Tuesday morning headlines

Stocks barely above the line: The latest worry is Italy. Still, the Dow is up about 15 points.

New gloom for Spain: NYT columnist Andrew Ross Sorkin says that the bank bailout could actually be more of a hindrance than a help.

Customers of Spanish banks still have reason to worry about the solvency of their banks -- and their country -- making it reasonable for them to take their money from Spanish banks and send it to banks in safer countries like Germany. Indeed, the bailout makes it less likely Spain can pay back its debts because the new loan of up to $125 billion was just added to its huge debt pile. Worse, Spanish banks had been the biggest buyers of Spanish debt (a farce of a way to prop up the economy) and that most likely won't continue. As a result, it could be argued that it would be irresponsible for an individual or company, which has a fiduciary duty to its shareholders, not to move its money out of Spanish banks.

Commerce Secretary takes medical leave: John Bryson will be undergoing medical tests after striking two cars and apparently losing consciousness. From the LAT:

According to a statement from law enforcement officials, Bryson was driving through San Gabriel, not far from his family home in San Marino, shortly after 5 p.m. Saturday when he rear-ended a Buick whose driver was waiting for a passing train. Bryson stopped briefly to speak with three men inside the Buick, then returned to his car and left, striking the Buick a second time. The driver followed Bryson for two miles, while calling 911 seeking help. In Rosemead, authorities said, Bryson crashed into a Honda Accord. He was found a short time later, alone in his car -- he was not working and not accompanied by security, officials said -- and unconscious.

Movie attendance seen increasing: Ticket sales will rise 20 percent through 2016, as prices for 3-D features begin to moderate, according to a study by PricewaterhouseCoopers. From the LAT:

But the larger home video market, which reaped $22 billion in revenue last year, won't fare as well, falling to $21.1 billion in 2016, the study shows. The reason: Revenue from discs is expected to plunge from $15.8 billion last year to $10.2 billion in 2016, and a 77% jump in digital sales and rentals over the same span won't be enough to make up the difference.

More foreign purchases of U.S. real estate: Florida is the fastest-growing destination, accounting for 26 percent of overseas transactions, according to the National Association of Realtors. California was second with 11 percent. Canadians made 24 percent of international deals, followed by Chinese buyers with 11 percent. (Bloomberg)

Deal nears for Rocketdyne: A private investment group is believed to be the potential buyer, the Daily News is reporting. The storied rocket engine maker, a unit of United Technologies Corp., was put on the market in March.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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