth. The minutes of the Oct. 29-30 meeting, released Wednesday, also show that members wrestled with how to assure investors that even after they cut back on the $85 billion a month in bond buys, the Fed still intends to keep its key short-term rate near record lows.

US EXISTING HOME SALES FALL 3.2% IN OCTOBER

WASHINGTON (AP) — Fewer Americans bought existing homes in October, as higher mortgage rates, the 16-day partial government shutdown and a limited supply of houses on the market reduced sales. The National Association of Realtors reported that home re-sales fell 3.2% last month from September to a seasonally adjusted annual pace of 5.12 million. That’s down from a 5.29 million pace in September and the slowest since June. A healthy pace is around 5.5 million. Sales of single family homes declined 4.1%, while condominium sales rose 3.3%.

CHEAPER GAS – US CONSUMER PRICES DROPPED 0.1% OCTOBER WASHINGTON – Cheaper gasoline lowered overall U.S. consumer prices slightly in October. But outside the steep drop at the pump, inflation stayed mild. The consumer price index fell 0.1% last month, down from a 0.2% increase in September, the Labor Department said Wednesday. The October decline was due mainly to a 2.9% drop in gasoline costs, the largest since April. Over the past 12 months, overall prices have risen 1 per cent, well below the Federal Reserve’s inflation target of 2%. PNC Bank chief economist Stuart Hoffman said the low inflation reading ensures that the Fed will continue its extraordinary measures to spur growth.

US BUSINESS STOCKPILES UP 0.6% IN SEPTEMBER

WASHINGTON – U.S. businesses increased their stockpiles in September by the largest amount in eight months while sales posted a modest gain. Business inventories rose 0.6% in September compared with August, the Commerce Department reported Wednesday. Sales rose 0.2%. A big jump in restocking helped drive faster economic growth from July through September. But there is concern that a pullback in inventory rebuilding will dampen growth in the current quarter. Rising stockpiles boost growth because they mean more factory production.

BALLOONING ANIMAL CONTROVERSIES MAR THE MACY PARADE

NEW YORK (AP) — Macy’s Thanksgiving Day Parade is awash in animal-related protests over its floats, with controversies involving the unlikely pairing of rocker Joan Jett and Shamu the killer whale. Activists plan to line the route of next week’s parade to protest a SeaWorld float over accusations in a new documentary that the theme parks treat whales badly. And ranchers succeeded in getting Jett pulled off the South Dakota tourism float after they questioned why the vegetarian and animal-rights ally was representing their beef-loving state. The float flaps threaten to shake Macy’s traditional position of staying out of politics and soaring silently above the fray, like the massive balloons of Snoopy, Kermit the Frog and SpongeBob SquarePants.

STIMULUS FOR EU CENTRAL BANK BEING DISCUSSED

FRANKFURT, Germany (AP) — Alarmingly low inflation and weak growth have led officials at the European Central Bank (ECB) to consider what had once seemed unthinkable: A Federal Reserve-like program of large-scale bond purchases to jolt the region’s economy. Even though the topic appears to be up for discussion, analysts say that the ECB may never take such a drastic step for both political and practical reasons. That’s even though others, including the U.S. Federal Reserve, have used such purchases to try to stimulate their economies. But the mere fact that several top ECB officials are talking about asset purchases represents a bit of a shift. Executive board member Peter Praet mentioned the possibility of purchasing assets during an interview last week with the Wall Street Journal. And Vice-President Vitor Constancio did the same on Tuesday.

CITY OF TUCSON EXPANDS DOWNTOWN INCENTIVE DISTRICT
Tucson’s Downtown Financial Incentive District (DFID), in which some new developments may qualify for reductions on building permit fees and construction sales taxes, has grown in size. The DFID’s westward expansion moves its western edge from Meyer Avenue to a little past the Santa Cruz River. It now aligns with the Downtown Core Sub-district of the Infill Incentive District, a planning district that grants regulatory relief on requirements like parking, loading, setbacks and landscaping for qualifying projects.

STATE AMONG HIGHEST RATES OF UNINSURED CHILDREN
The number of children without health insurance dropped nationwide between 2009 and 2011, but not in Arizona, according to a new study by Georgetown University’s Center for Children and Families. The report, released Tuesday, shows Arizona has one of the highest rates of uninsured children in the country. Nearly 210,000 children in Arizona do not have health insurance, which amounts to 13 percent of the state’s children. Only Texas and Nevada had higher rates, the researchers found.

NEW RTA DIRECTOR FACES ONGOING FUNDING CHALLENGE
The new director of the Regional Transportation Authority (RTA) and the Pima Association of Governments (PAG) will pick up the ongoing budget challenges his predecessors faced. Farhad Moghimi started as director of both agencies Oct. 14, after 10 months as an interim director. The recession and federal government decisions mean some changes in funding for the remainder of the RTA plan will be required, he said. The RTA is tasked with overseeing a 20-year, $2-billion transportation plan for Pima County, funded by a half-cent Pima County sales tax.

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