Putnam survey: People more upbeat about economy
Many Americans expect improvements in the economy and their personal finances, but are planning to rein in holiday spending this year and step up saving next year, according to an online survey of 1,000 adults commissioned by Putnam Investments.
Americans are focused more on their financial health than on their physical health, with “saving more” the number-one New Year’s resolution for 2010, cited by 36 percent, said Putnam, a Boston-based mutual funds company.
In a press release about the survey, Putnam said: "Nearly two-thirds of Americans (63 percent) think that stock prices will go up in 2010 and just over half are expecting improvements in the housing market,consumer confidence, consumer spending, and unemployment. However, caution prevails, with 57 percent expecting that consumers will still spend less next year than they did this year and only 40 percent expecting that the US economy will be 'much healthier' in 2010."
Mass. unemployment rate drops 2nd straight month
The Massachusetts unemployment rate fell in November for the second month in row, suggesting that the state's struggling job market might be nearing a bottom.
The jobless rate slipped another tenth point in November, to 8.8 percent, following a four-tenths percentage point plunge in October, to 8.9 percent, said the Massachusetts Executive Office of Labor and Workforce Development.
In November, the national unemployment rate fell for the first time in 19 months, declining to 10 percent from 10.2 percent in October.
The state's job market, however, remains weak. Massachusetts employers sliced payrolls by another 1,700 jobs in November, led by steep losses in retail, personal services, financial services and government.
Still, two sectors that increasingly drive the state's economy posted strong gains. Education and health services added 3,100 jobs, while professional and business services, which includes a variety of technology, scientific and research firms, added 1,200 jobs.
Two industries hardest hit in recession also posted job gains. Manufacturing, which has lost 23,000 jobs, or 8 percent of employment, since the recession began here in March 2008, gained 900 jobs. Construction, which has lost one in five jobs since the beginning of recession, added 200 jobs, the second consecutive monthly gain.
The unemployment and payroll jobs reports can diverge at times because they are based on separate surveys by the US Labor Department. The unemployment rate is estimated from a survey of households, while payroll employment data comes from a survey of businesses.
To read today's press release from the Executive Office of Labor and Workforce Development, please click here.
To read a recent Globe story on the US unemployment rate, please click here.
To read the Globe story on Massachusetts unemployment numbers for October, please click here.
Polaroid property might sit for years
There are so many obstacles to developing the 120 acres in Waltham formerly owned by the Polaroid Corp. that one real estate expert said the property on Route 128 could sit idle for 10 years.
In addition to facing a weak commercial real estate market, the new owners also have to deal with legal issues that the city says have to be resolved by Dec. 28, and a still-unfinished agreement with the city that has been years in the making.
The new owner, Germany-based Helaba Bank, had held the first mortgage on the property, which was being developed through a joint venture by Polaroid and the Related Companies, a developer based in New York.
Helaba forced a foreclosure auction in October, but ended up buying the property for $42.5 million after no acceptable bids came in. “They’re going to sit on it,’’ said Vincent Valvo, editor of Banker & Tradesman, an industry publication put out by the Boston-based Warren Group. “It’s a wonderful location that will be a prime development parcel in 10 years. . . There is next to no money out there right now for major commercial developments.’’
But another analyst predicts the land will sell within about a year. “I think they will try to position this property for a sale in the immediate future,’’ said David Begelfer, chief executive officer of NAIOP Massachusetts, the local chapter of a national commercial real estate development association.
The Polaroid and Related joint venture, named Watch City Development, had been working on a complex involving 1.7 million square feet of office and retail space for about three years.
Helaba announced this month that it is scrapping the plan, without indicating what its new direction would be. Helaba representatives did not return calls seeking comment. Despite the hurdles, Valvo said, a combination office and retail development remains the “highest and best’’ use of the property.
He said there’s no real incentive to divide the property and sell it off in smaller parcels: “Even if you cut up the site, you are cutting up your chances of making it a real destination.’’
A more immediate issue concerns the permitting process. Last month, a lawyer representing Helaba asked that the project’s application for a special permit be withdrawn without prejudice, which would allow the application to be refiled later.
