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Newspaper
Cedar Rapids Gazette
Location
Cedar Rapids, Iowa, United States of America
Date
Dec 09, 2008
Page
9
Stock indices rise for a second straight session on expectations that Barack Obama’s infrastructure push will spur growth. The Dow gains 298.76 to 8934.18, the S P 500 adds 83.63 to 909.70, and the Nasdaq climbs 62.43 to 1571.74. Treasury yields fall to record lows as buyers seek safety.
Google plans a second data center in Council Bluffs as it expands a $600 million facility set to open next year. The project must reach at least $300 million to qualify for full property tax incentives, and there are no immediate construction plans while the company evaluates its needs. Several Cedar Rapids and Coralville businesses have reopened after the June flood, including Illen's, Iowa Realty, and West Side Maid-Rite, with new addresses listed.
Tribune Co. filed for bankruptcy protection in Delaware as the media giant, owner of the Chicago Cubs and Los Angeles Times, confronts $18 billion in debt and weak cash flow from ad declines. The case aims to buy time to raise cash, with assets including Newsday already sold and the Cubs, Wrigley Field, and a 25 percent stake in a regional sports channel under pressure. Sam Zell, chair, cited a perfect storm of revenue decline, economy, and credit crisis.
Jeff Ellerby, owner of Dea & Bob's Auto Repair and Albert Auto East in Cedar Rapids, turned to Lisa Van Allen to overcome a fear of firing and establish clear policies. With two shops and a growing staff, he aims to hire slow, fire fast, and implement probation, job descriptions, and regular performance reviews to protect morale and improve operations.
Manpower surveys Cedar Rapids metro firms and finds 21 percent plan to hire from Jan 1 to March 31 2009 while 11 percent expect staffing cuts 67 percent see no change and 1 percent unsure. Sector prospects favor non durable goods manufacturing wholesale retail trade information finance professional services education and health leisure. National results show 16 percent hiring and 13 percent reductions with 67 percent unchanged.
Deflation worries rise as economists warn of falling prices and spiraling demand. Analysts caution about debt heavy companies and the risk of a Japan-like downturn, urging debt reduction and stronger savings to weather potential prolonged job loss and tighter credit.
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