DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Starbucks CEO Bullish About Prospects, Thanks to New Grocery Businesshttp://www.dailyfinance.com/2011/04/04/starbucks-ceo-bullish-about-prospects-thanks-to-new-grocery-bus/http://www.dailyfinance.com/2011/04/04/starbucks-ceo-bullish-about-prospects-thanks-to-new-grocery-bus/http://www.dailyfinance.com/2011/04/04/starbucks-ceo-bullish-about-prospects-thanks-to-new-grocery-bus/#commentsFiled under: , , , ,

Howard Schultz, chief executive of Starbucks (SBUX), delivered a bullish outlook last week for the company, citing plans to increase the company's presence in the single-serve beverage market and to expand beyond coffee into the grocery business.

In a conversation at the 92nd Street Y in New York with Norman Pearlstine, chairman of Bloomberg Businessweek, Schultz (pictured) said Starbucks recently established a "strategic relationship" with Green Mountain Coffee Roasters (GMCR), producer of the Keurig single-cup brewing system, because it presented an opportunity to create a "one billion dollar business" for Starbucks.

A Billion-Dollar Business

Announced in March, the pact will involve the manufacturing, marketing, distribution and sale of Starbucks' coffee and Tazo tea single-portion packs. Starbucks also began selling single-cup portions of its own Via instant coffee last year. At the time of the announcement, the two companies said overall coffee category growth in the U.S. in 2010 was driven primarily by single-cup coffee sales of close to $2 billion.

Since its acrimonious break-up with Kraft Foods (KFT) -- which had the exclusive right to sell Starbucks coffee to grocery stores until Starbucks tried to terminate the arrangement late last year, a move upheld in February by an appeals court -- Starbucks will now be able to build a "major consumer products business that over time will rival our retail business," Schultz said.

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The company, which recently changed its logo to remove its own name as well as the word "coffee," now has "the freedom to enter the grocery business with multiple products within food and beverage that perhaps will not be coffee," Schultz said.

The executive noted Starbucks is testing the sale of wine and beer in the afternoons and evenings in several stores, an experiment he claims has been successful, though he added they were not sure "what we are going to do with it yet."

Another new move -- mobile phone payment for Starbucks store sales -- has been a resounding success, according to Schultz. Introduced some three months ago, the mobile payment system has been so popular, Starbucks is now the number one company in the U.S. for mobile phone sales, he said.

"Gold-Rush Mentality"

Schultz sees China -- where Starbucks has been in business for 12 years -- as a "huge opportunity" for the company. It currently has 800 stores in Taiwan, Hong Kong, Macau and mainland China -- with half of them on the mainland.

Starbucks' expansion in the region notwithstanding, Schultz criticized what he called "a gold-rush mentality by every Western brand rushing into China, without the discipline and the understanding of the consumer and the issues of navigating in terms of the government. I think there are going to be a lot of companies that are not going to succeed, literally fail miserably by rushing in and not doing their homework."

Schultz joined the board of Groupon because "they are doing something that really caught my imagination. To get a front row seat in an unbelievably entrepreneurial company that is changing the rules and could affect Starbucks. I thought was of real benefit and value to the company," he explained. Groupon, which was eyed by Google and Yahoo last year as a potential takeover target, offers its subscribers discounted coupons for goods and services.

The brands Schultz most admires include Zara, the Spanish fashion chain owned by Inditex, which trades on the Spanish exchange; Costco (COST); privately held Crate and Barrel; and Apple (AAPL). Asked which executives he considered role models or individuals he could learn from, he named Apple's chief executive and co-founder Steve Jobs; Les Wexner, founder and chief executive of retail chain Limited Brands (LTD); and Jim Sinegal, chief executive and co-founder of Costco.


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]]>grouponhoward schultzKraft Foodsstarbucks CEOstarbucks kraft foodsStarbucksCeoStarbucksKraftFoodsJane L. LevereMon, 04 Apr 2011 13:00:00 ESTRubin, Paulson Give Mixed Forecast on U.S. & Global Economic Recoveryhttp://www.dailyfinance.com/2011/03/17/rubin-paulson-give-mixed-forecast-on-u-s-and-international-econo/http://www.dailyfinance.com/2011/03/17/rubin-paulson-give-mixed-forecast-on-u-s-and-international-econo/http://www.dailyfinance.com/2011/03/17/rubin-paulson-give-mixed-forecast-on-u-s-and-international-econo/#commentsFiled under:

Two veteran observers of the global economy are offering mixed forecasts on its immediate and long-term prospects.

Robert Rubin, Treasury Secretary during the Clinton Administration and current co-chair of the Council on Foreign Relations, along with billionaire hedge fund manager John A. Paulson, took part in a public conversation on the economy earlier this week at New York's 92nd Street Y.

Although the U.S. economy appears to be recovering, both men said America's finances -- as well as the global economic system -- still face multiple risks that could derail any improvements.

"Serious Headwinds" That Could Impede Growth

"If you compare where we were to a year ago, we really are in much better condition," says Rubin. "There are indeed a goodly number of positives." But there are also, he says, "serious headwinds" in the form of possible impediments to growth. Rubin says these obstacles include "our long-term fiscal trajectory (which) is horrendous, unsustainable and dangerous" and undermines confidence -- as well as state and local government deficits "that are going to be have to be closed by their constitutions." Contributing to those figures, he says, are rising oil prices and high unemployment -- which Rubin estimates at 16%, if temporary workers and people who have entirely dropped out of the workforce are included.

"The probabilities are very unclear," he says. "While the most likely outlook may be the more positive forecast that many forecasters now have, there is a very real chance that what actually happens could fall short of that."

A Variety of Economic Scenarios

Rubin says that, as an investor, he is concerned about "low-probability events which, if they occur, could have huge consequences" -- events such as a resurgence of terrorism, possibly in a politically unstable and nuclear armed Pakistan. He also warns the U.S. fiscal deficit could cause a crisis in the bond market, that in turn could have "severe effects on our economy."

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"It's not inconceivable that something goes wrong in Europe," Rubin notes. adding that if default happens there, "that could have ramifications elsewhere." But he admits the future is far from clear: "This is the most uncertain and complex time in my adult lifetime in trying to make judgments about what is going to happen either in the short term or the long term."

For his part, Paulson predicts that, if serious "outside events don't occur," U.S. economic growth will rise 3% to 4% this year and continue improving in 2012. But a possible obstacle to this growth is the weakness of the U.S. housing market. "The housing market has stopped falling, it hasn't recovered," he says. "Home prices are still down 30% to 35% from the peak, new home construction is still at an all-time low. It's hard to spur employment growth without a return of new home construction."

Housing metrics, Paulson adds, appear "to have bottomed and are showing signs of improvement" -- with the percentage of homes going delinquent every month down 75% from the earlier peak. "As those trends continue, I expect housing prices will start to recover and new home construction will start to improve," he says, "and when that happens, that will be a boost to both employment and further economic growth."

Japan, the Middle East, Europe

There are three major uncertainties facing the global economy, Paulson notes. The problems facing Japan in the wake of last week's earthquake, tsunami, and nuclear reactor meltdowns could "derail or slow" global economic growth. Political turmoil in the Middle East has the potential to disrupt oil supplies, leading to higher oil prices and hampering global economic growth. And then there's the credit crises facing Greece, Ireland and Portugal, which are all at their debt limits, and possibly Spain, Italy and even France. "If they're not able to resolve this issue, this can create a risk to the global economy," he says.

Looking at the longer term, Rubin says although the U.S. has "a dynamic society" and "tremendous comparative advantage in the global economy...the real question comes down to our political system and whether it will meet its multiple challenges, most particularly putting our fiscal house back in order...and creating the resources necessary for the public investment that is requisite for competitiveness and growth."

Paulson says he is "rather optimistic" about the long-term prospects of the U.S. economy, which is now "growing very strongly, has very bright people, an entrepreneurial culture, and corporations that are global leaders. If the U.S. private sector is allowed to continue to grow, prosper and innovate, and the government gets the fiscal house in order, then I think the U.S. economy can continue to grow and remain the dominant economy in the world."

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]]>Columnseconomic forecasteconomyEuropean debt crisisjapanJapan earthquake and tsunamijohn paulsonmiddle east protestsrobert rubinJane L. LevereThu, 17 Mar 2011 07:00:00 ESTN.Y. Gift Fair Puts Rising Consumer Confidence on Displayhttp://www.dailyfinance.com/2011/03/06/n-y-gift-fair-puts-an-upswing-in-consumer-confidence-on-display/http://www.dailyfinance.com/2011/03/06/n-y-gift-fair-puts-an-upswing-in-consumer-confidence-on-display/http://www.dailyfinance.com/2011/03/06/n-y-gift-fair-puts-an-upswing-in-consumer-confidence-on-display/#commentsFiled under: , ,

Gift-buying trends revealed at last month's New York International Gift Fair underscore consumers' ongoing focus on value, but also a possible upswing in their confidence.

