Monday morning headlines

Stocks resume ascent: Volatility appears to be coming back to Wall Street. After a zigzag week of biggish gains and losses, the Dow is back up this morning by about 75 points.

United-Continental deal announced: The $3-billion merger creates the world's biggest airline. The new company will retain the United name (but keep the Continental logo) and still be based in Chicago. (NYT)

Greece gets aid: Germany has agreed on $30 billion worth of loans, and the European Central Bank said it will accept Greek bonds as collateral for loans -- regardless of any future downgrades. (NYT)

Bair worries about financial reform: The head of the Federal Deposit Insurance Corp. says that lawmakers would be going too far by forcing banks to spin off their derivatives businesses. From the WSJ:

Ms. Bair's warning came in a three-page letter to key Senate lawmakers days before voting is expected to begin on a broader financial overhaul. Her letter echoed fears raised recently by Federal Reserve officials, who said in an unsigned memo that the provision "would impair financial stability" and "be highly disruptive and costly" for banks and their customers.

iPad sales top 1 million: That's after just 28 days. Apple CEO Steve Jobs says demand continues to exceed supply. (Tech Trader Daily)

Hollywood Video shutting down: The movie rental chain, whose parent firm is in bankruptcy, had already announced plans to close more than half its 2,415 U.S. outlets, including a bunch locally. (WSJ)

Avis may try topping Hertz: The perennial number two car rental firm says it wants a shot at competing with Hertz on a bid for Thrifty. The head of Avis says Hertz's offer was low. (DealBook)

Buffett on the newspaper business: He says "the math is really tough" because of the dwindling ad base. "It blows your mind how fast" the newspaper industry is losing ground, Buffett said over the weekend. (MarketBeat)

Lapses on DWP called "staggering": Downtown News editorial takes aim at the City Council's confusion for not knowing whether the rate increase that had been approved a few weeks earlier was permanent.

This is troubling on so many levels it is staggering. Is the embattled utility engaged in some level of obfuscation? How could some city lawmakers not comprehend that something they anticipated would last for three months would instead extend in perpetuity? Why did those who know not make sure everyone was on the same page? Did Mayor Antonio Villaraigosa, a chief proponent of rate hikes, play a behind-the-scenes role? How is this supposed to increase an already skeptical public's trust in the department?

Another Grand Avenue delay?: Developer, Related Cos. now wants the deadline for construction to be extended from February 2011 to February 2013. (LABJ)

Garment maker cited: An OC factory that makes women's clothing for Forever 21 and Ross Dress for Less was barred from shipping merchandise until it resolves wage violations. (California Apparel News)