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March 7, 2010

Facebook, Twitter mobile use soars

Filed under: management — Tags: , , — DoctorBusiness @ 5:36 am

Growth in the number of people tweeting and friending from their mobile devices is keeping pace with increases in subscribers to social networks.

A new study by comScore shows that 4.7 million people accessed Twitter on their mobile phones in January 2010, up 347 percent jump compared to last year.

The number of Facebook users going to the site on their mobiles hit 25.1 million, up 112 percent.

MySpace's numbers actually declined 7 percent from last year, with 11.4 million mobile users free credit report.

Those numbers compare with an overall increase of 4.6 percent in the number of mobile phone users who accessed a social networking site via mobile browser.

ComScore said that In January, 11.1 percent of all mobile phone users went to social networks on their mobiles.

Smartphone owners were far more likely to do so compared to other cell phone users, 30.8 percent vs. 6.8 percent .

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March 3, 2010

Still blogging? FYI: It’s old news

Filed under: money — Tags: , , — DoctorBusiness @ 1:12 pm

There was a time when Sarah Truckey had a close relationship with her blog. The St. Louis-based freelance writer visited it every couple of days, sharing stories and thoughts with anyone willing to read them.

But today, the intervals between visits are growing longer as Truckey, 25, increasingly turns to social networking site Twitter to talk to the world. She likes the way Twitter limits entries to 140 characters, forcing her to keep those missives short.

"The blog posts wouldn’t necessarily get me in trouble. But I would end up revealing more than I should," Truckey said.

While not ready to abandon the blog altogether, Truckey does represent a growing trend in the world of blogging. Young people just aren’t as interested in them as they once were. And it’s yet another example of the way rapid changes in technology — and the way we use it — can transform you from trendy to dinosaur seemingly overnight.

MySpace? Out. Facebook? In. Using a cell phone for phone calls? Out. Using it to send a text message? In. E-mail? Outside of scammers and spammers, does anyone use it?

OK, there’s a bit of hyperbole there. But it’s clear we live in a world where our ways of communicating are changing so fast that it’s virtually impossible, particularly for older adults, to stay current.

And certainly there are times when keeping up can be critical. As the parent of virtually every cell phone-toting teenager or young adult knows, you learn to text if you want to keep in touch.

Still, there’s no reason to obsess over every new communication development, said Dean Terry, director of emerging media at the University of Texas at Dallas. Some basic familiarity with social networking and texting may be all you need to get by. It’s not as if the old ways will just die out.

"Don’t beat yourself up if you can’t keep up with everything," Terry said. "We still have radio. We still have plays. And we still have novels."

In so many ways, it is the nation’s army of teenagers and young adults that’s deciding for the rest of us what’s cool and what’s not. Those decisions can, and often do, change quite quickly.

"Adults are always playing catch-up. And unfortunately, when we get there, (teens) may have already moved on," said Gary Rudman, a California-based market researcher who specializes in teens.

Just look at what’s happened to blogging, an area that’s still growing in popularity with older Americans, just as it’s losing steam with the younger set.

The percentage of older adults — those over the age of 29 — who say they maintain a blog has increased from 7 percent to 11 percent since December 2007, according to a recent report by the Pew Internet & American Life Project. Meanwhile the ranks of bloggers in the 18-29 age group fell from 24 percent to 15 percent during the same time frame quick payday loans.

The drop has been even greater among teen bloggers. In 2006, 28 percent of online teens said they blogged. Only 14 percent say the same thing today, according to Pew.

Social networking experts cite some pretty simple reasons for the decline of young bloggers.

Some suggest that it’s tied, at least partly, to the decline in popularity of My- Space, the one-time king of social networking. In recent years, social networkers have made a decided shift to Facebook, which puts more emphasis on short status updates and less emphasis on blogging.

"Because of what each site offers, that really changes what people do," said Amanda Lenhart, a senior research specialist with Pew.

