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May 18, 2001
The University of San Diego's Index of Leading Economic Indicators for San Diego County fell 1.2 percent in March, the largest one month decline in the Index since January 1990.
All six of the components in the index were down during the month, with the biggest damage being done by big drops in consumer confidence and local stock prices, reports Alan Gin, creator of the index.
The other components — building permits, initial claims for unemployment insurance, help wanted advertising, and the outlook for the national economy–declined by smaller amounts.
With the decline in March, the USD Index of Leading Economic Indicators has now fallen or remained unchanged for 10 consecutive months.
All six of the components were negative, a situation that last occurred in August of last year. However, the depth of the decline was more severe in March than during last August, leading the index to fall by more than twice as much.
The outlook for the local economy continues to be for some difficulty in the second half of 2001, reports Gin. That difficulty is expected to be manifested in a higher unemployment rate (expected to peak between 3.5 percent and 4.0 percent) and weaker housing and retail sales.
Gin says key factors to watch in terms of their impact on the local economy are the health of the national economy and the impact of the energy crisis (both gasoline and electricity) during the summer months.
Highlights of the month were: After registering strong gains on a year-to-year basis in January and February, residential units authorized by building permits slumped in March. Building permits were down 2.65 percent for the first quarter of 2001 compared to the same period in 2000.
Initial claims for unemployment insurance rose for the first time in six months in March, which is a negative for the index. The 14,541 claims filed during the month was the highest monthly total in two years.
The other labor market component, help wanted advertising, also fell during the month. However, the labor market remains strong, with the county unemployment rate still below 3 percent at 2.7 percent for April.
Local stock prices have now fallen for 10 months in a row. On a seasonally adjusted basis, consumer confidence has fallen more than 25 percent from its high reached in September 1999.
Despite the continued fall of the index, the longest economic expansion in U.S. history continued in the first quarter of 2001, with Gross Domestic Product expanding at a 2 percent annual rate.
The five interest rate cuts by the Federal Reserve, including another 0.5 percent on May 15, may have forestalled a downturn that many economists had expected in the first quarter. The cuts also are reducing the length and severity of any decline in the national economy that does occur.
March's decrease puts the index at 144.6, down from February’s reading of 146.8. There was a downward revision in building permits for February, but this did not affect the previously reported change of -0.4 percent for the month.
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Dr. Kenneth D. Herbst, a clinical oncologist with UCSD Cancer Center, has been named as the new deputy surgeon general for the U.S. Army Reserve.
This is the highest-ranking position in the Medical Corps Reserve, and the holder reports directly to the surgeon general of the Army.
Herbst, who is also clinical professor of medicine with UCSD School of Medicine and a brigadier general in the U.S. Army Reserve, will be responsible for the medical readiness of more than 200,000 reservists throughout the U.S.
"I am deeply gratified to have been named to this position," says Herbst, who has served for 23 years in the Army Reserve following six years of active duty. "Being in the military has taught me to focus on what’s important, and the importance of team building. These skills are critical whether you are developing medical policy at the national level, or talking privately with a patient about his or her cancer."
His 4-year term, announced yesterday by the chief of staff of the U.S. Army, begins June 2.
With this new assignment, Herbst will be promoted to the rank of major general and will relinquish his current Army Reserve duties as Commander of the 807th Medical Brigade in Texas, Oklahoma, Arkansas, Louisiana and New Mexico, a post he has held for the last 3-1/2 years.
Herbst will continue his active clinical practice as a medical oncologist with UCSD Cancer Center, as director of UCSD's Adult Sickle Cell Diseases Comprehensive Treatment Center, and as director of UCSD's Adult Hemophilia Comprehensive Treatment Center.
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Denso Wireless, a Carlsbad-based manufacturer of wireless phones, has announced its new Denso 3300 phone, which can identify a caller's longitude and latitude to a 911 emergency dispatcher, will be available starting in August.
The Denso 3300, with Global Positioning System capabilities, is one of the wireless industry's first phones to meet the FCC's E911 rules, which require wireless carriers in the United States to provide to emergency dispatchers information on the location from which a wireless call is being made.
GPS determines location by using signals from 24 satellites orbiting 11,000 miles above the earth.
"We’re concerned about caller safety and the Denso 3300 will benefit the public at large," says Ted Toyoda, president of Denso Wireless Systems America Inc.
The new phone can be a life-saver, company officials says, in a variety of scenarios, such as: your car breaks down in an unfamiliar location and you can’t explain to a 911 dispatcher where you are; law enforcement officials can respond quicker whenever a "Good Samaritan" calls 911 to report traffic accidents, crimes or other emergencies; someone suffers a seizure or another physical ailment and is unable to verbalize their exact location to paramedics.