Dorothy Belshaw, senior vice president of GLM -- which has owned and operated the gift fair since 1924 -- says purchasers of gifts today are seeking "a longer-lasting impact on the recipient. They want the gift to deliver quality, value and meaning. This can be for jewelry, tabletop, home furnishings."

The gifts, she adds, "do not have to be at a high price-point. Consumers want to feel good about what they're giving, and they want the recipient to feel good about receiving it."

Belshaw says she was happy to see "a lot of color coming back" to the semi-annual fair, which was held at Manhattan's Jacob K. Javits Convention Center and featured some 2,800 suppliers of home, lifestyle and gift merchandise, who showed over 100,000 product lines.

"Sometimes when times are hard, designers retreat to neutral tones," she says, explaining that the return of color at this year's gift fair "is a sign of strengthening of confidence."

The fair was "just about fully sold," in terms of space rented to exhibitors, Belshaw notes, an improvement over rentals two years ago, which dropped 5%.

Gifts Reflect the Family's Aesthetic

Certain gift categories have weathered the recession better than others, she says. In the former category are jewelry, housewares, tabletop and home furnishings. Among the hottest categories at the fair, according to Belshaw, were gifts for babies and children, with the number of exhibitors jumping 12%.

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Parents "want what they buy for their children to reflect their family's aesthetic. They will spend tremendous amounts of money to make sure the products they buy are lead- and PBA-free. They are looking to smaller manufacturers, unique products that are design-forward," Belshaw says.

The number of exhibitors in a section called "New York's newest" jumped some 14%, in part, she says, because they found it "a very useful platform in which to be grouped together. This focuses the buyer's attention across all categories."

Among retailers scouting this section was Anthropologie, the Philadelphia-based chain.

Inexpensive Pampering is Popular

Smaller home furnishings were also popular, Belshaw says, because they let purchasers freshen up their homes on a budget. Among the best-selling gifts in this category were decorative pillows, which Bellows says "have gone crazy over the last three years," lighting and wall art.

She calls jewelry "a very resilient category," and says personal care items, like soaps, lotions, candles, spa products and yoga mats, were also popular. The latter, she notes, "are a way to pamper yourself without breaking the bank."

According to Belshaw, one category that has been slower to recover is decorative tabletop items with no function, like souvenir shot-glasses and mugs.

The fair also recognized six exhibitors for design creativity:
  • New York-based Stelton, for its "Pure Black Pure White" knives, forged from a single piece of stainless steel, coated in black matte titanium and held on a single, white magnetic strip.
  • London-based Black + Blum, for its "Hot Pot BBQ," a terra cotta pot for growing herbs that conceals a grill underneath.
  • Los Angeles-based American Design Club, for Brendan Ravenhill's Bare Light, a light socket that displays its electric components.
  • Hongjie Yang, a Chinese student studying design in the U.S., for his Veer stainless-steel soap dispenser, inspired by the shape of bamboo.
  • K Studio, of Grand Rapids, Mich., for the best collection, of pillows, pouches and wall décor.
  • California-based Creative Danes, which represents Menu, a Danish housewares company, for its creative use of QR codes, via iPhone and Android apps, to provide immediate access to product information and YouTube videos.

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]]>baby giftschildrens giftsconsumer confidencedecorative pillowsgiftshome furnishingsJavits centerjewelrylightingmoodNew York International Gift FairpamperingshoppingspavalueWall artJane L. LevereSun, 06 Mar 2011 10:00:00 ESTRaises Are Still Scarce, but Employee Perks Are Coming Backhttp://www.dailyfinance.com/2011/03/04/raises-are-still-scarce-but-employee-perks-are-making-a-comebac/http://www.dailyfinance.com/2011/03/04/raises-are-still-scarce-but-employee-perks-are-making-a-comebac/http://www.dailyfinance.com/2011/03/04/raises-are-still-scarce-but-employee-perks-are-making-a-comebac/#commentsFiled under: , , ,

Raises are still scarce, but perks are making a comeback as employers look for other ways to retain -- and attract -- top employees.Don't hold your breath for that raise just yet. Pay hikes are still scarce in this economy, according to a new survey by Accountemps, a firm that provides temporary accounting, finance and bookkeeping services. But that doesn't mean that you can't improve your compensation in some other way.

To retain top employees and attract new ones, U.S. companies are increasingly turning to perks such as subsidized training and flexible work conditions rather than raises, Accountemps has found. A division of Robert Half International (RHI), Accountemps surveyed more than 1,400 chief financial officers from a random sample of U.S. companies with 20 employees or more.

Asked which perks their companies would offer to attract and retain employees in 2011, 29% of respondents answered subsidized training and education, 24% named flexible work hours or telecommuting and another 24% cited mentoring programs. Matching-gift programs were mentioned by 13% of respondents, while 11% listed free or subsidized meals, and another 11% cited on-site perks like child care, dry cleaning and fitness centers.

A Cost-Effective Strategy

The findings echo the conclusions of a December report by Robert Half International, which surveyed human-resource managers. Half of the managers surveyed said they would be willing to negotiate greater perks for a promising candidate. They saw the perks as cost-effective, with the ability to spur innovation and improve employee morale, productivity and loyalty, according to the report.

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Why are perks making a comeback? Bill Driscoll, Northeastern district president for Robert Half International, says it's partly because "companies have been very frugal as it relates to raises. Employees have been taking pay cuts. Although these benefits are not financial, it makes employees feel better about their job, makes them want to stay with their company."

Educational benefits are especially attractive to today's "constantly changing workforce," Driscoll says, as well as mentoring programs, which he considers another form of training. "Many employees are always looking for ways to be more competitive and develop their skill sets." Employees also value flexible business hours and the ability to telecommute, he adds.

Some employers worry that employees might leave their jobs once their education is paid for. Although that's indeed a danger, Driscoll claims that the risk is worth taking. Education and other perks "build loyalty to the organization, improve morale," he says.

Looking for Other Means of Compensation

At a time when the "cradle-to-grave" mentality is long gone, perks have become a key tool to entice employees to stay with a company, Driscoll adds. "That's the main way to hold employees, to create an environment where they feel really good about the organization they work for. If companies invest in them, they tend to give more of themselves. They want to be with an organization like that."

Karen Sumberg, senior vice president of the Center for Work-Life Policy, a New York think tank focused on workplace issues, says her group's research mirrors Accountemps's latest findings. The center, she says, has been "hearing quite a bit in our research that Gen Y and baby boomers are looking for other ways to be compensated besides money."

Perks can help employees advance and stay engaged -- especially in the U.S., where work is an important place for people, she adds. "In general, the workforce is moving to people wanting more autonomy over their time," she says. "They're also looking for ways to better themselves [and] build connections through mentoring."


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]]>benefitscareercareer advicecareerscompensationeducationemployeeemployee benefitsemployeesemployeremployersemploymentemployment opportunitiesflexible hoursflexible jobsflexible workingjobjob flexibilityjob trainingjobsMentormentoringmentorspayperksraiseraisessalarysalary negotiationtelecommutetelecommutingtrainingworking from homeworking remotelyJane L. LevereFri, 04 Mar 2011 10:15:00 ESTWhere Cathay Pacific's CEO Sees Trouble Brewing for Airlineshttp://www.dailyfinance.com/2011/03/01/airfare-hikes-jet-fuel-fewer-flyers-cathay-ceo-warns/http://www.dailyfinance.com/2011/03/01/airfare-hikes-jet-fuel-fewer-flyers-cathay-ceo-warns/http://www.dailyfinance.com/2011/03/01/airfare-hikes-jet-fuel-fewer-flyers-cathay-ceo-warns/#commentsFiled under: , , , ,

When Cathay Pacific (CPCAY), one of Asia's top airlines, raised fares in 2008 after the U.S. economy tanked, it didn't see its business or its bottom line suffer. But as the airline industry hiked fares again in the face of rising fuel prices and political turmoil in the Middle East, Cathay's CEO isn't sure it will see a repeat of that happy outcome.

The airline didn't have "revenue problems in 2008," Tony Tyler, chief executive of Hong Kong-based Cathay Pacific, told me during a recent visit to New York. "As fuel prices went up and up and up, we put prices up, but we didn't see softening of demand. Passengers were prepared to pay more."

"At the end of the day, if people want to travel, they will have to pay for fuel," Tyler added. "But the worry we have now is that if fares go up, it could have a dampening effect on demand. At the moment, we think that if we put prices up, people will still travel, unless there's a terrible recession."

When it comes to jet fuel prices, "one has to assume the worst," he said. He noted that Cathay Pacific hedges its jet fuel purchases "to some extent. But it's a temporary palliative."

The price of crude oil, which is used to make jet fuel, is now at a two-year high, and U.S. airlines have raised fares five times since the beginning of the year in an attempt to compensate. Until recently, jet fuel purchases represented 30% of airlines' total costs; they now represent 40%.

