Mass. economy ekes out small gain in November

The Massachusetts economy all but ground to a halt in November, and appears unlikely to do much better in coming months, the University of Massachusetts reported. Based on an analysis of a variety of economic data, UMass estimated the state economy barely grew at all in November, expanding at an annual rate of just 0.2 percent. Over the next six months, UMass forecasts the state economy will grow at an annual rate of just 0.3 percent, a fraction of projections for the US economy. Most analysts expect the US economy to grow at a rate above 3 percent. ''This reflects an economy that is stagnating under the pressures of a high cost of living, outsourcing, offshoring, and competition from Asia for the state's information technology products," said Alan Clayton-Matthews, the UMass-Boston professor who does the analysis. (Robert Gavin)

Cambridge biotech posts 22% rise in quarterly sales

Genzyme Corp., the fourth-biggest US biotechnology company, said fourth quarter sales rose 22 percent helped by revenue from newly acquired products and its treatments for rare hereditary disorders. Sales climbed to $722 million from $591 million a year earlier, the Cambridge company said. The company forecast 2006 sales of $3.1 billion to $3.3 billion, up from $2.7 billion, and projected earnings to be $1.78 to $1.88 a share. (Bloomberg)

Boston chooses Newton company for Net access

Galaxy Internet Services Inc., a Newton telecommunications services provider, has been tapped by the City of Boston to provide upgraded Net access for more than 10,000 municipal computers. Galaxy is taking over and beefing up a so-called metropolitan exchange point beneath City Hall Plaza built in 2000 by defunct HarvardNet that connects the city's network to the Internet. Galaxy is providing fiber-optic circuits capable of carrying up to 200 megabits per second, comparable to 3,000 simultaneous phone calls or 600 simultaneously streamed video clips. Financial terms are not being disclosed, but Boston telecom manager Ann Roper Quinn said she expects Galaxy to ''ensure a more stable, faster, and more robust network" for thousands of city employees. (Peter J. Howe)

Calif. company to buy Systinet Corp. for $105m

Mercury Interactive Corp., which was delisted by the Nasdaq Stock Market last week, agreed to buy closely held Systinet Corp. for $105 million to add software that helps business computer programs communicate with each other. The purchase of Burlington-based Systinet will give Mountain View, Calif.-based Mercury an entry into the market for so-called service-oriented architecture software, said J. Derrick Wood, an analyst with Pacific Growth Equities in San Francisco. Mercury's stock was delisted for failing to meet a deadline to restate financial results. (Bloomberg)

Sovereign wants probe of Relational's statement

Sovereign Bancorp Inc. urged the Securities and Exchange Commission to investigate Relational Investors LLC, its largest shareholder, over the bank's relationship with a securities firm. A Dec. 29 Relational statement was ''misleading" because it said Sovereign highlighted an American Banker opinion piece by Ryan Beck & Co. chairman Ben Plotkin without saying it paid Plotkin's firm more than $20 million in fees in the past three years, Sovereign said. About $19.5 million of the fees came from banks that Sovereign has since acquired, the lender said. (Bloomberg)

Alkermes in osteoporosis drug development deal

Drug makers Alkermes Inc. and Eli Lilly & Co. will work together on an inhalable version of an osteoporosis treatment. Lilly will provide Cambridge-based Alkermes with funding for development of the drug and Lilly will get exclusive worldwide rights to the resulting product. Alkermes will also receive upfront and milestone payments. (AP)

THE NATION
Gold rises $9.30 an ounce, approaches 25-year high

Gold rose $9.30 an ounce in New York to the highest closing price in almost 25 years on demand by investors, speculators, and hedge funds. ''You have very strong investor buying," said Michael Guido, director of hedge fund marketing and commodity strategy in New York for Paris-based Societe Generale SA. Concerns about the spread of avian influenza and Iran's resumption of research on nuclear fuel also boosted gold's appeal as a haven, Guido said. Gold climbed 18 percent last year as hedge funds bought bullion to diversify from stocks, bonds, and currencies. The price has climbed 6.1 percent this year, outpacing a 3.4 percent rally in the Standard & Poor's 500 Index. Gold futures for February delivery rose 1.7 percent to $550.50 an ounce on the Comex division of the New York Mercantile Exchange, the highest closing price since Jan. 23, 1981. (Bloomberg)