The dual-band Denso 3300, measuring five inches tall, two inches wide and .083 inches deep and weighing only 4.7 ounces with standard battery, will have many innovative features, including: built-in speakerphone, voice-activated dialing and voice memo, 30 ringers plus three recordable ringer options, calculator with calendar and "to-do" list, games, headset jack for hands-free operation, enhanced phone book with stores up to 200 names and up to 500 numbers, and an internal modem capability for PC data/fax services plus browser capability which supports Internet-based information services.
Using Denso's signature "mouse" navigational key, this Internet-ready phone will make it easy to access the Web for e-mail, shopping, trading stocks online, browsing and selecting Internet-based content in real time and receiving automatic personalized news features, including weather, stock quotes and e-mail updates.
The Denso 3300 will provide up to four hours of talk time or up to 220 hours of stand-by time with its standard lithium ion battery.
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San Diego residents are being offered Ricochet's 128kbps wireless Internet service from Metricom Inc.
The company has made the service available for $44.95 per month for sign-ups before August 17, 2001. This is a price competitive with any high-speed Internet access solution available.
Residents can walk into Fry's Electronics or Abacus America, purchase the Ricochet modem and monthly service, and be online that same day.
For overnight delivery, consumers can call 1-800-811-RICO or 1-877-APLUS-NET or visit www.ricochet.com/getricochet.
"We’ve had wonderful feedback from consumers in San Diego who are using Ricochet and making the Internet a part of their everyday lives," says Metricom interim CEO, Ralph C. Derrickson.
The Ricochet service requires no installation or wires. Consumers with laptops can use Ricochet in any room of the house, at the neighbor's pool, a local cafe, or even in the car.
The GS or GT external modem can be purchased for $99 or an internal card modem for $299. All plans include a 30-day money back guarantee on the modem and service.
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California luxury home values began 2001 where they ended last year — still rising, reports the First Republic Prestige Home Index.
Neither recent stock market swings nor California's energy problems seem to have had a major impact on luxury home values during the first quarter of this year.
San Diego and Los Angeles values reached levels last seen in 1992.
In San Diego during the first quarter of 2001, the average value of a luxury home rose to $1,274,637 — a 3.3 percent increase over the previous quarter, a 19.0 percent gain over the previous year, and the highest level in nine years.
"In the first quarter, San Diego luxury home values hit their highest value since the first quarter of 1992, which was the peak year for the market," explains First Republic's August-deWilde.
However, San Diego real estate brokers also see the market moderating.
"We had a record first quarter for dollar volume," reports Audrey Rohde of Prudential California Realty in Rancho Santa Fe. "However, there are no offers over asking price and inventory is increasing due to resales and new homes. Buyers are savvier and slower to make an offer. Accordingly, sellers need to become more realistic about pricing."
"Buyers are definitely more discerning, and negotiating more on price," adds Judy Land at the Del Ray office of Prudential California Realty in Rancho Santa Fe. "There are fewer multiple offers, and the dot.com and technology money has virtually evaporated. With lower interest rates and more inventory, however, I think we’re headed for a good summer."
The average value of a luxury home in Los Angeles rose during the first quarter of 2001 to $1,273,777 — a 7.3 percent increase over the previous quarter, a 15.4 percent gain over a year ago, and the highest level in nine years.
The San Diego Index portfolio represents a cross-section of homes valued at $750,000 plus in the following communities: Carlsbad, Coronado, Del Mar, Encinitas, La Jolla, La Mesa, Poway, Rancho Santa Fe, San Diego and Solana Beach.
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BayLogics Inc., a Downtown San Diego-based provider of eBusiness applications for corporate real estate management, announced beta availability of its SiteSeer-ie 1.0.
Targeting Fortune 2000 corporations that manage multiple leased and/or owned facilities, SiteSeer-ie is being billed as the first Intranet solution that addresses business-critical collaborative management of all real estate management knowledge and activity within the enterprise.
Goodyear Tire and Rubber Co. is scheduled as the initial SiteSeer-ie beta site with others soon to be announced.
On average, such multi-national target participants manage more than 10,000 leased and owned properties.
“SiteSeer-ie, the natural evolution of our existing product lines, will significantly increase visibility, collaboration and control over all processes and information related to CRE activities in organizations with multiple deployed locations and facilities,” says Sam Borgese, president and CEO of BayLogics. “Our Web-based technology opens up the CRE knowledge base to all authorized personnel who are involved in corporate real estate issues including outside providers of information, goods and services. Our integrated suite of applications drives the proactive management of the entire CRE lifecycle: site analysis and selection, site acquisition, construction and build-out, occupancy management, facilities management, and disposition. This lifecycle management is e-Business for corporate real estate.”
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SensCom, a San Diego-based application service provider, announced it has entered into an agreement with the Colorado State Employees Credit Union to provide technology that will enable members to perform financial transactions over the wireless Internet.
CSECU members who subscribe to the wireless Internet banking service can check account balances and history, obtain transaction summaries, transfer funds between accounts, pay bills and make credit card payments, order stop payments, and transfer funds to other accounts.
