Title: TWIB: Business roundtable

" Good afternoon and welcome to this week in business I'm Mike -- from Andy's here Paul does he has the week off. The fourteen billion dollar bailout plan for the US auto industry ended up in the breakdown lane late this week. The auto unions refuse to accept -- pay cut so senate Republicans would not support the deal. The White House was late in the week considering another plan using money from the Wall Street bailout bill to help the auto industry. In the meantime slumping auto sales led to another drop in retail sales last month they were down one point 8%. And the Bank of America says it will eliminate up to 35000. Jobs over the next three years. Also Massachusetts Governor Deval Patrick traveled to Washington this past week. In hopes of bringing a slice of a New England or make that new economic stimulus package home to Massachusetts. Joining us now to talk about all these stories and more members of our monthly Boston business editors roundtable francoeur to -- business editor at the Boston Herald. Shirley -- his business editor at the Boston Globe and George Bartley is editor. Of the Austin business journal could have you all here we missed Paul good guys here for December. We have so many things that are going on right now we have the auto industry bailout bill failing at least in terms of one in the congress late in the week. We have the Bank of America thing retail sales down also. New claims for unemployment insurance were down for that or were up make that. That's was highest level when we can 26 years so all of these things will effectively go into effect -- which of these in your reporting seems to be or something else perhaps frank. The most distressing troubling ominous for the New England economy."

" Well it it seems like the Bank of America news the end of the week is is the most troubling it's going to have quite an effect here I think you know they're talking about 10% of their workforce that could be. In in Massachusetts. Almost a thousand people. To add that accident the rising unemployment claims. And the fact that you've got. Toy stores going out of business and filing for chapter eleven you know few weeks before Christmas and all all adds up to very scary employment picture for the next. Several months it."

" East what's that what are your thoughts -- that surely. I agree I agree. Yeah Bank of America is a big deal meaning have so many jobs here. But on -- even though I -- says a thriving auto industry here you know our factories long -- think auto bail out will. You know really. -- affect the market it -- really affect consumer confidence. -- I think that's going to be a problem and and they need to resolve that quickly. Com in terms of may think congress made a lot of progress. Didn't just write a blank check. To the auto makers I think they. Gave them very happens. I guess clear instructions. On what to do with the money I wish to unions would calm you know meet them in the -- on that some hoping something will happen."

" We'll let it go at -- that's antiquated conservative if you are. And that us. -- my concern with what congress is trying to -- is that the mix of politics and business here is is not seeming to be very good one. Telling. Detroit. For example you go ahead and make more auto official cars if you want this -- that's exactly. What they lose the most money doing and so you and then and then the Republicans saying to the unions. You have to better take her hair cut right away I mean that's no way that's very difficult way to negotiate as well so we just see this interference you hope. That maybe. The treasury steps and maybe you always say they would do with -- the right. Hopefully there won't be as much meddling because I think the meddling here is is good and created a result. Yeah how is."

" you mentioned unions have how does the United Auto Workers in the it associated unions involve the auto industry come out of this image here they're saying we're not but take a pay cut. So the Senate where Republicans. Said okay we're not going to support the building here they are willing to let seemingly. There industry fail. Just so they don't have to take -- or maybe they knew that the government would cave and come up with the money."

" I think they're confident with Barack Obama coming into office you know they've got strong support from the Democrats. And I also thank -- I wonder why they can't make this argument better I mean it seems to me even though. -- that you hear about you know the high salaries hourly wages for United Auto Workers you hear about them being paid not to work. It seems like unions -- extremely high paid executives union should win but for some reason they're not winning the the battle for public opinion."

" All right we were talking earlier. Mentioned about Governor Patrick of Massachusetts going to Washington. Looking for money are laying out his case for the things he would like Massachusetts to get if in fact the Obama administration has -- stimulus package ready to go. George what do you think is -- going to get what he wants it in and -- what kind of money should Massachusetts. Interest mortgage port."

" I mean everybody come on everyone to the table. And yet it's it's and and perhaps. Governor Patrick and elbow its way up to the front or closer to the front and some. -- some of the other. Governors but. You know it happens to be just a wonderful time in -- windfall from Massachusetts if we get the money for some public infrastructure because in Massachusetts. I think we have ignored so much necessary repair. That it was becoming a large political issue so it's the timing and really couldn't be better the question really is. To what degree its money that he could directly into individuals' pockets versus -- from public projects to build and create jobs jobs and infrastructure. You know it would surely there was also this past week in it was beginning of the week. -- It's necessary right."

