Office politics, alive and well

Architects Derrick Choi and Miriam Spear collaborate at Panera Bread in Brookline. Below: Lawyer Rebecca Pontikes on her laptop at Peet's in Harvard Square. (Aram Boghosian for the Boston Globe (above); John Tlumacki/Globe Staff)

By Beth Teitell

Robert Wickham, a software salesman, was working on his laptop at his favorite office - the airy Cafe Fixe, in Brookline - when he took a break to explain the art of scoring a desk, er, table, and how it all comes down to contacts. If people know you, he said, they'll share a table or finish their coffee quickly. "But when you're the new guy," he said, "no one's going to give up a seat for you."

• Gallery Office place pet peeves

Milk, cream, or office politics with your coffee?

As the WiFi workforce expands and growing numbers of the unemployed, self-employed, even fully employed punch the clock at cafes, competitive and petty behaviors once confined to the office have been outsourced - to the corner coffee shop.

"It's like being at work," Wickham, 39, observed. "You always have to have your antenna up."

If NBC remakes "The Office" (again), the show should be set at Starbucks. The same tensions are there: the sidelong glances about annoying co-workers (coffee mates?), the fights with the boss (a role now played by baristas or assistant managers), the jockeying for the best office (the table near the power outlet).

"You do the hover," said Todd Orr, 29, a computer programmer, as he worked with his brother at Starbucks on Boylston Street in Back Bay, explaining a passive-aggressive method for landing a seat that involves assertive loiter ing. "You hope you don't get into a parking lot situation," in which some jerk jumps ahead and takes what's yours, he added. "It could start a fistfight."

Statistics on the number of people working in coffee shops (at the tables, not behind the counter) are hard to come by, but the number of coffee shops has grown from about 10,000 in 1998 to 23,000 or more today, according to Ric Rhinehart, executive director of the Specialty Coffee Association of America. "You walk into a coffee shop [in any urban area], and there's no place to sit down or plug in a laptop," he said. "It's enough of a phenomenon that there are bloggers who've blogged about laptop etiquette."

Maggie Mason of San Francisco is one of them. "I spend a few days a week working at coffee shops," she wrote in a December post on mightygirl.com, "and I've seen some serious audacity in the last few years.

"There's always the guy communing with his computer at a table meant for four. He inevitably plugged in to the only outlet five hours ago; about the time he purchased his coffee, which has long since gone cold. Occasionally he rises to aim banter at the irritated barista, and then returns to his seat without making a purchase. . . . I once saw someone pull a screwdriver out of his bag to remove a cover plate the owner had secured over an outlet. I had to restrain myself from walking over to smack his hands away."

Speaking of power outlets, in at least one local "coffice," Panera Bread in Coolidge Corner, they became a source of tension between management and the workers (also known as customers), after managers noticed that actual customers (the kind who not only buy food but leave) were being edged out by the entrenched WiFi workforce.

A human resource issue was born. The store tried to play nice by asking laptop users to limit their time, but when that didn't work, employees covered many outlets with plates, an outcome Linn Parrish, Panera's vice president of public relations, calls a "fair solution to the situation." The rank and file has griped, but picket lines have not formed in front of the store.

Even the sun can be an issue, says Amy Alkon, a syndicated advice columnist and author of a forthcoming book on the collapse of public manners. She spends a lot of time writing in coffee shops, and has witnessed countless workplace-like disputes, including one over whether the shades should be left up, to let in light for the employees, or pulled down, to enable laptop workers to see their screens.

"There's a war between the people who work at Starbucks for a living and the people who work at Starbucks for a living they're earning someplace else," she said.

Many nomadic laptop workers enjoy the break from officemates that coffee shops provide, but anonymity isn't always guaranteed. If you work in one coffee shop too frequently, other regulars can become just as problematic as chatty co-workers.

And then there are the strangers who inject themselves into work conversations.