More Consolidation in Europe, but Not in Asia

Tyler, who is leaving Cathay Pacific shortly to run the International Air Transport Association, a global aviation trade group, said the other major challenges facing carriers are infrastructure and airport constraints: "Next generation" measures to modernize the U.S. air-traffic control system, which ultimately would increase capacity, have yet to be passed. And Tyler said progress on the "Single European Sky" project, which would create a unified air-traffic control system there, has been "painfully slow."

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With the exception of Frankfurt, where a new terminal and runway are being built, no major new airport facilities are being planned in Europe. "Everybody wants to fly, but no one wants an airport," Tyler said.

Although airlines in the U.S. have consolidated -- most recently in the United-Continental (UAL) and Southwest-Air Tran mergers (LUV) -- Tyler predicted it would be a "long, long time before there is consolidation across aero-political borders in Asia. There needs to be a complete revamp of the basis on which we fly, laws governing bilateral traffic rights, airlines owned by nationals. If somebody waves a magic wand, then we'll see cross-border consolidation."

In Europe, he feels, it could be a different story. Pointing to what he called Europe's "big three" airlines -- British Airways (BAIRY), which combined with Iberia last month; Air France (AFLYY), which earlier merged with KLM; and Lufthansa (DLAKY), which has taken over Swiss, bmi and Austrian Airlines -- Tyler said it was possible other small European airlines "could gravitate to the Big Three. Life may become more difficult for them. I can't see a fourth one emerging."

A Smart Move for Oneworld

Later this year, the industry's Oneworld alliance -- of which Cathay was a founding member -- will move its executive offices from Vancouver, B.C., to New York. Tyler predicted that the move "will be a real shot of adrenaline to the alliance," whose other founding members include American Airlines (AMR), British Airways and Qantas (QUBSF).

Oneworld, he added, constantly adds new members -- among the latest is S7, a Russian domestic carrier -- which widens its network, creates more opportunities for member airlines' frequent fliers to earn and use mileage, and gives them more access to airport lounges worldwide. He also said Oneworld carriers' fares "are made much more competitive by sharing," because alliance airlines have to provide other alliance carriers and their passengers "cheap access to the network."


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]]>air franceairfareairline industryairlinesamerican airlinesaviationbottom linebritish airwayscathay pacificceoColumnsegypt protestsjet fuel priceslibyalibya unrestlufthansamergers and acquisitionsoil pricesOneWorldPlane ticketspricesprofitqantassouthwest airlinesTony TylerUnited AirlinesJane L. LevereTue, 01 Mar 2011 09:30:00 ESTWho Wins in the Dispute Between Airlines and Online Ticket Sites?http://www.dailyfinance.com/2011/02/01/who-wins-in-the-dispute-between-airlines-and-online-ticket-sites/http://www.dailyfinance.com/2011/02/01/who-wins-in-the-dispute-between-airlines-and-online-ticket-sites/http://www.dailyfinance.com/2011/02/01/who-wins-in-the-dispute-between-airlines-and-online-ticket-sites/#commentsFiled under: , , ,

There's more sparring lately between the U.S. airline industry and the online travel reservations sites. The most recent round involves American Airlines (AMR) and US Airways (LCC). Both legacy carriers recently signed new agreements: American with Priceline (PCLN) and US Airways with Expedia (EXPE)

The latest twists in this saga began in November. That's when American told Orbitz (OWW) -- one of the largest online travel agencies -- of its plans to terminate their contract in December. Travelport, the global distribution system (GDS) company that owns 48% of Orbitz, tried but failed to block American's move. Then Expedia, the largest online agency, announced it would not renew its contract with American, which expired on Dec. 31.

The current bottom line for the air traveler? When you next search Expedia and Orbitz for flight information, you'll find no data about American.

A New, More Specific Technology

At issue for both online agencies regarding American is the "direct-connection" technology the carrier is developing. That technology, still in its early stages, will eventually display fares according to a traveler's individual needs -- such as a preference for priority seating -- rather than use the current system of listing fares by price and schedule.

Although airlines stopped paying commissions to many travel agents in the 1990s, most carriers continue to rely on GDS databases to help travel agents sell tickets. Airlines pay booking fees to the GDS's, which then return part of those fees to travel agencies.

American's goal with the new technology is to reduce distribution costs and gain greater control over the marketing of its tickets. That technology also will allow the airline to bypass the global distribution systems and avoid paying the systems' fees, which in turn will deprive travel agencies of income they had received from sharing those fees.

Getting Access to Inventory

Orbitz and Expedia have refused to cooperate with American on the use of direct-connection technology -- but that's not the case with Priceline .

Henry Harteveldt, travel analyst for Forrester Research, suggests that Priceline opted to cooperate with American because the two companies "have a unique relationship." If Priceline didn't agree to American's terms, he says, the online company wouldn't get access to inventory that Priceline could offer under its "name your own price" scheme.

Priceline, he adds, "was motivated to preserve the value overall of the relationship. It feels it's more profitable to do this than to rely on rebates from the global distribution systems."

Derek Kerr, chief financial officer of US Airways, says his company agrees "in principle with what American Airlines is doing. And that is important to lower our distribution costs." Speaking during US Airway's fourth-quarter conference call last week, Kerr said the reality is "that the technology landscape has evolved really over the last three decades, and the GDS and distribution environment, much of it had stayed stuck in legacy systems that were really built 30 years ago. And that needs to evolve and get to lower costs. . . . What we need to do is more quickly innovate and sell new products."

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In a recent press release announcing the US Airways/Expedia agreement, the companies said the deal involved the airline committing "to offer all of its content to Expedia through the global distribution system model. In addition, Expedia has committed to working with US Airways to enable the distribution of its Choice Seat product (offering customers the benefit of purchasing window or aisle seats toward the front of coach class) through new channels, including the Expedia online travel marketplace."

Douglas Quinby, senior director of research at the travel industry research firm PhoCusWright, believes the terms of this new agreement would potentially let USAirways book flights through a GDS, and book optional services and fees by another method, perhaps similar to American's direct-connection technology. "They're trying to figure it out," he says.

A Mix of Online Ticketing Scenarios

Long-term, he predicts, "there's going to be a real mix of different types of scenarios, some direct connections between travel agencies and airlines, some connections with agents via GDS's, and hybrids like US Airways and Expedia."

In the meanwhile, Henry Harteveldt thinks American's disputes with Orbitz and Expedia are creating a windfall for competitors like US Airways and United.

American's rivals "realized that by selling through travel agencies, they're making themselves easy to shop and more customer-friendly brands," he says -- adding that American's absence on Orbitz and Expedia must be creating "some financial hit."


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]]>air travelair travel savingsair travel woesairline ticketsairlinesAirlineServiceamerican airlinesexpediaExpedia.comonline ticketsorbitzpricelinetransportationunitedus airwaysJane L. LevereTue, 01 Feb 2011 09:00:00 ESTLogging In to Art from Around the Worldhttp://www.dailyfinance.com/2011/01/22/logging-in-to-art-from-around-the-world/http://www.dailyfinance.com/2011/01/22/logging-in-to-art-from-around-the-world/http://www.dailyfinance.com/2011/01/22/logging-in-to-art-from-around-the-world/#commentsFiled under: , ,

This oil painting on wood and enamel, by Ree Morton, is being exhibited at the VIP Art Fair online.One of the next big art fairs could be coming to your home. The VIP Air Fair, which starts this Saturday, will feature 7,500 pieces of contemporary artwork by more than 2,000 artists, presented by nearly 140 galleries in 30 different countries -- and it will be held entirely online.

During the nine-day fair, billed as the world's first global, online art fair, prospective buyers will be able to register and browse works for sale for free at vipartfair.com. (VIP is an acronym for "viewing in private.")

Visitors who pay a fee of $100 on Jan. 22 and 23, or $20 starting Jan. 24, will also get special access to galleries' inventory in private viewing rooms; entry to the VIP Lounge, which features fair tours by well-known collectors, critics and curators, and video tours of artists' studios and of notable private art collections; and will be able to message and live chat with the galleries' staff.

Although the art will be for sale, with prices ranging from less than $5,000 to more than $1 million, the fair won't include any e-commerce: Buyers will be able to communicate online with art dealers, but must complete transactions offline.

The Concept

The concept for the art fair was developed by James and Jane Cohan, partners in James Cohan Gallery, a contemporary art gallery with locations in the Manhattan neighborhood of Chelsea and in Shanghai, China, and by Internet entrepreneurs Jonas and Alessandra Almgren.

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The four realized that "if we used the international art fair as a model, we could create a sophisticated platform where galleries could come together, in one place for a limited time only, to be accessible worldwide and to take advantage of the global reach the Internet provides," Jane Cohan says.

