Maria Trujillo
September 21, 2009
BTN 195.0114
Prof. W. Val Ginter
At Channel 13 the Financial Signals are red
By Matthew Flamm
The one—time former President of NBC News, Neal Shapiro took reins of
WNET on February 2007. Since then he has been working on some important and
at the same time big projects. One was the launch of a new international news
program Worldfocus, which is costing about $800,000 a month in order to be put in
the air. Worldfocus replaced BBC World News, which averaged an audience
272,000 households from January to July. Worldfocus is averaging an audience of
243,00 households in the same period in accordance with metered market numbers
done by Nielsen.
The other big projects are the opening of a new studio at Lincoln Center and
the renovation of Channel Thirteen studio located at West 33rd Street. The various
postponements of the new studio opening might be the biggest signal of the
problems that the station’s parent WNET.org and its new chief executive are going
through right now. The lease of the new street-level studio is going to cost WNET
$1 million a year.
In addition, 120 people had been laid off and a Department of Justice
investigation into the television company has frizzed some fund from contributors.
One person close to WNET thinks that more lay-offs will come in the nearest future.
Mr. Shapiro is optimist and says that the lay-offs and the new studio’s postponement
are not related with the decreasing in fundraising. He attributes this decline to the
instability of the stock market and the money lost by some donors with Bernard
Madoff. “This shortfall is temporary” Mr. Shapiro added.
Wynn or Lose
Vegas superstar faces uphill race at Aqueduct
By Amanda Fung
The Aqueduct of New York located at humble Ozone Park in Queens is being
bid by the state. Six bidders are in this competition in order to build a luxury casino
with stores and restaurants in the main floor. One of these bidders is Steve Wynn
the owner of two mega gambling casinos in Las Vegas. Wynn is the only one of the
six bidders who has the required $300 million up front bid in cash. The odds against
him are: he has no connections in New York, he does not have a peace deal with the
hotel union (one of the state’s requirements) and 70% of the casino’s revenue will
go to the state.
He is the only bidder who is planning to build a new building, which will be
ready in April 2001. Against all the obstacles that Mr. Wynn has is his positivism.
He says that the casino will generate $500 million in the first year; this is a lot more
than the $1million a day that the state was expecting. Mr. Wynn is being criticized
for trying to bring a luxurious casino with a 2-acre pond to the working class
neighborhood of Ozone Park. He says that his properties are not flashy but beautiful
and that he makes people feel good and special. The decision is on the hands of Gov.
David Paterson and the heads of New York Senate and Assembly but if Mr. Wynn
does not win the bid he says that he will “take the result with grace”.
Maria Trujillo
September 29, 2009
BTN 195.0114
Prof. W. Val Ginter
Wall Street’s watching this trial
The subprime-mortgage-related securities hedge funds that Ralph Cioffi
managed at Bear Sterns were crumbling in March 2007. This happened at the same
that the housing market was starting to crack. Even though he knew that their
inversions were going to suffer a meltdown, Ralph Cioffi said to his clients that it
was “a very good time to add money to our funds”. Mr. Cioffi ordered his staffers not
to divulge the bad situation of its hedge to the public.
Next month Mr. Cioffi and Matthew Tanin (Mr. Cioffi #2 at the Bearn Sterns
Fund) will be appearing in front of a courtroom at Brooklyn. The two of them will
be facing up to 20 years in prison for fraud and conspiracy. Mr. Cioffi is accused of
inside trading because he yanked out almost a third of his investments and moved it
to another more profitable hedge fund, for this matter Mr. Cioffi could see an extra
20 years in prison.
The most compelling evidence that the prosecutors have against the
defendants is the e-mails claiming everything was going well. Another evidence is
the lavish life that both defendants had, giving themselves enormous bonuses
during the boom years. The defense wants to present its clients as hardworking
people who made their fortunes honestly.
This case is relevant and important in Wall Street because this will be the
first time that a broker will be convicted (if convicted) for this type of crime.
