Here are a couple of bank stories that, perhaps, Barack Obama will not compare to root canal:
- M&T cuts pay of four executives - Jonathan D. Epstein/The Buffalo News M&T Bank Corp. will not award any cash bonuses for executives for last year and will reduce total compensation for 2010 for four of its top five executives — including CEO Robert G. Wilmers — in part because of new government rules for recipients of Treasury investments.... In a filing with the Securities and Exchange Commission, M&T said its Nomination, Compensation and Governance Committee had decided not to award any cash bonuses to its five named executive officers, “as required by the TARP Interim Final Rule” that was issued last June.
Ben Bernanke's jaw may be a little sore today, too: - Bernanke confirmed despite concerns - AP/The Buffalo News Embattled Federal Reserve Chairman Ben Bernanke won confirmation for a second term Thursday, but only by the closest vote ever for the crucial post and after withering criticism from lawmakers for bailing out Wall Street while other Americans suffered in recession. - Now confirmed, Bernanke must rebuild confidence - Robert J. Samuelson/The Washington Post The famous British economist John Maynard Keynes (1883-1946) coined the phrase "animal spirits." Less elegantly, we say "emotions." Whatever the vocabulary, the lesson is the same: Psychology matters.
And, you've heard of Niagara-on-the-Lake. Here's Niagara Under the Sun: - Solar energy initiative aired - Aaron Besecker/The Buffalo News NIAGARA FALLS -- All kinds of public buildings under the sun, from schools to libraries to city halls, will be targeted as installation sites under a new state initiative to develop solar energy. The New York Power Authority has issued a request for proposals with a goal of producing 100 megawatts of new generating capability across the state over the next four years, officials said Thursday. The initiative will put the state "in the forefront as one of the leaders in photovoltaics and solar technology," authority President and Chief Executive Officer Richard M. Kessel said during a news conference at Niagara Falls High School.
-- George Pyle/The Buffalo News Here comes the sun
Considering how much of President Obama's State of the Union Address was about economics, banks and jobs, the front page of today's Buffalo News was pretty much another business section.
Some commentators tied the two events together: - iCountry News - Timothy Egan/The New York Times The maestro has spoken. The all-powerful Oz has come and gone. Behold: after a buildup so big it makes the State of the Union speech look like a rebranding of Grape Nuts, Steve Jobs has descended from the mountain with a tablet. The written word is safe — for now — with him. - Apple to the Rescue? - Rich Karlgaard/The Wall Street Journal Why President Obama should meditate on the career of Steve Jobs.
Today's print WSJ had one article on the State of the Union, six on the iPad. Of course, the SOTU was pretty late for a newspaper's deadline, and Jobs had his announcement at 1 p.m. EST. Another better decision? In 1930, someone asked baseball slugger Babe Ruth if it was proper that his then-phenominal salary of $80,000 was more than the $75,000 paid the same year to President Herbert Hoover. His reply: "I had a better year." Which, of course, brings us back to New Era.
A derby is a hat. A derby is a race. And the Western New York community of Derby Wednesday won the race to keep making hats. Or caps. But when I suggested the above headline might appear in The Buffalo News today, New Era Cap boss Christopher Koch didn't think it -- or anything else -- was the least bit funny. Either way his decision went, he said softly, it was going to hurt somebody.
- New Era to keep factory in Derby - George Pyle/The Buffalo News The decision to maintain the company’s factory in the Western New York community of Derby — along with its 330 jobs — was nothing personal, strictly business, said New Era Cap Co. CEO Christopher Koch. The region has been home base to the iconic baseball brand since its beginning. Its headquarters remain in Buffalo, and the company has been led by members of his family since Ehrhardt Koch borrowed $5,000 from an aunt to open a factory on Buffalo’s Genesee Street in 1920. But, Koch said Wednesday, the choice of whether to retain the Derby facility or close it in favor of another plant in Demopolis, Ala., came down to a matter of dollars and cents. “I did not weigh in at all in any way with the people who were looking at the matter,” said Koch, a Derby-area resident. “I kept my mouth shut and let the numbers speak for themselves.” Those numbers include a tentative cost-saving deal with the Communication Workers of America, which represents the plant’s work force, and a package of government assistance that includes $3 million from the state’s Empire State Development program. The rest of the story was basically an Oscar acceptance speech, with everybody thanking everyone else, but no music to play them off.