That could be a problem, according to City Councilor Ed Tarallo, chairman of the council’s Ordinances and Rules Committee, which was reviewing the permit. The immediate question is whether the bank can take any action on the application, he said, since Helaba was not involved in filing it.
“The Law Department has been uncomfortable with the responses we’ve received,’’ Tarallo said. “We need the cooperation of all the original parties and the bank, and I’m not sure we have that at this moment.’’
The matter has to be resolved by Dec. 28, Tarallo said, noting that if the City Council denies the permit, Helaba could be limited in the kind of application it can submit later. Helaba told the city it expects to return early in the new year with some indication of its plans for the property, said Tarallo.
“They believe the world has changed significantly since their last application,’’ he said. “The reality is the development may be of a different scope or type.’’
The concern then will be what that looks like, because the city had already made significant progress toward mitigation on open space and traffic that officials would be reluctant to give up.
The agreement with the former developers included traffic improvements, preservation of the 20-acre Berry Farm, establishment of a recreational rail trail, and a land easement that could allow a direct link between the site and Route 128/Interstate 95.
“The city is unified on the issues that are necessary to protect the neighborhoods,’’ said Mayor Jeannette McCarthy, who wants to see the agreements honored. “This was a lot of work to get to this point, and I don’t think it’s advisable for the new owner to start from scratch, but if that’s what they want to do, that’s what we’ll do.’’
It would also would involve the city renewing its environmental concerns with the state, she said.
“I think that the bank is trying to see if they can have another developer who gives them a better deal,’’ said McCarthy. “They didn’t like the terms of this deal and they’re shopping for another developer.’’
The former Polaroid headquarters is a hot property, Begelfer said. He said he believes Helaba is reviewing the potential for the site in order to market it better, but expects the bank to proceed without getting involved in a new permitting process. “There are going to be a lot of interested parties in this property.’’
Biogen Idec drops offer for Facet
Biogen Idec Inc. formally ended its three-month-old tender offer for Facet Biotech Corp. this morning after Facet investors withheld the majority of their shares from the Cambridge suitor.
In a regulatory filing, Biogen Idec acknowledged that its $17-a-share tender offer expired at midnight yesterday, and said it would return to stockowners the minority of shares that were already turned over to the company.
Biogen Idec faced an uphill battle after Facet, based in Redwood City, Calif., disclosed last week it was talking to other unnamed parties about selling at a higher price.
Facet's board had recommended that stockholders reject Biogen Idec's bid, valued at $420 million, but offered to negotiate directly with Biogen Idec and other potential acquirers.
Amy Reilly, a Biogen Idec spokeswoman, would not say whether Biogen Idec plans to enter into face to face negotiations with Facet, with which the Cambridge biotechnology company is collaborating on the development of drugs to treat cancer and multiple sclerosis.
"Our offer expired at midnight," Reilly said. "A majority of the outstanding Facet shares were not tendered, and beyond that we have no comment."
To read a recent Globe story about Biogen Idec and Facet, please click here.
PC market returns to growth, IDC says
Worldwide shipments of personal computers returned to positive growth in the third quarter of 2009, with an increase of 2.3 percent after three consecutive quarters of decline, said IDC, the market intelligence firm headquartered in Framingham.
Strong back-to-school demand and consumers transitioning from desktop to portable computers helped drive the increase, said IDC, which added that the Mini Notebook share of portable-computer market for consumers increased to 28 percent from 14 percent a year ago.
"Looking forward, the market is expected to quicken the pace of growth in 2010," IDC said in a press release. "Emerging regions, which now account for half of the total market, will lead the way with double-digit growth for 2010 while mature markets are also expected to make steady gains."
The decline of commercial PCs also started to slow in the third quarter, a hint that information-technology spending will gradually pick up in upcoming quarters.
"An aging installed base of PCs to replace, along with government aid and declining average selling prices are key ingredients in a recipe for resurgence of PC shipments into the commercial market segment," Richard Shim, IDC's research manager for PCs, said in a statement.
Sipple signs on with Putnam
Putnam Investments, a Boston mutual funds company, announced that Scott Sipple has joined the firm as Head of Strategic Relationships, focused on communication with the asset management research platforms of major wealth management firms.
The newly created position will report directly to William T. Connolly, Head of Global Distribution for Putnam.