The participating galleries include heavyweights like Gagosian and Hauser & Wirth, which have locations in the U.S. and Europe, as well as smaller galleries from cities like Sao Paolo, Brazil; Turin, Italy; and Taipei, Taiwan. About a third of the 138 participating galleries are based in the U.S.

All of the galleries have previously participated in other major (offline) art fairs, such as Art Basel in Switzerland and Miami Beach, Cohan says. They've paid to rent virtual booths at VIP Art Fair, much as they'd rent actual booths in an offline fair.

Andrea Serbonich, artist liaison for the Perry Rubenstein Gallery, a Chelsea-based gallery that has represented contemporary and emerging artists since 2004, says one advantage of VIP Art Fair is that "it's not about who has the biggest booth, or the placement of the booth." The online fair "is democratized and everyone looks the same," she adds.

What Shows Well on the Web

Another difference? The choice of artwork. "A big factor is what kind of work reproduces well online, would look great in an online format," Serbonich says. Perry Rubenstein kept that in mind when choosing the 10 public-booth and 40 private-viewing pieces that it will feature, including Amir Zaki's color photos of lifeguard towers along the southern California coastline.

The fair, she says, will create "a level playing field in attracting collectors from all over the world" who can "log in whenever they feel like it." Rubenstein will staff its live chat and messaging services during U.S. and European business hours.

Unsurprisingly, one risk for galleries participating in the fair is that some prospective buyers might not be willing to make a purchase before seeing the art in person.

Rubenstein plans to let prospective buyers reserve artwork for 48 hours, for free, to give them time to visit its gallery in New York and examine pieces they wish to purchase. Of course, that may not be enough time -- or enough incentive -- for some collectors who are farther away.

"We're waiting with bated breath to see if people will be serious about actually purchasing work," Serbonich says. "There's a distinction between browsing and purchasing. A lot of people are not comfortable about purchasing a work they haven't seen in person."

If the fair turns out to be a success, art collectors will likely soon be able to attend far more shows without leaving their homes. And with galleries selecting pieces specifically for the Web, that means the online medium could eventually alter not only the viewing, but also the value, of art around the world.

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]]>Amir Zakiartart collectersart collectingart collectionart collectorart galleriesArt Galleryart marketart onlineart valueArtistsartworkcontemporary artgalleryInternetinternet artjames cohanjames cohan galleryjane cohanperry rubensteinphotophotographyphotosvip art fairWebJane L. LevereSat, 22 Jan 2011 09:00:00 ESTComing to America: U.S. Cities Attract More Global Touristshttp://www.dailyfinance.com/2011/01/16/us-cities-attract-more-global-tourists/http://www.dailyfinance.com/2011/01/16/us-cities-attract-more-global-tourists/http://www.dailyfinance.com/2011/01/16/us-cities-attract-more-global-tourists/#commentsFiled under: ,

Statue of Liberty in New York CityTravelers from far-flung nations flocked to the U.S. last year, particularly to popular destinations like New York City.

Overall in 2010, New York attracted a record-breaking 48.7 million visitors, who spent a collective $31 billion. Of those, only 9.7 million -- about 20% -- hailed from abroad, but those foreign visitors accounted for $15.5 billion, or half, of the spending.

For all of the U.S., international travelers numbered 59.3 million last year, out of a total of 2.16 billion travelers, according to data from the U.S. Travel Association, an industry trade group. And 25.8 million of the foreign visitors came from countries other than neighboring Canada and Mexico.

Where did they go? The most popular U.S. destinations for foreign visitors included New York, Orlando, Las Vegas, San Francisco, Los Angeles and Chicago, says Suzanne Cook, a senior adviser to the association. "When people start visiting the country, they go to iconic destinations," she says.

Deep Pockets

Foreign visitors to the U.S. probably spend about five times as much money as domestic visitors, on average, she adds. "The length of their stay is longer; they're more likely to use hotels," she says. "And many who are on leisure trips have more time to spend money."

Under its current mayor, Michael Bloomberg, New York has developed an aggressive strategy to promote itself as a travel destination worldwide. It now has 18 offices in 25 markets throughout North and South America, Europe, Asia and Australia.

This strategy evidently is paying off: Foreign visitors to the city increased 13% last year, compared to a 5.3% increase in domestic visitors. NYC & Co., the city's official marketing and tourism organization, said the biggest growth came from
China and Hong Kong, up 47%; South Korea, up 35%; Brazil up 27%; Australia up 21%; and India and Argentina, each up 16%.

For the U.S. as a whole, South Korea was the seventh-biggest generator of overseas visitors, while Brazil was the eighth and the China -- excluding Hong Kong -- was the 11th, according to U.S. Department of Commerce data from January through September of 2010. In that same period, the number of foreign visitors to the U.S. grew 8% year over year, compared to only a 3.1% increase in domestic travelers.

"The combination of a weak dollar and nominal price reductions for such purchases as hotel stays, restaurant meals and many retail items has made the U.S., and especially New York, a bargain for many international travelers," says Bjorn Hanson, divisional dean of the Preston Robert Tisch Center for Hospitality, Tourism and Sports Management at New York University.

NYC to Remain a Hot Spot

At a press conference last week, Mayor Bloomberg and George Fertitta, chief executive of NYC & Co., predicted the city would attract 50 million annual visitors by 2012, a goal the mayor set back in 2007, before the economic meltdown. This growth is important to the general health of New York's economy because travel and tourism is the city's fifth-biggest industry, supporting over 300,000 jobs.

NYU's Hanson, in fact, predicts the city might well exceed its 50 million-visitor goal this year. He estimates New York's lodging demand will increase more than 5% in 2011, compared to a "slightly more than 3% increase" in U.S. lodging demand. Fertitta predicts New York will see a 3% increase in total visitors -- including both domestic and international -- this year.

According to national data released by the Commerce Department late last month, real spending on travel and tourism grew 8% in the third quarter of 2010, compared to an increase of 3.4% in the second quarter. By comparison, real gross domestic product rose 2.5% in the third quarter and 1.7% in the second quarter.

And even with the current boom in foreign tourism, the Commerce Department says, "it still remains below its peak set" in the third quarter of 2007. Judging from the crowds in Times Square these days, that's hard to imagine.

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]]>chicagocommercecommerce departmentCommerce Department reporteconomic recoveryeconomyhospitalityhospitality industrylos angelesnew yorknew york cityorlandotourismtourism and traveltourism in AmericaTourism industryTourismInAmericatouristtouriststravelTravelingJane L. LevereSun, 16 Jan 2011 10:00:00 ESTSpecialty Foods Are Becoming a Regular Staple Againhttp://www.dailyfinance.com/2010/12/21/americans-specialty-foods-purchases-sales-eating/http://www.dailyfinance.com/2010/12/21/americans-specialty-foods-purchases-sales-eating/http://www.dailyfinance.com/2010/12/21/americans-specialty-foods-purchases-sales-eating/#commentsFiled under: ,

Americans are once again indulging in specialty foods the way they did before the recession, and they're expected to make big purchases of these affordable luxuries during the holiday season.

According to a recent survey by the National Association for the Specialty Food Trade, 63% of American consumers purchased a total of $63 billion worth of specialty food this year, a major jump over 2009, when just 46% of American consumers indulged, and 2008, when 56% did. In 2007, before the economic meltdown, 63% of American consumers purchased specialty foods.

The NASFT attributes this year's recovery in purchases of specialty foods -- which it defines as foods of premium quality, often made by small or local manufacturers and often with exotic or ethnic flavors, or other distinctive characteristics -- to improving economic conditions and a growing preference for eating at home. Consumers view specialty foods "as a means to add excitement to their lifestyles. . .and as a healthful way to feed their families," the association says.

Ron Tanner, vice president of communications and education for the NASFT, says the survey's findings "portend a strong holiday season for specialty food retailers and manufacturers." He also notes that as much as much as half the annual sales of specialty foods are generated from Thanksgiving through New Year's Day, for dining, entertaining and gift-giving.

"Specialty food consumers cut back on buying in 2008 and 2009, but they always expressed a desire to return. Although consumers remain cautious," Tanner adds, "they are clearly making specialty foods a bigger part of their lifestyles."

Foodies Shifting Away From Low-End Brands Again

The five most popular categories of specialty foods purchased this year were coffee, chocolate, olive oil and other specialty oils, cheeses and cold beverages. In addition, 41% of those surveyed by the NASFT said they had purchased fresh or packaged specialty pasta this year, up from 32% last year, an increase the organization attributes to consumers eating at home rather than dining out.

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Of those polled, 18- to 34-year-olds were the most likely to purchase specialty foods. The No. 1 reason buyers of all ages gave was to treat themselves: 70%, up from 61% who indulged in 2009. And although 71% said they had purchased more private-label and store brands within the past year, only 49% said they would do so in the future.

Perhaps unsurprisingly, supermarkets are the biggest sellers of specialty foods, but farmers' markets were the fourth-most popular retail outlet, exceeding specialty food stores, which ranked sixth. Natural-food stores, such as Whole Foods Market, and mass merchandisers, such as Walmart and Target, ranked second and third, respectively.

