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Stocks turning back: After yesterday's big gains, the session opens on the down side. Dow is off about 20 points. By the way, today is the second-year anniversary of the start of the bull market.
Gloomy job outlook: The picture nationwide might be improving, but in California not so much. UCLA economists expect the state's jobless rate to remain in double digits until early 2013 - a bit later than had been expected. From the LAT:
Some jobs won't be back. The housing bubble wildly inflated sectors such as construction and financial services. Economists said about 350,000 of the jobs lost in those sectors during the Great Recession probably won't return this decade. On the positive side, when California starts to gain momentum it will likely grow faster than the nation, helped by exports to Asia that will drive recovery at ports and in the technology sector.
Worried about oil prices and government cuts: NYT columnist Dave Leonhardt wonders whether the economy could be headed towards another slowdown:
All in all, the situation is uncomfortably reminiscent of last spring. Back then, companies were just starting to hire again, before a combination of events -- including Europe's debt crisis and the fading of the stimulus program here -- spooked them and cut short the recovery. It's easy to imagine how energy costs and government cuts could do the same this year.
Election mishmash: L.A. voters said yes to more library funding and an excise tax on medical marijuana (even though medical marijuana cannot be taxed in L.A.). They also signed off on pension cuts for newly hired police and firefighters - as well as curbs for the DWP. Voter turnout was around 12 percent. (LAT)
Freedom bids coming due: Several private-equity firms and media companies, including MediaNews and Tribune, apparently are interested in the parent of the OC Register. But the process is likely to be quite messy. From the WSJ:
The people familiar with the matter cautioned that a number of complexities surround potential offers and it will take time to finalize a transaction. Hedge fund Alden Global Capital, for instance, owns shares of both MediaNews and Freedom. Tribune remains mired in bankruptcy proceedings.
Madoff loot to be returned: Small amounts could be distributed to victims by the end of the year, according to the court-appointed trustee. He's hoping to recover more than $50 billion, but much of the money would have to be reserved for court challenges. (WSJ)
NPR CEO steps down: Vivian Schiller's resignation comes after a fund-raising executive was caught in a video saying that members of the Tea Party were racists. Looks like she was forced out. (NPR)
USC gets largest endowment ever: The $200-million gift from alumnus David Dornsife and his wife Dana beats the school's previous record of $175 million from "Star Wars" creator George Lucas. Dornsife is majority owner of Herrick Corp., a Stockton-based steel fabricating company. From the LAT:
The Dornsifes' donation will go to USC's College of Letters, Arts and Sciences, the university's biggest academic unit, without restrictions on how it should be spent. It is expected to support faculty hiring, research and fellowships and be especially useful for the humanities and social sciences, which receive less funding than the sciences from federal and private sources.
L.A. billionaire invests in gaming company: Patrick Soon-Shiong will provide $15 million in direct investment to Fourth Wall Studios, a Culver City company that creates online multiplayer games that involve augmented reality. The deal includes access to $200 million in funding. From THR:
One of Fourth Wall's best-known projects is Sadie's Story, a hidden radio drama game that is embedded in the 2009 Xbox 360 video game Halo 3: ODST. Many of the properties developed by Fourth Wall, which also develops viral marketing campaigns, span multiple platforms and use the Internet, social networks and mobile phones to create immersive entertainment experiences.
Big plane order: International Lease Finance, the Century City aircraft leasing company, plans to purchase 100 Airbus A320 jets and 33 of Boeing Co.'s 737s. The planes have a book value of more than $11 billion. Company hasn't placed an order for new aircraft since October 2007. (LAT)
Skechers sues Sears: The Manhattan Beach footwear company accuses the retail giant of infringing on some of its patents and trademarks, including Skechers' popular Shape-up line. (DJ)
Long Beach take over redevelopment properties: As in L.A., city officials were worried that the legislature would eliminate redevelopment agencies statewide, putting ongoing projects in jeopardy. (Press-Telegram)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.