"We've had people chip in and offer advice about what we're doing," said Dave Gordon, senior art director of B Direct, a marketing and communications firm whose principals all work from home. He was meeting with his two colleagues at the Boylston Street Starbucks, their "conference room."

Most of the unsolicited counsel starts like this, Gordon said: "I'm sorry, but I couldn't help but overhear . . ." Then come the suggestions on how to improve whatever print ad or direct mail piece the firm's creating. People mean well, he said. So, has the firm ever used any of the ideas? "No, not really." Hey, sounds just like the real workplace.

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Earnings, economy - here comes 'terrible'

By Alexandra Twin, CNNMoney.com senior write

NEW YORK (CNNMoney.com) -- Investors this week will face the largest batch of company report cards yet, in what is quickly shaping up to be the worst quarter for corporate profits in a decade.

The earnings avalanche will test the market's mettle. Last week, the Dow fought back after falling below the 8,000 point psychological benchmark for four days in a row. Analysts say if the Dow can hang on to this level in the weeks ahead, that's a good indication that a bottom has been set.

The biggest week for earnings brings reports from 137 S&P 500 companies and 12 Dow components. Standouts include Caterpillar, American Express, McDonald's, Yahoo, Wells Fargo and Exxon Mobil.

Only 10% of the 85 S&P 500 companies that have reported so far have topped forecasts. Another 60% have met estimates and another 30% have missed, according to Thomson Reuters.

"We're in the process of absorbing just how bad the fourth quarter was," said Bernard McGinn, CEO of McGinn Investment Management. "We had a feeling things were terrible, now we're getting proof of it. The question is 'where do we go now?"

This week also brings the latest Fed policy meeting - although it's likely to be less influential than usual since the central bankers are expected to keep interest rates unchanged near zero, said Kenny Landgraf, principal and founder at Kenjol Capital Management

Investors will also digest reports on housing, consumer confidence and leading economic indicators early in the week. The end of the week brings the fourth-quarter gross domestic product (GDP) report. It's expected to have fallen by an annual rate of 5.2%, it biggest plunge in 26 years.

"Everyone is bracing for the GDP number to be pretty terrible, but the bigger surprise could come with the housing numbers, which are also expected to be awful," he said.

Landgraf said that investors are also looking for more concrete news to come from the Obama administration this week regarding the use of the remaining $350 billion of the TARP money and negotiations on the $825 billion stimulus package.

Earnings hit hard: With 15% of the S&P 500 having already reported results, fourth-quarter profits are expected to have fallen 28.1% from a year ago, according to the latest figures from tracker Thomson Reuters.

Typically, the final number is lower than where it stands at this point in the quarter. But even if the final number is no worse than where it stands now, the fourth quarter will still rank as the biggest decline for S&P 500 profits in the 10 years Thomson has been tracking results.

Worse-than-expected reports from big financial companies such as Citigroup and Bank of America have weighed heavily on the results so far.

"It's not how many companies are missing," said John Butters, Thomson Reuters' senior research analyst. "It's the size of the companies missing and the magnitude of the losses."

Financials are currently expected to lose $12.5 billion this year as opposed to their profits of $5 billion a year ago. But financials aren't alone, with 7 of 10 S&P economic sectors due to post declines.

However, not all of the news has been bad. Last week Google, Apple and IBM reported earnings that were better than expected.

On the docket

Monday: December existing home sales are expected to have fallen to a 4.40 million unit annual rate from a 4.49 million unit rate in November.

The December index of leading economic indicators (LEI) is expected to have fallen 0.3% after falling 0.4% in November.

Tuesday: The January consumer confidence index from the Conference Board is expected to hold steady at an all-time low of 38.0, unchanged from December.

Also due Tuesday is the S&P/CaseShiller home index for November, expected to show steep declines.

Wednesday: The Federal Reserve concludes its two-day policy meeting with an announcement on interest rates due at around 2:15 p.m. ET. No change is expected in the fed funds rate: The central bank lowered interest rates to nearly zero in December and hinted it would keep them there for some time.

