As unemployment rises, Americans spending less, producing less

A trio of U.S. economic indicators released Wednesday show an American economy continuing to veer off course as Christmas approaches.

Americans spent less in November, the first real proof that the yuletide selling season will be tough for retailers, while U.S. durable goods orders slumped in the same month, a further sign that American manufacturers still face bleak economic prospects.

Finally, in mid-December, the number of first-time jobless benefit claimants hit the highest level in 26 years.

Gehry Lays Off Staff

Frank Gehry laid off more than two dozen staffers in late November after client Forest City Ratner ordered the architect to put down his pencils on the $4 billion Atlantic Yards project, according to people familiar with the matter. A Gehry Partners LLP spokeswoman declined to comment.

A Forest City spokesman declined to comment and pointed to a previous statement that said work on the Brooklyn, N.Y., project was delayed because of legal challenges. Forest City has said it is committed to the 22-acre site, slated to be anchored by a basketball arena plus residential and office skyscrapers.

U.S. Wants Building Tied to Iran

By EVAN PEREZ

WASHINGTON -- The U.S. government is attempting to seize a piece of a storied Manhattan skyscraper, alleging it is owned by a front for the Iranian government.

In documents filed Wednesday in U.S. District Court in New York's Southern District, federal prosecutors said the building at 650 Fifth Ave., long known as the Piaget building, is 40% owned by a company that funnels money to Iranian state-owned Bank Melli. The bank is subject to Treasury Department sanctions for allegedly financing Iran's nuclear proliferation efforts.

Sands Drops Jobs, Bonuses

By TAMARA AUDI

Casino giant Las Vegas Sands Corp. will cut 216 full-time employees from its Las Vegas properties as part of an overall effort to reduce costs at the struggling company.

The company confirmed it would notify employees starting Friday. Sands is also eliminating $6.5 million in management bonuses for 2008.

The cuts come as all of Las Vegas endures a sharp consumer downturn that has seen revenues plummet every month since late last year. This week, Nevada gambling regulators said gambling revenue on the Las Vegas Strip fell 26% to $475 million in October, compared with the same month last year.

Businesses Bring the Green to Portland

By MAURA WEBBER SADOVI | SPECIAL TO THE WSJ

Oregon's bid to cash in on its green appeal has given Portland's weakening commercial-real-estate market an early holiday gift.

Denmark-based Vestas Wind Systems AS said this month that it is planning to build a new North American headquarters in the city. Negotiations still are under way and the site isn't set, but the project is likely to be more than 500,000 square feet and be valued at about $250 million.

Businesses Bring the Green to Portland

By MAURA WEBBER SADOVI | SPECIAL TO THE WSJ

Oregon's bid to cash in on its green appeal has given Portland's weakening commercial-real-estate market an early holiday gift.

Denmark-based Vestas Wind Systems AS said this month that it is planning to build a new North American headquarters in the city. Negotiations still are under way and the site isn't set, but the project is likely to be more than 500,000 square feet and be valued at about $250 million.

Tycoon's Fall Is a Warning

By WILLIAM BOSTON

During every economic crisis, personal empires rise and fall, but the decline in the fortunes of Spain's Sanahuja family and its real-estate group, Metrovacesa SA, is a preview of what is in store for Europe's real-estate tycoons.

A week ago, family patriarch Roman Sanahuja Pons was the owner of some 80% of Metrovacesa, the fifth-largest property company in Europe in terms of assets. By the end of last week, Mr. Sanahuja had swapped shares amounting to 55% of Metrovacesa to pay off €2.1 billion ($2.72 billion) in debt to six Spanish banks.

Businesses Bring the Green to Portland

By MAURA WEBBER SADOVI | SPECIAL TO THE WSJ

Oregon's bid to cash in on its green appeal has given Portland's weakening commercial-real-estate market an early holiday gift.

Denmark-based Vestas Wind Systems AS said this month that it is planning to build a new North American headquarters in the city. Negotiations still are under way and the site isn't set, but the project is likely to be more than 500,000 square feet and be valued at about $250 million.

Tycoon's Fall Is a Warning

By WILLIAM BOSTON

During every economic crisis, personal empires rise and fall, but the decline in the fortunes of Spain's Sanahuja family and its real-estate group, Metrovacesa SA, is a preview of what is in store for Europe's real-estate tycoons.

A week ago, family patriarch Roman Sanahuja Pons was the owner of some 80% of Metrovacesa, the fifth-largest property company in Europe in terms of assets. By the end of last week, Mr. Sanahuja had swapped shares amounting to 55% of Metrovacesa to pay off €2.1 billion ($2.72 billion) in debt to six Spanish banks.

Shun Tak Plans New Macau Hotel

By JONATHAN CHENG

HONG KONG -- A member of Macau's Ho casino family unveiled preliminary plans to develop a five-star hotel on Macau's Cotai Strip, even as hotel and casino operators there grapple with a slowdown and travel restrictions from mainland China.

View Full Image

Shun Tak Plans New Macau Hotel

By JONATHAN CHENG

HONG KONG -- A member of Macau's Ho casino family unveiled preliminary plans to develop a five-star hotel on Macau's Cotai Strip, even as hotel and casino operators there grapple with a slowdown and travel restrictions from mainland China.

View Full Image

Shun Tak Plans New Macau Hotel

By JONATHAN CHENG

HONG KONG -- A member of Macau's Ho casino family unveiled preliminary plans to develop a five-star hotel on Macau's Cotai Strip, even as hotel and casino operators there grapple with a slowdown and travel restrictions from mainland China.

View Full Image

Shun Tak Plans New Macau Hotel

By JONATHAN CHENG

HONG KONG -- A member of Macau's Ho casino family unveiled preliminary plans to develop a five-star hotel on Macau's Cotai Strip, even as hotel and casino operators there grapple with a slowdown and travel restrictions from mainland China.

View Full Image

U.S. Rethinks Roles of Fannie, Freddie

America's $11 trillion home-mortgage market is heading for a makeover.

Mortgage lending in the U.S. relies heavily on institutions set up in the 1930s by politicians and government officials seeking remedies for the Great Depression. Now, bankers say, the current economic crisis will force Congress and the Obama administration to decide how to repair or rebuild those institutions, including Fannie Mae, the Federal Home Loan Banks and the Federal Housing Administration.