Others say blogging simply doesn’t match well with the preferred communication style of young people, who like quick exchanges via text message and Facebook status updates. Some even suggest that young people might have skipped blogs altogether if they had arrived at the same time texting was taking off. Many young people just don’t have time in their lives for blogs.

"We used to think of blogs as short little blips of commentary. But now they seem very long," said Terry, from the University of Texas. "If you are updating your Facebook or Twitter all day, then in some ways you’ve gotten it all out. You’ve said everything you wanted to say."

Some attribute the decline of blogging and MySpace — and anything else being abandoned by young people — to the desire of teens and young adults trying to carve out their own space.

Rarely are they happy to see that space infiltrated by parents and grandparents.

"As soon as it becomes too popular, they want to move on to something else," said Kathryn Montgomery, a professor of communication at American University in Washington.

Not everyone buys that.

"That’s been the routine theory about why MySpace lost ground to Facebook," said Steve Jones, a professor of communication at the University of Illinois at Chicago. "But I don’t think that’s necessarily the case. A lot of adults are using Facebook now. And I don’t see younger people leaving in droves."

And really, it’s not necessarily the end of the world even if the youngsters do run off to greener pastures.

Rebecca Hanes, 36, of St. Louis, has been blogging for five years. She actually has a pair of blogs, including one she describes as "a big ol’ bowl of soup" in terms of content.

Hanes shrugged off the news that young bloggers have been dropping left and right. She says she has no plans to abandon her own little slice of cyberspace: "As far as I’m concerned, it’s probably something I’ll always have."

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February 17, 2010

London’s ‘Stock-Starved’ Housing Market Reaches Price Record

Filed under: term — Tags: , , — DoctorBusiness @ 9:48 pm

London home sellers raised asking prices to a record high this month as they took advantage of a “stock-starved” housing market, Rightmove Plc said.

The average cost of a home in the capital jumped 5 percent to 427,987 pounds ($671,000), the most since records began in 2002, the owner of the U.K.’s biggest property Web site said in a statement today. Average asking prices in England and Wales increased by 3.2 percent, the most since April 2007.

A small apartment in London’s Pimlico district received “astronomical” interest from buyers, real-estate agent James Gubbins said in an interview. The Bank of England said in its quarterly economic forecasts this month that the strength in the housing market may reflect “unusually weak” supply.

“A price jump of 5 percent is more comparable to the pre- credit crunch boom,” Miles Shipside, commercial director of Rightmove, said in the statement. “If sellers return to the market in larger numbers, the current upwards price pressure will not be sustainable with the restricted number of mortgage- strapped buyers.”

London’s Westminster district led gains in the capital, with prices rising 14.9 percent on the month to an average of 1.3 million pounds. The most expensive area is the borough of Kensington and Chelsea, where a 4.6 percent increase pushed up the average value to 1.9 million pounds.

‘Tiny Little Flat’

“The shortage is the main thing that’s cushioning the market,” said Gubbins, an agent at Dauntons in Pimlico, a neighborhood in Westminster. “Last year, buyers were socked to the teeth on the economy and didn’t know what they were going to do, and now they’ve decided to get on with it and stop putting their lives on hold.”

Gubbins said he recently had an “astronomical” number of viewings for a “tiny little flat” in Tachbrook Street in Pimlico, close to the Tate Britain art museum business card. Last year, “it wouldn’t have done at all well.” The one-bedroom property sold close to the asking price of almost 300,000 pounds, he said.

Prices rose 10.3 percent in London from a year earlier. That compares with a 6.1 percent gain in the U.K. as a whole, where prices fell about 12 percent from the peak in May 2008 to the trough in January last year.

Rightmove said a “stock-starved housing market” supported prices across Britain as the average number of properties per real estate agent stayed at a two-year low of 63. The average total for sale at real estate branches fell to 55 in January, the lowest since July 2007, according to a survey by, the National Association of Estate Agents released Feb. 11.