Sipple joins the firm from Fidelity Investments, where he headed the Boston mutual fund giant's Bank Trust business unit.
Robert Reynolds, a former vice chairman at Fidelity, took over as president and chief executive of Putnam in 2008. A Globe story in July noted that that more than a third of Reynolds's senior hires have Fidelity ties.
A123, China's Shanghai Autos plan battery venture
SHANGHAI -- A123 Systems Inc. and General Motors Co. partner SAIC Motor Corp. said yesterday that they plan a joint venture in China to supply batteries for electric and hybrid vehicles.
Watertown-based A123 already is a supplier to GM. The deal with SAIC, one of China's biggest automakers, extends that cooperation in China, the world's biggest auto market.
State-owned SAIC will hold a 51 percent stake in the joint venture, which will focus on developing battery systems for electric and hybrid cars, trucks and buses, A123 said in a statement. It gave no financial details.
"We look forward to building a team of outstanding employees to develop innovative battery technologies that we expect will be included in some of the highest quality hybrid and electric vehicles anywhere in the world," David Vieau, CEO of A123 Systems, said in the statement.
The new venture, called Shanghai Advanced Traction Battery Systems Co., will be the main supplier for all hybrid and pure electric vehicles made by SAIC Motor and its subsidiaries. But it will also seek to expand its share in the market for electric vehicle battery systems, it said. A123 Systems will hold 49 percent in venture and share management duties equally with SAIC, the statement said. SAIC is using A123 battery cells in its own-brand autos, including the hybrid Roewe 750 and a plug-in version of the Roewe 550.
Founded in 2001, A123 Systems was funded initially by a $100,000 grant from the US Department of Energy to commercialize technology developed at the Massachusetts Institute of Technology. Its customers also include Chrysler, Delphi, AES Energy Storage and Black & Decker Corp. SAIC recently obtained a majority 51 percent stake in its main China joint venture with GM, Shanghai GM, as part of a deal that calls for the Chinese partner to invest up to $350 million in a venture aimed at expanding in the Indian auto market.
To read a recent Globe story about A123, please click here.
Today in Globe Business
UMass makes a deal for Bayside
The University of Massachusetts Boston has reached an agreement to acquire the troubled Bayside Exposition Center at Columbia Point in what would mark a major expansion by the school into neighboring waterfront property in Dorchester.
The move also significantly alters plans for a prime 20-acre piece of land that had once been targeted for a $1 billion development, until the property faced foreclosure.
UMass, which said it has reached a preliminary agreement with the real estate company that owns the property, plans to immediately use the Bayside’s nearly 2,000 parking spaces as it constructs new facilities at its existing space along its Morrissey Boulevard campus. The 275,000-square-foot Bayside building will also be used for classrooms and offices during renovations of buildings.
To read the full story, please click here.
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Wellesley executive Brian T. Moynihan completed his meteoric rise through Bank of America Corp. yesterday when he was tapped to be chief executive of the nation’s largest bank.
Bank of America directors named Moynihan, 50, to succeed Kenneth Lewis, who is retiring at the end of the month under the cloud of his company’s controversial acquisition of Merrill Lynch.
Moynihan, who moved to the bank in 2004, when it acquired FleetBoston Financial Corp., currently heads Bank of America’s vast consumer and small-business banking franchise. Before that, he served in a variety of positions at the company, including general counsel during a key period in the Merrill Lynch acquisition.
To read the full story, please click here.
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Tiger Wood’s withdrawal may hurt sport’s popularity, profits
There are the obvious casualties from Tiger Woods’s infamous infidelity: the tarnished reputation, lost sponsors, broken marriage, angry fans, and spurned mistresses.
But the fallout from Woods’s implosion stretches far beyond the orbit of the disgraced superstar, and the aftershocks carry serious implications for Massachusetts, with its $1.6 billion golfing industry. The indefinite leave from golf of this lord of the links has left many businesses - from golf courses to retail shops - worried about the future of a sport that has already been hurt by the recession.
Attendance at the Deutsche Bank Championship in Norton, the biggest golfing event in New England, which brings in upward of $50 million annually for the region, is likely to fall with the absence of Woods.
To read the full story, please click here.
