Follow LA Observed on Twitter here
Stocks turn upward: Dow is back over 10,000 - hooray!
Growth revised downward: Second-quarter GDP comes in at 1.6 percent after an initial estimate last month of 2.4 percent. Economists say it could have been worse. From the NYT:
Companies and consumers tend to be spooked by bad news, and market analysts and economists worry that faltering confidence could cause employers to hold back on hiring. "When you get a downshift in growth there is a risk that it will feed on itself," the chief economist at MF Global, James F. O'Sullivan, said. "The question now is to what extent has the improving trend just been temporarily set back or has it really been short-circuited."
Bernanke promises action: The Fed chairman says that the central bank "will do all that it can" to ensure a continuation of the economic recovery. Speaking at a symposium Jackson Hole, Wyoming, Bernanke says growth will continue in the second half of the year "albeit at a relatively modest pace." (Bloomberg).
Foreclosure decline will be temporary: High unemployment and more aggressiveness by banks may lead to another wave of foreclosed properties. Nearly 1 in 10 of all mortgage loans is "seriously delinquent." From the Christian Science Monitor:
The more home prices fall, the more borrowers go into a negative equity position (with loan balances greater than the value of their home), making default more likely. Loan modifications, meanwhile, can help struggling borrowers avoid default. But many of the modifications don't make deep cuts in the balance due. Perhaps as a result, a high percentage of the modified loans have been going back into default.
Grand Avenue project delayed - again: Developer Related Cos. said it will be at least another two years before financing can be secured to begin construction on the long-stalled hotel, condo and shopping complex. (LAT)
Blockbuster plans bankruptcy: The video retail giant, buffeted by competition from Netflix and Redbox, will file a "pre-planned" reorganization next month, the LAT is reporting.
Blockbuster is hoping to use its time in Chapter 11 to restructure a crippling debt load of nearly $1 billion and escape leases on 500 or more of it 3,425 stores in the U.S. Maintaining the support of Hollywood's film studios during the process will be critical so that Blockbuster can continue to rely upon an uninterrupted supply of new DVDs.
Good news for Tiffany: Second-quarter profit exceeded analysts' estimates, largely because of increased overseas sales. (Bloomberg)
Another drop in gas prices: Average gallon of regular in the L.A. area is $3.088, down about four cents. (Auto Club).
Port of L.A. wins truck ruling: A federal judge says the port can implement a program that limits the types of truckers entering terminals. Decision ends two years of legal wrangling over plan to reduce diesel truck emissions. (Daily Breeze)
USA Today plans overhaul: The national daily will de-emphasize its print edition in an effort to reach more readers and advertisers on mobile devices. The makeover will result in about 130 layoffs. (NYT)
Casting for "Too Big to Fail": William Hurt to play Treasury Secretary Henry Paulson in the upcoming HBO drama that's based on a book by NYT columnist Andrew Ross Sorkin. Curtis Hanson will direct. (Deadline.com)
USC beats UCLA: The new US News ranking of best colleges has the Trojans tied for 23rd and the Bruins tied for 25th. For years, UCLA had bested USC. (LAT)
Another win for e-books: Laura Lippman's thriller, "I'd Know You Anywhere," sold more e-books than hardcovers in its first five days on the market. (All Things Digital)
Palevsky house for sale: The Bev Hills home owned by the late philanthropist, art collector and a founder of Intel has listed for $9.5 million. (WSJ)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.