Wednesday morning headlines

High anxiety: Today, it's a profit warning from Intel and a 34 percent decline in earnings at JP Morgan. Markets were weak in Europe and sharply lower in Asia, largely in response to yesterday's bad news in the U.S. Yet the Chicago Board Options Exchange Volatility Index was up just marginally on Tuesday, suggesting that panic has yet to set in - and that’s a bearish sign. The Dow is down a bit in early trading. (Marketbeat)

"Moment of truth" in strike: That's how WGA Executive Director David Young describes a fast-approaching turning point in the stalemate with the studios and networks. Once the Directors Guild agrees to their new contract (that could come very soon), there will be lots more pressure on the writers to cut a deal. Both Young and WGA President Patric Verrone told the WSJ that the continued support of influential TV showrunners and movie writers will be critical. Meanwhile, Variety reports that two groups of high-profile writers met Monday night on what the WGA should do next.

One of the meetings included about two dozen writers who felt their union should continue on its present course and embrace a DGA deal only if it specifically addresses the issues that have kept the writers on picket lines for the past three months -- particularly in areas such as new media. The WGA's interim deals have provided, for example, that scribes receive a 2.5% cut of distributors' gross on original new-media works. A separate group of about 30 showrunners and screenwriters who call themselves moderates met in hopes of pressing WGA leadership to cool down the rhetoric, use the DGA pact as an opportunity to reopen talks with the AMPTP and make a deal as soon as possible.

Suit accuses payroll firm: Remember Axium International, the Hollywood payroll service provider that suddenly filed for liquidation bankruptcy and left lots of showbiz folk in a lurch? Well, Axium's largest creditor sued the company's former principal owners in federal court. In the suit, investment firm GoldenTree Asset Management accuses John Visconti and Ron Garber of treating the company "as their own personal piggy bank to finance their extravagant lifestyles." The suit also names Visconti's and Garber's ex-wives, alleging that they benefited. From the LAT:

Visconti and Garber, according to the suit, used Axium funds to lease private jets and ultra-luxury cars, including Rolls-Royces and Aston Martins, for personal use; paid for personal gifts and vacations using corporate credit cards; made personal political contributions with Axium money; maintained secret bank accounts; and spent the money "without any apparent business purpose."

Hospital prices differ: Cedars-Sinai and County-USC are charging insurance carriers five times as much as the least expensive ones, according to a new study. Yet 15 of the state's 20 least expensive hospitals are in SoCal. The hospitals say insurance companies enjoy considerable bargaining power in the area. From the LAT:

The study also looked at the difference between hospitals' costs and what they billed. In all, it found that insurance carriers paid $18 billion for care that cost the hospitals $13 billion to deliver in 2005. The big difference helped pay for the hospitals' $7.1 billion in losses on their care for uninsured patients and shortfalls in reimbursements from Medicare and Medi-Cal for their care of the elderly and the poor.

CPK falling fast: Shares hit a 52-week low this morning after the L.A.-based pizza chain cut its profit outlook for the fourth quarter and fiscal 2008 below Wall Street estimates. (The stock is back up to about $10 a share.) The company blamed lower-than-expected same-store sales on customers cutting back (a bunch of restaurant chains are in the same boat). "We believe that challenges related to the consumer in many of California Pizza Kitchen's core markets will weigh on comp store sales over the coming months," wrote KeyBanc Capital Markets analyst Lynne Collier.

First American restructures: The Santa Ana-based title insurer plans to spin off its financial services business. The new entity will include worldwide residential and commercial title operations, home warranty and homeowner insurance businesses. First American also revealed a plan to "aggressively manage employee counts." As you might expect, the company is struggling because of the housing troubles.

LB hosts big tech conference: It's the Technology, Entertainment, Design conference, which might not ring a bell but routinely attracts the likes of Bill Gates and Bono (ticket prices start at $6,000). The event has been held in Monterey for 20 years, but organizers say they needed more room. The Long Beach Performing Arts Center will play host, beginning in 2009. (LAT)