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Dow nears 11,000: But the market is wobbly after a less-than-wonderful report on private-sector jobs. Dow is up about 5 points.
Disappointing job news: Private-sector employment fell by 39,000 from August to September, according to the latest ADP numbers. Economists had been expecting a gain of 23,000 jobs. The government reports on Friday. (press release)
Big CA budget hearings today: Getting particular attention will be a onetime exemption allowing the Fisher family's Humboldt Redwood Co. to deduct past operating losses, what amounts to a $30-million tax break, according to the LAT.
Some budget watchers were dismayed that the governor and legislative leaders would fashion a measure giving a large tax benefit to a single wealthy family when California is suffering through a grueling recession. "It's inappropriate to grant narrowly targeted tax breaks at a time when the state is making deep cuts to public schools, social service programs and other essential programs," said Jean Ross, executive director of the nonprofit California Budget Project.
More concern over foreclosure practices: Lawmakers in Washington have requested a federal inquiry into how banks are handling their foreclosures. From the NYT:
As banks' foreclosure practices have come under the microscope, problems with notarizations on mortgage assignments have emerged. These documents transfer the ownership of the underlying note from one institution to another and are required for foreclosures to proceed. In some cases, the notarizations predated the preparation of the legal documents, suggesting that signatures were not reviewed by a notary. Other notarizations took place in offices far away from where the documents were signed, indicating that the notaries might not have witnessed the signings as the law required.
Retailers teaming up against Amazon Prime: Several dozen chains have formed a cooperative that offers shoppers a $79 loyalty program with unlimited two-day shipping and free returns. From the WSJ:
Shipping has been a thorn in the side of online retailers since the early days. Consumers have come to expect free shipping on many online purchases, at least if they spend a certain amount. Amazon Prime was a way to lure customers, and yet get some money to defray shipping costs.
More Fresh & Easy stores in CA: British parent Tesco expects to have 400 stores in the U.S. by 2012-2013, up from 159. Many of the locations will be in California, which has been a beachhead for the chain. (WSJ)
Michigan questions film incentives: New report finds that the state spent $68.7 million on tax credits last year, but generated only $7.5 million in tax revenue from film production activity. From the LAT:
The study concluded that nearly half of the expenditures that qualified for the state's media production credit did not affect the Michigan economy, mainly because they were made to individuals and firms outside of the state. Additionally, the state agency disputed as unverifiable job creation claims touted by the state's Film Office.
Laptop sales losing steam: These days it's all about tablets. NPD Group estimates that laptop unit sales rose 12.3 percent in the first eight months of the year--well below 30 percent growth of the year-earlier-period. (WSJ)
American Apparel sued: Federal regulators accuse the L.A.-based apparel company of firing an employee four years ago after he returned from a medical leave that involved cancer treatments. (AP)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.