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Rocky market: Forget about strong earnings from Wal-Mart and Home Depot - Wall Street is focused on Libya and the prospects of a disruption in oil production. Dow plunged more than 100 points in the first few minutes of trading and is now down about 60 points.
Oil prices taking off: Crude is trading at over $98 a barrel in NY and $108+ in London. From CNNMoney:
While it only contributes 2% of world oil production, the spike in oil prices Monday reflects concerns that the crisis in Libya could spread to other major oil exporting nations, said Ann Wyman, head of Middle East and North Africa research at Nomura Securities. "The markets are responding to the uncertainty of how far this political unrest could spread, and whether other producing countries could be implicated," she said.
L.A. home prices take dip: They fell 1.3 percent between November and December, according to the S&P/Case-Shiller Index (all but one of the 20 cities measured saw declines). From press release:
"Despite improvements in the overall economy, housing continues to drift lower and weaker." says David M. Blitzer, Chairman of the Index Committee at Standard & Poor's. "Unlike the 2006 to 2009 period when all cities saw prices move together, we see some differing stories around the country. California is doing better with gains from their low points in Los Angeles, San Diego and San Francisco. At the other end is the Sun Belt - Las Vegas, Miami, Phoenix and Tampa. All four made new lows in December.
L.A. union members head to Wisconsin: They're be supporting the public sector workers who are fighting efforts to eliminate much of the collective bargaining process.
Labor protests in other states: Opposition to anti-union legislation in Ohio and Indiana appears to be growing. From the WSJ:
The protests in Indiana were reminiscent of ones that have choked the Wisconsin capital over the past week as teachers, students and prison guards continue to oppose a bill to limit public-sector unions' collective-bargaining powers. Democratic lawmakers there fled the state last week to thwart a vote on the bill. Republican and Democratic leaders and strategists appear to be relishing the broadening fight over labor unions, feeling it is energizing their core supporters and clarifying key differences between the two parties.
Blockbuster agrees to sale: The struggling video retailer is being purchased by a group of creditors for about $290 million - but only as a way to jump-start the auction process that could yield a higher bid (known as a "stalking horse" bid). (DealBook)
New CEO at Koreatown bank: Jae Whan Yoo, who was fired a month ago as chief executive of Center Financial Corp., moves over to rival Wilshire Bancorp. Yoo replaces Joanne Kim, who resigned Friday. (LABJ)
Oscar ballots due today: They must be in the downtown offices of PricewaterhouseCoopers' by 5 p.m. From The Wrap:
The accounting firm and the Academy don't release figures about how many last-minute ballots they receive - but Rick Rosas, one of the partners who oversee the process, has said that the number is substantial. (A public relations firm once put an observer in the lobby for the final day of voting, and counted about 500 ballots hand-delivered, expressed or FedExed that day.)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.