Real Estate Daily News Buzz – December 17, 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 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.