Of course, in Alabama, the mood was different: - New Era closes Demopolis plant; 351 jobs cut - Patrick Rupinski/Tuscaloosa News The economy in West Alabama took a major hit Wednesday when New Era Cap Co. announced plans to permanently close its Demopolis plant in the spring, putting 351 people out of work. The plant closing, however, will affect more than just New Era's workers and their families. It will affect businesses, hospitals, social services and local governments throughout the area.
- We mourn loss of New Era and move on - Jason Cannon/The Demopolis Times “We need to employ Nick Saban's24 hour rule,” Demopolis Mayor Mike Grayson said Wednesday afternoon. “We’re going to take 24 hours to mourn this loss and we’re going to get up in the morning and work on Plan B. The textile industry seems to be one that’s going away – or going overseas – and it doesn’t look like they’re coming back,” he added. “That’s not sour grapes, it’s just a national trend. What we’ve got to do is find an industry that wants to be in the City of Demopolis and one that can be suited by that facility. We’re going to be aggressive. Make no mistake about that.” - Demopolis Resolved to Pull Through Plant Closure - WVUA-TV, Tuscaloosa
-- George Pyle/The Buffalo News I'm gonna try and find some humor in this. For some folks, it hurts too much not to laugh.
From the Business Today section of The Buffalo News:
- Zemsky sees a brighter future - Samantha Maziarz Christmann/The Buffalo News “I couldn’t imagine, frankly, living anywhere I felt wasn’t worthwhile investing in,” said [Howard] Zemsky, guest speaker at Tuesday’s Prospectus Premiere in Salvatore’s Italian Gardens. “Why live somewhere with no sense of hope or optimism?” The premiere, attended by about 260, was tied to the publication of The News’ 18th annual Prospectus section. The special section, devoted to coverage of the region’s economy, will appear in Sunday’s News.
- Economy trends upward, remains ‘at very low point’ - Ashley M. Heher/AP/The Buffalo News Americans are feeling better about the economy; home prices are on the rise; and companies are forecasting a brighter year. While no one doubts the economy has a long way to go to come back from the punishing recession, the reports Tuesday were signs of progress for a recovery that has proceeded in fits and starts. Delta Air Lines said Tuesday demand for business travel is picking up. Johnson & Johnson says more people are buying its Aveeno and Neutrogena skin-care products. Yahoo! says online advertising finally is beginning to snap out of its yearlong slump. [OMG. I just searched for Yahoo! on Google. Lucky the space-time continum didn't implode.] Apple recorded its most profitable quarter ever, selling twice as many iPhones from October to December than it did before and a third more Macintosh computers. And Corning says its quarterly profit almost tripled on surging sales of glass for flat-screen televisions and computers.
We wanted to clarify the story, running in today's Business Today section, about Verizon - the phone, wireless, Internet and TV provider - and its leadership's prediction that the part of the business that installs and services old-fashioned landlines would lose 13,000 jobs in the coming year.
The response: That number is an educated guess as to how much the headcount will have to go down through attrition, buyouts, dropping contracts, and, quite possibly, layoffs. As of now, no layoffs are being announced.
The route: E-mail.
Makes perfect sense. It is easy for me and for the company spokesman. It greatly enhances the chances that I will get the quote right. And he's still [I assume] using a Verizon product, their FiOS Internet service, to get the word out.
Does seem odd, though, that you don't use the phone to report a story about the phone company. Which, of course, is why they are going to somehow lose 13,000 employees.
[I'll be watching for someplace that's live-streaming the Apple tablet announcement today at 1.] UPDATE: No live video available that I can find. Odd. The Times, however, is blogging.
