Australia clamps down on illegal foreign housing investment

CANBERRA, Australia — Australian authorities are clamping down on wealthy foreigners illegally buying real estate, ordering a Chinese billionaire to sell a Sydney mansion he recently bought for $30 million, a minister said on Wednesday.

The billionaire, Hui Ka Yan, 56, is chairman of Hong Kong-listed real estate developer Evergrande Real Estate Group, which is based in Guangzhou, China. He is listed by Forbes as China's 15 wealthiest person with a fortune of $6.4 billion.

The government on Tuesday ordered Evergrande subsidiary Golden Fast Foods to sell a Sydney Habor-front mansion known as Villa del Mare within 90 days. The company bought the Mediterranean-style property in the exclusive Potts Point suburb in November.

The government said the acquisition was illegal because Golden Fast Foods, which is owned by Evergrande through a series of shelf companies in Australia, Hong Kong and the British Virgin islands, did not inform the Foreign Investment Review Board it intended to buy it.

"It is hugely important that we have integrity in our foreign investment regime," Treasurer Joe Hockey said Wednesday. "Wherever people believe that there has been unlawful behavior in relation to foreign investment, we want to know about it."

It is the first such divestment order issued in Australia in at least seven years and is attempt by the government to negate anger over sky high real estate prices in Sydney, some of which is due to foreign investment. The company could face prosecution.

"If it's sold at a profit, the owner gets to keep the profit," Hockey said of the forced sale. "If it's sold at a loss, it sounds as the though the owner has the capacity to absorb some of it."

Hockey said that other properties were under investigation. Phones at the regulator, the Foreign Investment Review Board, were running hot with tips on Wednesday in response to the Villa del Mare order, Hockey said.

The regulator's resources were being beefed up to cope with the extra workload, he said.

Foreigners are allowed to buy new homes, but generally aren't allowed to compete with locals in the market for existing homes unless they are Australian residents.

But wealthy investors, many from China, are accused of sidestepping these restrictions by buying through Australian lawyers or shelf companies.

The regulator has shown little interest in investigating such accusations in recent years. But an extraordinary increase in real estate prices in Sydney has put political pressure on the government to remove the competition.

"We're not going on a witch hunt," said Hockey. "We definitely don't want to create an atmosphere of xenophobia."

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US services firms grow at faster pace in February

WASHINGTON — U.S. services firms' activity rose at a slightly faster rate in February, powered by hotels, restaurants and wholesalers.

The Institute for Supply Management said Wednesday that its services index rose to 56.9 in February, up from January's reading of 56.7. Any reading over 50 indicates expansion.

The survey suggests further growth in employment and imports, as a strong hiring streak over the past year has bolstered consumer spending.

"The bottom line is that the US economy remains in good health," said Paul Dales, senior U.S. economist at Capital Economics.

The ISM is a trade group of purchasing managers. Its survey of services firms covers businesses that employ 90 percent of the American workforce, including retail, construction, health care and financial services companies.

Fourteen sectors reported growth in February, while four said activity lessened. In addition to hotels, restaurants and wholesalers, the sectors reporting growth include real estate, utilities, agriculture and financial sectors. Activity dropped for mining, construction and arts and entertainment.

The decline in oil prices has hurt business for firms involved in drilling and construction.

"Business conditions are seeing less money being spent on capital projects by the major oil companies," one construction firm said in the survey.

Yet retailers countered that cheaper gasoline has boosted sales, helping to expand an economy where nearly 70 percent of all activity comes from consumer spending.

The ISM survey indicated that many companies faced pressures because of the backlog caused by the West Coast port labor dispute, a contract disagreement that was largely resolved last week.

"It will transpose into better margins by saving money and not having to deal with the issues of re-routing and airline freight," said Tony Nieves, chair of the ISM's non-manufacturing survey committee.

The economy grew at an annual rate of 2.2 percent in the October-December quarter after climbing at a strong 5 percent rate in the summer. Even though overall growth slowed at the close of 2014, hiring has enjoyed a hot streak.

Employers added roughly 1 million jobs between November and January, hiring at levels that economists say should support growth at an annual rate between 2.5 percent and 3 percent. Economists surveyed by the data firm FactSet expect the employment report being released Friday to show job gains of 240,000 in February.

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US stock indexes sink as market heads for a second loss

NEW YORK — U.S. stocks sank Wednesday, pulling indexes further below record highs. The drop was modest but broad: nine of the 10 sectors in the Standard & Poor's 500 index lost ground.