" I mean I think there's a lot of projects for. You know that the state can do it means an ode to restoring the globe this week at the -- lined tunnel might not get done. And that's a billion more than a billion dollar project and that's a lot of jobs tied to that I think it's a smart way to on to stimulate the New England economy. By fixing roads that need to be fixed I mean. We were talking earlier they're UHU. Get some money for the the pike."

" That would be a good idea yeah get up briefly on who's a gas tax and talked about what you guys have all been reporting on what you think this is the likelihood of gasoline tax increase in the gasoline tax Massachusetts instead of tolls for example."

" I don't know about instead of tolls I think we're -- looking -- in addition you know we'll see what happens of the stimulus package but I think government now is is like everyone they're -- want to try and get as much money as they can there's been no of their more bad times ahead."

" We think surely gasoline tax. I Christian gasoline taxes it's a fair way to. Pay for. You know being the Big -- I think that holes are prohibitive that what they're. Their outrageous."

" And Georgia might be a little more palatable when gas -- for dollars of without regard to add another ten cents or whatever might be I guess timing issue and it. Better luck doing it now and then I think last July when it was first raised and you can hear the boos coming from have you ever order petrified -- wasilla for 440 want to download whatever it was that yet. I gotta jump in here and actually talk to you knew about some of the stories that you guys have been covering this week other globe reported this week. That despite all the economic hardship many people in Boston's financial services community are still getting some -- Bonuses so what do you guys about with."

" What bonuses will be down about 50%. I know be a surprise that -- fact that they're even getting any bonuses but the fact is that. For allow bonuses are paid on quarterly performance of the first half the year wasn't so bad but still you know if it the State's gonna take a big hit. We count I think there's beit. -- about two billion dollars in bonuses will be giving out. And what they'll be lost revenue mean tax revenue because Texas exaggerate I think two billion -- two billion less in terms of bonuses across all industries that the stable take a big hit on that as well and also the retailers. The luxury retailers -- card dealers the -- dealers the Jewelers they're -- awesome feeling to."

" Now that you come home with a bonus at the end of the year would you go right. The Boston Herald frank was reporting on where him startup called local voters -- running a competition on -- I guess that was an interesting story about Boston specific car what's that."

" That's right this is a company that's kind of bucking the trend they're starting you know a new business in -- troubled economic times actually went public earlier in the year. And they've just tell the design contest it -- to create a car that's Boston specific. And there's still time to vote were actually planning a story tomorrow. And people have looked a little bit more time to vote on their favorite design than this company is going to make just a small number of them it's gonna cost a little bit more but it's gonna be more about kind of custom car that looks a little bit like Boston they have they get or something about Boston has a Boston team. They have plans to do this in other places. And maybe with the auto industry and such apparel. This'll be away for parts manufacturers and other subsidiary industries to kind of thing might -- group cars -- move into you know other markets for their."

" Part maybe a green car for the Celtics or something like that -- powerful front to get out your space in the middle of the -- early -- I did yeah. I say that apostles of the card does not yield. -- And the bail -- having implications for local advertising."

" Right it's already hit I mean. There are several large successful. Ad agencies in Boston modern used to being one of them digitized and another that have. A lot of business with GMGM brands and so we took a look at what the possible impact can be we're looking at. Over 300. Million in Billings. That -- Boston agencies have tied up. There and are in -- money and in -- and and it. Very likely going to lead to job cuts here and aren't very briefly what story shall we look -- we had George gophers aren't looking actually for a hot even though all this happy holiday news. I think as. The treasury steps up and I think we'll see an end it here rally rally on the on the in the markets we think surely."

" Com more layoffs lots more layoffs to December is that enough -- most popular month to get out pink slips -- people clean out there payrolls -- needs everything it's awful at this time a year frank what do you think as far as the story we should look for the weekend."

" I think we should keep an -- not retail sales you know before the holidays and I think you know as soon as things continue to look -- We're gonna have more Batman."

" Well frank surely George thanks so much for being here great to have you here have happy holidays and we'll see an excellent the January in the new year. Still to come on this week in business other side of the -- for the newspaper business as the Tribune Co. files for bankruptcy."