Lots of buying, selling, offering and, most important, doughnuts in the Business Today section.
- Tim Hortons marks 25 years here - Samantha Maziarz Christmann/The Buffalo News It was 25 years ago today that Tim Hortons opened the doors of an Amherst franchise, unfurling its banner on U.S. soil for the first time.... Tim Hortons, which affectionately refers to Buffalo as Coffeetown, USA, is featuring personal stories from Buffalo customers at its Coffeetown-USA.com as part of the celebration.
Lessee. Tops is successful in this marker. Tim Hortons is successful in this market. [There are even Tim Hortons stands inside Tops stores.] Maybe what we need is a Tim Hortons and a Tops in the Statler Towers. Viz:
- Trustee for Statler still hopes for buyer - Matt Glynn/The Buffalo News As the shutdown of the Statler Towers continues, the trustee in the bankruptcy case said he still hopes to secure a buyer for the property and is working on evicting a remaining tenant.
Also: - Home sales rose in 2009 - Alan Zibel/AP/The Buffalo News Sales of previously occupied homes rose in 2009 for the first time in four years, despite a December slump that resulted from a tax credit that led many buyers to complete sales earlier. - Profits drop for 2 banks operating in WNY - Jonathan D. Epstein/The Buffalo News Two regional community banks with Western New York operations — Community Bank System and Northwest Bancshares — reported lower earnings for the fourth-quarter, driven by one-time charges or events that dragged down otherwise good performances.
-- George Pyle/The Buffalo News Over to you, Frank
The Big Stories from Sunday's Business Today section of your Buffalo News include a local institution that may be saved by a competitor from Utica, and another local institution that is already receiving an infusion of cash from much further away:
- Brewery struggling to stay afloat - Samantha Maziarz Christmann/The Buffalo News Tucked into Buffalo’s Black Rock neighborhood on Ontario Street, the tiny Flying Bison Brewing Co. has been struggling lately to stay in business.... But the recession, coupled with high ingredient costs, has brought the brewery almost to its knees. Now, however, an offer from Utica-based F.X. Matt Brewing Co., which makes Saranac beer, could keep the doors to Flying Bison open. [Earlier story here.]
-China deal buoys Roswell Park - George Pyle/The Buffalo News A Roswell Park Cancer Institute technology that already has shown promise in hunting down and killing cancer cells with minimal damage to surrounding tissue has been licensed to a Chinese pharmaceutical for a $1 million initial payment and a share of what could be a very lucrative market for the process in China.... The specific process covered in the deal between Roswell Park and Hisun Pharmaceutical is a photo imaging and therapy process developed by researcher Ravindra Pandey, who is himself an example of the international nature of medical research. A native of India, Pandey received his doctorate in chemistry from the University of Rajasthan in Jaipur, India, and later did postdoctoral work at University College, [since rebranded Cardiff University] Cardiff, Wales. At Roswell Park since 1990, Pandey has worked on producing a plant-based compound that, once injected into a patient’s body, attaches itself to cancerous tumors wherever they may be, helping doctors find them before they otherwise would become apparent. Cancer cells with the compound attached not only glow under different kinds of common body-imaging scans, but also can be destroyed by laser light of great precision and relatively low intensity. Related: - China's $2.4 trillion grip on the global economy - Robert Samuelson/The Washington Post
Now, if someone could only figure out a way that beer could cure cancer, everyone would win. [Sadly, it's more likely to be a cause than a cure.]
Which is all well and good for the folks who work for these employers. On the other hand:
- Lost jobs continue to plague WNY region - David Robinson/The Buffalo News The Buffalo Niagara region’s unemployment rate jumped up to 8.5 percent in December as continued job losses kept the number of people without jobs at its highest level in at least 20 years. The pace of the region’s year-to-year job losses slowed during December, to 11,300, or 2 percent, its slowest rate since last January, according to data released Thursday by the state Labor Department.
If the second story is about you, and you are jealous of the people the first story is about, you can look here, there or yonder.
