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Sluggish GDP: The nation's economy slowed noticeably in the second quarter, while inflation shot up -- not a good combination. For the April-June period, the gross domestic product grew at an annual rate of 2.5 percent, compared with 5.6 percent in the first quarter. There will be several revisions before the final second quarter is put to bed, but economists are already saying that the effects of softening home sales and rising energy prices are taking their toll. California will not be immune, although there is an argument that Southern California might fare better than the nation as a whole.
Heat wave fallout: Officials at the Department of Water and Power are acknowledging what most of us have already figured out -- that the utility was unprepared for the hot temperatures. DWP Commissioner Nick Patsaouras, an appointee of Mayor Antonio Villaraigosa, is blaming the Hahn administration for diverting DWP money into the general fund. That money could have been used to upgrade DWP systems, many of which were first installed during the Lincoln administration.
Agency sale: International Creative Management has acquired the boutique agency Broder Webb Chervin Silbermann Agency, in another sign that the industry could be in store for a major consolidation. With fewer movies and theatrical TV series being planned, there just isn't the need for all those pesky agents. The Times reports that the acquisition of BWCS is the first major move by ICM after a $100-million recapitalization involving a little-known Connecticut investor.
Murdoch bash: Who wouldn't want to pick the brains of British Prime Minister Tony Blair, former President Clinton and Israeli Vice Premier Shimon Peres, Los Angeles Police Chief William J. Bratton, former Vice President Al Gore and Bono? News Corp. Chairman Rupert Murdoch has them all scheduled for a management retreat this weekend at Pebble Beach. The Times gets a five-page agenda that lays out the guest list.
Model backlash: The Writers Guild of America West has been protesting all week in the heat outside the production offices of "America's Top Model" in West L.A. since the dozen writers on the show went on strike against the CW network. The writers say that the show's executive producers are hindering their efforts to join the WGA and collect the pension and pay benefits that all television writers receive as union members. The guild has made reality show representation a top priority.
Leaking secrets: The Wall Street Journal (subscription required) cites unusual trading patterns in advance of L.A.-based Leonard Green & Partners' $1.7 billion buyout of Petco Animal Supplies last week. Apparently, there was a high volume of options trading between June 27 and July 13.
Box office battle: Is this the weekend that "Pirates of the Caribbean: Dead Man's Chest" falls from the top spot after three boffo weeks? The Disney blockbuster has taken in $334 million domestically, but with the new "Miami Vice" movie opening today, the betting is that "Pirates" will be in for a little leakage.
What vacation?: A survey by Opinion Research for office-furniture company Steelcase found that almost half (43 percent) of the respondents spent at least some time working during vacation. A decade ago, it was 23 percent.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.