Ethnically speaking, two-thirds of specialty food consumers bought Italian foods, while more than half bought Asian and Hispanic foods. Regional American cuisines, such as Cajun or Southern, were also strong sellers, and Mediterranean, Indian and Middle Eastern cuisines gained in popularity. The study found 25- to 34-year-olds were the most likely to purchase international foods. "They are at a life stage where they have experienced these foods in restaurants and are eager to prepare them at home," the NASFT says.

The survey also found that:
  • One in four total retail food dollars spent by specialty food consumers goes to specialty foods.
  • The average specialty food consumer watches 4.5 hours of food-related TV each week.
  • 35% of consumers buy food products that support charities, such as cancer research or local food banks.
  • 83% of specialty food consumers say family-food traditions are important to them.

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]]>beveragescheesechocolateChristmasconsumer spendingcookingethnic cuisinefarmers marketfood salesfoodsgourmetholiday foodholiday foodshome cookingnatural foodsolive oilsalesspecialty foodsupermarketJane L. LevereTue, 21 Dec 2010 10:00:00 ESTWarren Buffett's Grandson Follows in Grandpa's Humanitarian Footstepshttp://www.dailyfinance.com/2010/12/21/warren-buffett-grandson-humanitarian-social-justice-technology/http://www.dailyfinance.com/2010/12/21/warren-buffett-grandson-humanitarian-social-justice-technology/http://www.dailyfinance.com/2010/12/21/warren-buffett-grandson-humanitarian-social-justice-technology/#commentsFiled under: ,

Howard Warren Buffett in AfghanistanHoward Warren Buffett, grandson of world-renowned investor Warren E. Buffett, is in some ways a chip off the old philanthropic block.

With some prodding from media mogul Ted Turner, the elder Buffett in recent years has been giving away his enormous wealth. Last summer, he and Microsoft founder Bill Gates launched the Giving Pledge, a campaign to enlist rich individuals to donate at least half of their fortunes to charity.

The younger Buffett has adopted his elder's concern for the greater good of mankind: At the moment, the 27-year-old is working as program director of agriculture development in Afghanistan for the Task Force for Business and Stability Operations, a Defense Department initiative. And he's a member of the board of visitors for the Center on Philanthropy at Indiana University.

Howard Warren Buffett spoke at the recent Social Good Summit, co-sponsored by Mashable and the 92nd Street Y in New York, about the need, in this age of technology, to preserve our human connections to those who are suffering.

Although technology, "has made it easier for people to give money," he said, "it has also created powerful new barriers to personal engagement. More than ever, people watch on a screen when they should see with their eyes."

"A Story of Unrealized Potential"

"Our faith in technology has led us to believe that we become empowered to remedy social injustice by simply carrying a technological device, that a mobile phone can somehow strengthen our individual potential, and that it can place the capacity to create massive change in our pockets," he continued.

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This model leads, he warned, to short-term relationships between people and crises. "After a terrible event occurs, public interest surges, but the attention quickly shifts to the next news cycle. In these cases, technology satisfies the idealistic need to get involved, but it fails to create the true sense of personal responsibility required for long-term commitment," he added.

"Meanwhile, the work of caring -- of feeding the poor, healing the sick and fighting injustice -- cannot end when our interest has waned. That is why the story of technology as a means for solving social problems is a story of unrealized potential," he said.

Although many believe the technological revolution "will be our generation's greatest contribution to the history of our planet, I believe that we can -- and must -- do better, that our legacy should be defined not by our development of the tools we need to rid the world of injustice, but by our ability to use those tools to bring more people to front lines of the battle, and to inspire new leaders to go out on the field and commit their lives to the cause," he added.

"If we fail to reconcile our technology with our humanity, our capacity for caring will remain stagnant while our technological abilities expand," he concluded. "The void between those two elements will eventually become so large that we will forget that the purpose for what we do, the purpose for all innovation, is to make us better at being human."

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]]>92nd st y92nd street y92ndSt.Yafghanistancharityhoward warren buffettHowardW.BuffettMashablephilanthropysocial good summitsocial justiceSocialGoodSummitspeechtechnologywarren buffettWarrenE.BuffettJane L. LevereTue, 21 Dec 2010 09:00:00 ESTSouthwest Airlines CEO Gary Kelly: Jet-Fuel Prices Are No. 1 Worryhttp://www.dailyfinance.com/2010/12/16/southwest-airlines-ceo-talks-jet-fuel-prices/http://www.dailyfinance.com/2010/12/16/southwest-airlines-ceo-talks-jet-fuel-prices/http://www.dailyfinance.com/2010/12/16/southwest-airlines-ceo-talks-jet-fuel-prices/#commentsFiled under: , , ,

Southwest Airlines's CEO Gary Kelly says jet-fuel prices top his list of concerns for 2011.The price of jet fuel is high on Gary Kelly's mind. During a trip to New York this week, where he met with aviation executives and airline analysts, the chief executive of Southwest Airlines (LUV) called jet-fuel costs his greatest concern for next year.

Representing one-third of Southwest's total expenses, fuel costs are a major factor for the consistently profitable low-cost carrier. They have "the potential to change rapidly and to very rapidly destroy profitability," Kelly (pictured) says. "It is very, very difficult to respond in the short term to a fuel-price spike."

Southwest hedges its fuel purchases: Kelly says the carrier has contracts to buy about half of its fuel through 2014 at prices "roughly equivalent to the current market, somewhere around $90 per barrel." In the past decade, similar hedging activity has saved Southwest $4 billion, equivalent to the cost of 125 airplanes, Kelly adds.

"It's All Within Our Grasp"

Southwest, which flies more passengers than any other U.S. carrier, also has cut its fuel expenses by retiring less efficient aircraft. It also uses blended winglets -- devices that attach to wingtips to reduce drag, thereby reducing fuel consumption -- and electric, instead of fuel-burning, ground equipment. And it has changed pilots' flying habits to get higher efficiency.

A proposed modernization of the air-traffic-control system, which the airlines back but hasn't yet found funding, could reduce the industry's fuel usage by 15% more, Kelly says.

"All of the tools are there, they simply need to be implemented, deployed. . .it's all within our grasp," he says. "We put a man on the moon. We ought to be able to modernize our air-traffic-control system." Kelly also supports the use of alternative fuels, which he called "a much longer undertaking, but in the long run, the right thing to pursue."

From Hawaii to Bermuda

As it tries to save fuel, Southwest also is expanding its routes. In a speech to the Wings Club, an aviation group, Kelly announced that Southwest plans to substitute 20 of the 737-700 aircraft it has ordered from Boeing (BA) with longer-range 737-800s. The first delivery of the 737-800s is scheduled for March 2012.

The longer-range plane will enable Southwest to extend its route network to Hawaii, Alaska, Canada, Mexico, Central America and the Caribbean. With its purchase of AirTran (AAI), Southwest also will inherit a Bermuda service beginning next spring, if the merger is approved. The company is now upgrading its reservation system to accommodate all the new international flights.

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More immediately, Kelly says Southwest, which obtained slots at Newark Liberty Airport in New Jersey as part of the approval process for the Continental Airlines (CAL) merger with United Airlines, on June 5 will considerably increase its Newark service, which begins March 27.

The carrier, which will initially serve the Newark market with six daily nonstop flights to Chicago Midway and two daily nonstop flights to St. Louis, in June plans to add three daily nonstop flights to Baltimore/Washington Airport and Denver, as well as two daily nonstop flights to Houston Hobby and Phoenix Sky Harbor. Southwest already serves LaGuardia Airport and Long Island MacArthur Airport in New York.

At an event in Bryant Park in New York this week, Kelly indicated that Southwest might one day serve destinations further afield than North and Central America. "Eventually it is an idea that we have, to continue expanding to Southwest Asia, Europe, South America," he said. "But at this point in time, we've got a lot of work to do to integrate AirTran Airways into Southwest first, add the 800 into our fleet second and then implement new reservations technology that will create that international capability. So maybe one of these days."


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]]>airlineairline industryairlinesBoeingflightflightsfuelfuel economyfuel efficiencyfuel pricesGary Kellyjet fuelJet fuel costsjet fuel pricesoiloil pricessouthwestsouthwest airsouthwest airlinessouthwest ceotravelTravelingJane L. LevereThu, 16 Dec 2010 21:15:00 ESTHow to Succeed at Doing Social Good: Summit Offers Practical Tipshttp://www.dailyfinance.com/2010/09/23/how-to-succeed-at-doing-social-good-summit-offers-practical-tip/http://www.dailyfinance.com/2010/09/23/how-to-succeed-at-doing-social-good-summit-offers-practical-tip/http://www.dailyfinance.com/2010/09/23/how-to-succeed-at-doing-social-good-summit-offers-practical-tip/#commentsFiled under: , , , ,

Social Good Summit Offers Practical TipsThis week's Social Good Summit in New York was, in some ways, like a speed-dating event for cause marketers, do-gooders and those interested in their efforts: It featured a wide range of mostly mini-speeches by such activists as actors Geena Davis and Edward Norton, who talked about their social good initiatives, See Jane and Crowdrise, respectively, as well as a lengthier interview with media mogul Ted Turner, whose United Nations Foundation partnered with Mashable and 92Y to sponsor the summit.