KEEPING SCORE: As of 12:07 p.m. Eastern time, the S&P 500 was down 11 points, or 0.5 percent, to 2,097. The Dow Jones industrial average lost 108 points, or 0.6 percent, to 18,096, and the Nasdaq composite fell 18 points, or 0.4 percent, to 4,962.

TAKING A BREATHER: Given the market's recent run, it's only natural for investors to turn cautious, said Terry Sandven, senior equity strategist at U.S. Bank Wealth Management. On Monday, the S&P 500 reached an all-time high while the Nasdaq crossed the 5,000 mark for the first time in nearly 15 years.

"We're in wait-and-see mode," Sandven said. "Prices are definitely stretched, especially when earnings expectations are being set lower."

MELTING, MELTING: Alcoa's stock sank 5 percent, the biggest drop in the S&P 500, following news that analysts at Bank of America cut their ratings on the aluminum giant. BofA's analysts expect prices for aluminum to lose strength as China increases its exports. Alcoa lost 75 cents to $14.43.

JOBS: A survey showed U.S. businesses added more than 200,000 people to their payrolls in February, the latest sign that strong hiring should boost the economy this year. ADP, a company which handles payrolls, said private employers hired 212,000 workers last month. The survey comes just ahead of the government's release of its monthly employment report on Friday. Economists forecast that the economy added 240,000 jobs last month and the unemployment rate slipped to 5.6 percent from 5.7 percent.

ANALYST'S TAKE: The U.S. economy appears steady despite reports out earlier this week showing declines in construction spending and car sales, according to Jim O'Sullivan of High-Frequency Economics. "We expect another fairly strong rise in payrolls and a drop in the unemployment rate in the February employment report on Friday," said O'Sullivan, in a report to clients.

EUROPE: France's CAC-40 index and Germany's DAX gained 1 percent. Britain's FTSE 100 picked up 0.4 percent.

EUROZONE MOMENTUM: Two reports showed hints of life in Europe's economy. Retail sales increased by 1.1 percent in January, the first time since records began in 2000 that they've grown for four consecutive months. Meanwhile, a key gauge of business activity showed growth in February across all four of the region's biggest economies: Germany, France, Italy and Spain.

ASIA'S DAY: In Japan, the Nikkei 225 lost 0.6 percent. In China, Hong Kong's Hang Seng declined 1 percent, and the Shanghai Composite Index added 0.5 percent. India's Sensex gained 0.8 percent to after the central bank unexpectedly cut its benchmark lending rate.

TWEENS: In other trading, Abercrombie & Fitch posted quarterly profit that beat analysts' estimates but its sales fell short. A top executive at the retailer warned that it will likely face trouble from a stronger dollar. Abercrombie's stock plunged $3.15, or 13 percent, to $20.82.

CRUDE: Benchmark U.S. crude slipped 81 cents to $49.71 a barrel in New York trading.

CURRENCIES, BONDS: The dollar was little changed at 119.60 yen from 119.66 yen the day before. The euro fell to $1.1077 from $1.1180. In the market for U.S. government bonds, the yield on the 10-year Treasury note held steady at 2.12 percent.

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Global stocks mixed as investors eye European, US data

BEIJING — European stocks mostly gained while Asian markets faltered Wednesday as investors monitored upbeat eurozone economic data and looked ahead to U.S. indicators.

KEEPING SCORE: In early trading, France's CAC-40 added 0.4 percent to 4,886.38 points and Germany's DAX gained 0.1 percent to 11,291.77. Britain's FTSE 100 fell 0.2 percent to 6,878.49. Wall Street looked set for further declines. Futures for the Dow Jones industrial average and the Standard & Poor's 500 were down 0.2 percent and 0.3 percent.

EUROZONE MOMENTUM: Two reports showed the economy of the 19-country eurozone is picking up momentum. Retail sales grew by a larger-than-expected 1.1 percent in monthly terms in January. It is the first time since records began in 2000 that they've grown for four consecutive months. Meanwhile, a key gauge of business activity showed growth in February in all four of the region's big economies — Germany, France, Italy and Spain.

U.S. OUTLOOK: Looking ahead, investors were to the release of data on employment by ADP, a payroll processing company, and manufacturing data from the Institute for Supply Management. Those provide hints for the Labor Department's release of monthly jobs data Friday; the report is an important influence on the Federal Reserve's monetary policy decisions and scrutinized by financial markets.

ANALYST'S TAKE: The U.S. economy appears strong despite data this week showing declines in construction spending and vehicle sales, according to Jim O'Sullivan of High-Frequency Economics. "We expect another fairly strong rise in payrolls and a drop in the unemployment rate in the February employment report on Friday," said O'Sullivan in a report.

