Tuesday morning headlines

Nutty expectations: GM lost $722 million in the fourth quarter and almost $39 billion for the year. Even for the sagging U.S. automakers, that’s serious money. And yet the Dow is up more than 200 points at last check, in part because the loss wasn't as bad as analysts had predicted. GM also said it was offering a new round of buyouts to 74,000 hourly workers who are represented by the UAW. Also helping rally stocks was Warren Buffett's offer to help troubled bond insurers.(NYT)

Today's the vote: At this point it seems like a formality, but Writers Guild members will be casting their ballots on whether to end the strike. If they vote yes, they could be back to work tomorrow. Meanwhile, the networks are still sorting out what can be salvaged for the rest of the season. (Variety)

Lerach reflects on sentence: "I hope that no matter how hostile Congress and the courts are to investors," he tells the WSJ's Peter Lattman, "there will always be lawyers like me with the guts to stand up to them." He has quite a lot to say about being sent away for a couple of years, including his plan to use newspaper subscriptions as a kind of currency behind bars. "A sports section is supposed to win you a lot of favors," he says. Lerach pleaded guilty to conspiracy in connection with alleged kickback payments made by his former law firm.

As for his time in prison, Mr. Lerach has requested, and the judge will recommend, that he be sent to Lompoc, a low-security federal penitentiary in Southern California often called a "country-club prison" or "Club Fed." The Bureau of Prisons has final authority on where Mr. Lerach will be sent. He talked to inmates at both Lompoc and Taft, another low-security California prison, before making the request. "They say the weather's better at Lompoc, but the commissary's better at Taft," Mr. Lerach said. "Either way, they're prisons and they ain't gonna be fun."

JetBlue launches LAX service: No more schlepping to Long Beach - the low-cost carrier will begin flights between LAX and JFK and Logan, beginning in May. JetBlue is also beefing up flights offered at airports in Burbank, Long Beach and San Diego. Mayor Antonio will announce the new service during a news conference today. (Daily Breeze)

Grocers in salmon suits: The California Supreme Court ruled that Safeway, Kroger and six other grocery store chains are subject to consumer lawsuits alleging that the naturally grayish farm-raised salmon is dyed pink. The suits contend that the use of color additives should be disclosed on the package's label. The lower courts had sided with grocers, which said such labeling disputes should be resolved by the FDA and not through lawsuits. (AP)

Scoring from Yahoo defense: Moelis & Company, the L.A. boutique firm founded by former UBS banker Ken Moelis, is advising Yahoo in the Microsoft takeover bid. It's Moelis’ biggest advisory contract since he opened his new firm last year. Moelis, along with Goldman Sachs and Lehman Brothers, are set to share more than $100 million in fees if the deal is completed. (Financial News)

Gas edges higher: The government's latest survey shows that an average gallon of regular in the L.A. area is $3.080, up a couple of pennies. The increase comes despite a drop in demand nationwide.

Time takes body blow: Newsstand sales fell almost 20 percent and subscriptions 17.5 percent for the six months ended Dec. 31. The decline in subscriptions is due partly to a purge of "junk" circulation (automatically renewed subscriptions and the like), but it's hard to put a good spin on the steep drop in newsstand sales. Ironically, the declines follow a major redesign. From Media Daily News:

At least Time isn't alone: competitors Newsweek and U.S. News & World Report also suffered in the second half of 2007. Newsweek's newsstand sales fell 16.3% to 92,576, while subscriptions were basically flat. U.S. News' newsstand sales fell 7.9% to 33,757, as subscriptions also remained flat. There was some good news in the newsweekly category. The Week continued building its subscription base with 8.2% growth to 478,593. Meanwhile, the Economist enjoyed newsstand growth of 10.1% as subscriptions rose 13.1%, for a total circulation increase of 12.8%, to 652,545.

Lacter on radio: This morning's business chat with KPCC's Steve Julian covers the end of the writers strike, the fate of Yahoo's Hollywood ambitions, and Disney's plans to jazz up California Adventure.