Tuesday morning headlines

Market down sharply: The Dow is off more than 120 points in early action, probably in response to a huge drop in the Chinese stock market. The plunge in China - the biggest in a decade - doesn't appear to involve any bad news, just a volatile market and investors wanting to cash in on big gains. There's also concern about the deteriorating conditions in Iran and Afghanistan. We'll see how all of this impacts our local stocks. AP

Cruise closing: Looks like Tom Cruise and his producing partner Paula Wagner are finally getting that financial package they were talking about when Cruise was kicked out of Paramount. LAT reports that they're close to raising about $500 million to finance a slate of movies over the next few years - and that Merrill Lynch is leading the way. Cruise and Wagner will be reviving the old United Artists brand - and supposedly making it an artist driven production company (whatever that means). It's yet another example of Wall Street fueling the Hollywood production line. From the LAT:

This trend, accounting for billions of dollars in recent years, has occurred as stars and filmmakers are being squeezed by studios intent on slashing production and marketing costs. As a result, much of the financing from investment banks, private equity firms and hedge funds is going into the projects of Hollywood's most bankable talent, providing significant autonomy to those players. In the UA deal, Merrill Lynch is expected to enlist other banks to supply some of the financing, a combination of equity and debt. In recent years, the investment bank has been active in backing slates of movies by other studios and independent producers including Paramount Pictures, Marvel Entertainment and Montecito Picture Co., headed by director Ivan Reitman and former Universal Pictures Chairman Tom Pollock.

Gas going up: The average gallon of regular was $2.755 in the L.A. area for the week ended Feb. 26, up from $2.672 a week ago, according to the federal government's weekly survey. Higher oil prices and refinery and pipeline problems are being blamed. But a consumer group told the LAT that the gap between California's numbers and the national average suggested price gouging and a deliberate effort to keep supplies tight.

More gates for LAX: Lawmakers have agreed to install 11 new gates on the west side of the Tom Bradley International Terminal. This is apparently in response to recent concerns about airlines, fed up with aging and overcrowded LAX, taking their business to other airports like SF and Vegas. The new gates are separate from a long-term modernization plan for the Bradley terminal, which had its groundbreaking on Monday. But the airlines say that the remodel won't actually add any space to the facility, which is the big problem. LAT

More airlines complain: Nearly two dozen international airlines have filed a complaint with the Department of Transportation objecting to higher rents and fees at LAX. The leases in the international terminal run out next month, and the airlines there expect to see sharp increases in their rents. The international carriers join seven mostly low-cost airlines that have asked federal regulators to step in. Three other carriers - United, American and Continental - filed a federal lawsuit late last month. The city's airport agency says it needs more rent money to offset the rising costs of running and improving LAX. Daily Breeze

Federated now Macy's: Given that Federated Department Stores has turned most of its stores into Macy's - a strategy that seems to be doing well - why not just call the whole company Macy's? That's what's being announced today. Bloomberg

Big demand for English: Maybe one reason so many recently arrived immigrants can't speak the language is that they can't get into English language classes. A survey last year by the National Association of Latino Elected and Appointed Officials found that in 12 states, 60 percent of the free English programs had waiting lists. The NYT story focuses on the situation in NY and NJ, and the extent of the problem seems to vary a lot according to region.

Oscar outclasses Super Bowl: At least according to NYT advertising columnist Stuart Elliott, who found that the commercials during the Academy Awards were inclusive, celebratory and light-hearted - quite a contrast to the Super Bowl, where many ads were violent, course and mean-spirited. One big reason for this: The Academy of Motion Picture Arts and Sciences reviews the spots for appropriate content before they run. The National Football League leaves it up to the network. From the NYT:

During the Super Bowl, the Masterfoods USA division of Mars ran a slapstick spot for Snickers that was criticized after the game as being homophobic. The next day, amid intense media scrutiny, Mars withdrew the spot from TV and the Internet. On the Academy Awards, by contrast, Masterfoods ran a sunny, upbeat spot for M&M’s, centered on an online promotion (becomeanmm .com) that encourages consumers to “find your inner M&M.” On the Super Bowl, General Motors ran a commercial that showed a factory robot having a nightmare: after losing its job for making a mistake, the robot’s spirits sink so low that it commits suicide. After critics called the spot callous, it was taken off the air and revised; the new suicide-free version appeared during the Academy Awards.

Lacter on radio: This morning's business chat with KPCC's Steve Julian (7:05) covers housing affordability in L.A., the stock options backdating scandal and the latest in the supermarket contract talks.