Wednesday morning headlines

Market still struggling: Just not much of a buying mood out there. The Dow opened a little higher, but then pulled back and is now down around 100 points.

Oil keeps tumbling: Price is nearing $68 a barrel; on May 3 it was at $87+. There's more pessimism about global economy. (AP)

Consumer prices fall: So much for inflation concerns (or higher interest rates). April marked the first time in 13 months that overall prices declined. (AP)

CA lawmakers get advice: The state's budget woes require targeted tax increases rather than wholesale cuts in social services, according to legislative analyst Mac Taylor. (Sacramento Bee)

Calpers wants more state money: After screwing up on its investments, California's giant pension fund says it needs an extra $700 million from taxpayers in order to meet future obligations for retirees. From the LAT:

CalPERS' finances have been out of whack since the Legislature and former Gov. Gray Davis passed a major benefits increase in 1999, betting that the good times of the high-tech boom then wouldn't go bust, which it did about a year later. Schwarzenegger has embraced a Republican-sponsored bill that would raise the retirement age for state workers, change the way their pension benefits are calculated and hike the amount that employees contribute.

Will business flee CA?: The state's climate change law could result in the loss of 1.1 million jobs, according to the Legislative Analyst's Office. A ballot initiative for November would delay implementation of the law until the economy improves. (LAT)

Union warns budget hawks: The Council has six members up for reelection in less than 10 months, and the Coalition of L.A. City Unions is dropping hints that its 22,000 members will remember anyone who voted for layoffs. (LAT)

Chick on L.A. budget: L.A.'s former controller had been warning city officials that they were spending beyond their means. From her conversation with Los Angeles magazine editor Mary Melton:

Mary Melton: Why has L.A. been so ill equipped to weather the economic downturn?

Laura Chick: The city walked right into this crisis with a big, growing, multimillion-dollar structural deficit it had been running for years. As city controller, every year I was writing very strong letters before budget time in March saying, "We need to build up the reserve, we need to save money for a rainy day, this isn't going to last. We're spending more than we are making."

Being mayor is fun!: Villaraigosa travels to Washington for the state dinner honoring Mexican President Felipe Calderon. It's the mayor's fifth trip to D.C. over the last three months and second in two weeks. (KPCC)

Oprah hires Eli Broad's money manager: Peter Adamson will be handling the talk-show queen's considerable wealth. From the WSJ:

Bringing on Mr. Adamson is considered a coup for Ms. Winfrey. Mr. Adamson, a 47-year-old Stanford University business-school graduate, has served as Mr. Broad's investment chief since 2001. Before that, he served as an adviser to the billionaire Bass brothers in Fort Worth, Texas, an operation that became a model for family-office investment vehicles around the U.S. With the Broad Foundations, Mr. Adamson has a record of earning 3% to 4% above the "appropriate indices," according to a foundation email discussing its results.

Another Newsweek bidder?: Mort Zuckerman, who owns the NY Daily News and US News, is said to be interested. L.A. billionaires Ron Burkle and Haim Saban are also looking, among many others. (NY Post)