Friday morning headlines

Lukewarm jobs report: Nonfarm payrolls increased just 92,000 in July, down from 126,000 in June and well below the average 132,000 since the start of the year. Job losses in manufacturing, construction and government offset gains in many service industries. The unemployment rate was up a touch, to 4.6 percent. Wall Street had been expecting a job gain of 130,000, so it's no surprise that the market is down this morning (93 points in the first 90 minutes of trading). Numbers for L.A. County and California come out later this month. (NYT)

Lenders tighten up: And it's gone well beyond the subprime biz. It's either raise interest rates or simply turn down certain kinds of loans - typically those dubbed Alt-A, a category between prime and subprime that often involves borrowers who don't fully document their income or assets. One example cited by a mortgage broker: Wells Fargo is charging 8 percent for a prime jumbo 30-year fixed-rate loan that carried a 6 7/8 percent rate late last week. (Wells said rates are lower on loans made directly by the bank than on those through brokers). (WSJ)

Recall post-mortems: If it could happen to Mattel, it could happen to anybody. The El Segundo-based toy company is considered to be very careful in monitoring its manufacturing operations in China, so the discovery of lead paint on its Fisher-Price products took most folks by surprise. But here's the thing: Chinese companies are routinely able to game the regulatory system, despite vigilance by U.S. companies. From the WSJ:

The toy industry, along with other businesses, has moved so much manufacturing to China, in order to cut costs, that it remains exposed to problems despite laws and efforts on the ground to contain them. Public-health experts say Chinese manufacturers repeatedly revert to lead paint regardless of the rules because it is cheap and readily available, and helps factories meet relentless pressure to contain costs. Such violations slip through because of regulatory gaps in both nations. While the recent recalls have ignited health worries in the U.S., lead exposure is a major public-health problem in China, where millions of children have unsafe levels of lead circulating in their blood. One 2004 study by researchers at Peking University in Beijing found 34% of young children in China had blood-lead levels that exceed the safe limit set by the World Health Organization, though exposure rates have improved in recent years.

Mirthala Salinas suspended: She'll be off Telemundo for two months (without pay) for violating the station's conflict-of-interest rules - as in having an affair with Mayor Antonio Villaraigosa. Actually, she was among four NBC-Telemundo (Channel 52) employees - including news director Al Corral - who were disciplined for having her cover the mayor while she was involved with the mayor. Villaraigosa issued a statement saying that it's time to move forward. (Daily News)

De La Hoya cuts deal: His Golden Boy Partners real estate development company have tentatively agreed to buy the landmark Sears, Roebuck & Co. building in Boyle Heights. Current owner Mark Weinstein of MJW Investments would not talk price, but he paid $40 million for the 23-acre property in 2004 and has spent at least $15 million more. From the LAT:

The Sears complex with a 14-story Art Deco tower was one of the largest buildings completed in Los Angeles in the 1920s and has long been a symbol of the Eastside neighborhood where De La Hoya, 34, grew up. "People see the Sears tower and know where they are," said Linda Dishman, executive director of the Los Angeles Conservancy. "It's not an official landmark, but it is one of the most iconic buildings in Los Angeles." The Sears store on the first floor is still in operation, but the sprawling catalog distribution center in the floors above was closed in 1992. The property was later sold as part of a cost-cutting program. Ever since, city officials hoped the site would be reborn as a major economic engine for growth. But success has remained elusive.

Alan Ladd Jr. wins damages: An L.A. jury awarded Laddie and Jay Kanter, both producers, $3.2 million on their claim against Warner Bros. that they had been short-changed in the licensing of their films, including "Blade Runner," "Body Heat," "Chariots of Fire," "Night Shift" and the "Police Academy movies." Ladd's attorney (and son-in-law) John Gatti told jurors that Warner had undervalued the films to the tune of $97.2 million. Because the Ladd Co. had a 5 percent profit participation on most of these films, Gatti asked the jury to award $3,190,625 as the Ladd Co.’s portion. (Variety)

Gas keeps dropping: The average price of self-serve regular gasoline in the Los Angeles-Long Beach area is $3.015, which is 5.6 cents cheaper than last week, 11 cents below last month, and 23 cents under last year. That's despite oil prices closing in on $80 a barrel. The "experts" are expecting more of the same through Labor Day. (Auto Club)

Fraud charges in Beverly Hills: Two high-profile real estate agents and two licensed appraisers were indicted on charges of joining in a scheme that lenders said cost them more than $40 million in fraudulent loans. The indictments stem from a federal investigation that has led to guilty pleas from four other people on similar charges. The agents, Joseph Babajian and Kyle Grasso, routinely close millions of dollars in sales annually and tout some of the biggest names in Hollywood as their clients (they were the listing agents on a $22-million Beverly Hills estate purchased by David Beckham). (LAT)