Monday morning headlines

Big jump for stocks: Some encouraging words from GM and better-than-expected retail sales numbers for October are helping the market's mood. The Dow is up about 135 points.

Road to recovery?: GM says its finances have improved to the point where it could begin repaying its government loans as early as next month. The automaker's third-quarter loss was $1.15 billion, which is better than many had expected. From the NYT:

Speaking at a news conference at G.M.'s headquarters, Mr. Henderson said the loss was "much lower than what it has been and certainly better than our plan going into bankruptcy, but nonetheless, it's a loss and you can't be satisfied with it." For the entire third quarter, including the final 10 days of G.M.'s bankruptcy, the company said its revenue was $28 billion, up 21 percent from the second quarter.

Still too many auto plants: The industry is using only two-thirds of its production capacity, according to a study. Even with an expected upturn in sales, that still leaves too many factories and not enough customers. From the WSJ:

The current downturn "should be an opportunity for rationalizing capacity and some of the brands going away," said Mark Fulthorpe, director of European vehicle forecasts for CSM Worldwide. "Instead, we're rearranging the furniture here. No real big decisions are being taken."

Stayin' alive: Companies on the verge of filing for bankruptcy are finding new life through - what else? - refinancing. Junk-grade businesses have issued about $123 billion in new bonds this year, compared with roughly $48 billion in all of last year. From the WSJ:

Many analysts worry the refinancing wave is just "kicking the can" down the road, without fundamentally fixing companies' deeper problems. Among weaker companies, about $1.4 trillion in bonds and loans will still come due in the next five years, said Dominic DiNapoli of FTI Consulting, a business advisory firm.

Battle for Broad: As Kevin has been posting, the Santa Monica City Council will begin considering a proposal to have Eli Broad's art museum in the Civic Center area. But Bev Hills is not giving up the fight, and Broad is also talking to a third unnamed city. (LAT)

Calpers gets tough?: California's giant pension fund is considering tighter governance rules in the wake of cozy relationships with investment middlemen. From the LAT:

Wilshire Consulting, a unit of Wilshire Associates of Santa Monica, recommends that CalPERS subject investment managers to stiff monetary penalties if they fail to tell it about all fees paid to the intermediaries, known as placement agents.

Drug makers raise prices: Wholesale prices of brand-name prescription drugs have risen about 9 percent in the last year. Just to give you an idea, the Consumer Price Index has fallen by 1.3 percent in the last year. From the NYT:

Drug makers say they have valid business reasons for the price increases. Critics say the industry is trying to establish a higher price base before Congress passes legislation that tries to curb drug spending in coming years.

L.A.'s fastest-growing private company: Calabasas chip designer Fulcrum Microsystems gets the nod in the Business Journal's annual list. Started in 2000 by two Caltech doctoral students, the company had 2008 revenue of $7.3 million and a two-year growth rate of 1,360 percent.

Apocalypse pays: The end-of-the-world epic "2012" scored $225 million worldwide in its opening weekend. (Variety)