Friday morning headlines

Stocks sinking fast: After yesterday's tepid rally, investors are once again in a selling mood. Dow is down 140 points - and below 12,000 for the first time since March.

L.A. gas under $4 a gallon: An average gallon of regular is $3.982, according to the Auto Club, which is 6.3 cents lower than last week. But be careful with those averages - the gaps are getting wider between the cheapest and most expensive gas stations.

OPEC warns of supply gap: Demand is expected to outpace supply later in the year, or so says the energy organization. (Reuters)

No deal, but budget voting begins: State lawmakers must close a $10 billion hole, with the Democrats trying to extend a series of tax increases for at least another few months. They have a June 15 deadline. (Sacramento Bee)

Redistricting maps released today: No more crazy lines that keep the same parties in office year after year. The redrawing of state districts will alter California's political landscape. From the LAT:

When Sacramento lawmakers drew the maps, they protected their own ranks wherever possible, leading to contorted and deformed districts that produced little competition or turnover ... Voters put an end to that at the ballot box in 2008 and 2010 by creating the California Citizens Redistricting Commission. The measures they passed called on the 14-member panel to draw contiguous districts of equal proportion ensuring that minorities, when their numbers dictate, have an opportunity together to elect politicians of their choice.

Live Nation going private?: Irving Azoff, the concert company's biggest shareholder, is considering it just 18 months after acquiring Ticketmaster, the NY Post reports. Bev Hills-based Live Nation has been struggling because of the weak concert business.

More shenanigans in Vernon: The city has paid out millions of dollars to at least a dozen family members of Vernon officials. State lawmakers are debating on whether to disband the city. From the LAT:

Critics have long argued that Vernon is governed like a fiefdom for the benefit of a small group of leaders who earn large salaries. The city owns nearly all the homes within its borders, essentially making the City Council the landlord for voters. The Times reported last winter that more than a dozen friends and family members of top Vernon officials lived in city-owned residences at below-market rates, including four nephews of new City Administrator Mark Whitworth. The rents range from $136 to $472 a month.

Housing money used to remodel councilman's condo: It's the latest allegation involving Advanced Development & Investment, an affordable-housing developer accused of fraud. From the LAT:

Ronald Chamberlain, owner of D & A Coating & Restoration of Fullerton, told The Times the FBI took records involving his work at the home of John Drayman, who lost his reelection bid for the Glendale City Council in April. He said agents also questioned him about Drayman.

New developer for Hollywood property: DLJ Real Estate Capital Partners completed its purchase of Blvd 6200, a multi-use project next to the Pantages that will include more than 1,000 apartments. (LAT)

Mattel changing suppliers: The El Segundo-based toymakers says it will stop using wood products from a Singapore company that's been accused of clear-cutting rain forests in Indonesia. (AP)

Sizzler acquired in management buyout: Based in Culver City, where the chain was founded in 1958, the new ownership group includes CEO Kerry Kramp. They've been trying to revamp the menu and remodel the stores. (Nation's Restaurant News)

Hollywood producer enters China: Legendary Entertainment has cut a deal with Huayi Brothers Media Corporation of Beijing to form a movie and TV company. From the NYT:

The venture, Legendary East, will be based in Hong Kong, according to the partners. Huayi, which is publicly traded and is one of China's largest entertainment conglomerates, will co-produce the films -- starting with one or two a year in 2013 -- and distribute them in China. Warner is expected to distribute them in the rest of the world, including North America, the No. 1 film market.