Stocks rebound on Nov. retail sales, despite oil dip

Renewed optimism, thanks to increased retail sales, caused U.S. stocks to begin to rebound yesterday from a three-session loss streak, but waned as oil fell to a new, five-year low and efforts to block a spending bill in the House renewed worries of a government shutdown.

At one point, the Dow Jones Industrial Average increased by 225 points on news that retail sales rose 0.7 percent in November, the largest increase in eight months.

The Labor Department also reported fewer people filed unemployment claims last week.

"There's no question the numbers were encouraging," said Jon Hurst, president of the Retailers Association of Massachusetts.

"The key is whether they'll be sustained next month because, on average, November and December combined make up about 20 percent of the year's total sales."

Just hours before the House of Representatives passed a spending bill and the Senate passed a temporary bill to avert a U.S. government shutdown, the Dow ended at 17,596.34, up 63.19 points, or
0.4 percent, after crude oil dropped below $60 per barrel.

The latter is good news for the economy, for now, because the less people need to spend on gas, the more they can spend on other things, said Alan Clayton-Matthews, associate professor of economics and public policy at Northeastern University.

20.26 | 0 komentar | Read More

Golden age for Netflix, Amazon

The 72nd Golden Globe Awards may be a month away, but the winners and losers have already been selected.

Winners: Amazon and Netflix. Losers: Cable companies.

The fact that two online streaming services have received such resounding acclaim should put an end to any argument that the networks and cable have the market cornered on the art of acting, writing and directing.

Once just a way to access network shows on-demand, streaming services can now produce award-winning content themselves. An unintended consequence: television sales could dip in favor of tablets and smartphones because, let's face it, you no longer need a TV to watch good TV.

Though Netflix has competed at the Emmys and Golden Globes before, the nod for Amazon's breakout hit "Transparent" as best comedy TV series means that the creative success of Netflix — with seven nominations this year — isn't a fluke. It paves the way for the Hollywood elite to look toward Sony's new PlayStation TV, Microsoft Xbox, Roku and more as legitimate and promising places to lend their talents. Web series — like the Boston-set drama "Beacon Hill" — could also see a rise in interest both with viewers and Hollywood itself.

Such a scenario would act as a shot across the bow of overpriced and customer service-challenged cable providers. I wouldn't be surprised if, by this time next year, some top television shows are shopping themselves to those services as opposed to the networks that cable companies are currently holding hostage.

Of course, the awards also set up a serious faceoff between the two streaming titans-turned-TV-newbies. The seven nominations for Netflix original series shows "House of Cards," "Orange is the New Black" and "Derek" did not come as a surprise.

Amazon's nod for the hilarious show "Transparent," starring best actor in a comedy nominee Jeffrey Tambor, was more of a surprise. But to its huge credit, Amazon aggressively pursued the honor.

There's no doubt that Amazon's roster of 50 million subscribers to its Prime service will rise as a result, more so if Tambor wins. But there's plenty of room for streaming service competition and plenty of untapped market share to be had.

Rather than a monthly cable subscription, increasing numbers of consumers are paying for an a la carte menu of streaming services that allows them to view their own shows and still pay less than a monthly cable bill would cost.

One thing's for sure: Networks and cable companies will care about the 2015 Golden Globes for the first time in a long time.

20.26 | 0 komentar | Read More

Merger of Staples, Office Depot predicted

Activist investor Starboard Value's disclosure that it bought a 5.1 percent stake in Framingham's Staples Inc. and upped its Office Depot Inc. holding to 9.9 percent indicates the New York hedge fund will push for a merger of the two office supplies chains, according to analysts.

And while that would leave a single dominant U.S. office supplies retailer, Starboard is confident the Federal Trade Commission would approve it, Bloomberg reported, citing a person familiar with the matter. The FTC signed off on Office Depot's $1.2 billion merger with OfficeMax last year without imposing conditions.

Starboard did not return calls for comment. Its regulatory filings stated that Staples' and Office Depot's shares were "undervalued and represented an attractive investment opportunity" and outlined possible future actions including "making recommendations or proposals … concerning changes to the ... ownership structure ... industry consolidation or potential business combinations."

B. Riley & Co. analyst R. Scott Tilghman sees far more reluctance on the part of struggling Staples' to pursue an acquisition or merger than Office Depot. "Staples historically has had the belief that as the frontrunner of the industry, they understood how to operate and, over time, would continue to gain share over their rivals," he said. "Unfortunately, in recent years, especially after the Office Depot-OfficeMax merger announcement, that hasn't been the case."