Mortgage Lending

The property market may still falter if mortgage lending weakens. The number of approvals fell to 59,023 in December, the first drop in more than a year and half.

Bank of England policy makers kept the benchmark interest rate at a record low of 0.5 percent this month as they paused their 200 billion-pound emergency stimulus program. Governor Mervyn King said last week it was “far too soon” to say policy makers will make no more purchases as the economy recovers.

“The low interest rate environment is meaning that less people need to sell,” said James Perris of De Villiers Surveyors in London. “If we do see interest rates go up a bit, we may see people more inclined to sell.”

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February 14, 2010

New stores help boost Chipotle profit, revenue

Filed under: marketing — Tags: , , — DoctorBusiness @ 11:27 pm

Chipotle Mexican Grill Inc. Thursday posted sharply higher fourth-quarter profit as restaurant openings and higher menu prices helped push revenue up 12 percent.

The Denver-based fast-casual restaurant chain known for its bulging burritos (NYSE: CMG) posted quarterly net income of $31.6 million, or 99 cents a share, up from $17 million, or 52 cents a share, in the same quarter of 2008.

Analysts on average had expected earnings of 81 cents a share, Thomson Reuters reported.

Revenue for the fourth quarter rose to $387.4 million from $345.3 million a year earlier. Analysts had forecast revenue of $388.2 million.

Chipotle opened 45 new restaurants in the quarter, bringing its total to 956 payday loans in 1 hour. Same-store restaurant sales rose 2 percent, largely on menu price increases.

Revenue-level operating margins were 24.5 percent, up from 21.1 percent a year earlier.

For full-year 2009, Chipotle reported net income of $126.8 million, or $3.95 a share, versus $78.2 million, or $2.36 a share, in 2008.

Full-year revenue was $1.518 billion, up from $1.331 billion the previous year.

Chipotle said it expects to open 120 to 130 new restaurants in 2010, with flat same-store sales. It plans a move into the United Kingdom by spring.

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January 23, 2010

Cities tussle with El Mirage over F-35 noise issue

Filed under: money — Tags: , , — DoctorBusiness @ 3:21 am

Editor’s note: This story is part of a special supplement to the Jan. 22 print edition of the Phoenix Business Journal. For more on the print edition: jbertolino@bizjournals.com.

The battle over noise concerns if the new F-35 fighter training mission comes to Luke Air Force Base has placed Glendale and El Mirage in a public relations and political skirmish.

El Mirage worries the F-35 fighter is louder than the F-16 jets that currently fly into and out of Luke. The West Valley suburb wants noise tests done to see how much louder the F-35 might be, and it could sue the U.S. Defense Department over the matter.

“You can ask questions about noise and still support the base. The jet may be noisier, and if it comes, everyone is going to have to deal with it,” said Stacy Pearson, a spokeswoman for El Mirage.

Glendale, where the base is located, has taken the lead in trying to attract the new F-35 fighter to Luke, which is the U.S. Air Force’s main training base for F-16 pilots. The F-35 is replacing the F-16 in the U.S. military arsenal, and Luke is on the short list for F-35 training along with bases in Florida, New Mexico, Idaho and Tucson.

Glendale spokesman Jerry McCoy said community support for Luke could help draw F-35 operations to the base.

“They’re going to base their decisions on what’s best for the national defense. But they also want to be in a community that’s supportive of them,” said McCoy.

Glendale has been garnering political, business and community support for Luke and the F-35. The main concern is that if the Pentagon picks another base for F-35 training, Luke’s mission could end and base could be closed.

The West Valley suburbs are no strangers to conflict. Glendale prevailed in recent court battles with El Mirage regarding decades-old strip annexations. El Mirage officials have hinted that if Glendale turns over some of that land, it could help ease El Mirage’s worries about Luke noise fast cash advance.

Arizona Sen. John McCain has asked the Department of Defense to have an F-35 fly over the region in an effort to determine how much noise will be generated by the new plane if it ends up being based at Luke.