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Tech Lab: Controller does it harmoniously
At home, we don’t squabble over the remote control. There are too many to squabble over. One for the TV, another for the cable box, and one more for the DVD player and home theater audio system. My wife and I each grab one and start changing channels or adjusting the sound. At last, a rough consensus emerges, and we end up watching “Bridezillas."
A single remote to control everything would upset this delicate balance of power. Still, it’s a cool idea, and I’ve enjoyed trying out several universal remotes, including a flawed but attractive new product that turns an Apple iPhone into an entertainment control center.
Lots of us have purchased cheap replacement remotes that come with a list of numeric codes to make the remote compatible with your particular TV, stereo, or whatever.
To read the full story, please click here.
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Hospital posts a gain, not the loss it expected
Beth Israel Deaconess Medical Center, which in March warned it was on track to lose $20 million for the 2009 fiscal year, instead managed to post a $10.3 million operating gain for the year, and might move to restore annual raises as early as next spring.
The gain for the 12 months ended Sept. 30, while smaller than the $37.3 million operating gain last year, represents a turnaround for the 620-bed Boston hospital. Last winter, in the teeth of the economic downturn, it laid off about 70 workers, consolidated research operations, and made other cuts to stabilize finances.
Beth Israel Deaconess yesterday said it recorded an overall gain, including investment income, of $19.5 million for the most recent fiscal year, compared with $31.6 million the previous year.
To read the full story, please click here.
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Bank of America names Moynihan as CEO
Moynihan, 50, who heads the bank's sprawling consumer and small business franchise, was tapped by Bank of America directors last night to succeed Kenneth Lewis, who is retiring on Dec. 31, under a cloud for his company's controversial acquisition of troubled investment bank Merrill Lynch.
Bank of America's directors cited Moynihan's vast range of experience running divisions within the company as well as a demonstrated ability to understand the issues facing the company and its many types of clients.
"He has excelled in every role, earning the loyalty and respect of customers and associates alike. In short, Brian brings the right combination of knowledge, experience and leadership to achieve all of our company's goals for the future," the bank's chairman, Dr. Walter E. Massey, said in a statement.
A native of Ohio who first joined the region's banking establishment when he went to work handling legal matters for the former FleetBoston Financial Corp., Moynihan has served variety of positions at Bank of America, including as general counsel during a key period in the Merrill acquisition.
A lawyer by training, Moynihan had no formal background in banking. But he nonetheless emerged as the top candidate over numerous others with lengthy banking experience because of his reputation as a whip-smart and indefatigable executive who mastered many disparate tasks assigned to him during his years at Bank of America and Fleet.
Moynihan has been on a short list of candidates to succeed Lewis ever since he announced his retirement in September. The search had previously focused on top executives from rival financial institutions several of whom declined the job or announced they would stay put, including most recently, Robert P. Kelly, chief executive of Bank of New York Mellon Corp.
That left two internal candidates -- Moynihan, who is based in Boston, and Gregory Curl, its chief risk officer, who is based in Charlotte, N.C., where the company has its headquarters. (Globe Staff)
Louis Vuitton settles with New Balance
Boston-based New Balance, which filed the lawsuit in September, would not disclose any additional details of the settlement but said the lawsuit had been dismissed.
“We are pleased to have reached an amicable resolution of this matter with New Balance," Michael Pantalony, Louis Vuitton's director of civil enforcement, North America, said. "Respecting and protecting the integrity of intellectual property is essential, and is a top priority for Louis Vuitton.”
Ed Haddad, New Balance's vice resident of intellectual property, said in a statement, “We appreciate Louis Vuitton’s cooperation in promptly resolving this matter. Both companies are united in the fight to protect intellectual property."
Beth Israel ends up with a $10.3 million gain
Beth Israel Deaconess Medical Center, which in March warned it was on track to lose $20 million for the 2009 fiscal year, instead managed to post a $10.3 million operating gain for the year, and may move to restore annual raises as early as next spring.
The gain for the 12 months ending Sept. 30, while smaller than the $37.3 million operating gain last year, represents a turnaround for the 620-bed Boston hospital. Last winter, in the teeth of the economic downturn, it laid off about 70 workers, consolidated research operations, and made other cuts to stabilize finances. Beth Israel Deaconess today said it recorded an overall gain, including investment income, of $19.5 million for the most recent fiscal year, compared with $31.6 million the previous year.
