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Countrywide's sober forecast: While shares of the Calabasas-based mortgage giant continue to rise on takeover rumors, CEO Angelo Mozilo expects a tough 2007 because of increases in borrower delinquences and continued credit deterioration. Countrywide said fourth-quarter profit fell 2.7 percent. In 2007, earnings are projected to be in the $3.80 to $4.80 range, which compares to Wall Street projections of $4.74. Mozilo did say that 2008 should see an upturn in the housing market. Still no word on how serious the talks with Bank of America might be. Bloomberg
Gas report: So much for all our whining a couple of weeks back about pump prices not falling despite a plunge in oil prices. The federal government's weekly survey shows that an average gallon of self-serve regular in L.A. was $2.44, down from $2.51 the week before. Enjoy it while it lasts. Saudi Arabia has plans to cut oil output by an additional 158,000 barrels a day. It's part of a broader effort by OPEC to shrink inventories and shore up prices.
Saved by the freeze: Strawberry farmers were faced with a huge surplus that could have sent prices crashing. But the big chill is expected to cut production by as much as 70 percent, which should keep prices on a more even keel. Unlike the orange crop, strawberry plants produce much of the year. LAT
Hollywood kicker: No, it has nothing to do with Beckham, but a NYT story about a group of refugee kids playing soccer in Clarkston, Ga. Everybody in town got on the phone Sunday morning looking to secure the rights and apparently it set off a frantic auction. The project went to Universal Pictures for an upfront payment of $2 million, plus a promised future payment of $1 million. Among the losing bids came from producer Scott Rudin. From the WSJ:
On a list of "some things I learned yesterday," Mr. Rudin included this as lesson No. 4: "When someone says 'we want to look you in the eye,'" what they really mean is that "'we want to look Benjamin Franklin in the eye' -- many, many times." "Scott Rudin makes a lot of money," says the refugees' soccer coach, Luma Mufleh. "This is nothing to him. In the large scheme of things, what we could do with half a million dollars is a lot."
Van Nuys Airport soaring: There's a building boom underway, thanks mostly to increased demand for private air service that has charter companies scrambling to keep up. The Air Group announced plans a terminal at the city-owned airport, while Milton Air (they have to do something about that name) plans to add 220,000 square feet of hangar space as part of a $40 million addition. Daily News
Money Honey Inc.: America's great business journalist Maria Bartiromo has filed at least eight applications to trademark her Wall Street pet name for stuffed animals, movies, coin-counting machines, coloring books, jigsaw puzzles, interactive games, beer glasses and headbands. She's also in talks with CNBC about launching her own branded TV show. And yes, this is the same Bartiromo whose friendship with high-ranking Citigroup executive Todd Thomson has caused quite a fuss. NY Post
Lacter on radio: This morning's chat with KPCC's Steve Julian covers the luxury hotel planned for Grand Avenue, tensions at Paramount and the lure of independent banks. Available on KPCC Web site later this morning.
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.