Stocks open strongly: Decent economic news in the U.S. and Europe could be playing a role. Dow is up 150 points.
Consumer spending rebounds: Another indication that the economy is in somewhat better shape than the talking heads would have you believe. The 0.8 percent increase in July follows a decline in June. (AP)
Airlines resume operations: JFK, Newark and LaGuardia are open for business, as are other airports along the East Coast. But the folks whose flights were canceled over the weekend might have a tough time re-booking. Around 200 flights out of LAX were canceled due to the storm. (CNN)
White House chooses new economist: Princeton University Professor Alan Krueger is being tapped to head President Obama's Council of Economic Advisers. Krueger has done award-winning research on the job market. (NYT)
B of A sells big stake: The struggling banking giant is unloading half of its holdings in China Construction Bank to a group of unnamed investors for $8.3 billion. From DealBook:
The deal -- which came just days after Warren E. Buffett agreed to pump $5 billion into the bank -- marks the latest asset sale at the beleaguered financial firm. Over the last month, Bank of America has sold off its Canadian credit card division and has put its European card operation on the block, as the firm continues to clear noncore assets from its books. The moves come amid recent fears that Bank of America lacks sufficient capital, concerns that chief executive, Brian T. Moynihan, has tried to allay.
Exaggerating stadium benefits: The state's Legislative Analyst's Office found that studies prepared by AEG and the city of L.A. overstated the economic impact of the proposed football complex, including the number of jobs it would create. From the OC Register:
Jason Sisney, LAO director for state finance, said "in our high-level review, we found that the methodologies used by both the city and AEG to calculate the economic benefit, additional tax revenues, and new jobs for the proposal raise some concerns. Specifically, while both used fairly standard approaches to calculate the economic effects of new developments, there are some flaws that probably overstate the economic and tax revenue benefits of the proposal -- even if their assumptions regarding the number of events and other items are accurate."
State lags in corporate tax collection: One reason could be all the tax breaks that are saving companies lots of money. From the Sacramento Bee:
Lawmakers and then-Gov. Arnold Schwarzenegger negotiated the changes in previous closed-door budget talks and approved them with little public review. Forecasters considered those tax changes when they built their January projections. But analysts say they underestimated the cost of those tax benefits. Through the first seven months of 2011, California received $708 million less in corporate tax revenue than the Department of Finance projected in January, or 10 percent. Over that same period, personal income taxes topped expectations by 15 percent, while sales taxes were slightly above target.
Dreamliner finally wins FAA approval: That clears the way for Boeing to deliver the first of its long-awaited 787s to All Nippon Airways next month. Commercial service is set for early November. (Seattle Times)
More service to Hong Kong: Cathay Pacific Airways will add a third daily nonstop from L.A. beginning next March. The airline currently offers 17 flights per week between LAX and Hong Kong. (Airlines and Destinations)
Guide to electric vehicles: LAT provides a primer on what's available and what to look for.