Starboard's stakes in both retailers hint at a possible merger in the works given its involvement in the Office Depot/OfficeMax merger, Citi analyst Kate McShane said "If they cannot achieve this, due most likely to FTC concerns, we think they will push to have one or both of these companies sold," she said.

20.26 | 0 komentar | Read More

Hot Property: Penthouses become highly desirable

Penthouses have always had a cachet, but it's only in the last 10 years that Boston has gone vertical enough to create a lot of them.

Buildings like the Ritz- Carlton Residences, the W, 45 Province St., the Mandarin Oriental and The Clarendon put the high-style urban penthouse on the Hub map. Upcoming buildings will raise the ante. The Millennium Tower is offering a 13,000-square-foot penthouse atop the 60th floor for $37.5 million, the city's most expensive listing ever. And projects like One Dalton Street in the Back Bay and Twenty Two Liberty on Fan Pier are also building spectacular pent­houses.

"Big building penthouses are like bespoke suits — custom made" says Wayne Lopez, who sold six at 45 Province St. and is now working for Millennium Partners. "These are people who don't buy cars off lots or suits off the tracks."

Lopez says new penthouses are often sold as raw space, letting buyers customize floor plans and finishes, noting a family with young children bought a 45 Province St. penthouse because they could alter the layout to fit their needs.

For those buyers who want a penthouse, but can't wait two to three years for a build-out, there are usually several on the market.

Gibson Sotheby's Beth Dickerson is listing a 16th-floor two-bedroom corner penthouse at One Charles for $3,195,000 that features both a wraparound terrace off the living areas and a private one off the master bedroom, with panoramic views of the city on two sides.

"Having outdoor space is huge and increases the value of a penthouse by 20 percent," said Dickerson, who sold one for $13 million at the Mandarin Oriental. "And corner pent­houses are very hard to find."

Dickerson says penthouses are high on the bachelor pad wish list and those of people who like to entertain. There are the much-touted wealthy foreign buyers looking for a trophy penthouse, but also local empty nesters. Coldwell Banker agent Albert Lynch is a buyer's broker for a suburban Boston couple with two grown children.

"Some buyers want to be in flag buildings, those that mix condos with a hotel offering amenities such as room service." Lynch said. "Others, like my client, are looking for a full-service building that's quieter."

Lynch said tall building penthouses are a different animal than penthouses in other neighborhoods. In penthouse units he recently sold on Beacon Hill and in the Leather District, exclusive rights to roof decks were a top amenity

Penthouses along the Water­front or in Charlestown aren't as high up but offer spectacular views. Penthouse 230 for sale at Flagship Wharf for $2,149,000 has 2,434 square feet of space, floor-to-­ceiling windows and two private terraces that look out over Boston Harbor.

"Whether you want water or city views, if you're looking for a condo with more than 2,000 square feet or three bedrooms in the city, these will generally be penthouse units," Dickerson said.

Why pay more, when the views a few floors below are nearly as good?

"It's the cachet of living in a one-of-a-kind space where you live at the top" Lynch said. "Some people want to be able to say they live in a penthouse and will pay extra for the privilege."

20.26 | 0 komentar | Read More

Fox News reporter dies of apparent suicide

Veteran Fox News correspondent Dominic Di-Natale, who recently reported on the riots in Ferguson, Mo., has been found dead of an apparent suicide.

He was 43.

Officials discovered Di-Natale's body Wednesday in Jefferson County, Co., where the international reporter owned property. The coroner said that he took his own life.

According to Fox News, the U.K. born journalist had been dealing with undisclosed health issues.

"We were extremely saddened to learn of Dominic's passing and send our deepest condolences to his family and friends," said a statement from a Fox News spokesperson. "He was an esteemed journalist and an integral part of our news coverage throughout the Middle East."

Di-Natale, who began as a contributor to BBC World, covered international stories for Fox News and worked out of the network's Los Angeles bureau.

He also reported on the 2011 raid that killed Al Qaeda leader Osama Bin Laden.

Fox News' Megyn Kelly expressed her condolences on Twitter.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

20.26 | 0 komentar | Read More

Merck buy to boost Mass. biotech

Drug giant Merck is buying Lexington-based Cubist Pharmaceuticals Inc. in a whopping $9.5 billion deal a top state official said will spur growth in the Bay State's life sciences sector.

