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Stocks up a bit: Perhaps some carryover from yesterday's late-session surge.
Tepid job gains: The day before the big employment report, ADP says private employers added a lower-than-expected 55,000 jobs in May. One economist says the numbers indicate "a grudging healing process." (MarketWatch)
Plastic bag ban looks likely: The state Assembly narrowly approved a measure that would put an end to plastic and paper bags being handed out at stores. The governor has indicated he would support the bill. From the SF Chronicle:
The measure would take effect in 2012. It would require shoppers who don't bring their own bags to the store to purchase paper bags made of at least 40 percent recycled material for a minimum of 5 cents or buy reusable totes. It would go further than plastic bag bans in at least five cities, including San Francisco.
Retailers have sluggish month: Macy's and Target reported only so-so increases in May. Sales at J.C. Penney fell. From AP:
Cool weather and a quirk in the calendar -- a late Memorial Day weekend that hurt May's business but should boost June's figures -- dampened spending. But weakness in the past six weeks is due to more than weather and calendar flukes, analysts said. They cited unemployment, stock market jitters and the dwindling of government-funded rebates on energy-efficient appliances.
Feds still eying Live Nation: The Bev Hills-based concert company's merger with Ticketmaster has been approved, but the NY Post reports that the Justice Department is still looking at potential negative impacts.
Meanwhile Live Nation is having a tough start to the summer. Both Christina Aguilera and U2 postponed plans to tour and Live Nation said it would remove service charges on ticket sales during June to promote business. Live Nation Entertainment secured $1.2 billion in loans to refinance bank borrowings in May.
Bids for Newsweek: L.A.-based OpenGate Capital, the private equity firm that purchased TV Guide for $1, has submitted an offer, as has Ritchie Capital and the right-wing Newsmax Media. Looks like the big buys are still mulling. (Bloomberg)
Nielsen plans to go public: The ratings service plans to raise up to $1.75 billion in the IPO and says it will use the proceeds to pare down debt. The company, which recently sold off THR and other trade publications, was bought four years ago by a group of private equity firms. (AP)
No more Mercury: As expected, Ford is shutting down its 71-year-old brand. Sales peaked in 1978 and by last year fewer than 100,000 cars had been sold. (LAT)
Drug cash disappears: More than half the money earned by Mexican drug cartels in the U.S. is smuggled back into Mexico and eludes detection, according to a new study. From the LAT:
The cash is brought into Mexico both in amounts small enough for an individual to carry and in amounts large enough to fill shipping containers. Revenue from local dealing operations across the U.S. is first consolidated in cities that serve as "collection points," including Los Angeles, then moved to the border and broken up again for the cross-border leg of the transport. In Mexico, where 75% of the formal and informal economy works through cash transactions, cartel bosses can launder their profits with all-cash purchases of large tracts of land, luxury hotels, cars, car dealerships and an endless array of high-end items.
Boeing strike update: A federal mediator has been brought in to help settle a three-week walkout at the C-17 plant in Long Beach. A meeting is set for today. (Press-Telegram)
Resort helped by digital conference: Talk about free publicity - the All Things Digital conference this week has brought Steve Jobs, Steve Ballmer, Rupert Murdoch and most every big wig in technology to the Rancho Palos Verdes' Terranea Resort. (Daily Breeze)
"Titanic" in 3-D: Director James Cameron says it's due out in 2012. (All Things Digital)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.