Pearson and McCoy are not strangers, either. Pearson worked as a spokeswoman for the city of Glendale with McCoy before leaving for a post at Rose & Allyn Public Relations. Last year, El Mirage hired Rose & Allyn, headed by Jason Rose, to handle its PR on the F-35 and Luke. Policy Development Group previously handled PR for El Mirage.

Pearson said Glendale’s reaction to El Mirage’s noise concerns is disappointing.

“It’s been juvenile,” she said. “The two cities have not been the friendliest of neighbors. It is time to bury the hatchet and discuss noise.”

In its quest, El Mirage has drawn comparisons to Valparaiso, Fla., which filed a federal lawsuit regarding F-35 noise at Eglin Air Force Base, near Pensacola. Since Eglin held some F-35 test flights, the Florida town has complained about what it believes is an increase in noise compared with the F-16.

McCoy said the noise concerns in Florida may not mirror those at Luke because of the number of and the differences in how flights take off and land at the two bases. Glendale officials point out that El Mirage does not get all of Luke’s flight noise: Some flights follow a path over Goodyear, south of the base, for takeoff and landing. El Mirage is north of Luke.

McCoy said the F-35 issue is not about a rivalry between the two cities.

“We don’t look at it as Glendale-El Mirage,” McCoy said. “This is really a statewide issue.”

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January 19, 2010

China Property Sales Rise 75.5% to 4.4 Trillion Yuan

Filed under: management — Tags: , — DoctorBusiness @ 3:33 am

China property sales jumped 75.5 percent to 4.4 trillion yuan ($644 billion) last year, led by the eastern cities of Zhejiang and Shanghai, as record new loans boosted buying.

The sales data follows last week’s announcement that December property prices rose 7.8 percent, the fastest pace in 18 months, adding urgency to government efforts to rein in speculation. China this month reimposed a sales tax on homes sold within five years of their purchase while the country’s cabinet on Jan. 10 urged strict application of a 40 percent down-payment requirement for second homes. The measures are likely to weigh on first-quarter sales, economist Lu Ting said.

‘We will see very bad transaction numbers, even though prices may not fall that much as the supply of new homes is still low,” Lu, a Hong Kong-based economist at Bank of America- Merrill Lynch, said by phone today. Today’s data more accurately reflect last year’s gain in asset values, he said

By floor area, sales rose 42 percent from 2008 to 937 million square meters (10 billion square feet), the National Bureau of Statistics said in a statement on its Web site today. That compares with a 53 percent gain between January and November, when sales value advanced 86.8 percent. December’s declining sales growth reflects the seasonally slow winter period, Lu said.

The December figure for property prices probably understated the size of the increase, the economist said. “In reality, the inflation in asset prices may be between 20 percent and 30 percent, and that is way too high for the policy- makers,” Lu said.

Shanghai Gain

Zhejiang topped the increase in sales value, with a 130 percent gain, the statistics bureau said today. In Shanghai, the gain was 126 percent.

Investment in property development in 2009 rose 16.1 percent to 3.62 trillion yuan, the statistics bureau said. That was less than the 17.8 percent gain in the first 11 months. Chinese banks extended a record 9.59 trillion yuan of new loans last year.

To counter property speculation, China is tightening lending. Chinese banks from Jan. 18 raised the share of deposits they must set aside as reserves, as the government seeks to rein in liquidity from record lending without stalling a recovery. China is targeting 8 percent growth this year, Industry Minister Li Yizhong said Dec. 21.

Developers Sales Surge

Shanghai Shimao Co., the local unit of billionaire Xu Rongmao’s developer Shimao Holdings Holdings Ltd., said today that 2009 profit may quadruple, partly due to higher sales from additional commercial property projects.

Earlier this month, some of China’s biggest developers said 2009 sales increased significantly.

China Overseas Land & Investment Ltd., owned by the country’s construction ministry, said property sales rose 80 percent to HK$47.8 billion. Evergrande Real Estate Group Ltd., China’s third-biggest developer by market value, said Jan. 5 that contracted sales jumped fivefold to 30.3 billion yuan.

