Tuesday morning headlines

Market takes off: So much for the doldrums. Stocks are roaring back after yesterday's 103-point tumble that took the Dow under 10,000 for the first time since last November.

Toyota details recall: It's a software glitch on the braking system of 437,000 2010 Priuses and other hybrid models. From the NYT:

[Toyota President Akio Toyoda] said Tuesday that Toyota was not a perfect company, but it had never lied to customers. "I do not see Toyota as perfect or infallible. But when we discover a defect, make defects, or receive advice from customers, we work hard to fix them and improve," he said. "We do not allow cover-ups."

Upbeat forecast: The ports of Los Angeles and Long Beach will see imports jump as much as 28 percent during the first half of 2010, according to the National Retail Federation. From the LAT:

Previous forecasts for the local ports and for the nation's busiest harbors for container cargo had been for lukewarm improvement at best for the first half of the year. But Hackett Associates, which tracks import data every month for some of the nation's biggest retailers, said that it was noticing positive signs from a number of indicators. One of those was the fact that the record number of ships that were laid up or idled for lack of work last year had begun to drop substantially.

Your tax dollars...: Despite the budget crisis, CA bureaucrats spent tens of millions of dollars for new vehicles, new furniture and off-site meetings and conferences. The governor had asked state agencies to cut costs. (LAT)

Council looks to regroup: Members will consider a 41-point program proposed by City Administrative Officer Miguel Santana that's aimed at eating into L.A.'s massive deficit. From the Daily News:

Although the City Council has put on hold a plan to eliminate some departments, Santana has proposed eliminating the Human Services Department and transferring the work of several other agencies into other departments. Council members have said they want to offer assurances to the community that programs, such as those for the disabled and involving the environment, will continue even if the departments are eliminated.

Taking on Live Nation deal: NYT editorial says the merger with Ticketmaster, just approved by regulators with minor revisions, doesn't address the problems of vertical integration, in which a few corporations can control all aspects of their industry.

The kind of consolidation embodied by Live Nation Entertainment is tremendously worrisome. Live Nation could easily shut out independent promoters -- who don't have their own venues and ticket services. This could reduce diversity in the music market. The cost savings that are supposed to flow from these mergers never seem to accrue to consumers because the mergers leave so little competition in their wake. The mechanisms of antitrust regulation are not up to this challenge.

Breathing easier: Private equity kingpin Leon Black at an industry conference in Berlin (from NYT):

"What a difference a year makes," Mr. Black, the leveraged buyout titan and founding partner of Apollo Management, said as he assessed the credit markets and the outlook for the private equity industry. "When we sat here a year ago, the world was pretty close to the precipice," he added.

Pillow will cost you: American is charging $8 on its 2-hour-plus flights for that pillow-and-blanket combo. For flights under 2 hours, pillows and blankets won't be available at all. From USA Today:

"Welcome to flying in 2010," [says Henry Harteveldt, travel industry analyst at Forrester Research]. "Other than the basic seat, the only thing you can count on to come with your fare is an oxygen mask and a seat belt." The airlines aren't to blame, he says. "The traveling public needs to realize that we've been so thirsty for low fares that this is what we've gotten for ourselves," he says.

Another dip in gas prices: Average gallon of regular in the L.A. area is $3.025, down a couple of pennies from last week, according to the government's weekly survey.

Lacter on radio: This week's business chat with KPCC's Steve Julian looks at the growing numbers of long-term unemployed and the coming battle over the C-17. Also at kpcc.org and on podcast.