Tuesday morning headlines

Dow back under 11,000: But it's starting to bounce back in early trading.

More Wall Street bonuses: Look for another record high this year - three dozen of the top publicly held securities and investment-services firms are set to pay $144 billion in compensation and benefits, a 4 percent increase from 2009. From the WSJ:

The pay numbers show that firms, benefiting from low interest rates and strong international markets, continue to base their pay on economic and market conditions rather than the level of pressure coming from regulators in Washington and overseas. Still, politicians and market watchdogs have been successful in influencing the structure of pay, if not its levels. They have pushed for more compensation in stock and other deferred instruments.

Calpers cuts ties with firm: California pension fund won't say why it's dropping longtime money manager Pacific Corporate Group. But the relationship had been under scrutiny as part of a review into the role middlemen have played in helping investment firms win Calpers's business. From the WSJ:

A person familiar with the matter said Monday that PCG's business relationship with Alfred Villalobos was a concern for Calpers. Mr. Villalobos is a former Calpers board member who became a middleman helping firms get business from pension funds.

California might join foreclosure probe: Several states are looking into whether lenders were violating laws when they seized homes from delinquent borrowers. The inquiry is going beyond the lenders not properly preparing foreclosure paperwork for the courts in 23 states (not including California). (LAT)

Republican House looks like a lock: The odds of a GOP takeover have reached 80 percent on Intrade, the online betting service. Meanwhile, the Dems have only a 46 percent chance of holding onto the Senate.

Lions Gate proposes MGM merger: The plan would give MGM lenders a 55 percent stake in the merged company. This could potentially upend a prepackaged bankruptcy plan that has been in the works. (LAT)

Villaraigosa talks transit with Obama: The L.A. mayor was pushing his plan to complete a dozen major projects in 10 years instead of 30. He's confident that federal help will be forthcoming. (Daily News)

Small bump in gas prices: An average gallon of regular in the L.A. area is $3.020 $3.10, according to the government's weekly survey.

Eau du Bev Hills: The city of Beverly Hills is launching its own line of perfumes. The fragrances will retail for $120 a bottle. (LAT)

Unloading 56 Applebee's restaurants: Glendale-based DineEquity, which owns the chain, will be receiving $38 million from the sale of company-owned locations in Missouri, Illinois and Virginia. (Nation's Restaurant News)

Pasadena City Council approves Rose Bowl renovation: The three-phase, $152 million plan includes increasing the number of concession stands and restrooms, improving the tunnels and concourse, and installing a new scoreboard and video board. (KPCC)