Friday morning headlines

Will Ike impact gas prices? Certainly, the numbers will be higher in parts of the South and Midwest, but the hurricane's effect in California is less clear. That's because state refineries produce a special kind of gas to accommodate anti-emission standards (one reason we normally pay more at the pump than folks in Atlanta or Boston). Wholesale gas prices have shot up through the roof this morning in the expectation that Ike will disrupt Texas refinery operations for at least a week. We'll see how it goes here. Meanwhile, the Auto Club's latest survey shows that the average price of gas in the L.A. area is $3.783 per gallon, down about 7 cents from last week but still up 96 cents from last year.

Palin opposes port fees: Before she was nominated as VP, the Alaska governor was urging the California governor to veto legislation that places a $60 fee for each cargo container moving through the ports of L.A., Long Beach and Oakland. The fees would raise $400 million annually for pollution-reduction projects. Palin argues that the economy in California and Alaska would suffer as a result of the fee (much of the cargo ending up in Alaska goes through the California ports). From the LAT:

On Thursday, with the Palin letter hitting the Internet, [the bill's author, state Sen. Alan Lowenthal], invited the Alaskan governor to travel to the Southern California ports to see first-hand why the fee is needed. "We are losing about 3,400 Californians each year because of pollution," Lowenthal said. "No matter what Gov. Palin would like to see happen, the impact is killing Californians. I don't think Gov. Palin truly understands the impacts going on here."

Lehman still looking: The Treasury Department and Federal Reserve are actively helping the investment bank find a buyer, and the Washington Post reports that officials hope a deal will be ready before the Asian markets open on Monday. Any agreement is unlikely to involve public money. One possibility, according to the Post: multiple buyers acquiring different parts of Lehman.

More foreclosures: California had the second-highest rate, one in 130 households, according to the new RealtyTrac numbers (Nevada was first). Amazingly, the state had eight of the 10 metro areas with the highest foreclosure rates, led by Stockton (one in 50 households). Merced, Modesto, Vallejo-Fairfield and Riverside-San Bernardino ranked second through fifth. Bakersfield, Salinas- Monterey and Sacramento ranked eighth through 10th. Though everyone uses RealtyTrac, the firm’s methodology has been suspect. Not that anyone is questioning the jump in foreclosures – it’s just the degree of the jump. (Bloomberg)

Bleak outlook: The latest WSJ survey of economists paints a discouraging picture well into next year. Respondents, on average, say the economy is on course to post four straight quarters of subpar growth, while the jobless rate, which jumped in August to 6.1 percent, will reach 6.4 percent by the middle of next year. The worst stretch will be the next few months.

Bratz maker willing to share: MGA Entertainment CEO Isaac Larian told the WSJ that he's prepared to seek a settlement with Mattel in the dispute over the lucrative doll franchise. What he's willing to accept is something else. Keep in mind that a federal judge already ordered the two sides to seek a deal between themselves, so this show of cooperation might be more spin than anything else.

Health Net reinstates customers: The Woodland Hills-based insurer has agreed to offer new coverage to almost 1,000 people whose policies were canceled after they got sick. The company also agreed to pay $3.6 million in penalties and up to $14 million in reimbursements for charges that it refused to pay. Health Net, however, did not admit to any wrongdoing. From the LAT:

The Health Net agreement came under immediate fire from critics, who called it a partial solution at best. They suggested that the deal announced Thursday might short-circuit plans to sue the insurer and eliminate the potential for more lucrative court damage awards. Health Net has been zapped by fines, penalties and court judgments in the last year. Most prominent was a $9.4-million judgment awarded in February to Patsy Bates, a Gardena hair salon owner. Her coverage was dropped by Health Net while she was undergoing chemotherapy to treat breast cancer.

Pinkberry sues: The L.A.-based yogurt retailer is accusing six of its competitors around the country of unfairly copying its branding. That includes reproducing the fruit-shaped swirl logo, duplicating the store's layout, or appropriating parts of its name (Yoberry, Peachberry, etc.). The company's general counsel says he hears about possible knockoffs about four times a week. (LAT)