In a statement today, Beth Israel Deaconess chief financial officer Steven Fischer attributed the better than projected performance in the fiscal year to "extreme fiscal prudence, including sacrifices from employees across the medical center who temporarily gave up raises, vacation time, and retirement benefit matches to help eliminate a projected $20 million deficit and minimize layoffs."
The hospital said early this year that it might have to eliminate as many as 600 jobs, about 10 percent of its staff. But a series of moves, including wage cuts and freezes,100 early retirements, and benefits reductions, helped reduce the number of jobs cut.
In a recent letter to employees posted on his blog today, Beth Israel Deaconess chief executive Paul F. Levy credited "a few lucky one-time events in September," including an unspecified commercial dispute that was resolved in favor of the Harvard-affiliated teaching hospital, with aiding the financial turnaround.
Levy said the hospital was budgeting for a 2 percent operating margin, a gain of about $30 million, for the current fiscal year. If those projections hold up or improve, he said, Beth Israel Deaconess would begin restoring 3 percent annual salary increases effective April 1. Levy said he polled hospital workers and found that salary increases were a higher priority than restoring a 401(k) match or other benefits.
Neither Levy nor Fischer were available to discuss the financial results, a hospital spokesman said.
New England Boat Show has a new owner
The National Marine Manufacturers Association, a Chicago-based group that represents the recreational boating industry in North America, said it has acquired the the New England Boat Show from North America Expositions Co. as part of a larger strategic repositioning of its boat show portfolio.
Financial terms of the sale are not being disclosed, the association said.
"The New England Boat Show, now in its 54th year, will proceed as scheduled Feb. 20-28, 2010, at the state-of-the-art Boston Convention & Exhibition Center and will continue to be directed by long time show manager Joe O’Neal," the association said in a press release.
With this purchase, the association said it now owns and produces 20 consumer boat shows annually throughout North America.
Abt Associates will evaluate flu vaccines
Abt Associates, a Cambridge-based firm that offers research and consulting services, said it will conduct a study designed to evaluate the effectiveness of the H1N1 and seasonal flu vaccines among pregnant women.
The study is for the Centers for Disease Control and Prevention, which has identified pregnant women as a high risk population when it comes to such vaccines.
"Under the two year contract valued at $5.5 million, Abt Associates will identify and enroll study participants, coordinate testing of participants for infection with influenza viruses, develop and maintain all study databases, and assist CDC with data analysis," the company said in a press release.
"Serious health risks have been observed in pregnant women with H1N1, including the development of pneumonia, maternal death, spontaneous abortion, and preterm birth," the release added.
Brockton mall sues Brigham's owner over rent
At least one complaint about the demise of Brigham's restaurants has landed in court. The owners of the Westgate Mall in Brockton have sued Brigham's Inc., claiming the company breached its lease and failed to pay rent before the ice cream shop at the mall shuttered last fall. "It's disappointing," said Westgate Mall general manager Luciano Villani.
"Brigham's had a great product -- the ice cream was a nice premium quality ice cream that was well-liked by the New England customer." Villani said. Brigham's had been a tenant for six years. According to court papers, the restaurant abruptly stopped paying rent to the mall earlier this fall.
According to the lawsuit, filed on Dec. 8 in Plymouth Superior Court, Brigham's violated the terms of its lease, making liable for about $50,000 in rent. More than a dozen Brigham's restaurants have been shuttered in recent months by Deal Metrics LLC, a Baltimore private equity firm that bought many of the shops in 2008. In many cases, the closings have been sudden and without advance warning to employees.
Deal Metrics managing director Luke T. Cooper said last month that he planned to file bankruptcy on behalf of the chain, but as of today had not. In a text message, Cooper said today that he was unavailable for comment.
JetBlue plans more flights to the Dominican Republic
JetBlue plans to begin flights to Punta Cana, Dominican Republic, from Logan and John F. Kennedy International Airport in New York.
The carrier will commence weekly nonstop Saturday service from Boston on May 8 and daily nonstops from JFK May 6, pending approval of regulators in the Dominican Republic.
