Monday morning headlines

Stocks keep gaining: Caterpillar is reporting more signs of an improving world economy. Dow is up about 25 points.

Economists upbeat: Seven out of 10 surveyed say the GDP will grow more than 2 percent this year, and 24 percent expect more than 3 percent (still not wild growth). Also, fewer jobs are being lost and more are being created, according to the National Association for Business Economics forecast. (AP)

Big dip in LAT circulation: A stunning 14.7 percent drop for the six months ended March 31, to 616,000. It was the biggest percentage drop among the nation's 10 biggest papers, though several others reported double-digit declines (USA Today, NY Daily News, Houston Chronicle, etc.) (E&P)

Buffett making waves: The man who once described derivatives as "financial weapons of mass destruction" has been fighting against a portion of the financial reform bill that would curb the bets. From the WSJ:

The provision, sought by Berkshire and pushed by Nebraska Sen. Ben Nelson in the Senate Agriculture Committee, would largely exempt existing derivatives contracts from the proposed rules. Previously, the legislation could have allowed regulators to require that companies such as Nebraska-based Berkshire put aside large sums to cover potential losses. The change thus would aid Berkshire, which has a $63 billion derivatives portfolio, according to Barclays Capital.

Carl's Jr. parent accepts bid: An affiliate of Apollo Management will buy CKE Restaurants for $694 million, or $12.55 a share. THL Partners, the original suitor, had failed to submit a higher counter. From the LAT:

The transaction is significant because it may mark the first in a series of restaurant chain sales, said Randall Hiatt, president of Fessel International Inc., a Costa Mesa-based restaurant industry consulting firm. "This looks to be one of the first buyouts in a couple of years that has not been related to a bankruptcy," he said.

Hertz buys Dollar Thrifty: Price was about $1.2 billion in cash and stock, a 5.5 percent premium. Hertz is counting on cost savings from the purchase of cars and IT systems. (Bloomberg)

Rental car costs falling: Competition and a glut of vehicles has brought down the price of renting a car in L.A. Last year, full-size cars went for an average of $86 a day, compared with $112 in 2008, according to the Corporate Travel Index. (LAT)

Is bankruptcy an option?: The mayor says no, but City Councilman Bernard Parks tells Marketplace that it can't be automatically ruled out. The L.A. chamber is also looking into the question.

United on easing term limits: Both the L.A. chamber and the L.A. County Federation of Labor are trying to get a measure on the November ballot that would allow future lawmakers to hold their seats in the Assembly or Senate for more years. (LABJ)

Hollywood vet moves into financing: Skip Paul is being hired as a senior adviser of Centerview Partners, an investment banking boutique that's looking to become a bigger player in entertainment. From the NYT:

Centerview has become known for hiring high-powered people, but Mr. Paul's unusual résumé sets him apart. He has anchored enormous deals (MCA's sale to the Matsushita Electric Industrial Company in 1990 for $6 billion) and operated companies (serving as interim chief of National Golf Properties, the publicly traded owner of golf courses). Mr. Paul also has been a serial entrepreneur, most recently helping to found Flektor, a social networking software developer he sold to the News Corporation for eight times the initial investment.