Is it over? Not in New York City, Uncle Ben
In accordance with Federal Reserve Chairman Ben Bernake recession might
be over, but the president of Fodera Foods doesn’t think that. Orders have dropped
25% compared to last year, checks from customers who have had a good payment
history are being returned. Nearly 100,00 jobs have been lost since August 2008
and the economists are expecting this amount to increase to about 150,000 in the
coming months.
New York City usually takes longer than the rest of the country to come out
from a recession. The scenario in New York City has been similar in the last two
recessions. This is due to the structure of NYC’s economy. It depends mostly in
business spending and people are not spending as they use to do a year ago. Hotel
occupancy, attendances on Broadway and retail sales are falling, according to the
state comptroller.
Office rents are falling and this is not expected to rise until mid-2011. The
most significant indicator is the city’s unemployment rate, last month it jumped to
10.3%. The recovery is not prompt to come while consumers keep cutting back.
New York City could expect to lose more jobs and this will spread out over time.
September 29, 2009
Dear Prof. Ginter:
What would be of humans if we wouldn’t have history? Well this question
was answered in our Tuesday class. I agree with you and I think that without
history every individual wouldn’t have the costumes and behavior that everybody
has. People would not commit the same mistakes that they did in the past and they
would repeat the good and profitable behavior, which they know because of history
that is positive. Even though it is true: nobody learns from others mistakes, people
should try to look in the past and try not to commit the same or others mistakes that
might harmful themselves or others.
History has been very helpful in every aspect of my life. Through out History
I am aware where I come from, what are my costumes and how was life in the past.
I am grateful and admire the inventors who have made possible to live the life that I
have now.
Even though I know that there are some people who would like to forget
about their history or past and begin a new life without any memories, they
wouldn’t be able to do it. I think History is vital for every person and nation because
without it nobody would know how to act or what to do.
Maria Trujillo
October 5, 2009
BTN 195.0114
Prof. W. Val Ginter
THE FOOD WE EAT
On the menu for restaurant biz: healthier, local offerings
ENERGY KITCHEN has gained popularity in the last years. When the city
began its campaign against obesity nine new outlets were open. All the food in this
company is baked, steamed or grilled. In accordance with the city’s health
department New Yorkers now live six months longer than the rest of Americans.
Even though diabetes and obesity rates keep growing.
Food chains like McDonalds are implementing healthiest food on their menus
as salads, milk and fruit. The sale of sugary drinks as sodas has declined nationwide
in the last years. After Hawaii New York residents are the biggest seafood spenders.
Overall food businesses are trying to serve healthier food to their customers. Some
businesses as Great Performances have its own produce farm so they can provide
fresher food. Another type of business that is changing to a healthier mode is the
culinary schools. The French Culinary Institute and the Institute for Culinary
Education are changing its curriculums and now its offering 22 seminars about
reading nutrition labels on packaged foods or getting out of the usual French cuisine
and exploring with around the globe cuisines.
Rockaway project gets some stimulus
Five years have passed since the housing project Arverne by the Sea began to
be constructed and its still lacking the most important ingredient a supermarket.
But this fact changed last month, the Bloomberg organization choose this project to
receive $16 million in federal stimulus financing. The construction for a 55,000
square foot Stop & Shop supermarket and an adjacent 21,000-square-foot mall will
begin before winter. The construction on the rundown Beach 67th Street subway
stop began last month and the construction of a YMCA will begin soon.
In spite of the bad real state condition this project has continued selling. A
two family home starts at $599,000 and the best of all is that its residents can enjoy
and make use of its waterfront beaches.
Maria Trujillo
BTN 195.0114
Prof. Val Ginter
October 13, 2009
Dollars and scents
Despite the present recession and the sales of luxury goods dropping down,
the sales for upscale fragrances have gone up. Few international brands are
planning on opening new stores along Manhattan. Rents in Madison Ave. have gone
50% down and the small size stores availability attracted French fragrances makers
to open stores in Manhattan. One of those is Paris-based Diptyque where limited
edition fragrances cost $135, its sales accounts for 39% of the total store sales; this
percentage is 16% more than the store’s first month of sales. This company has a
global revenue exceeding $20 million. This is not the only store that is making
business in New York, pretty soon Creed and Editions de Parfums Frederic Malle
will open stores along Madison Avenue.
