Strib Biz Live

Strib Biz Live

Monday, Sept. 16

  • Not a headline Larry Summers will like: "Stocks Soar on Summers Withdrawal"
  • A small but growing share of Americans consider themselves "lower class"
  • Welcome to Strib Biz Live.

    This is a new service from the business news department of the Star Tribune.

    We’ll use live blog software throughout the market day to keep you informed of business news, discussions and developments in real time, or as close as we can get to it. Such software, along with social media tools like Twitter, Facebook and Instagram, are changing the way people work and communicate.

    With two dozen reporters and editors, the Star Tribune runs one of the largest business news operations between the two coasts. We cover a state whose $300 billion economy is the 17th largest in the U.S., but whose people punch above their weight economically, with per-person output that is ranked 14th.

    We cover one of the most diverse economies in the country. We don’t have a dominant industry the way that New York City, Silicon Valley, Washington, D.C., and some other metro areas and states do. Minnesota remains a powerful center of agriculture and food processing as it has been for nearly two centuries. But it’s also home to world –leading health care providers and medical device makers. It’s an important center of financial services and creative marketers and retailers. Its miners and manufacturers produce raw material, tools and components that are used in almost every conceivable physical good. And on top of all of that, tens of thousands of Minnesotans are having their lives and careers reshaped by a once-a-generation economic event: the rise of our neighbor North Dakota as a major center for American energy production.

    As well, we compete in a market filled with smart journalists and demanding readers. This new platform gives us a way to communicate with you not just more quickly but in a manner that is different than is allowed by the conventions of a story on the printed page or even one that’s online. It’s going to be less formal, even raw. You’ll see how our thinking on business news and events evolves through the day. Most importantly, you can get involved in telling us news and shaping our thinking more quickly and directly, through e-mail and Twitter.

    Strib Biz Live will begin before the market opens and close out shortly after market close. Today, we’re off to a little bit later start as we iron out some technicalities.

    We begin on a day when the markets have taken a jump that’s being chiefly attributed to the news over the weekend that Larry Summers, the former Treasury Secretary and White House aide, decided to no longer be a candidate to become chairman of the Federal Reserve. Summers had been seen as more hawkish about ending the Fed’s stimulus program than the other chief candidate, Janet Yellen. The last two weeks have seen a fairly high-profile campaign develop against the Summers candidacy. For Summers, the writing was literally on the front page of Saturday’s Wall Street Journal with the headline “Path to Fed Job Gets Bumpier for Summers.”

    At 9 a.m. local time, about 30 minutes into trading, the Dow Jones Industrial Average was up nearly a full percentage point at 15,515.
  • Here's the opening of my Sunday story on the antiques business, which is worth a read if you missed it:

    The moment he saw the $7,000 dog made of black walnut, Lonny Piche knew he could sell it for a profit.

    The animal was nearly waist high, a Black Forest carving from 1890s Germany. It was midstride on an exquisite pedestal of rocks and plants, carried a barrel on a rope around its neck and pointed its nose forward.

    Piche shot a picture with his phone. He texted it to a customer in Wisconsin and sold the dog within 20 minutes — for $7,500.

    It’s been a tough slog for most antique dealers over the past decade, as shifting tastes, eBay, thrift stores and the deep recession have cut into profits and emptied shops of customers. But upscale dealers are doing fine.
  • Since I first learned of Fed as a Macalester undergrad, can't remember a public campaign for Chair's job. Curious:…

  • Target announced new design collaboration via twitter.

    Target Style

    Introducing our next design collaboration w/ @peterpilotto, launching 2/9/14! Learn more:  #peterpilottofortarget
  • The Pioneer Press' Nick Woltman had a nice story Sunday about Chey Eisenman, a woman who became a taxi driver in 2009 after losing her IT job. She eventually started using the Internet and social media to stand out in a competitive business and was able to start her own independent firm. She often tweets about her life behind the wheel, such as this a few hours ago:

    Yesterday, she tweeted this about Nick's piece:

    And she's scheduled to be on WCCO radio during the noon hour...

  • In some Bakken-related news today, CHS, the big ag co-op and energy firm in Inver Grove Heights, said it's got an agreement to add propane storage and rail services at the Central Plains Ag Services location in Hannaford, N.D.

    The deal is part of broader work on a project known as the Cochin Pipeline reversal. Since 1978, the pipeline, owned by Kinder Morgan, has taken propane from
    Fort Saskatchewan in Alberta to Sarnia in Ontario, passing through North Dakota, Minnesota, Iowa, Illinois, Indiana, Ohio and the corner of Michigan along the way. But as Bakken shale field developed into something huge over the past few years helped turn the U.S. into a net exporter of propane. Demand for the Canadian product fell in the U.S. Meanwhile, propane is needed for oil sands processing up in Canada. So work has been underway to reverse the direction of the Cochin Pipeline by the middle of next year.

    CHS already has a propane terminal in Hannaford and said today's deal represents a chance to expand its operation there to take advantage of the capacity that will be flowing chiefly from the US to Canada. CHS said the expanded operation will mainly serve customers in eastern North Dakota and northwestern Minnesota.
  • We'll get some new data on metro area GDP tomorrow, and it'll be interesting to see how fast the Twin Cities economy grew in 2012. This has been the subject of a lot of coverage lately, including a big splash from the Opinion page over the weekend, mostly focused on job growth.

    In 2011, the most recent year for which we have data, the Twin Cities economy grew at a pace of 4.1 percent, already pretty fast. And though some people may not realize it, the Twin Cities economy is bigger than Milwaukee, Madison, Fargo, Bismarck, Grand Forks and Sioux Falls combined -- by a healthy margin. So that growth resulted in more than $8 billion in new economic output. Here's how some of the major metros in the region stack up:

    by Adam Belz

    There's good reason to expect that the Twin Cities economy grew even faster in 2012 than it did in 2011, because the state's economy grew at a pace of 3.5 percent that calendar year, more than twice as fast as it grew in 2011. Minnesota was the fifth-fastest growing state economy in the nation in 2012. If that's reflected by another high number for Twin Cities GDP growth, 
    expect some big headlines in the morning.

  • On its first day trading under the new QUMU stock symbol Qumu Corp., formerly known as Rimage Corp., lead Minnesota stocks. The company closed at $11.08 up 58 cents per share, or 5.52 percent.
    More than just a name change though. The company says it is more committed to growing its enterprise video communications market.
    And as part of its name change it is launching a new corporate website
  • U.S. stocks closed mostly higher and commodities fell today. News has been dominated by the shooting at the Navy Yard.

    Tomorrow in Minnesota, we've got the metro economic data coming out. And it's launch day for Target of 14 new stores in Canada.

    Good evening from Strib Biz.
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