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January 15, 2010

Boomers behind savings decline

Filed under: economics — Tags: , , — DoctorBusiness @ 4:27 am

The amount of money that Canadians are stashing away for retirement has been declining for a decade, and the trend is likely to continue through 2020 as the baby boomers move into their golden years, according to a study by the Royal Bank of Canada.

Contributions to registered retirement savings plans, or RRSPs, grew steadily from the late 1960s to the late 1990s.

Since 1997, there has been a "decidedly downward trend" in the RRSP savings rate, the report says.

"This downward trend in itself doesn’t mean there’s a problem," if the level of savings is still adequate for Canadians’ retirement, RBC assistant chief economist Paul Ferley said in an interview.

"The big question is determining how much savings is needed to properly fund the population as they move into their retirement years. At the moment the academic community is working through that analysis. There doesn’t seem to be a consensus on that."

A falloff in savings would have a negative impact on the overall economy because it would result in fewer funds available for business investment.

Government officials said in December they will study and consult the public on a short-list of proposals for how to boost retirement savings.

The list includes everything from a continued reliance on voluntary savings plans and higher contributions to the Canada Pension Plan to supplementary pension plans and tax reform.

A report is expected by May.

Financial planning experts, academics and labour groups have been calling for pension reform, particularly as the massive baby boom population, those born in the two decades following World War II, moves into the retirement years.

Stock market volatility and turmoil in the economy over the past two years have exposed weaknesses in the current system. Fewer than one in four Canadians now holds a private company pension plan.

The decline in RRSP contributions can largely be pinned on changing demographics, according to the RBC paper.

Different age groups tend to save differently for retirement, the study noted, with those in their mid-30s and 40s traditionally saving the most and those ages 34 and under and ages 55 and older saving less.

"Because household RRSP contributions have historically tended to fall after age 55, it is possible that we could actually see a decline in total real RRSP contributions over the next decade," the study said.

The run-up in RRSP contributions as a share of income through the 1980s and early 1990s appears to have been mainly due to the boomers entering their peak saving years, along with rising income growth and comparatively strong real stock market gains, the study found.

Periodic changes in government policy, such as increases to contribution limits and scrapping limits on carry-forward room, also spurred savings.

Retirement savings declines have been driven by falling stock markets and economic slowdown, as well as demographic changes.

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January 10, 2010

Boeing adopts new name, changes for defense unit

Filed under: term — Tags: , , — DoctorBusiness @ 6:54 pm

The Boeing Co. announced Thursday that it has realigned its St. Louis-based Integrated Defense Systems unit and will operate under a new name.

The newly renamed Boeing Defense, Space & Security unit reflects part of the company’s "continuing effort to compete in a rapidly evolving global defense and security marketplace," company officials said in a news release.

"Boeing anticipated flattening defense budgets and shifting customer priorities for the past few years and has been taking aggressive steps to position the company for profitable growth in a challenging economy," said Dennis Muilenburg, president and CEO of the Defense, Space & Security unit fast payday loans.

It will retain its operating units — Boeing Military Aircraft, Network and Space Systems, and Global Services and Support. Boeing Defense, Space & Security will consolidate some divisions and make several leadership changes, Muilenburg said.

Boeing’s Defense, Space & Security unit is the second-largest employer in the St. Louis region with about 15,000 workers.

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January 6, 2010

Not everything gets swept aside

Filed under: marketing — Tags: , , — DoctorBusiness @ 6:12 am

Cincinnati–Swiffer kitties? Just attach little dusting pads to your feline’s paws, so they can help keep your floors clean while making their rounds. A bit far-fetched? Executives at consumer-products king Procter & Gamble Co. thought so, too, and sent the idea to the discard pile.