Representing consumer goods sellers including Johnson & Johnson (JNJ) and PepsiCo (PEP), and media companies both old and new such as MTV Networks (VIA) and Facebook, the speakers also offered some practical tips for doing social good, particularly by using social media. Among these were:

o. The fastest way to engage consumers is to talk to them about things they care about.

Jack Leslie, chairman of Weber Shandwick, the public relations agency, said corporate America has moved from "the broadcast model, gaining awareness out in the marketplace, to the engagement model," thanks to technology. "As marketers need to engage customers every day, we need to start thinking of them not as consumers but as advocates. The fastest way to engagement is to talk to people about things they care about, what role companies can play in addressing social need."

o. Use tools, methods and content that are relevant to the audience you are trying to reach.

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That advice came from Judy McGrath, chief executive of MTV Networks, whose target audience is often young adults. "We have to get their attention, we're competing with a lot of noise and have to figure out a way to grab them, using tools, methods and content that's relevant to young adults," she said. One example she cited was Darfur Is Dying, a viral video game, translated into many languages, which provides a window into the experience of refugees in Darfur.

o. Humanize the story you are trying to tell.

Susan Smith Ellis, chief executive of (RED), the organization that creates products with iconic brands to raise money to fight HIV and AIDS in Africa, said (RED)'s digital outreach campaign shows the impact of HIV and AIDS on real people, not dry statistics, to get its message out. Similarly, Sherri Rollins Westin, executive vice president and chief marketing officer of Sesame Workshop, discussed how Takalani Sesame, the South African version of Sesame Street, had created an HIV-positive Muppet called Kami, who she said "normalized the face of AIDs" and provided a "life-affirming antidote" and a way for adults and children to freely and constructively discuss the disease.

o. If you're creating a gaming platform, make sure it's engaging.

Social games like Nothing but Nets can "bring the social context to real-world problems," said Adam Conner, associate manager of public policy for Facebook. He also said creators of social games must remember "that it's a game first, focus on making it engaging first, more than anything."

o. If you're fundraising for a cause, identify and keep in touch with your prospective supporters, and only then hit them up for donations.

Chris Hughes, a founder of Facebook and mastermind of Barack Obama's digital presidential campaign, is launching a new social network, Jumo, to connect people "who want to change the world," in beta later this year. He said Jumo would show viewers available social good options worldwide and help them stay on top of these initiatives.

"We expect the user to come in and find a cause," but not immediately be asked for money, he said, adding that fundraising should be the final step in the process, not the first, as it is in Causes on Facebook.

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]]>92nd st y92nd street y92YColumnsFacebookJohnson & JohnsonJumoMashableMTVNetworksREDsocial good summittips for doing goodUnitedNationsFoundationViacomJane L. LevereThu, 23 Sep 2010 10:30:00 ESTFormer Bear Stearns Chief 'Ace' Greenberg Talks Bailouts, Banks and Bookshttp://www.dailyfinance.com/2010/07/09/former-bear-stearns-chief-ace-greenberg-on-bailouts-banks-and/http://www.dailyfinance.com/2010/07/09/former-bear-stearns-chief-ace-greenberg-on-bailouts-banks-and/http://www.dailyfinance.com/2010/07/09/former-bear-stearns-chief-ace-greenberg-on-bailouts-banks-and/#commentsFiled under: ,

Alan C. Greenberg has seen plenty of economic crises during the more than 60 years he's worked on Wall Street. As the former chief executive of Bear Stearns, he had an all-too close view of the most recent financial meltdown.

Recently at the 92nd Street Y in New York, Greenberg, who is now vice chairman emeritus of JPMorgan Chase (JPM) which took over Bear Stearns, had a chance to share his thoughts on the federal government's bailout of Wall Street, banking reform and the controversial book about his old firm entitled House of Cards.

Why the Government Was Right -- Sort Of

Looking back, Greenberg believes that the federal government's controversial move to bail out the nation's largest financial institutions two years ago was "good for the government and good for the American taxpayer."

"How many programs has the government got involved in where the government got their money back quickly, at a return of 30 or 40%? What other program have they ever done, what peanuts, ethanol have they ever bought and sold at a profit?" Greenberg asked during his talk with Norman Pearlstine, the chairman of Bloomberg Businessweek, at the 92nd Street Y.

However, the veteran banker didn't agree with every move the government made. He believes President Obama was wrong to say he wanted the banks to pay because they were bailed out. "Does he want the banks to pay for the problems we have with Fannie Mae and Freddie Mac? That's not the banks' problem, they didn't cause that. Does he want the banks to pay for the problem we have with Chrysler and General Motors, where the Bush administration blew $14 billion for no reason... The politicians kind of have a field day with this. What he did was right, it saved the country, they got their money back, plus some good return, and it was very fair."

Reform Regulation Won't Stop Wall Street

Greenberg also predicted that the Dodd-Frank Wall Street Reform and Consumer Protection Act, which would overhaul the U.S. banking industry, will not significantly hamper Wall Street.

"Regulation has never hurt our business. I'm sure there were people who were against the SEC, but it didn't hurt the business Stocks go up and stocks go down. One of the problems now is that everything gets so much publicity and the media makes such a big thing [out of it]."

Even with regulation in place, Greenberg said he didn't think future economic meltdowns could be prevented. "These things always keep recurring in a different form, and they always sucker in the people, whether it's the high-tech stocks or whether it's the mortgages, I'm not sure you could ever stop that," he said.

The biggest culprit in most meltdowns, he said, is when institutions or individual consumers become overleveraged. "If you cut down on leverage, of course, your chances are very good of surviving. The banks in Canada during this whole period have done terrifically, no problems, no nothing. The banks in Israel, no problem. When I was over there, I asked how come they have no problem. They said if you buy a house in Israel you put down 35%. That stops a lot of people from buying houses that can't afford them."

Bullish on the U.S. and Natural Gas

Nevertheless, Greenberg was bullish about the U.S. economy, telling Pearlstine he was confident that the economy is on the mend. "I personally love to invest in the United States. I've never invested outside, I don't think I ever will. The opportunity is here. These other places the markets go up, the markets go down, most of the markets are much smaller than our markets...It's far away, and the transparency, the governments are a little bit different than ours, they can take whatever they want to, if they want to," he said.

The veteran investor is also steering clear of the popular safe havens of gold and cash. since neither pay a dividend. "I'm going to buy gold when it starts declaring a dividend."

As for the alternative energy business, Greenberg said he is skeptical. He ruled out solar and wind power as viable substitutes for foreign oil in the U.S. since they are too expensive. Instead he believes natural gas is the answer. "We have enough natural gas to last us 200 years, we just haven't figured out yet how to use it."

His Side of the Story

Greenberg spoke at the 92nd St. Y to promote his new book, The Rise and Fall of Bear Stearns, his response to the slew of other books that chronicled the bank's meltdown, namely William D. Cohan's House of Cards, which was published in 2009.

Referring to James Cayne, Bear Stearns' chief executive at the time of its collapse and his successor in that post, Greenberg said "the people" Cohan "got the facts from were not telling the truth."

"I felt I wanted to get my side of the story in print. I have children, I have grandchildren. I just thought I wanted the facts be known. I can tell you there isn't anybody that works at Bear Stearns that's read (my) book that hasn't said to me, 'That's the way it was.'"

Greenberg, who did not cooperate with Cohan on House of Cards, said, "Maybe I should have talked to Bill Cohan... There were three books written at that time, maybe four, I would have had to talk to all four authors, I didn't feel like doing that. I didn't know that the information they were going to get was going to be so inaccurate and so biased that it was just sickening."

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]]>ace greenbergAlanC.GreenbergBearStearnsbooksbushcashDodd-FrankActfinancial regulationgoldgovernment bailoutshouse of cardshousinginvestingJamesCaynejpmorgannaturalgasobamathe rise and fall of bear stearnsWilliamD.CohanJane L. LevereFri, 09 Jul 2010 10:00:00 ESTGulf Coast Tourism Spots Ask BP for a $55 Million Grant for Marketinghttp://www.dailyfinance.com/2010/07/04/gulf-coast-tourism-spots-ask-bp-for-a-55-million-grant-for-mark/http://www.dailyfinance.com/2010/07/04/gulf-coast-tourism-spots-ask-bp-for-a-55-million-grant-for-mark/http://www.dailyfinance.com/2010/07/04/gulf-coast-tourism-spots-ask-bp-for-a-55-million-grant-for-mark/#commentsA consortium of 11 tourism destinations near the Gulf of Mexico has asked BP (BP) for a $55 million grant to pay for a marketing campaign to promote the areas affected by the oil spill.

