Monday morning headlines

Stocks taking off: Lots of enthusiasm on the first trading day of 2011. Dow is up about 120 points, which is a 2-year high.

Looking ahead: Many forecasters believe that the economy is growing at just the right pace - not too hot, not too cold. From the WSJ:

The optimists consistently use words such as "balanced" and "muddling through" to describe the year ahead, finding comfort in the measured growth seen at the end of 2010. In this scenario, the U.S. economy keeps growing at a steady pace this year, but not enough to bring unemployment down quickly. With unemployment still high, broader inflation remains in check, despite higher commodity prices. No wage-price spiral here. The Fed feels increasingly justified in keeping its cash spigots wide open. Interest rates trickle higher, but not enough to choke off the recovery. The 10-year Treasury yield tiptoes to 3.5% by the end of 2011, still historically low.

Are big companies ready to spend?: With higher profits and more efficient operations, it's starting to look that way. From the WSJ:

Many are focusing on the faster-growing economies of Asia, Latin America and Africa, rather than the sluggish markets of Europe and the U.S. Others plan to enlarge existing operations through new equipment, products, factories and research labs.

Goldman bets big on Facebook: The Wall Street bank has invested $450 million in the social networking site. From DealBook:

The stake by Goldman Sachs, considered one of Wall Street's savviest investors, signals the increasing might of Facebook, which has already been bearing down on giants like Google. The new money will give Facebook more firepower to steal away valuable employees, develop new products and possibly pursue acquisitions -- all without being a publicly traded company. The investment may also allow earlier shareholders, including Facebook employees, to cash out at least some of their stakes.

Brown to be sworn in: The former governor takes office this morning and after that comes the inaugural address. The pundits are speculating what he might say. (Sacramento Bee)

Lots of cuts being planned: No official word, but sources tell the Sacramento Bee that the list includes eliminating local redevelopment agencies, shrinking social service benefits, closing parks, and reducing library hours.

Brown, to be sworn in this morning, wants to slash virtually every state-funded program to help balance California's massive deficit, in many cases resurrecting cuts sought by Gov. Arnold Schwarzenegger but rejected by lawmakers. Brown would restrict Medi-Cal access, divert low-level offenders to county jails and cut deeply into California State University and the University of California.

Vizio moves into smartphones, tablets: The Irvine-based maker of HDTVs will be introducing its low-cost products at this week's Consumer Electronic Show in Vegas. (PCMag)

TV viewing edges up: Americans were watching more than ever in 2010: An average of 34 hours per person per week. Viewership keeps drifting to cable, though the network numbers are much higher. From the NYT:

Nielsen noted in an end-of-the-year recap that eight of the 10 highest-rated telecasts of the year were football games. The two others were the Academy Awards and the premiere of "Undercover Boss," which followed the Super Bowl. The biggest gainer on the broadcast ledger was a Spanish-language player, Univision, which is drawing more attention for its ratings victories. For the year it averaged a 1.5 rating among 18- to 49-year-olds and 3.7 million total viewers. On an otherwise quiet Monday last week, the finale of one of its telenovelas, "Soy Tu Dueña," or "I'm Your Owner," averaged four million viewers in that demographic, beating all the English-language networks for the night.

LAFD plans further reductions: Budget woes are forcing the department to close 22 of the 153 companies each day on a rotating basis. The head of the local firefighters union warns that the cuts will lead to delayed responses by emergency personnel. (LAT)