Australian house prices plunged by the most on record in 2011 as global economic uncertainty and concerns about its impact at home kept a lid on demand.
An index measuring the weighted average of prices for established houses in eight major cities slid 4.8 percent from a year earlier, according to the Australian Bureau of Statistics, the biggest calendar-year drop since the data began in March 2002. They fell 1 percent in the three months to December from the previous quarter, when they retreated a revised 1.9 percent. The median estimate of 15 economists surveyed by Bloomberg News was a 0.6 percent quarterly fall.
Reserve Bank of Australia Governor Glenn Stevens lowered the benchmark rate by a quarter percentage point on Nov. 1 and again on Dec. 6 as inflation pressures eased and global growth risks increased. Australia recorded its worst annual job growth in 19 years in 2011, as consumers boosted savings, and traders are pricing in a 60 percent chance of another cut next week.
Cyprus’ banks will be able to recapitalize on their own and won’t need state support thanks to fiscal measures buttressing the island’s financial system, the government said on Saturday.
Cyprus’ Finance Ministry said in a statement that the economy has “strong foundations” and added that it will soon unveil a growth-oriented package of measures that it’s preparing in partnership with the private sector.
The ministry made its remarks a day after international ratings agency Fitch downgraded the eurozone member by a notch to BBB-, a step above junk status.
Fitch said the downgrade was mainly due to the large Cypriot banking system’s heavy exposure to Greek debt and its greater capital needs in light of the higher likelihood that banks will take a hit on Greek government bonds that exceeds 50 percent.
Fitch said Cypriot banks would need to almost double the euro900 million ($1.18 billion) _ or 9.9 percent of gross domestic product _ to build an adequate buffer against losses on their Greek exposure if the “haircut” on Greek government bonds reaches 70 percent.
Standard & Poor’s became the first ratings agency to push Cyprus into junk territory with a two-notch downgrade earlier this month. Moody’s also rates the island just above junk.
Cyprus government spokesman Stefanos Stefanou on Saturday called the downgrades unfair.
“We consider that the downgrades don’t reflect the real state of the Cyprus economy, which is in better shape than many other economies, either in the eurozone or in the European Union in general,” he told reporters.
According to the European Commission, the island’s deficit is projected to shrink from 6.7 percent of gross domestic product in 2011 to 2.7 percent this year following a string of fiscal consolidation measures including a 2 percent sales tax hike and a two-year public sector wage freeze.
The island’s debt is projected to reach 68.4 percent of GDP this year, well below the eurozone average of nearly 87 percent.
But high borrowing costs have effectively locked Cyprus out of the international markets. The island is relying on a euro2.5 billion ($3.29 billion) low-interest loan to meet its financing needs for this year.
Apple Inc. hopes to revolutionize the education industry
Federal Reserve Bank of Chicago President Charles Evans said the drop in the unemployment rate to 8.5 percent may be partially reversed in coming months.
Investors threw cold water on the New Year’s rally, with U.S. stocks set for a modest pullback at Wednesday’s open.
Dow Jones industrial average () and S&P 500 () futures were down 0.3%, while Nasdaq () futures were flat. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Jitters surrounding Europe’s debt crisis have resurfaced, leaving investors on edge. Uncertainty about Greece, along with reports that Spain might seek rescue funding, weighed on sentiment.
A spokeswoman for the Spanish government told CNN the reports were "a complete lie" and "radically false," and separately Greek officials said Tuesday that progress had been made.
"We’re still watching Europe simmering now. We have another summit coming up and the problems are all still there," said Scott Brown, chief economist for Raymond James.
Europe: Still a huge pain for investors
European Union leaders hold their first summit of 2012 on Jan. 30. Political leaders hashed out a fiscal agreement in early December, but investors remain skeptical about how effective it will be.
Stocks rallied Tuesday following strong manufacturing reports from China, India and the United States.
Bank stocks — one of last year’s worst-performing sectors — led the Dow higher in the prior session. Bank of America (, Fortune 500), Citigroup (, Fortune 500) and JPMorgan (, Fortune 500) all posted strong gains.
