Tuesday morning headlines

Getting cooler: And with folks returning to work and school, it couldn't come soon enough. At last check, 20,000 Socal Edison customers and 9,000 DWP customers were without power, though the numbers keep changing. The California Independent System Operator, which oversees the state's power grid, said no major shortages were expected, but everyone is still urged to conserve when possible. At the LABO weather center, it's six degrees cooler this morning than what it was at the same time yesterday. (KCBS)

Mattel clashes with the feds: The Consumer Product Safety Commission says that manufacturers must report all claims of potentially hazardous product defects within 24 hours. In last month's recall of nearly 18 million playsets, Mattel took months to gather information. Apparently, this is nothing new. CEO Robert Eckert said the El Segundo-based company should be able to evaluate hazards internally before alerting any outsiders, regardless of what the law says. By mandating that companies immediately report any incident that could conceivably expose a hazard, the commission's "standard might apply to almost anything," Eckert told the WSJ. The CPSC doesn't agree, but it's a small agency that has limited resources and is only authorized to impose fines of less than $2 million.

Since 2001, the agency has twice fined the world's largest toymaker for "knowingly" withholding information regarding problems that "created an unreasonable risk of serious injury or death." Mattel settled the cases, denying any wrongdoing or that the recalled toys had a defect. Now, the commission is investigating the timeliness of the company's disclosures before its most recent recall. At the same time internal CPSC documents raise questions about whether Mattel has passed along information to regulators about possible recurring electrical problems with a recalled toy the company has declared fixed.

Building boom: One reason L.A.-area employment has held up quite well in the last 12 months is that there are so many big construction projects going up. The Business Journal reports that 50 projects valued at more than $100 million are under construction; three years ago, there were just 11. We’re talking about condominium high-rises, hospital retrofits, schools, construction of the Green Line extension – lots of stuff. (Business Journal)

Judge blocks immigration action: It's just a temporary restraining order, but for now it blocks a crackdown on employers who hire undocumented workers. Under the get-tough rules from the Department of Homeland Security, employers who receive notification of non-matching records between an employee's name and social security number would have to resolve any discrepancy within 90 days - or dismiss the employee. The rules were set to go into effect today; a federal judge in SF said the court needs "breathing room" before making any decision on the legality of new penalties. She set the next hearing for Oct. 1. (AP)

Anemia trial begins: Amgen is trying to keep Roche Holding AG out of the lucrative - if somewhat troubled - market for anemia drugs. Amgen's drugs Epogen and Aranesp and Johnson & Johnson's Procrit have racked up more than $10 billion in combined sales last year in the U.S., but in March, the FDA issued strong warnings about heart and cancer risks tied to the drugs. Sales have fallen as a result, but Roch still sees opportunity in the business. Thousand Oaks-based Amgen claims that Roch's drug violates its patents. (WSJ)

Grauman's sold: As expected, CIM Group is buying the Hollywood landmark, although it won't be able to do anything with the property because Mann Theatres has a long-term lease until 2023 and will continue to operate the theater. CIM already owns nearly all the land on the north side of a two-block stretch of Hollywood Boulevard between Highland and Sycamore avenues. Two charitable foundations inherited the property from the theater's builder, empresario Sid Grauman. (LAT)

LAX upgrades: No biggies, but at least airport screeners have new computers that will prevent a repeat of last month's embarrassing system breakdown that stranded 17,000 international travelers, many of them on planes. Customs has also increased its onsite IT staff to seven, up from the two (perhaps the additional folks will know what to do the next time the computer conks out). By Christmas, the airport's entire customs system will be redone. (AP)

Airline relief?: The carriers were beaten up so much during the summer that they're planning changes in how they book customers. For example, they'll now hold back empty seats at peak travel periods to accommodate travelers who miss connections (packed planes left passengers stranded for hours, even days). Also, several carriers are stretching out schedules, adding minutes to scheduled time between flights. More spare aircraft will be available next summer. (WSJ)

Lacter on radio: This morning's business chat with KPCC's Steve Julian includes a status report on the local economy, the controversy over CBS's "Kid Nation," and worker grievances at the Ritz-Carlton in Pasadena.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing
Previous story: Kasikci's new job

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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