Tuesday morning headlines

Stocks take hit: Could be an ugly one - continued concerns about how the slowing global economy will impact corporate earnings. Dow is down 250 points.

Bernanke unlikely to stay: The Federal Reserve chairman has told friends that he probably won't seek a third term even if President Obama is reelected. Bernanke's term ends in 2014. (DealBook)

Gas update: Overnight prices fell almost three cents, with an average gallon of regular at $4.440, according to the Auto Club.

Debating China: The two candidates talked about the opportunities and challenges in working with Beijing. From CNNMoney:

"China is both an adversary, but also a potential partner in the international community if it's following the rules," Obama said. Romney responded: "We don't have to be an adversary in any way, shape or form. We can work with them, we can collaborate with them, if they're willing to be responsible."

Smaller iPad: Apple announces its new tablet later this morning. It's expected to be roughly half the size of the regular iPad. No word on price. (AP)

NFL hesitant about downtown stadium?: The league has essentially ruled out an L.A. team for next season as officials remain uncertain about the feasibility of AEG's proposed facility, according to CBS Sports.com:

Several league sources expressed doubt that the would-be buyers of AEG -- the entertainment giant is for sale and could fetch upwards of $10 billion -- would be willing to pour massive amounts of money into the downtown project, as the current deal for prospective funding required AEG to do. A change of ownership at AEG could also lead to a more viable agreement at that site, some inside the effort to build in Los Angeles suggested, though there remain significant issues regarding parking and infrastructure in this area.

Macerich to buy two shopping centers: The $1.25-billion deal is for the Kings Plaza center in Brooklyn and the Green Acres Mall in Valley Stream, New York. The Santa Monica-based company is purchasing the properties from Vornado Realty Trust. (Bloomberg)

GET THIN inquiry: The two brothers behind the controversial ad campaign are the subjects of a state and federal criminal investigation. From the LAT:

The investigation is focused on numerous "potential violations of federal law, including conspiracy, healthcare fraud, wire fraud, mail fraud, tax violations, identity theft [and] money laundering," Samanta Kelley, a special agent for the Food and Drug Administration's criminal division, said in an affidavit filed at the federal courthouse in Los Angeles. She said the FBI was also involved.

U-T owner won't bid for LAT: CEO John Lynch says that the company is not interested in the paper. Several days ago, owner Doug Manchester said he would look at the property. (The Wrap)

Ray Watson dies: He helped create the master plan that is now the Irvine Co. and advised Walt Disney in the early years. Watson was 86. (OC Register)