World markets: European stocks fell in midday trading. Britain’s FTSE 100 () lost 0.1%, while the DAX () in Germany shed 0.8% and France’s CAC 40 () slid 0.7%.
Asian markets finished mixed. The Nikkei () gained 1.2%, while the Shanghai Composite () fell 1.4% and the Hang Seng () lost 0.8%.
Economy: The Census Bureau will release data on factory orders for the month of November before the opening bell business cards. Analysts surveyed by Briefing.com expect orders to have risen 2.1% in November, after dropping by 0.4% in October.
In the afternoon, the Commerce Department will release data on auto and truck sales for December. Auto sales stood at a 4.36 million annual rate in November, while truck sales were at a 5.98 million rate.
Companies: Before the opening bell, Yahoo (, Fortune 500) shares dropped 1.6% on reports that the search engine will name eBay’s (, Fortune 500) PayPal President Scott Thompson as its new CEO. Shares of eBay fell 1.1%.
Caterpillar (, Fortune 500) shares fell 1% in premarket trading, after the construction equipment manufacturer announced it will expand its research and development center in Wuxi, China.
Dunkin’ Brands () shares climbed 1.5% ahead of the bell, after the company announced it plans to double the number of its Dunkin’ Donuts restaurants in the United States in the next 20 years. The chain currently operates about 7,000 restaurants nationwide.
Cabot Oil & Gas () announced a two-for-one stock split, after its stock rallied 105% over the last year. The company also plans to increase its quarterly dividend 33%. Shares rose 3.3% in early trading.
Currencies and commodities: The dollar rose against the euro and British pound, but fell versus the Japanese yen.
Oil for February delivery slipped 70 cents to $102.26 a barrel.
Gold futures for February delivery fell $2.60 to $1,597.90 an ounce.
Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 1.96%.
Samsung Electronics Co. and Hyundai Motor Co. (005380), South Korea
What is an effective way to protect a job site from copper thieves and other intruders?
Builders have a dilemma in trying to protect their construction sites. Until there is electrical power to the site, providing easy or cost-effective security protection is difficult. This challenge often leaves job sites with large amounts of copper and supplies unattended, making them easy targets for overnight thefts and vandalism.
Available are wireless, portable and battery-operated alarm systems that operate around the clock. They detect a trespasser on a construction site and are designed to react quickly enough to help catch a vandal in the act because the property owner gets visual verification from a monitoring station.
Ideal to protect vacant property, construction sites, air-conditioning units, storage yards and substations, battery-powered monitoring systems have a motion viewer with a camera that sends a video clip over the cell network to a central station. The video is downloaded and viewed by a trained operator. Operators who detect potential suspicious activity notify police. Officers can be sent to a video-verified event in progress.
These systems help eliminate false alarms caused by traditional security systems. At subdivision construction sites, owners can move the system from home to home as each residence is secured with doors and windows. Battery-powered security systems work much like a typical home system with an alarm code or key fob. The user can keep the system silent to increase the chance of apprehension or have an alarm siren triggered to deter trespassers. The result is fewer false alarms and an increase in apprehension success.
Plans are afoot to redevelop another of downtown’s biggest empty buildings.
A group of real estate investors from New York and Indiana want to buy the Chemical Building, at Eighth and Olive streets, and turn it into street-level retail and 120 apartments, according to Alderman Phyllis Young.
LandWhite Developers LLC is behind the $34 million project, said Young. They’re seeking $4.2 million in tax increment financing to help fund the deal, and would like to start work next year. An aldermanic committee approved the TIF on Wednesday; it will now go on to the full board.
Jay Landesman, a principal at LandWhite, declined to comment until more details are ironed out.
While the building was nearly half-occupied as recently as 2006, it has sat empty since as redevelopment efforts stalled paperless payday loans. In that year, a Los Angeles-based investment group bought it for $6 million, re-christened it the Alexa, and envisioned luxury condominiums. They filed for bankruptcy protection in 2010, and Centrue Bank foreclosed on the building in March. It is listed for sale at $3.9 million.
Developers are also moving forward with plans to redevelop two other major empty buildings downtown: The Jefferson Arms, on Tucker Boulevard, and one of the Cupples Station warehouse buildings.
