Wednesday morning headlines

Stocks are flat: Don't look now, but the Dow is only 150 points from the 11,000 mark. There's very little movement this morning.

CEOs are gloomy: Only two-thirds of those surveyed expect their sales to grow over the next six months, down from 79 percent in the second quarter, while 31 percent say they plan to add jobs, also down. (Bloomberg)

CA budget talks stall: A big holdup seems to center on cutting pension costs for state workers. The governor has said that he won't sign any spending plan unless lawmakers roll back benefits to 1999 levels. From Bloomberg:

Schwarzenegger and legislative leaders canceled a planned closed-door meeting yesterday shortly before it was to begin, saying aides would meet instead to try to hammer out a compromise. The governor and the Democratic and Republican legislative leaders, known as the Big Five, emerged from a 90- minute meeting in Schwarzenegger's office late Sept. 27 to say that pensions remained a sticking point, preventing an accord.

Clash at Live Nation?: Barry Diller plans to step down as chairman of the Bev Hills-based concert producer, though he'll remain on the board. From the WSJ:

The resignation follows a disastrous investor conference in July, during which the company's shares plunged even as company executives sought to assure investors that their strategy was sound. After the meeting, according to people familiar with the matter, Mr. Diller chastised Mr. Rapino for the presentation, which included claims that were considered by many in the music industry to be exaggerated. Soon after the presentation, the company removed video footage of the presentation from its website.

Ponzi suspect arrested in France: Sherman Oaks money manager Bruce Friedman, who fled the country while being investigated for defrauding investors, has been charged with mail and wire fraud. From the LAT:

French authorities, acting at the request of the FBI, arrested Friedman on Sept. 13 in front of his hotel in Cannes, said Laura Eimiller, an FBI spokeswoman. Friedman is being held in a French prison awaiting extradition -- a process that could take several months, Eimiller said.

Stanley Chais case still open: The Bev Hills money manager died over the weekend, but a variety of lawsuits related to his alleged involvement in the Madoff scam are not likely to go away. From the LAT:

In addition to the criminal review, Chais was facing lawsuits filed by the trustee liquidating Madoff's assets, the Securities and Exchange Commission, California Atty. Gen. Jerry Brown and investors. The lawsuits alleged that Chais knew, or should have known, that Madoff was operating a Ponzi scheme because he had produced unfathomable profits, year after year, despite market conditions.

Supergraphics banned in Hollywood: The City Council voted to prohibit the vinyl signs that are placed on the sides of hotels, apartment buildings and office towers. But digital wall signs of up to 300 square feet will still be allowed on certain streets. From the LAT:

The ban on supergraphics was initiated by council President Eric Garcetti, who represents part of Hollywood. Although several projects were shielded from the ban, the changed rules still drew fire from a handful of business groups, including the Hollywood Chamber of Commerce. Leron Gubler, the chamber's president and chief executive, said plans for two proposed hotels in Hollywood could be dropped if the developer cannot get rental income from supergraphics.