Thursday morning headlines

Greenhouse deal: Lots of coverage on the agreement between Gov. Schwarzenegger and the Democrats in the statehouse to cut greenhouse emissions. It's the lead story in the LAT, NYT and WSJ. Among interest groups, there's outrage by business types and tepid praise by environmentalists (the bill's goals are less ambitious than those outlined in the Kyoto Protocol). Of course, this is just the start. Already, there's talk of legal challenges, which could delay the timetable. Meanwhile, opening briefs are due before the U.S. Supreme Court today in a case challenging the Bush administration's reluctance to issue regulations to control global warming.

Capital slam: American Funds has been hit with a $5 million fine for improperly rewarding brokerages that push its mutual funds. This is a big deal because American Funds is owned by L.A.-based Capital Group, one of the world's largest money managers. Along with the fine, the National Association of Securities Dealers, the brokerage industry's self-policing organization, took issue with the testimony of American Fund employees. The testimony was "disingenuous, to say the least," according to a footnote in the decision. An American Funds spokesman said the company would appeal.

MyNetwork TV: Both the LAT and WSJ have features this morning on News Corp.'s latest brainstorm: a network devoted to sexy and cheap soap operas, much along the lines of telenovelas that have been so successful at Univision and Telemundo. One show that's bound to be a cult classic: "Fashion House," starring Bo Derek and Morgan Fairchild as executives who run rival clothing labels. From the WSJ story:

The show is replete with fang baring, scenery chewing and face slapping: In one scene, Ms. Fairchild, known for saucy roles on 1980s soaps such as "Falcon Crest," tries to stab Ms. Derek with a syringe in a hospital room. "I'm sure they'll put us in the mud next," Ms. Fairchild says.

Cute, but the LAT notes that Fox has only sold about half the $50 million in ad time that had been projected. Soft ratings could dig MyNetwork TV even deeper in the hole.

Speaking of TV: Oversight of pay television could be headed to the state. The California Senate voted to take the authority away from local governments, a move that could make it easier for phone companies to provide TV services (up to now it's been a hassle trying to secure approval from each municipality). Cities would still get a slice of cable revenue and still oversee service matters.

Economy watch: Looks like August retail sales held up pretty well, indicating a solid back-to-school season. But there were a few disappointments, including a couple of local ones. City of Industry-based Hot Topic Inc. suffered a 6 percent drop in same-store sales, worse than the 5.7 percent analysts expected. Anaheim-based Pacific Sunwear of California Inc. struggled with a 9.4 percent drop in same-store sales (Wall Street expected a 4.6 percent decline). L.A.-based Guess saw a 4 percent increase in same-store sales. Federated Department Stores, which will take over the department store world in 10 days with its Macy's outlets, did a little better than expected.

The dream survives: Nice opening in this morning's LAT piece about how the Antelope Valley remains a haven for homeowners who can't afford going anywhere else in Socal:

In John Barros' four-bedroom house in Lancaster, a special room is set aside for God. Barros goes there each day to pray and thank the Lord for providing him with a home of his own, where he and his wife, Narda, can raise their three sons and keep a dog in the backyard.

Barros and his wife bought a four-bedroom, three-bath stucco house for $330,000. The L.A. County median price for July was $581,000.

Sign of the times: L.A.-based TCW Group Inc. plans to start an investment fund to buy distressed mortgage-backed securities as the real estate slump deepens. "There are profits to be made by being capitalized and ready to get into the market when others are getting out," said Jeffrey Gundlach, the Los Angeles firm's investment chief.

Bridge watch: Officials at the Port of Los Angeles want to study the possibility of building a bridge next to the clogged Vincent Thomas Bridge, which opened in 1963 and can't begin to handle the growth in port traffic over the years. the study won't even begin until next year, so don't hold your breath on this one.

Social news: Warren Buffett married his longtime companion, Astrid Menks, in a private ceremony Wednesday. Buffett's daughter, Susan, hosted the wedding at her Omaha home. Buffett had what you might call an unusual relationship with his first wife, Susie, who died earlier this year. She moved out shortly after the couple's 25th wedding anniversary - and not that readers of Morning Headlines are especially interested in gossip, but a Motley Fool profile noted a number of years ago:

[Susie] even set her husband up with other women, including Astrid Menks, a waitress at the French Cafe who ended up moving in and still lives with Buffett. While Susie and Warren remain close, Astrid is his daily companion, though Susie still accompanies him on trips to New York and California and sits on Berkshire's board. Susie and Astrid are friends; they send presents to relatives from "Warren, Susie and Astrid."