As always, the statement accompanying the decision will be critical, as it offers the Fed's assessment of the economy, now in its second year of a recession. (Full story)

Also on Wednesday, the World Economic Forum kicks off in Davos, Switzerland. It runs through Sunday.

Thursday: The December durable goods orders report is due before the start of trade. Orders are expected to have dropped 1.8% after dropping 1.5% in November.

December new home sales are due after the start of trading. Sales are expected to have fallen to a 400,000 annual unit rate from a 407,000 annual unit rate in November.

Friday: Fourth-quarter gross domestic product (GDP) is expected to have fallen by an annual rate of 5.2%, after falling by an annual rate of 0.5% in the third quarter. That would be the biggest quarterly decline in roughly 26 years.

The January Chicago PMI, a regional read on manufacturing, is expected to have fallen to 34.2 from 35.1 in December.

The University of Michigan releases its revised January consumer sentiment index, which is expected to hold steady at 61.9.

Earnings to watch

Monday: Before the start of trade, heavy-equipment maker Caterpillar (CAT, Fortune 500), a Dow component, is expected to report earnings of $1.31 per share versus $1.50 a year ago, according to a consensus of analysts surveyed by Thomson Reuters.

Fellow Dow component McDonald's (MCD, Fortune 500) is expected to report earnings of 83 cents per share versus 73 cents a year ago.

After the market close, Dow component American Express (AXP, Fortune 500) is expected to report earnings of 22 cents per share versus 71 cents a year ago.

Also after the close, biotech Amgen (AMGN, Fortune 500) is expected to report a profit of $1.07 per share versus $1 a year ago.

Tuesday: Dow component DuPont (DD, Fortune 500) is set to report results before the start of trading. The chemical maker is expected to have lost 24 cents per share, after having earned 57 cents per share a year ago.

Verizon Communications (VZ, Fortune 500), also a Dow component, is expected to report earnings of 62 cents per share, the same as it did a year ago.

After the market close, Yahoo (YHOO, Fortune 500) is expected to report earnings of 13 cents per share versus 15 cents a year ago.

Wednesday: AT&T (T, Fortune 500) reports results before the start of trade. The Dow component is expected to report earnings of 65 cents per share versus 71 cents a year ago.

Also in the morning, Wells Fargo (WFC, Fortune 500) is expected to report earnings of 33 cents per share, versus 41 cents a year ago. Wells Fargo is perceived as having held up better than a number of other banks.

Thursday: 3M (MMM, Fortune 500), due to report results before the start of trade, is expected to have earned 93 cents per share versus $1.19 a year ago. The Dow component is often seen as a proxy for the economy because of the breadth of its businesses.

After the market close, Amazon.com (AMZN, Fortune 500) is expected to report earnings of 39 cents per share versus 48 cents a year ago.

Friday: A pair of oil companies report results before the start of trade. Chevron (CVX, Fortune 500) is expected to have earned $1.81 per share versus $2.32 a year ago. Exxon Mobil (XOM, Fortune 500), a Dow component, is expected to report earnings of $1.47 per share versus $2.16 a year ago.

Also before the open, Dow component Honeywell (HON, Fortune 500) is expected to have earned 97 cents per share, versus 91 cents a share a year ago.

Procter & Gamble (PG, Fortune 500) is expected to have earned $1.58 per share versus 98 cents a year ago.

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Downturn Accelerates As It Circles The Globe

By Anthony Faiola

Washington Post Staff Writer

The global rout has altered high streets in Britain, where shops including retail icon Woolworths have gone bust. The number of jobless has climbed to nearly 2 million, a level not seen since 1997 when the Labor Party came to power.

The world economy is deteriorating more quickly than leading economists predicted only weeks ago, with Britain yesterday becoming the latest nation to surprise analysts with the depth of its economic pain.

