Tuesday morning headlines

Stocks advance: Better-than-expected results from Alcoa get earnings season off to a good start. Dow is up about 40 points.

Can Brown pull it off?: Sacramento Bee columnist Dan Walters applauds the new governor's budget proposal, but wonders whether the fractured legislature will go along.

Objectively, given the infinite capacity of the Legislature for self-delusion, it's probably no better than a 50-50 chance. Brown must persuade his fellow Democrats in the Legislature to very quickly enact billions of dollars in spending cuts that hit their closest ideological and political allies, such as social service recipients and public employee unions. They - and perhaps a few Republicans - must also be willing to ask voters to raise taxes in the midst of a severe recession with the threat of even deeper spending cuts if the taxes are rejected.

Verizon-iPhone announcement: It's happening this morning in NY, though there's not much suspense - the phone giant will be breaking AT&T's hold on the iPhone business. Lots of details still to come, including price. (All Things Digital)

Borrowing woes continue: Consumers are struggling to pay back home equity, auto and other loans, according to the American Bankers Association. The overall loan delinquency rate ticked up slightly for the second straight quarter. (Reuters)

L.A. council committee deadlocked on budget: Two members are calling for layoffs as a way of addressing the city's debt problems, but others want less painful solutions. From the LAT:

Councilman Paul Koretz said city departments could save money by severing contracts with private companies. Councilman Bill Rosendahl asked for a review of every employee who earns more than $200,000 per year. Asked about the lack of consensus, [City Administrative Officer Miguel Santana] said: "It's certainly not good." "This is just the beginning," he said. "These are, frankly, the least difficult of the cuts that the council will have to consider in the next six months."

Villaraigosa warns of layoffs: The mayor told council members that if they're unwilling to sign off on a plan to lease nine city-run parking garages, he'll begin laying off workers. "We must accept the economic reality and move on to the business of providing the services our residents require," Villaraigosa said in a letter. (Daily News)

New president of airport commission: Attorney Michael Lawson replaces Alan Rothenberg, who resigned because of indirect ties with a longtime concessionaire at LAX. Lawson has served on the seven-member panel since 2005. (Daily Breeze)

Tiffany raises earnings outlook: Holiday sales were better than expected, another sign that shoppers are returning to holiday purchases. (AP)