Wednesday morning headlines

Stocks taking a dip: The usual European muddle, plus investors cashing out on recent gains. Dow is down about 40 points.

UCLA forecast stays tepid: Economists expect only a modest jobs recovery next year, with the state unemployment rate likely to remain in double digits until 2014. From Reuters:

The economic forecasting unit has a more optimistic outlook for California than just a few months ago in part due to recent jobs gains in the state's Central Valley and its Inland Empire region, east of Los Angeles. Both areas have been swamped with foreclosures that have devastated construction payrolls and sent local unemployment levels soaring. But recent data show the two regions have joined California's coastal metropolitan areas, which have benefited from expansion in their high-technology sectors as well as trade activity through their ports, with job gains. The gains for the state as a whole have been running recently at a faster rate than the country as a whole.

More hopeful forecast: Chapman University economists expect export activity to help fuel a bump in employment growth, especially in the second half of 2012. (San Diego Union-Tribune)

Brown's pension plan gets nod: A little more than half of California voters surveyed by the Field Poll say the governor's plan to dial back public employee pensions "strikes about the right balance." From the Sacramento Bee:

Brown's proposals offer less generous state and local pension benefits for new hires and raises the retirement age for many, among other changes. The governor's plan also would increase how much current employees pay toward their pensions and reduce how much employers pay in. The slim majority of voters polled agreed with Brown's proposals included 55 percent of registered Democrats and 43 percent of Republicans. Nearly one in four felt the plan "goes too far."

McCourt can keep parking lots: The Dodgers owner must sell the team by the end of next April, but he only needs to provide a long-term parking lease for whoever the new owner turns out to be. That lease entitles McCourt to build parking structures so he could use the land for development. (LAT)

California and Nevada in mortgage probe: The two states will jointly investigate misconduct and fraud. From the LAT:

In both states, the foreclosure process exists largely outside of the court system. For that reason, evidence of fraud in the foreclosure process has not emerged as readily as in other states. [Nevada Attorney General Catherine Cortez] Masto has perhaps made the most progress of any state attorney general in pursuing alleged fraud in the foreclosure process. Masto this week said she had widened a criminal probe that involves employees of Lender Processing Services, a Florida company that emerged as an important player in the fracas over faulty foreclosure practices. The ringleaders of the alleged scam were two Orange County loan officers.

L.A. firm to develop Chinese theme park: Theme park designer Ikonic Entertainment Group will be working on the martial arts attraction just south of the manufacturing city of Shiyan. It's a $3.1-billion project. (LAT)

J.C. Penney cuts deal with Martha Stewart: As part of the 10-year partnership, the retail giant will acquire a 16.6 percent stake in Martha Stewart Living Omnimedia and open Martha Stewart mini-stores in most of its locations. (CNNMoney)