Sent late last month by SouthCoast USA, a trade association established in 2000 to promote the region as one of the country's top leisure destinations, the request follows grants made by BP in May -- $25 million to Florida and $15 million each to Alabama, Mississippi and Louisiana -- to promote tourism. Tony Hayward, BP's chief executive, said the company made those funds available to "support the industry's efforts to provide accurate information about the state of the beaches across the region."

"While we are aware BP has distributed funding to individual Gulf Coast states, SouthCoast USA is in a unique position to maximize the benefits and exposure of an organized and sustained positive public relations campaign to alleviate and mitigate damage to our industry resulting from the spill," SouthCoast wrote in its letter to BP. The group said it would use the $55 million to launch a region-wide media marketing campaign over the next several months.

Toby Odone, a spokesman for BP, said the company "will respond directly" to SouthCoast USA about its request for funds. He also noted the company had already given "large sums of money to four coastal states to promote tourism."

A Tourism Recovery Derailed

SouthCoast's consortium partners operate tourist destinations in Louisiana's Lake Charles, Lafayette, New Orleans, Baton Rouge, Houma and the Northshore; Mississippi's West Coast; Mobile, Gulf Shores and Orange Beach, Alabama; and Pensacola, Florida.

In its letter to BP, SouthCoast USA said it had been "actively involved in revitalizing tourism following Hurricanes Katrina and Rita... Unfortunately, the spill is reversing much of our progress, and it's critical that we take action now to address concerns about visiting the region."

According to data compiled by the U.S. Travel Association, the trade association for the U.S. travel industry, in 2008, domestic and international travelers visiting the four Gulf Coast states spent $94.2 billion, which represented 12% of all travel expenditures in the U.S. In addition, the trade group said there were more than one million travel-related jobs in the four states, representing 8% of all non-farm employment.

Roger Dow, chief executive of U.S. Travel, estimated revenues at hotels in the Gulf Coast region have plummeted as much as 35% since the oil spill. "It took five years for them to recover from Katrina, and they expected 2010 to be the biggest summer they've had," he said.

A Costly Crisis of Perception

Areas that remain untouched by the oil spill are also getting hurt. Hotel revenues at beach communities hundreds of miles from the oil spill are down 15% to 17%, "because people think the spill covers the entire Gulf Coast and Atlantic seaboard," said Dow.

"They've got physical problems, but what's more costly is the crisis of perception. We have to shorten the recovery period," he said.

"Everyone is trying hard to figure out a way to let people know what's happening in their area. The oil impact is not constant, the oil ebbs and flows, comes and goes," said Mike Foster, chairman of SouthCoast USA and vice president of marketing for Gulf Shores/Orange Beach Tourism.

To that end, Gulf Shores/Orange Beach runs a video, updated daily, on its Web site on the condition of its beaches. A recent video about Gulf Shores public beach showed footage of bulldozers creating a sand wall against an incoming tide that was washing up oil balls. The speaker suggested other activities to do in the area further away from the beach.

Foster said some hotels and condos in the Gulf Coast region are offering refunds to guests if the oil spill closes the beach at the destination where they have booked. Orbitz, the online travel company; Hotels.com, an online lodging provider; Marriott and Hilton have instituted similar policies.


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]]>alabamabeachesBPfloridagulf shoreslouisianamarketingmississippioil ballsoilspillOrange beachSouthCoastUSAtourismtourism destinationsUU.S. Travel AssociationJane L. LevereSun, 04 Jul 2010 12:10:00 ESTRaising Microsoft: Bill Gates Sr. Talks About His Son's Stormy Youthhttp://www.dailyfinance.com/2010/06/08/microsoft-bill-gates-dad-talk-childhood/http://www.dailyfinance.com/2010/06/08/microsoft-bill-gates-dad-talk-childhood/http://www.dailyfinance.com/2010/06/08/microsoft-bill-gates-dad-talk-childhood/#commentsFiled under: , ,

Raising Microsoft: Bill Gates's Dad Talks About His Son's Stormy YouthParents of less-than-perfect offspring, take heart: It turns out, perhaps not surprisingly, that Harvard University drop-out, Microsoft (MSFT) co-founder and billionaire philanthropist Bill Gates was at times a difficult kid, at least according to his father.

In a conversation last week at the 92nd Street Y in New York between William H. Gates Sr., a retired, prominent Seattle lawyer, and his son, Bill Gates, the senior Gates said, "It would be less than candid of me" to not admit that "as families go, and as conflicts arise between parents and children from common causes, the whole business of exerting independence, fighting against discipline, that's an experience we had, and it was one that was particularly the case with Bill and his mother for a period of a couple of years. It obviously worked itself out at a very early date."

"An interesting piece of that," Gates Sr. continued, "was the consultant that we went to and talked to about this. Mary [Mrs. Gates Sr.] and I would go in, and Trey [Bill Gates] would go in and talk to this fellow. This went on for a better part of a year, a year and a half. Toward the end, Mary and I were there for a meeting with him, and he said, 'You have this war going on with your son -- you really should understand that he's gonna win.' "

At the Y, Bill Gates responded, "Actually, it was great. I got through that early. My mom was on the front line, but dad definitely was in reserve."

Addressing his son, the senior Gates said, "I think you turned out OK. . . . He had a really great mother, I think you would agree with that."

Family Gave Young Bill a Model of the Real World

Gates Sr., who now guides the strategic direction of the Bill and Melinda Gates Foundation, also reminisced about a family tradition, when his two daughters and son would accompany their parents on annual two-week vacations at the Hood Canal, outside Seattle. On these trips, they and seven other families played tennis, water-skied and ate meals together.

Bill Gates said that experience -- particularly the opportunity to dine with other families -- combined with his own parents' regularly engaging their children in thought-provoking conversations at dinner, helped him succeed when he started Microsoft.

"When I went to start Microsoft and I had to sell to people 20, 30 years older than me, I didn't have that much hesitation. There's just a certain exposure that became commonplace, that allowed me to talk to adults, work with adults. It took me a little bit longer to work with people my own age," Gates said.

"Doing Microsoft just didn't feel like it was that hard or that a big deal. A lot of that goes back to having a family that ... gives [their kids] a model of what they are going to see out on the world, doesn't sugar-coat it, makes it something to share. It prepared me in a magical way, and I owe a lot to both my dad and mom for that," he added.

Childhood Friend Paul Allen Got Him Curious About Computers

Discussing why people older than he -- he was born in 1955 -- didn't recognize the growth potential of the software industry, Gates said, "They weren't as open-minded, they didn't think about software as the key ingredient."

"In all success stories, there are significant elements of luck and timing," he added, noting that his curiosity was also piqued by "an obscure article" he received from his childhood friend and Microsoft co-founder, Paul Allen, about the first microprocessor.

One key to Microsoft's success, Gates noted, were its deliberate attempts to build a broad set of skills. "We were able to build up a depth of engineering, an understanding of how you do complex software, how you deliver it around the world.

"I never went to work and said, 'Yeah, I haven't made a billion yet, I got to get on with this.' I just wanted to make software. . . . We were always reasonably careful about taking one step after the other. I said, 'Hey, software is going to be more valuable than hardware.' Now, of course, Apple is doing a good job proving hardware can also be valuable. But, hey, there's room for more than one success story here," he said.

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]]>92nd st ybill gateschildchildhoodfatherMicrosoftpaul allensonJane L. LevereTue, 08 Jun 2010 10:53:00 ESTRoubini: Politics Are Now the Main Problemhttp://www.dailyfinance.com/2010/05/17/roubini-politics-are-now-the-big-problem/http://www.dailyfinance.com/2010/05/17/roubini-politics-are-now-the-big-problem/http://www.dailyfinance.com/2010/05/17/roubini-politics-are-now-the-big-problem/#commentsFiled under: , ,

Nouriel Rubini Famous for his bearish views, Nouriel Roubini is not overly concerned about a double-dip recession occurring in the U.S. right now. But he is worried about the potential economic impact of the political gridlock he says is crippling Washington.

In a conversation last week at the 92nd Street Y in New York with Matthew Bishop, American business editor of The Economist, Roubini, who teaches economics at New York University's Stern School of Business and famously predicted the global economic meltdown back in 2006, said he expected economic growth in the U.S. to be 2% over the next few years, with unemployment hovering between 9% and 10%. "There is a two-thirds probability of my basic scenario of a moderate recovery, maybe a 20% probability of a double-dip," he said.

However, he warned there are "many things that could lead to the risk" of a double-dip recession, including failure to deal with fiscal problems and keeping interest rates too low for too long.

