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Stocks still climbing: Wall Street continues to detach itself from sour news - the latest being a drop in consumer confidence. Dow is up 70 points.
California unemployment drops: As noted below, February's jobless rate was 12.2 percent, down from 12.4 percent the previous month. The separate payroll survey showed the addition of 96,500 jobs, a big improvement over previous months. (press release)
About those consumers...: Confidence fell to its lowest level in more than a year, largely because of the increases in food and gas. The final March reading from Thomson Reuters and the University of Michigan came in at 67.5, down from 77.5 in February. (Reuters)
Growth revised upward: The nation's fourth-quarter gross domestic product rose at an annualized rate of 3.1 percent, up from the 2.8 percent reading last month. (Reuters)
Gas prices cool down: An average gallon of regular in the L.A. area is $3.987, up just 1.6 cents from last week, according to the Auto Club. But the wholesale market remains volatile so don't be surprised to see further hikes.
L.A. deal with unions eats into next year's deficit: But not by much - the city will be saving $69 million, and the deficit is pegged at $350 million. From the LAT:
Under the plan, affected employees -- who now pay nothing for retirement healthcare coverage -- would begin contributing 2% of their incomes for such coverage April 1. That percentage would double, to 4%, by July 1, the beginning of the new fiscal year. By paying more, workers would retain retiree healthcare benefits for spouses or domestic partners -- a benefit that the city had threatened to eliminate. Overall, total retirement contributions would rise by July 1 to 11% of salaries -- almost doubling the current level of 6%.
Japan tourism likely to slow: Dozens of tour groups have already canceled reservations in the wake of the earthquake. From the LAT:
In Los Angeles, Japanese tourists represent the third-largest source of overseas visitors, behind Australia and Britain. In San Diego and Orange counties, Japanese are second only to the British as the top overseas visitors. Last year 305,000 Japanese visitors traveled to Los Angeles, spending $279 million, according to L.A. Inc., also known as the Los Angeles Convention and Visitors Bureau.
Shortage of tape: A Sony factory in Japan was the sole manufacturer of high-quality HDCAM-SR tapes used extensively in TV and film production. But it was badly damaged in the quake and tsunami. The tapes that usually go for $280 now cost $1,000 or more - if you can find them. (LA Weekly)
Big tax bill for state employers?: Something like a $6 billion payroll tax increase if California's unemployment insurance program fails to repay a federal government loan. From the LAT:
The unemployment insurance fund, insolvent since January 2009, relies on federal loans to pay jobless benefits. The debt is expected to hit $13.4 billion by the end of this year unless state lawmakers and the governor agree to raise payroll taxes, cut benefits or do some combination of both. An interest bill of $362 million is due in September. By law, the state, which faces a $26-billion general budget deficit, must repay the federal loans to the EDD by November.
Another big payday for Oxy CEO: Ray Irani, the L.A.-based energy company's outgoing chief executive, saw his compensation more than double last year, to $76.1 million. Irani's pay included $40.3 million in stock awards and $31.6 million in cash incentives. (Bloomberg)
Montecito home sells for $27 million: Seller is Carole Gaba, whose late husband, Harold Gaba, co-owned Concord Music Group, which later became part of Village Roadshow Entertainment Group. The 1.4-acre property has a four-bedroom, 4,200-square-foot house built in 1915. (WSJ)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.