With CSECU in the process of establishing a credit union service organization, or CUSO, some services, like alternative investment products, insurance, and trust accounts offered by the CUSO, will eventually become available to its wireless banking customers at a later date.
"The Colorado State Employees Credit Union recognized that SensCom's technology for wireless banking services will significantly strengthen their position as a technological leader in the financial services industry and provide a leading edge, value-added service to its membership," explained Tarek Fouad, president and CEO of SensCom. "We appreciate their confidence in our ability to deliver a superior product and to become a respected partner in their quest for dominance in the wireless retail delivery market."
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SpaceDev Inc. received more than $1 million in new business during April, including grants from the California Space Authority to explore innovative and low cost space access.
Under a $175K grant, Poway-based SpaceDev will work with the Sea Launch Co. in Long Beach to initiate a program for providing assured, affordable and timely access to space for secondary payloads.
The new SpaceDev business consists of an increase in the contract value of its CHIPSat micro-satellite, being built for UC Berkeley as part of NASA's first University Explorer program — NASA's smallest and least expensive earth-orbiting mission; a contract with Boeing to provide NASA's JPL with a variety of Mars Sample Return mission architectures; a contract to support a Mars Reconnaissance Orbiter mission proposal; and two CSTA grants concerning the provision of affordable launches for micro-sats and for space-related education.
"SpaceDev is deeply committed to providing affordable access to space, and working with Sea Launch to explore frequent and reliable rides for micro-satellites and secondary payloads is a huge step in that direction,” says Jim Benson, SpaceDev's chairman and CEO. “This initiative could open up a whole new market for domestic commercial, science, exploration, and technology demonstration missions, not to mention increased demand for the kinds micro-sats we build. As vice chairman of NASA's Space Grant Review Panel, I am also dedicated to long-term space, science and math education in our country — and the new SpaceDev project to work with UC Davis will allow us to interact directly with aerospace students and faculty to help prepare tomorrow's workforce for the opportunities and excitement of space."
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Four San Diego companies have been declared hot by Upside Magazine. The Hot 100 is Upside’s original list of private companies most likely to achieve an IPO or be active in mergers and acquisitions in the upcoming year
In the wireless category, Ensemble Communications, PacketVideo Corp. and Wireless Knowledge Inc. took honors.
“We are honored to have been selected into the Upside Hot 100 and are pleased that the judges recognize PacketVideo’s leadership in delivering rich media over wireless networks,” says James Brailean, president, CEO and co-founder of PacketVideo. “This award celebrates the technical superiority of our enabling software solutions and further establishes our leadership position as we deliver a core component of enhanced wireless communications.”
“It’s a tremendous honor to be recognized by one of the leading business and finance publications that covers the business of technology,” says Eric Schultz, chairman and CEO of Wireless Knowledge. “This award validates our ongoing efforts to provide the enterprise with advanced wireless technologies and services, and recognizes our company’s value and success in the mobile-business market.”
WebSideStory was recognized for overall excellence in the business-to-business category.
“We evaluated hundreds of great companies that spanned a broad range of technology market segments, and we are pleased to recognize Wireless Knowledge among this year’s winners,” says Jerry Borrell, president and editor-in-chief of Upside Magazine. “We look forward to watching the progress of Upside’s 2001 Hot 100 Award winners over the next year or so, and we hope they continue to make news as they potentially move from being privately held to becoming publicly traded companies."
Each company was judged on the basis of its technological achievements, customer acceptance of products or services, financial performance, industry partnerships, financial backing and management experience. The complete list of the Upside Hot 100 Award winners will be published in the June 2001 issue, and available online at www.Upside.com.
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Mama's Kitchen, a nonprofit meal delivery service dedicated to providing nutritious meals 365 days a year to San Diegans affected with AIDS, presented its largest annual fund-raising event, Mama's Day 2001, A Gourmet Odyssey, Friday, May 11, at the Hyatt Regency in La Jolla.
More than 650 people attended Mama's Day 2001 netting more than $123,000 that will benefit Mama's Kitchen and the organization's clients throughout San Diego.
Sponsored by Qualcomm and Union Bank of California, Mama's Day recognizes those who have supported Mama's Kitchen throughout its 10-year odyssey and acknowledges the many donors and volunteers who have a strong commitment to Mama's Kitchen.
"Mama's Kitchen is thrilled with the turn out for Mama's Day 2001 and we are truly grateful for the participation of all the wonderful restaurants, caterers, beverage companies and to the donors that have made this event such a success," says Carolyn McFarlane, executive director of Mama's Kitchen. "Quite simply, we would like to thank the San Diego community for helping Mama's Kitchen achieve its mission. It is the compassion and commitment we receive from others that enables us to feed the men, women and children affected by AIDS throughout San Diego."
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