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Stocks pulling back: Still a lot of turbulence out there. Dow is down about 40 points in early trading.
Boeing workers go on strike: Negotiations broke off yesterday and 1,700 workers that build Boeing's C-17 cargo plane in Long Beach walked off their jobs. They want a better deal on medical and pension benefits. (KPCC)
Layoffs require raises:L.A.'s nutty budget process strikes again. Labor contracts renegotiated last year by Villaraigosa and the Council require that in order to implement layoffs the city has to provide a 3 pay raise to more than 15,000 union members. From the LAT:
Budget analysts have responded to the union campaign by saying that the plan to scale back the coalition's members would save nearly $16 million next year, even after raises are handed out. That figure would grow to nearly $63 million by 2013, said City Administrative Officer Miguel Santana, the top budget analyst. Of the 761 jobs being targeted by the mayor, 210 could be eliminated without any need for pay increases. Workers in those positions either have no union representation or belong to the Engineers and Architects Assn.
L.A.'s latest giveaway: The two acres of city-owned land that Eli Broad wants to lease for $1 a year over 99 years is worth $7.7 million. (L.A. Weekly)
What caused drilling disaster?: All the players are testifying on Capitol Hill this morning, and they're all pointing fingers. NYT is live-blogging.
Latest suspect in "flash crash": So long, fat finger. Say hello to the Black Swan - or in this case, a hedge fund that made a $7.5 million trade that caused the roof to cave in. From the WSJ:
The working theory among traders and others involved in the exchange meltdown is that the "Black Swan"-linked fund may have contributed to a "Black Swan" moment, a rare, unforeseen event that can have devastating consequences.
Preventing another "flash crash": The SEC and the major stock exchanges agreed to revise marketwide circuit breakers that halt trading in the event of a major decline, and to draft similar measures for individual stocks. (NYT)
More Americans moving:The percentage who reported a move last year increased to 12.5 percent from 11.9 percent in 2008 (that's the lowest mover rate since at least 1948). From the WSJ:
More moves are generally a positive sign for the economy, because many people move for jobs. But Monday's data showed the increase in the 2009 rate was almost entirely the result of a rise in intra-county migrations, the Census said. Demographers said that is likely a reflection of the millions of people who moved in with family or to a nearby rental property after losing their homes to foreclosure.
Small business optimism improves: Overall April readings edge higher, but hiring and capital expenditure plans remain weak. (press release)
Former Calpers official fights back:Alfred Villalobos, who made more than $47 million as the middleman between investment firms and California's giant pension fund, denied state allegations that he improperly provided gifts and gratuities to Calpers officials. (LAT)
Gas prices edge higher:An average gallon of regular in the L.A. area is $3.165, up a couple of pennies from last week, according to the government's survey.
NBC to sell KWHY: The divestment will come in connection with the Comcast purchase of NBC-Universal. Buyer for the Spanish-language station has not been lined up. (Broadcasting & Cable)
Lacter on radio: This morning's business chat with KPCC's Steve Julian looks at the city's budget troubles and the debate over rental increases. Also at kppc.org and on podcast (Business Update with Mark Lacter).
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.