Wednesday morning headlines

Stocks edge higher: No big moves in early trading. Dow is up about 30 points.

Hiring still stingy: Only 42,000 jobs were added to private sector payrolls in July, according to ADP, with larger businesses still holding back. The government's July employment report comes out Friday.(Bloomberg)

Benefits running out: As of Monday, 152,531 out-of-work Californians had exhausted their jobless benefits. Lots of folks in construction and mortgage lending haven't been able to find work. (OC Register)

Spending sluggish: Americans weren't buying much stuff in July. From AP:

The figures from MasterCard Advisors' SpendingPulse, which include transactions in all forms including cash, signal that spending remains choppy as shoppers grapple with an almost 10 percent unemployment rate and tight credit. Online revenue offered one bright spot, gaining for the 12th straight month. But travel spending -- including airlines, trains, rental cars and hotels -- also rose from July 2009, when it fell almost 2 percent.

Pension worries mount: Nearly one-third of the city's general fund could go towards retirement benefits by 2015, according to City Administrative Officer Miguel Santana. From the LAT:

"For every dollar you're paying into your pension systems, you're not paying into libraries, parks and various other city services," Santana told the council. Shortly after Santana's presentation, the council voted to study the possibility of using employee-managed 401(k) investment plans -- long favored by private industry -- to provide a portion of the city's retirement benefits.

Calpers knew about Bell: Officials of California's state pension fund are tap-dancing about why they let the tiny city increase government wages by those crazy amounts. From the LAT:

CalPERS spokesman Brad Pacheco said such large pay hikes can be permissible under his agency's rules as long as they are spread out among a group of employees, as was the case in Bell, as opposed to enriching a single official. "Our job is to enforce the statues that govern the retirement law," he said in a statement. "Pay and compensation is the decision of city and county elected officials."

CA Democrats propose budget plan: Idea centers on a complex swap of income taxes and sales taxes. They say it would be income neutral, but Republicans are doubtful. (Sacramento Bee)

More on Tribune deal: A U.S. bankruptcy judge made public a massive report that lays blame on the company's collapse on a set of too rosy projections. In particular, the company said growth from 2012-2017 would be way higher than the numbers indicated. (Chicago Tribune)

Counterfeit scam busted: Feds announced the seizure of more than 200,000 fake items in SF with a value of $100 million, making it the largest-ever bust of retail counterfeiters on the West Coast. The action was on Fisherman's Wharf. (SF Chronicle)

Sidney Harman speaks to the troops: The new owner of Newsweek says he's not out to make money, but would like to break even some day. He's vague on how that might happen. (All Things Digital)

Playboy board looks at Hefner's bid: A special committee has been formed to consider not only Hef's proposal to buy up the shares of the company he doesn't already own, but another offer by Penthouse owner Marc Bell. (Business Insider)