"These huge, global companies continue to show an interest in Massachusetts companies, which makes one of the cases for why they want to be here," said Susan Windham-Bannister, president and CEO of the Massachusetts Life Sciences Center.

"Rather than consolidate, they've really invested to grow their presence in Massachusetts, so we have every reason to anticipate that Merck is going to further expand its footprint here," Windham-Bannister said.

The Massachusetts Life Sciences Center awarded Cubist $1.7 million in tax incentives in 2009, according to Windham-Bannister. She said the Lexington company has added all the jobs it said it would as a condition of those incentives and maintained them for the last five years.

Windham-Bannister said she expects Merck to allow those jobs to remain in Massachusetts, as Takeda did when it acquired the Cambridge oncology company Millennium in 2008.

The deal includes $8.4 billion in shares, and Merck will assume $1.1 billion in debt. Merck said the deal will strengthen its hospital acute care business and help it address antibiotic resistance. Shares of Cubist closed yesterday at $100.60, up 35.29 percent, after the deal was announced.

Companies like Cubist serve a vital role in the development of antibiotics to treat diseases that have proven resistant to drugs, Windham-Bannister said.

"One of the biggest challenges we face in the world is that diseases can adapt and become resistant to drugs, so companies like Cubist are incredibly important," she said. "It has made Massachusetts even more of a global focal point for the development of antibiotics, especially ones for infections that have become drug-resistant."

Cubist pulls in most of its revenue from the antibiotic Cubicin. Another treatment, Zerbaxa, targets urinary tract and intra-abdominal infections.

The Food and Drug Administration is expected to make a decision on that drug later this month, and European regulators also are reviewing it. Cubist paid more than $1 billion last year to buy two rival antibiotic developers: Trius Therapeutics and Optimer Pharmaceuticals Inc.

"Cubist is a global leader in antibiotics and has built a strong portfolio of both marketed and late-stage pipeline medicines," said Merck CEO Kenneth C. Frazier. "Combining this expertise with Merck's strong capabilities and global reach will enable us to create a stronger position in hospital acute care while addressing critical areas of unmet medical need, such as antibiotic resistance."

20.25 | 0 komentar | Read More

The Ticker

Renovated Huntington Ave. YMCA unveiled

The Huntington Ave. YMCA, America's first Y and The YMCA of Greater Boston's flagship branch, unveiled its expanded and renovated 102-year-old building to the public yesterday.

The $40 million renovation provides elevator access to all floors and a handicap entrance in the front of the building. The new aquatics center is also accessible to individuals with mobility challenges. The expansion of space includes the installation of additional spin, yoga and Zumba studios and family locker rooms.

The new facility offers a wider range of programs and support services to members. A dedicated teen space, complete with a gameroom and study center, is also part of the remodel. It also features a community kitchen that will be used for nutrition courses and cooking demonstrations to educate youth and families about healthy food preparations.

American, US Airways traffic drops

American Airlines Group Inc. said yesterday that traffic dipped in November, hurt by weaker international travel, and a key fourth-quarter revenue figure is likely to be about flat with last year.

American said that it expects revenue for each seat flown one mile in the fourth quarter to range from a drop of 1 percent to a gain of 1 percent.

American, which owns US Airways, said passengers on the airlines and their regional affiliates flew 16.16 billion miles last month, down .5 percent from November 2013.

Build your own burgers at McDonald's

As sales continue to slide in the U.S., McDonald's plans to expand a test that lets people build their own burgers by tapping on a touchscreen to pick the bread, cheese and toppings they want.

The company says it will bring the "Create Your Taste" option to 2,000 of its more than 14,000 U.S. locations next year.

McDonald's said yesterday that U.S. sales fell 
4.6 percent in November at established locations.

Today

 Commerce Department releases wholesale trade inventories for October.

 Labor Department releases job openings and labor turnover survey for October.

TOMORROW

 Treasury releases federal budget for November.

THE SHUFFLE

Northeast Utilities has named William Akley as the new president of the company's gas business unit, which includes Yankee Gas in Connecticut and Nstar Gas in Massachusetts. Akley comes to NU from National Grid, where he most recently served as senior vice president of U.S. gas operations.

20.25 | 0 komentar | Read More

Fenway concert OKs put on hold as neighbors push back

The Fenway Park summer concert series is filling up, with James Taylor and the Foo Fighters joining the proposed lineup — but two mystery bands have yet to 
be announced.

