Friday morning headlines

Stocks open lower: The Dow is down more than 200 points. There’s a lot of gloom in the air this morning, some of it centered on plans by Sun Microsystems to lay off 6,000 workers.

Citi boosts plastic rates: The WSJ reports that some of Citigroup's credit card customers are being told that their interest rates will be raised (the Journal says it's an average of three percentage points). In addition, the financial giant is handing out pink slips to at least 10,000 employees in its investment bank and other divisions.

Gasoline's downward spiral: The average price of regular in the L.A. area is $2.52 a gallon, according to the Auto Club's latest report, which is as low as it's been in almost two years. Unfortunately, the low prices are not doing much to ease concerns about the broader economy. From the NYT:

Each 10-cent drop in gasoline prices puts $12 billion a year back in consumers’ pockets. Instead of spending that cash, people are trying to save it or cut their debt, many said in interviews. “All that money is going right into paying off my credit cards,” said Jose Martinez, 33, as he pumped gas into his Dodge Charger at Ohio Gas Station No. 1 in Cleveland. Moreover, the fall in gasoline prices is not translating into improved fortunes for automakers, at least not yet. Consumers said they remained wary of gas-guzzling cars on the theory that prices would rise again.

Anemic spending: Retail sales fell by the largest amount on record in October - worse than after the terrorist attacks. That's kind of a big deal because consumer spending accounts for two-thirds of total economic activity. Interesting sidenote from AP:

One of the few areas to show an increase was the category that includes restaurants and bars which posted a small 0.3 percent gain, perhaps reflecting the desire of some to seek solace during turbulent economic times.

Billboard moratorium recommended: The Planning Commission says six months should be enough time for the Council to come up with beefier restrictions on billboards (they are talking about the L.A. City Council, right?). Attention is focused on electronic billboards and those super-graphics that seem to be popping up everywhere. From the LAT:

Representatives of outdoor advertising companies as well as some major local developers argued against the moratorium, saying that many projects, including the LA Live entertainment district in downtown Los Angeles, rely on revenue from outdoor advertising to help make them economically sustainable. "We just think the city is being extremely shortsighted," William F. Delvac of Latham & Watkins, representing LA Live developer AEG Corp., told the commission.

More development in Century City: The Planning Commission also approved Westfield's plan to expand its shopping center after the developer agreed to lop off 10 stories of what would have been a 49-story mix of stores, condos and offices. That concession satisfied a nearby homeowners group, but there are other concerns about the project's size. The proposal moves on to the City Council. (LAT)

Bankruptcy in Century City: OC developer Suncal is filing Chapter 11 on what was to have been its massive 45-story luxury tower at 10000 Santa Monica Boulevard. As has been reported, one of the major investors was Lehman Brothers, which of course no longer exists. SunCal also filed for protection for a 313-home planned community in San Clemente and more bankruptcy proceedings are expected. (LAT)

NBC, Fox share news feeds: The two networks, desperately trying to cut costs, plan to pool video footage of top news stories and then make separate decisions about how to present the material. The arrangement will start in Philadelphia, but may extend to other markets where the networks own stations, including L.A. From the WSJ:

In recent years, local stations have seen their revenue and stature decline considerably, as viewers have scattered across other media. Now, the economic downturn is compounding their misery as car dealerships and other advertisers curtail their spending. Many stations also are struggling with heavy debt loads. "We've had a really challenging sales environment probably for the last six months," says Jack Abernethy, chief executive of Fox Television Stations Inc. "As a result, we've been looking closely at the cost structure of our local stations and trying to figure out ways to do things more effectively."