CHINA TARGET: China's Premier Li Keqiang is expected to lower this year's official growth target to 7 percent from last year's 7.5 percent when he makes an annual appearance before the national legislature Thursday to announce government economic plans. The lower target after a decade of double-digit expansion is part of the ruling Communist Party's marathon effort to reduce China's reliance on trade and investment and nurture more self-sustaining growth based on domestic consumption and service industries.

ASIA'S DAY: Tokyo's Nikkei 225 lost 0.6 percent to 18,703.60 and Hong Kong's Hang Seng declined 1 percent to 24,465.38. Seoul's Kospi fell 0.2 percent to 1,998.29. The Shanghai Composite Index added 0.5 percent to 3,279.53. India's Sensex gained 0.8 percent to 29,823.02 after the central bank unexpectedly cut interest rates. Jakarta, Sydney and New Zealand also declined while Taipei and Singapore gained.

ENERGY: Benchmark U.S. crude rose 39 cents to $50.93 in electronic trading on the New York Mercantile Exchange. The contract rose 93 cents on Tuesday to close at $40.42.

CURRENCIES: The dollar was little changed at 119.60 yen from the previous session's 119.66 yen. The euro fell to $1.1130 from $1.1180.

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Sony PlayStation 4 surpasses 20 million sales milestone

Sony has sold 20.2 million PlayStation 4 videogame consoles, the company said Tuesday, making the device the fastest-selling PlayStation system in the company's history.

The March 1 figure is the latest sales update of the PS4 after Sony announced 18.5 million units in early January.

The PS4 has been one of the rare bright spots for Sony, with the console far outpacing PlayStation 3 sales and even those of the Xbox 360, from Microsoft.

But Microsoft's Xbox One also has been selling briskly, with next-generation consoles selling 60% faster in the U.S. than the previous versions of the system, according to research firm the NPD Group.

"We are so grateful for the enormous support from PlayStation® fans worldwide, and we are truly humbled that gamers around the globe have continued to select PS4 as the best place to play," said Andrew House, president and global CEO of Sony Computer Entertainment. "We remain steadfast in our commitment to deliver unique and interactive entertainment experiences powered by the network and the PS4 system's deep social capabilities."

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Can Guy Fieri sell greek yogurt? Scripps Networks taps data to boost 'upfront' sales

Scripps Networks wants to push TV advertisers get beyond the traditional ad-sales process, helping instead to identify which audiences of which specific programs are more likely to buy particular products.

As part of its pitch for TV's coming "upfront" market, the operator of Food Network, HGTV and Travel Channel will offer sponsors more granular data from the Nielsen Catalina Solutions unit of Nielsen that can suggest what shows are most likely to draw potential buyers of, say, Greek yogurt (the answer: Food Network's weekend-morning lineup, which includes "Guy's Big Bite" on Sundays). The research draws upon viewing patterns found in set-top box data as well as purchase patterns spotlighted by loyalty cards from various retailers. The data will let Scripps make better recommendations to advertisers about which of its programs will serve them best, said Jon Steinlauf, president of national ad sales at Scripps, in an interview held at the company's New York offices.

Madison Avenue has for decades looked to TV to provide the greatest number of viewers in a single swoop. Now, with audiences splintered by the rise of new viewing behaviors tied to streaming video and mobile devices, they are not always pressing for the most viewers, but the most of a particularly kind of couch potato, whether that be a first-time car buyer or a person more likely to purchase a bag of nuts.

"TV has to answer the data question and it has pushed us to be more aggressive in our positioning," said Steinlauf.

Scripps is among the first this year to nod publicly to a new wrinkle in the annual "upfront," when U.S. TV networks try to sell the bulk of their ad inventory for the coming programming season. Ad buyers and TV executives interviewed in recent weeks both acknowledged the underlying argument in the 2015 haggle will focus on an exchange of data for advertising commitments. TV companies that can make consumer data available to marketers seeking a particular set of customers are likely to capture a greater share of advertising commitments, these executives said.

NBCUniversal in January unveiled a new service for advertisers it called an "Audience Targeting Platform" that uses set-top box data and other sources to identify the best ad space for certain categories of advertisers.

"There is a growing and deafening demand and push for more insight as it relates to television investment," said Linda Yaccarino, chairman of advertising sales and client partnerships at NBU, in January.

