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Market opens higher: After yesterday's drubbing, there's a lot to make up. The Dow is up over 100 points in early trading.
Delinquencies to double: TransUnion LLC projects that 7.17 percent of mortgage-holders will be 60 days or more past-due by the fourth quarter of 2009. That would be the highest level reached since the credit bureau first started tracking these statistics in 1992. (WSJ)
Scary numbers: The WSJ has a chart of states in the most budget distress, and California jumps out with a projected deficit of $31.7 billion. Next on the list? New York State, at $6.4 billion. Meanwhile, Gov. Arnold Schwarzenegger has declared a fiscal emergency and called lawmakers into a special budget session. (AP)
Some Nicholas files stay sealed: A federal judge did release several documents in the drug prosecution of Newport Beach billionaire Henry Nicholas, but kept others secret because he said they might prejudice an ongoing grand jury investigation. The LAT had made the request.
Another Dov Charney lawsuit: Ex American Apparel employee Nikky Yang alleged that Charney sexually harassed female employees by holding business meetings in the nude. She also claims that Charney cooked the books in 2006 before American Apparel went public. The company responded with a lawsuit accusing Yang's attorney of extortion. (NY Post)
Big office building sale: Texas developer Hines is taking possession on 53 properties in a deal valued at almost $1.4 billion after the previous owners couldn't keep up their loan payments. The purchases include South Bay Centre in Gardena, the Beverly Atrium in Bev Hills and Fountain Valley Plaza in Fountain Valley. (LAT)
Blockbuster to sell tickets: The Dallas-based video retail is becoming the exclusive retailer for Bev Hills-based concert producer Live Nation. Currently, Live Nation concert tickets are sold through Ticketmaster, but that arrangement ends in January. From the Dallas Morning News:
Blockbuster expects the new service to drive hundreds of thousands of customers to its stores, where it will also sell concert-related merchandise such as T-shirts and DVDs and CDs of live performances. The deal with Live Nation diversifies Blockbuster's mix of products and services as it tries to remain relevant to consumers, said Jim Keyes, Blockbuster's chairman and chief executive. The fees charged by Blockbuster to consumers picking up tickets at its stores have not been disclosed, but they will be nominal and will vary by artist, a spokesman said.
Port charge cut: The $15 container fee on goods shipped through Long Beach and L.A. is expected to be scaled back and delayed. The fee was supposed to generate more than $200 million in its first year, with money going toward local bridge, highway and rail projects. That is, before the economy went south. (Press-Telegram)
Lacter on radio: This week's business chat with KPCC's Steve Julian covers plunging auto sales in L.A. and more openings at LA Live. Also available at kpcc.org and on podcast.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.