At a hearing yesterday before Consumer Affairs and Licensing Director Patricia A. Malone, Larry Cancro, senior vice president of Fenway affairs for the Red Sox, requested permission for the Foo Fighters to play at the stadium July 18 with Royal Blood and The Mighty Mighty Bosstones and July 19 with Mission of Burma and the Dropkick Murphys, and James Taylor to play Aug. 6 with Bonnie Raitt. Fenway Park executives have negotiated with two other acts to play July 16 and Aug. 7, 8 and/or 9.

"But in the concert industry, nothing is final until the act announces the show," Cancro said, declining to name them.

There had been speculation that U2, which is playing the TD Garden July 10 and 11, might also play Fenway. But Cancro said, "U2 is doing all arenas this year, so I wouldn't speculate that."

Malone took all of the dates under advisement after hearing concerns about the proposed concerts from Friends of Ramler Park and the Fenway Civic Association.

"Our organization is receiving an increasing number of complaints from residents in regards to excessive noise levels, drunk and disorderly behavior, traffic and parking issues associated with the concerts," said Tim Horn, the association's treasurer, who suggested that the Sox limit concerts to three weekends a month, require that they end no later than 10:30 p.m. and pay for additional police details.

But Pam Beale, president of the Kenmore Association and owner of Cornwall's Pub, called the concerts a "real boon for the area."

20.25 | 0 komentar | Read More

Fed proposing big US banks boost capital cushions

WASHINGTON — Federal regulators are proposing that the eight biggest U.S. banks be required to further increase the amount of capital they set aside to cushion against unexpected losses.

The proposed requirements are aimed at lessening the chances of future taxpayer bailouts of troubled banks, while also encouraging the behemoths to shrink so they pose less of a risk to the financial system.

The Federal Reserve governors are expected to vote at a meeting Tuesday to advance the so-called "capital surcharges."

The eight banks, considered so big and interconnected that each could threaten the financial system if they collapsed, are JPMorgan Chase, Citigroup, Bank of America, Goldman Sachs, Wells Fargo, Morgan Stanley, Bank of New York Mellon and State Street Bank.

20.25 | 0 komentar | Read More

Nuts! Korean flight delayed by first class spat

SEOUL, South Korea — Forget dust-ups over reclining seats in economy class. There's a new and exclusive twist on inflight anger: Nut rage in first class.

A recent Korean Air Lines flight was delayed when its chairman's daughter, who was also vice president responsible for cabin service at the airline, ordered a senior crew member off the plane. The crime? Allowing her and other passengers in the pointy end of the aircraft to be served bagged macadamia nuts instead of nuts on a plate.

The executive, Cho Hyun-ah, resigned Tuesday amid a storm of public criticism in South Korea. The airline had earlier excused her behavior even as it apologized for inconveniencing passengers.

South Korean media reported this week that the flight from New York City to Incheon, South Korea returned to the gate after Cho told the head of cabin crew to leave the plane. The reports said Cho quarreled with crew in the first class cabin and the flight departed 20 minutes late.

Cho, 40, is the oldest child of Korean Air's chairman, tycoon Cho Yang-ho. Her two siblings are also executives at South Korea's largest airline.

The incident caused uproar in South Korea where it was seen as an example of over-mighty behavior by the offspring of the moneyed elite.

The South Korean economy is dominated by family-controlled conglomerates known as chaebol. Family members often wield greater influence over major companies than shareholders and executives with no blood ties to the founding family. The Cho family own about 10 percent of Korean Air Lines, part of a business empire than spans the travel, logistics, hotel and leisure industries.

Korean Air Lines confirmed that Flight 86 was delayed at John F. Kennedy airport on Dec. 5 due to the nut incident. But the company said the decision to disembark the crew member was made by the flight's captain.

South Korea's government said it is investigating whether Cho violated aviation safety law. Cho could face legal action if the probe shows that she interrupted the flight or endangered safety by using threats, her status or violence.

Korean Air Lines Co. said Tuesday before Cho's resignation that it was "natural" for her to fault the crew's ignorance of procedures.

The airline's cabin crew are required to ask first class passengers whether they want nuts, partly to avoid serving them to people with allergies. The nuts also should have been served on a plate.

The airline said it will step up training to improve customer service and safety.

Cho was not available to comment.

People's Solidarity for Participatory Democracy, a civic group, said it would file a complaint against Cho with prosecutors.

"The anger and the concern from the public were so big because safety and procedures related to important services were simply ignored" due to Cho's status, the group said.

20.25 | 0 komentar | Read More