P&G also rejected pitches from outside inventors for a belly-button lint brush, a Knees and Toes body wash to complement Head and Shoulders shampoo, and a "man handle" to keep marital harmony in the bathroom by making it easier to raise and lower the toilet seat.

But there are success stories, too. The original Swiffer duster was developed by a Japanese company that P&G teamed up with to take it global. That’s why P&G keeps the door open to proposals.

The once-insular company is now considered a leader among the companies in many industries that are listening to outsiders they once might have shunned, including other businesses. "We don’t care where good ideas come from, as long as they come to us," said Jeff Weedman, a vice-president who helps lead P&G’s effort to solicit ideas online or from scouting by P&G employees around the globe.

"We’re not going to use everything that shows up, but we want to be the preferred partner."

Others noted for "open innovation" include IBM Corp., which runs online "innovation jams," and Eli Lilly & Co., which in 2001 created an InnoCentive branch to draw scientific help from around the globe.

Jeff DeGraff, a professor who focuses on managing innovation and creativity at the University of Michigan’s Ross School of Business, said P&G has helped popularize the approach.

"P&G was the poster child for this movement, showing large companies with growth challenges that this is not just for Silicon Valley or Ann Arbor (Mich business

December 21, 2009

Traffic drop continues at San Jose airport

Filed under: economics — Tags: , , — DoctorBusiness @ 11:09 am

Passenger traffic continues to decline at Mineta San Jose International Airport, but the decreases are growing smaller.

In November, traffic was down 4.2 percent compared to November 2008, according to the weekly report from Debra Figone, San Jose city manager. During the summer months, monthly passenger decline percentages were consistently in the low double digits.

"The smaller decline reflects the retention of passengers on SJC's other flights and resulting higher load factors despite fewer flights, and it could be an indicator that business and leisure travel are in the early stages of recovery," Figone said in her report.

The airport, owned and operated by the city, has suffered passenger declines and a growing number of canceled flights for more than two years, as have many airports nationwide. Dating back to September 2007, Mineta San Jose has seen its daily flight volume drop from 190 to about 150. Passenger volume dropped from 10.7 million in 2007 to 9.7 million in 2008.

There has been some good news in recent weeks. On Dec. 15, JetBlue Airways announced it will restore daily nonstop service between San Jose and Boston, starting May 13. Connecting two of the nation¹s high-tech capitals, the San Jose-to-Boston

JetBlue flight will be another version of the so-called "nerd bird" flights, which is what frequent fliers call the twice-daily Alaska Airlines flights that connect Silicon Valley and Austin, Texas. Alaska resumed those flights in late summer, after American Airlines dropped its San Jose-to-Austin service earlier this year low interest personal loan.

The new JetBlue flight beginning in May will depart San Jose at 9 p.m. daily, arriving in Boston at 5:30 a.m. local time. The Boston-to-San Jose flight will depart Boston at 4:25 p.m. local time, arriving in San Jose at 8:02 p.m. JetBlue had nonstop San Jose-Boston flights beginning in 2004, but began routing the connection through New York in 2008.

Last month, Horizon Air/Alaska Airlines announced it will launch twice-daily direct service from Spokane, Wash. to Sacramento and San Jose starting March 26. One daily flight from Spokane will operate nonstop to Sacramento and continue on to San Jose, while a second flight will operate nonstop to San Jose and continue on to Sacramento. The new service also includes a second daily roundtrip between San Jose and Sacramento, facilitating same-day business trips in each direction between Silicon Valley and the state capitol.

Horizon Air started a seasonal daily flight connecting San Jose and the Mammoth Mountain Ski Area this week, running through March, to accommodate skiers heading to the huge eastern Sierra Nevada resort.

David Vossbrink, the airport's communications manager, has told the Business Journal that airport officials hope the facility's major renovation and expansion will be instrumental in helping attract new flights and carriers. The $1.3 billion Terminal Area Improvement Program, scheduled for completion in June, is highlighted by the 380,000-square-foot, $342 million Terminal B Concourse, parts of which have already opened.

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