Los Angeles Business Journal

Metro Connector Breaks Ground, Legal Challenges Loom

U.S. Transportation Secretary Anthony Foxx and Los Angeles Mayor Eric Garcetti presided over a groundbreaking Tuesday for the $1.4 billion downtown Regional Connector, a project still facing legal challenges from downtown L.A. property owners.

Stocks Down

The Dow Jones industrial average fell 28 points in Tuesday trading to 17,043. The S&P 500 fell six points to 1,972. The Nasdaq fell 12 points to 4,493. The LABJ stock index was flat at 201.

AEG Seeks More Time for Downtown NFL Stadium

AEG asked city officials on Monday for a six month extension to sign a National Football League team and begin to build “Farmers Field” stadium in downtown Los Angeles, the Los Angeles Times reports.

Recovery in Los Angeles Lags Behind State, Nation

The economic recovery in Los Angeles lags behind both the state and the nation, with unemployment more than three percentage points above the national average, according to a report released this morning by Beacon Economics and the Los Angeles Area Chamber of Commerce, the Business Journal reports.

Gov. Brown Vetoes Franchise Bill

Gov. Jerry Brown on Monday vetoed a bill giving franchise owners more power in business transactions, the Sacramento Bee reports.

EBay to Spin Off PayPal

EBay said on Tuesday that it will spin off its payments processor, PayPal, into a separate publicly traded company, the New York Times reports. Billionaire activist-investor Carl Icahn nine months ago demanded the move, which will split eBay roughly in half, as a way to generate value for shareholders.

Gov. Brown Signs Bill Banning Tax Write-Offs for Pro Sports Fines

Gov. Jerry Brown signed a Donald Sterling-inspired bill on Monday, prohibiting sports team owners from writing off league penalties as an operating expense on their taxes, the Los Angeles Times reports.

Acquisition Talks Cool Between DreamWorks and SoftBank

Discussions between Japan’s SoftBank Corp. and Glendale’s DreamWorks Animation SKG Inc. about a potential acquisition have cooled for now, the Wall Street Journal reports, though there is potential for a content partnership between the two companies.

Truck Drivers Fast to Protest Trucking Firm Policies

A handful of truck drivers who carry goods from the ports of Los Angeles and Long Beach took part Monday in a day of prayer and fasting to raise awareness of three local trucking firms they say misclassify drivers as independent contractors to skirt labor laws that require fair wages: Pacific 9 Transportation, Total Transportations Services Inc. and Green Fleet Systems, the Daily Breeze reports.

Stocks Fall

The Dow Jones industrial average fell one point in Tuesday morning trading to 17,070. The S&P 500 fell three points to 1,975. The Nasdaq fell six points to 4,500.

DreamWorks to be Acquired by Japans SoftBank?

Glendale’s DreamWorks Animation SKG Inc. is in talks to be acquired by Japanese telecommunications and Internet company SoftBank Corp. in a deal that would value the company at $3.4 billion, according to a source who tipped off the Hollywood Reporter. A source at SoftBank told Bloomberg that an acquisition hasn’t been formally discussed by senior executives, and the chances of reaching a final agreement are low.

Sunset Boulevard Partially Closed After Water Main Break

A small stretch of Sunset Boulevard between Charing Cross Road and South Mapleton Drive remains closed today as repairs continue on a water main pipe that was ruptured on Sunday, ABC reports.

Los Angeles City Revenue Better Than Expected

Los Angeles City Controller Ron Galperin reported Friday that revenues for the city are nearly $87 million more than expected, the Daily News reports.

After Gross Departure, Pimco Faces $100 Billion of Withdrawals

Pacific Investment Management Co. investors withdrew approximately $10 billion in assets following Friday’s announcement that co-founder Bill Gross is leaving for Janus Capital Group, sources within the firm told the Wall Street Journal, echoing analysts’ predictions that it will lose at least $100 billion total. Meanwhile, shares of Janus rose as much as 40 percent on the news that Gross is starting there today, Fortune reports.

American Apparel Hires Interim Chief

Downtown L.A.’s American Apparel Inc. appointed Scott Brubaker, an Alvarez & Marsal managing director, as interim chief executive, charged with the task of stabilizing the struggling company, the Wall Street Journal reports. The clothing company also replaced one interim chief financial officer, John Luttrel, with another interim CFO, Hassan Natha, formerly of Fisher Communications Inc.