The sales executives likely won't suggest the idea in public, but many media outlets hope their efforts to carve out expectant mothers, teenage soda drinkers, seekers of retirement planning and the like will help them command higher prices from potential sponsors and even sell a greater share of ad inventory than if they simply sold in more traditional fashion.

For its part, Scripps thinks its offering will result in "more brands buying shows as opposed to parent companies buying networks and dayparts," said Steinlauf. In other words, where advertisers once used TV in a blunter manner, lobbing ads across TV-network schedules to blast messages to the masses, they are likely in some cases to attempt to be more precise.

Other offerings will be at play. Scripps will offer a "roadblock" to advertisers that would allow them to run a commercial across multiple Scripps networks, all at the same time. The initiative would let the sponsor get a message in front of a large number of upscale female viewers who watch Food Network, HGTV, DIY and other outlets owned by the company.

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Survey: US businesses add 212K jobs in February

WASHINGTON — U.S. businesses added more than 200,000 jobs in February for the 13th straight month, a private survey found. It was the latest sign that strong hiring should boost the economy this year.

Payroll processor ADP said Wednesday that companies added 212,000 jobs last month, a solid gain, though down from 250,000 in the previous month. January's figure was revised up from 213,000.

The figures come just before Friday's government report on the labor market, which economists forecast will show an increase of 240,000 jobs, according to a survey by data provider FactSet. The unemployment rate is expected to fall to 5.6 percent from 5.7 percent.

The ADP numbers cover only private businesses and sometimes diverge from the government's more comprehensive report, which includes government agencies.

A burst of hiring in the past year has lifted the number of Americans earning paychecks, and a sharp drop in gas prices means those paychecks can buy more goods and services. That has accelerated U.S. economic growth and encouraged companies to add jobs at a steady pace.

Still, February's hiring was the slowest in nine months, according to the ADP data. Most economists have expected a slight slowdown, however, after a run of huge job gains. Employers added 423,000 jobs in November, and more than 1 million from November through January, the fastest three-month pace since 1997. More than 3 million people have been hired in the past 12 months.

"Job growth is strong, but slowing from the torrid pace of recent months," said Mark Zandi, chief economist at Moody's Analytics. "Job gains remain broad-based, although the collapse in oil prices has begun to weigh on energy-related employment." Moody's Analytics helps compile the report.

Those job gains are lifting consumer spending, which rose in last year's fourth quarter at the fastest pace in four years. Spending grew at a solid 0.3 percent rate in January, after adjusting for prices, which fell.

Zandi also said heavy snow and unseasonably cold weather in the Northeast may have dragged down hiring last month.

Still, he expects the economy to grow 3 percent this year, a level consistent with hiring of about 250,000 a month.

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Justices pepper health care law opponents with questions

WASHINGTON — Supreme Court justices peppered opponents of President Barack Obama's health care law with skeptical questions during oral arguments Wednesday on the latest challenge to the sweeping legislation.

Justice Anthony Kennedy, whose vote is seen as pivotal, suggested that the plaintiffs' argument raises a "serious" constitutional problem affecting the relationship between states and the federal government.

The plaintiffs argue that only residents of states that set up their own insurance markets can get federal subsidies to help pay their premiums.

The courts' liberal justices also expressed doubt during Wednesday's oral arguments.

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Exxon CEO: Get used to lower oil prices

NEW YORK — Exxon Mobil CEO Rex Tillerson expects the price of oil to remain low over the next two years because of ample global supplies and relatively weak economic growth.

Speaking at the company's annual investor meeting in New York, Tillerson cautioned that geopolitical turmoil could unexpectedly send prices higher. But he said that if tensions calm, much more oil is ready to hit the market — a market that is already flush with crude oil.

Exxon's presentation to investors outlining its business plans through 2017 assumes a price of $55 a barrel for global crude. That's $5 below where Brent crude, the most important global benchmark, traded on Wednesday. It's about half of what Brent averaged between 2011 and the middle of last year.

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Transcripts reveal Fed confronting chaotic banking system

WASHINGTON — Transcripts of Federal Reserve meetings in 2009 showed central bank officials struggling to contain the worst financial crisis in seven decades and searching for the right policies to halt a deepening economic downturn.

The newly released transcripts show that officials worried about the precedents being set by providing billions of dollars of government support to the nation's largest banks. They also searched for ways to provide more support to an economy that seemed to be in free-fall at the beginning of the year.

During an emergency call on the morning of Jan. 16, 2009, after the government had announced a $20 billion bailout for Bank of America, then-Fed Chairman Ben Bernanke said he was unwilling to allow "the failure of a firm the size of Bank of America."

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