Wednesday morning headlines

Market is tentative after election: The other shoe drops later this morning with the Fed announcement on infusing the economy. Dow is down a few points.

Passage of Proposition 25: Budget-related legislation no longer requires a two-thirds vote and that could change a lot of things in Sacramento. See post below.

Private sector adding jobs: October employment increased by 43,000, according to ADP, which is more than twice the median estimate of economists. The government's labor report for last month comes out on Friday. (Bloomberg)

Clothing makers to raise prices: The huge jump in cotton prices will be having an effect beginning early next year - despite sluggish consumer demand. From the NYT:

The V. F. Corporation, the maker of 7 for All Mankind and The North Face, says most brands will probably cost more next year, and its cotton-heavy jeans lines are particularly susceptible to increases. Jones says its increases could be in the high single digits or more. The problem is a classic supply and demand imbalance, with the price of cotton rising almost 80 percent since July and prices expected to remain high. "World cotton production is unlikely to catch up with consumption for at least two years," said Sharon Johnson, senior cotton analyst with the First Capital Group, in an e-mail.

Oil prices on the rise: Fill 'er up while you can - crude oil futures are on the rise, perhaps because the markets expect a weaker dollar in the wake of the Fed announcement. (Dow Jones)

GM gets huge tax break: The automaker could be saving up to $45.4 billion, thanks to a provision that allows companies to use losses and pension costs to avoid paying taxes. From the WSJ:

Usually, companies that undergo a significant change in ownership risk having major restrictions put on their tax benefits. The U.S. bailout of GM, in which the Treasury took a 61% stake in the company, ordinarily would have resulted in GM having such limits put on its tax benefits, according to tax experts. But the federal government, in a little-noticed ruling last year, decided that companies that received U.S. bailout money under the Troubled Asset Relief Program won't fall under that rule.

"Tonight Show" stays in Burbank: NBC has agreed to an eight-year lease that's value at $35 million. It's the same lot where Carson did the show. (LAT)

Big trade show is scrapped: West Coast-based ASR, which focused on apparel, footwear & accessory brands in action sports, fell victim to the economy and changing industry dynamics. (shop-eat-surf.com)


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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