Punta Cana would be the airline's fourth Dominican Republic destination. The others include Santo Domingo, Puerto Plata, and Santiago.
JetBlue representatives said that the airline expects to offer special introductory fares as soon as they get the final go-ahead for the service.
The annoucement comes about two weeks after the discount airline said it was aiming to boost flights from Boston to the Caribbean by 25 percent, part of a larger plan to increase service out of Logan by 30 percent.
JetBlue, which views Boston as a key market, leads all carriers in destinations from Logan and is tied with American for most passengers out of the airport, at about 3 million a year.
Uno's holiday offer - 12 days of freebies
You've heard the carol "The 12 Days of Christmas." Now Uno Chicago Grill, the Boston-based restaurant chain, is offering "12 Days of Freebies," a concept that could make Scrooge very nervous.
There's a bit of a catch. Folks first have to join the Uno Insider's Club (no membership fee required). Then members can log onto the chain's website at www.unos.com and through Dec. 20, they can qualify for freebies that can be redeemed between January through March. As Scrooge, a man of business, can tell you, those are normally slow months in the restaurant trade, what with many folks making New Year's resolutions to lose weight and save money.
But for Insider's Club members still yearning for cakes and ale during those dreary months, there's the promise of a good deal. At the Uno website, members can download coupon offers, including $5-off discounts on a purchase of $15 or more, a free 60-day membership to BJ's Wholesale Club, free snack hour items, and a free kid's meal with the purchase of an adult entrée, said Uno, a chain of more than 200 company-owned and franchised full-service Uno Chicago Grill units. (For more details, click here to read the chain's press release.)
To drive home the value of its offer, Uno cited a report that estimates how much it might cost to buy all the items mentioned in "The 12 Days of Christmas."
And so if some Scrooge-like soul were to monetize the value of three French hens, two turtle doves, and a partridge in a pear tree, not to mention five golden rings and the all-important conga line of 11 ladies dancing, what would the math work out to?
The bean-counter's report cited by Uno puts the price tag at more than $87,000.
Mass. airplane parts maker shutting down
Executives at a Taunton airline parts manufacturer says they plan to close the 90,000-foot plant, putting more than 100 people out of work.
Esterline Haskon Aerospace sent a letter to employees saying the 60-year-old business was closing because of the recession, price competition, and decreased demand for the rubber seals the company makes for airplane doors and windows.
Operations will be consolidated at a larger facility in Brea, Calif. The exact date of the shutdown has not been determined, but the company says workers will be given 60 days notice.
Plant manager Vito Gallo tells the Taunton Daily Gazette that terms of the shutdown and whether employees will be offered severance or jobs elsewhere within the company haven't been determined.
7-Eleven buys New England Pantry
DALLAS -- 7-Eleven Inc. said today that it bought convenience store operator New England Pantry for an undisclosed sum in order to broaden its presence in the Boston area.
The privately held company, known for its Slurpee frozen beverages, purchased the business from affiliates of wealth management firm Sanders Morris Harris Group Inc.
New England Pantry runs 58 convenience stores under the White Hen Pantry brand. Those stores will convert to the 7-Eleven brand next year. 7-Eleven runs, franchises, or licenses more than 37,100 stores in 16 countries.
Cambridge BioMarketing buys Somerville firm
Terms of the acquisition were not disclosed. All members of RDVO will join Cambridge BioMarketing, the firm said.
Following the acquisition, the agency will have 58 employees, a firm spokesman said.
Holiday travel is projected to rise, AAA says
A total of 2.9 million New Englanders plan to travel during the holidays, up 12.7 percent over last year, and 2.5 million of those New England travelers will go by car, AAA Southern New England said.
Nationwide, AAA said it is projecting that 87.7 million Americans will be traveling 50 miles or more from home during the year-end holidays. That is a 3.8 percent increase from the same period one year ago; the projected increase for the Christmas/New Year period is also the largest projected increase for any major holiday this year, AAA said.
“More Americans traveling during the winter holidays is another sign consumers are continuing to grow more confident in their personal financial situations,” Lloyd P. Albert, AAA Southern New England senior vice president of public and government affairs and new business development, said in a statement.
