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Stocks start strong: Solid earnings from GE don't hurt. Dow is up about 45 points in early trading and is nearing the 11,900 mark.
B of A posts Q4 loss: Blame housing-related write-downs and charges. (DealBook)
Good year for Calpers: California's biggest public pension fund had an investment return of 12.5 percent in 2010, up from 12.1 percent the previous year. The California teachers' retirement fund had a 12.7 percent return. From Bloomberg:
The latest figures mean that Calpers still has lost 2.86 percent for the three calendar years ended Dec. 31 and has gained just 4.29 percent for the last 10 years. The fund assumes it needs to earn 7.75 percent annually to cover the cost of benefits.
Bankruptcies jump in 2010: L.A. had almost 57,000 filings, up 52.4 percent from a year earlier. OC was up 28 percent. But the numbers appear to be slowing. (OC Register)
Gas prices level off: An average gallon of regular in the L.A. area is $3.354, about what it was last week, according to the Auto Club. Oil prices, meanwhile, are hovering a little under $90 a barrel. (WSJ)
Sales at Sundance: It's not like the old days, but distributors are doing some deals at the film festival. From the NYT:
Among other factors, the strong box-office performance of specialty films over the last six months has created optimism that the art house sector has emerged on the other side of a correction. After a glut of mediocre titles pushed as masterpieces ravaged the indie market, there came the likes of "Black Swan," which cost $13 million to make, has sold more than $75 million and is still playing.
Warner Music up for sale: The record company has hired Goldman Sachs to seek out bids even as it considers buying British music giant EMI. From DealBook:
The unusual two-track process of Warner seeking to buy while also exploring selling out to new investors underscores the desire of Warner's private equity owners to either make a big strategic move and double down on the music business by buying EMI, or cash out. They acquired the company from Time Warner more than seven years ago -- a long time frame for private equity investors, who normally prefer to own a company for three to five years before selling.
Disney ship arrives: The 964-foot-long ocean liner, capable of carrying 2,400 passengers, will call the Port of Los Angeles home for the next two years. It'll offer seven-night summer cruises to the Mexican Riviera. (Daily Breeze)
RVs made for China: Riverside's MVP RV will export 30,000 motor homes under an agreement with a Chinese entrepreneur - a deal that will add 1,200 jobs to the Inland Empire. From the LAT:
The new jobs come at a crucial time for the region, said economist John Husing, an expert on the Inland Empire economy. "Having a major employer coming into the manufacturing base out here is huge," he said. In November, unemployment in the Inland Empire was at 14.3%. "This is a big deal," Husing said.
Mercury Insurance lays off based in 165: The L.A.-based insurer is consolidating its claims division, as well as some administrative functions. (OC Register)
NYT Web access charge set: It'll be less than $20 a month, a bargain compared with a subscription for the printed paper. (Bloomberg BusinessWeek)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.