Although luxury items sales have gone down, the upscale fragrances
businesses are selling briskly. One of the managers of the perfume store says that
consumers like to be differentiated from the others and that they feel empowered
when they wear fragrances that were created for a specific royal individual.
What brokers do when leasing volumes dry up
A busy work schedule prevented the real state broker Robert Billingsley to
have a hip operation. In 2007 the housing boom peak maintain him very busy.
Nowadays he has been able to have his operation. He is not the only one who is in
standby because of the present recession. Another broker says that he had to give
up his family vacation in order to save money.
In the last months the space for rent in Manhattan had plunged 82% and the
rentals deals have declined 50%. Brokers have to wait longer for their money and
taking lower commissions. One of the reasons is that brokerage firms expanded
abruptly in previous years. Mr. Billingsley who is 62-years-old says that the voice of
experience will be helpful in present times when nobody is hurrying to close a deal.
Older and experienced brokers can guide their clients with insights learned in
previous recessions.
Maria Trujillo
BTN 195.0114
Prof. Val Ginter
October 19, 2009
Small Businesses: We’re mad as hell
By Carl Hum and Nancy Ploeger
A new bill to pay sick leave to part-time and temporary workers from small
business employees is been considered by the New York City Council. Small
businesses are the backbone of our economy but it has been affected with a few
challenges to stay afloat. New York is one of the most challenging places for small
businesses, with the highest taxes in the country.
The recent recession has reduced revenues for small businesses; on top of
that loans are really difficult to obtain because of tighter financial institutions
regulations. Most small business already offers sick days, holidays, vacation days
and even personal days. In accordance with one small business owner this new
regulation will cost its business between $40,000 and $50,000 per year. This extra
expense will affect the same workers to whom this new regulation is looking to
benefit.
Some small business that will not be able to adapt this new regulation will
have to close or either reduce its number of employees. Business owners,
organizations and the borough chambers are reaching council members to letting
them know how this new regulation will affect them. They hope that their voice
could be heard so we won’t see anymore empty storefronts and an even bigger
number of unemployed people.
Look Who Remade New York
By Theresa Agovino
Amanda Burden the Chair of the New York City Planning Commission will
rezone her 100th neighborhood this week. Ms. Burden has been nearly eight years
in office. In these years she has rezoned 20% of the thousands of blocks in the city,
within these are 368 in Jamaica, Queens, 299 in the Throgs Neck section of The
Bronx and 250 in Carnasie, Brooklyn. Her decisions are concentrated in the future
of the city, even though the big developers are not happy with it. During her time in
office she had encouraged the hiring of top-flight architects, giving a major public
access to the city’s waterfront and overall maintaining the scenery of older
neighborhoods. Ms. Burden has worked in urban planning since 1976.
Ms. Burden designation for office hasn’t been well seen. Some people think
of her, as a beauty with good connections and the gossip about her multiple divorces
hasn’t help neither. Many real state executives have accused her of authoritarian
because she had focused herself in small details as the size of windowsills and the
height of park benches. But her most criticized decision is the looping of 200 feet of
the top of a tower on West 53rd Street that was designed by Pritzker Prize-winner
architect Jean Nouvel. Ms. Burden adduces that Mr. Nouvel didn’t present a finish
design.
It can be that Ms. Amanda Burden’s decisions might be affecting the present
projects in the city and making it more difficult for developers to build its designs,
but the consequences of her decision will be seen in the future not now. One of the
biggest accomplishments of the 65-year-old grandmother of five will be recognized
this month when she receives the Urban Land Institute’s J.C. Nichols Prize for
Visionaries.