A Lack of Will

Roubini said he was concerned about the political gridlock in Washington, where "the Democrats are not yet at a point where they are realizing that some control on spending is necessary. The Republicans in Congress... are closer to those Tea Party Republicans who say absolutely no new taxes of any sort.

"I think they live in a delusional world in which they... claim they want to lower budget deficits, but they're not willing to do anything on the revenue side to deal with it. There's no way to reduce this deficit only on the spending side... If the Democrats veto the spending cuts and the Republicans veto the tax increases, then runaway deficit means either default or more likely printing money and causing inflation," Roubini said.

Noting that there are similar political divisions in Germany and Japan, among other nations, he added, "What needs to be done, we know it on the fiscal side. The question is can you have governments that are weak, divided, no bi-partisanship? Unfortunately in the U.S. and many countries, I don't see the political will, that's why I'm worried."

Europe Up in the Air

Roubini said it was an "open question" if the euro will survive. "I see certainly Greece and maybe other countries being forced down the line to restructure their debts in a coercive way, call it default... That doesn't imply exit from the [European] Monetary Union... The monetary union is challenged like never before and the risk is that over the next five years, one or more of those laggards may be deciding or forced to exit."

At the same time, it is unlikely Germany would leave the European Monetary Union, in part because that would mean it would also have to leave the European Union. "The chances are more that they are going to say let the Greeks and others get out, and have a hard core of more homogeneous countries with fiscal discipline that are going to form the core of a stronger euro."

Roubini also gave Treasury Secretary Timothy Geithner and others on the Obama administration's economic team credit for the current economic recovery. "Of course, we have now a huge fiscal deficit, we still have to do regulatory reform, there are many challenges, and there have also been specific policy mistakes, like bailing out too many institutions, that could have been handled differently... but compared to the alternative -- risk of a new depression -- things have improved in the right direction."

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]]>NourielRoubiniJane L. LevereMon, 17 May 2010 15:45:00 ESTWill E-Book Pressures Send Hardcover Prices Soaring?http://www.dailyfinance.com/2010/05/12/will-e-book-pressures-send-hardcover-prices-soaring/http://www.dailyfinance.com/2010/05/12/will-e-book-pressures-send-hardcover-prices-soaring/http://www.dailyfinance.com/2010/05/12/will-e-book-pressures-send-hardcover-prices-soaring/#commentsFiled under: , , , ,

ebook pricesDo you love the feel of a book, the smell of the ink, the crinkle of the pages? If so, get ready to pay more for the pleasure of holding the printed word in your hands. Thanks to the e-book revolution, hardcover book prices could climb dramatically in the next few years.

Alberto Vitale, former chairman and chief executive of Random House, and an early proponent of digital-books, believes the prices of hardcover books could climb by at least a third in the next five years while the prices of e-books could decline.

Interviewed at a recent publishing conference in New York, Vitale, also the former chairman of the now-defunct International eBook Award Foundation, which created the Frankfurt eBook Award, predicted that "a book that sells today for $27, $28.95 may be selling within the next two to five years at anywhere between $37.95 and $45."

"Eventually, I believe the market will bear the higher price -- publishers will have to experiment with the price. The economics of book publishing are not very good now," Vitale said, adding he did not expect "appreciable resistance" from consumers to higher hardback prices.

Vitale further predicted that the cost of e-books will drop, despite efforts by Apple (AAPL) and book publishers to raise prices above the $9.99 standard set by Amazon (AMZN) for new releases downloaded to its Kindle device. When Apple introduced the iPad earlier this year, it said it had agreements with five of the six largest publishers -- the Hachette Book Group (LGDDF), HarperCollins, Macmillan, Penguin Group (PSO) and Simon & Schuster (CBS) -- to sell new adult fiction and nonfiction e-books at prices ranging from $12.99 to $14.99. However, industry executives later said those prices could decline for books that became best-sellers.

"E-books will become the equivalent of the mass market. Mass market is not down market, it's just a market accessible to a larger number of people. That's why I believe e-book prices have to be lower than they are today. The consumer is not stupid, he knows the e-book is a lot more economical to produce than a regular paper book," Vitale said.

E-books, he added, "will become eventually the dominant part of the business."

The Challenge: Developing "New Iterations of the Book in E-format"

But Brian Murray, CEO of HarperCollins Publishers (NWS), generally disagrees with Vitale's assessment on the directions of prices.

In a phone interview this week, Murray cited the $35 price charged by Scribner for the hardcover edition of the Stephen King novel Under the Dome, calling it "a big step up" for commercial fiction. He said that although "we may see prices of hardcovers go up a little bit, I don't know if we'll get what [Vitale] is talking about."

He also said prices of digital books might rise, for books enhanced with additional content or other value-added features, or they might drop "lower than they are today."

Although the future of book publishing is "clearly evolving, traditional book publishing will continue," Vitale predicted, noting that the challenge for traditional book publishers will be "to take this hardcover and develop new iterations of the book in e-format," with the product "as is" in e-format, or enhanced with video, voice, "you name it."

Traditional Print Is Far From Dead

Another speaker at the conference, Albert N. Greco, professor of marketing, communications and media management at Fordham University, was far less bullish about the prospects of e-book publishing in the short term, especially books for children, mass-market books and books about religion.

"If you read The Wall Street Journal, Financial Times and other media, you get the impression that everyone in the Western hemisphere has an e-reader, and that print is dead. That is clearly not the case, and it's not going to be the case," said Greco. "Will digital books replace print books? At some point in the future, yes, but not quickly."

For his part, Murray said that although the 6 million e-reader users in the U.S. today is an "incredibly tiny number, [but] when you look at their consumption, that number is really staggering. That's what the buzz is about."

The conference on the future of publishing was hosted by the Wharton School of the University of Pennsylvania. Vitale is the founder of the Wharton Lab for Innovation in Publishing, one of a number of programs at the Wharton School involved in the conference.

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]]>alberto vitaleBrian Murraye-booke-readeripadkindleNews Corprandom houseJane L. LevereWed, 12 May 2010 12:00:00 ESTGE's Immelt: More Manufacturing Jobs in the U.S.http://www.dailyfinance.com/2010/05/07/ges-immelt-more-manufacturing-jobs-in-the-u-s/http://www.dailyfinance.com/2010/05/07/ges-immelt-more-manufacturing-jobs-in-the-u-s/http://www.dailyfinance.com/2010/05/07/ges-immelt-more-manufacturing-jobs-in-the-u-s/#commentsFiled under: , , ,

Jeffrey Immelt General ElectricThe beleaguered manufacturing sector got a shot in the arm this week from the CEO of the world's leading industrial company. In an interview Thursday, General Electric's (GE) Jeffrey Immelt said his company would be investing in manufacturing in its leading markets, including the U.S.

Speaking to Norman Pearlstine, chairman of Bloomberg Businessweek, at the 92nd Street Y in New York, Immelt said that because "the marketing of your company is really embedded in jobs today in the U.S., in China, every place else, what that means is your production and your investment is going to be aligned with where your markets are ... The U.S. is still a big market for us, we're going to put more jobs here."

Although he said the company had moved its appliance manufacturing in the past twenty years to China and Mexico, "at my level, if we make more money on a refrigerator made in Mexico, I can't find it."

Good Markets Means Good Jobs

"So the next generation of those products are going to be made in the U.S.," Immelt said, adding that "places that don't have good markets but might have low costs are going to lose jobs, places that have substantial markets are going to get jobs. I just think the way we look at it is we are probably going to put more manufacturing jobs in the U.S., both to be an exporter, but also to support some of the local production."

"If you have a business that is very scale-dependent and very high-tech, like the jet-engine business, we are probably going to make jet engines in the United States and export them to the rest of the world ... for as long as I have this job." he said.

However, he said GE would make other products, like MRI scanners, in China, where demand is strong. "The big, high-tech stuff will be exported from the U.S., or from Europe or wherever you've made it. Some of the technology-based products that have more of a local tailoring or local demand, those are going to be localized," he added.

Immelt said it is wrong to assume that a country can thrive without a technology or manufacturing base. "I hope that gets beaten into the head of every American. Not that we're anywhere close to Europe, but there are things that are going on there that ought to be cautionary tales for us," he said.

Wall Street Still Important

Immelt attributed the steep decline in the stock markets Thursday to global economic volatility. He said, "We just live in a more volatile world in general... People look across Europe and say, 'Governments have a lot of leverage, unemployment is high, economic growth is low,' and are concerned about a contagion across Europe. And that's just made the market very volatile."

Immelt also defended Goldman Sachs (GS), which he said "has been a partner to GE for a long time. We trust them, they've done great work for us... This point about damning Wall Street isn't good for the American economy." However, he urged Wall Street bankers to "take care of their own compensation. It just shouldn't be this kind of problem. I trust them to manage their own reputation, because we need them, we need Wall Street."

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]]>GeneralElectricGoldmanSachsJeffreyImmeltNormanPearlstineJane L. LevereFri, 07 May 2010 13:00:00 EST