Britain posted its worst quarterly contraction since 1980 on the heels of sharper than expected slowdowns reported from Germany to China to South Korea. The grim data, analysts said, underscores how the burst of the biggest credit bubble in history is seeping into the real economies around the world, silencing construction cranes, bankrupting businesses and throwing millions of people out of work.

"In just the past few days, we've had a big downward revision, we're seeing that an even bigger deceleration is on the way than we thought," said Simon Johnson, former chief economist at the International Monetary Fund and a senior fellow at the Peterson Institute for International Economics.

The depth of the troubles, analysts say, indicates that nations may need to spend more than the billions of dollars already planned on stimulus packages to jump-start their economies, and that a global recovery could take longer, perhaps pushing into 2010.

Analysts are particularly concerned about the slowdown in China and the recession in Europe. There is mounting concern about the stability of the euro and the British pound, which dropped to a 24-year low against the dollar yesterday. Analysts are fretting about the possibility of a debt default in a euro-zone country that could send fresh shock waves through global financial markets.

The problems in Europe now appear to be as bad if not worse than those in the United States. In the last quarter of 2008, the British economy shrank at an annualized rate of 6 percent. That is worse than economists expected, but also showed the British recession may be even harsher than the one in the United States, where analysts predict data expected next week will show the U.S. economy to have contracted between 5 and 5.5 percent in the last quarter of 2008.

The meltdown is altering high streets in Britain, where retail icon Woolworths shuttered the last of its 807 branches this month after 99 years in business. Marks & Spencer, sometimes described as the bellwether of Britain's retail sector, said this month that it would close 27 stores and cut more than 1,000 jobs. The average price of a house has plummeted to mid-2004 levels, according to Halifax, Britain's biggest mortgage lender. Car sales are at a 12-year low. The number of people out of work has climbed to nearly 2 million, a level not seen since 1997 when the Labor Party came to power.

In fact, the only sector to show growth in Britain was agriculture, which accounts for about 1 percent of the overall economy.

"The question now is not how bad will 2009 be, but will we recover in 2010 and if we recover, will it only be anemic?" said Andrew Scott, professor of economics at the London Business School, adding that the housing bubble is bigger, consumer debt is higher and the speed of the slowdown faster than in previous recessions.

Partial data released in recent days by Germany, Europe's single biggest economy, indicates its economy saw a major contraction in the last months of 2008, posting a 6 percent annualized drop, according to Howard Archer, chief Britain and European economist for IHS Global Insight in London.

That could get worse as problems mount in the European financial system. In recent days, major banks in Europe -- including the Royal Bank of Scotland -- reported surprisingly massive losses. European authorities are seen by some critics as falling behind the Americans in dealing with distress in the their financial sectors.

Standard & Poor's has downgraded Greek and Spanish bonds and warned that others, including Ireland's, may be next. The sense that some European countries are now more risky has driven up the borrowing costs for even large nations in the region, including Italy. That has made it harder for those countries to raise the vast sums needed to launch major stimulus packages aimed at economic recoveries.

Also troubling are signs that China, once a rare light in the global economy, may not prove to be the pillar of strength in Asia that many analysts had hoped. Beijing announced this week that its economy grew by 6.8 percent in the fourth quarter of 2008 -- slower than the 7 percent analysts expected -- bringing total growth for 2008 to a seven-year low. Chinese data, however, are somewhat opaque, and analysts warned the slowdown there may be sharper than Beijing is willing to admit.

That is diminishing hopes for China as Asia's economic white knight, with its growth potentially propping up economies in the region. And as China grows at a far slower rate, it is importing fewer goods from neighbors, giving export-dependent nations in the region no way to pick up the slack from plummeting demand in the United States and Europe.

Particularly hard hit is South Korea, which saw trade with China soar in recent years. But as China slows, and the United States, Europe and Japan sink into deep recessions, unsold goods are piling up at South Korea docks. This week, the government said the economy in the fourth quarter staged its sharpest drop since the Asian economic crisis swept across the country in 1998.

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