Wednesday morning headlines

Dow tops 10,700: In early trading anyway. While everybody insists that the market is ready for a fall, there's some money to be made.

Blockbuster considers Chapter 11: The long-troubled video-rental chain cites heavy debt and tough industry conditions. Company is in talks with major studios on credit terms. (Reuters)

China is a drag: Foreign companies say that tougher government policies and intense domestic competition make it much harder to succeed, reports the WSJ.

They say the changes suggest Beijing is reassessing China's long-standing emphasis on opening its economy to foreign business--epitomized by the changes it made to join the World Trade Organization in 2001--and tilting toward promoting dominant state companies.

Ad spending improves: First two months of '10 "are encouraging," says Jon Swallen, senior vice president for research at Kantar Media. From the NYT:

Print media are "doing better than they were as recently as October," he added, and have a chance to finish the first quarter with a gain compared with the same period last year. "And if it's a minus sign," Mr. Swallen said of the print ad category in the first quarter, "it would be a much smaller minus than in the last two or three years."

Schwarzenegger to veto excise tax: The measure would have cut into the budget deficit by $1.1 billion, but the governor said it would not have lowered gas taxes, as he had initially proposed. (Bloomberg)

Court layoffs: As expected, 329 Superior Court employees have been let go, and another round of cuts is expected later this year. Along with layoffs, up to 50 courtrooms could eventually be shut down. From the Glendale News Press:

Employee and courtroom cuts, [presiding Judge Charles McCoy Jr. said], reduce the court system's ability to serve county residents and establish justice. "Justice delayed is indeed justice denied," he said. The cutbacks will result in longer lines at courthouses, growing backlogs of cases and service delays, McCoy said.

No court today: It's the once-monthly Wednesday furlough throughout the state superior court system.

Conan to Fox?: After weeks of hemming and hawing, network honchos apparently have warmed to the idea, reports the LAT. They're hoping to announce a deal before May 17 when the network introduces its fall lineup.

Fox Entertainment President Kevin Reilly and Entertainment Chairman Peter Rice have been leading the campaign to bring O'Brien to Fox, according to knowledgeable people. But their bosses have told them to demonstrate that a late show would be financially viable. A breakthrough came last week when they outlined a late-night scenario that one executive described as "a deal that we could live with." It hasn't been decided whether the show would launch in the fall or January.

Scott Rudin wants out: The long-successful movie producer is negotiating to end his Miramax production deal. Disney is in the process of selling off Miramax. (LAT)