The deputy supreme commander of the United Arab Emirates’ armed forces says France is seeking unacceptable terms for the sale of up to 60 Rafale fighter jets.
The comments Wednesday by Sheik Mohammed bin Zayed Al Nahyan could signal a final blow to the bid by France’s Dassault Aviation, which has been in talks with UAE officials for several years.
The official WAM news agency quotes Sheik Mohammed _ who is also the highly influential crown prince of Abu Dhabi _ as saying Dassault was offering noncompetitive and “unworkable” terms. He gave no other details.
He made the comments after touring the Dubai Airshow, where the Rafale and others, including American-made F-15, F-16 and F-18 fighters, performed flight demonstrations,
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
DUBAI, United Arab Emirates (AP) _ Airbus says its customers are committed to buy 1,420 of its new A320neo after less than a year of sales savings account payday advance.
Chief Operating Officer John Leahy said on Wednesday that the brisk business shows there’s strong demand for fuel-efficient planes despite some economic “storm clouds on the horizon.”
Leahy spoke as Airbus wrapped up its order announcements at the Dubai Airshow, where it scored 130 firm orders for the single-aisle plane.
Airbus says it now has 1,268 firm orders for the A320neo, which promises a smaller fuel bill than older A320 models. It ended the Dubai show with $13.7 billion worth of firm orders.
Its rival Boeing snagged the show’s biggest deal _ an $18 billion order for 50 777s from Dubai’s Emirates airline.
UPDATED AT 6:50 p.m. with more details.
Die-hard bargain shoppers might want to opt for some coffee after Thanksgiving dinner this year.
Not only are a number of big box and department stores opening at midnight on Thanksgiving, but now most of the shopping malls in the St. Louis region are following suit as well.
“Everybody wants to join the party,” said Marshal Cohen, retail analyst with consulting firm NPD Group. “It’s going to be midnight madness.”
Chesterfield Mall, Mid Rivers Mall, South County Center, St. Clair Square, and West County Center will all open their doors at midnight to accommodate stores that have asked to open at that hour, mall operator CBL & Associates announced Monday.
Victoria’s Secret, Aeropostale, The Limited, Bath and Body Works, and American Eagle are some of the stores that have said they will open at midnight. It will put a complete list of stores that will open at midnight at area malls on its website next week, CBL said.
“It seems to be growing as time goes on,” Sean Phillips, CBL’s regional marketing director, said of the list. “I think everyone feels they need to be open at midnight to be competitive.”
The rest of the stores in CBL malls will open at 5 a.m. Friday - an hour earlier than last year. Some eateries and coffee shops may also open in the middle of the night, too. For example, the Starbucks at West County Center has already said it would open at midnight.
The St. Louis Galleria will officially open at 6 a.m. - also an hour earlier than last year, said Earl Dorsett, manager of the St. Louis Galleria. But the Galleria will unlock the doors and turn on the lights in the mall so stores that want to open at midnight can do so, which is a first for that mall payday loans.
The mall has never opened this early - or been open on Thanksgiving Day - with the exception of the movie theaters, he said.
In recent weeks, a number of big retailers such as Target, Best Buy, Macy’s, and Kohl’s have said they will open at midnight this year to kick off Black Friday, one of the biggest shopping events of the year.
Walmart will roll out its first round of doorbusters at 10 p.m. Thanksgiving Day. And Toys R Us, which is trying to stay ahead of the pack, said Monday that it will open its stores at 9 p.m.
However, the midnight openings are not sitting well with some employees. A Target employee from Nebraska has started an online petition that has garnered thousands of signatures asking Target to open at 5 a.m. on Black Friday instead of at midnight.
“A midnight opening robs the hourly and in-store salary workers of time off with their families on Thanksgiving Day,” the petition says.
But Cohen said he thinks that in this economy, there are a number of employees out there who would be willing to volunteer to work the extra hours to make overtime pay.
He expects the midnight opening to be popular among shoppers who would be up then anyway and would prefer to shop at that hour than to have to wake up before dawn to get the best deals.
Besides, he added, shopping is not necessarily at odds with the spirit of the Thanksgiving, which is a family-oriented holiday.
“Guess what - shopping to some people is a family-centric activity,” he said.
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