REVIEW
Refi Fini?: Countrywide Financial Corp. said the average daily value of loan applications fell 22 percent in July from the previous month, to $2.5 billion. Hurt by rising interest rates, the Calabasas-based company said the pipeline of loans in progress fell 15 percent, to $70 billion.
Fare Cutting: America West will offer walk-up fares as low as $299 each way between Los Angeles International Airport and New York’s John F. Kennedy International Airport and Boston’s Logan International. The $299 one-way fares have been offered by American Airlines, but not out of LAX; other airlines offer discount fares from secondary airports. America West said it expects the larger airlines to match its fares on specific flights and times where they compete.
Earnings Roundup: Computer Sciences Corp. reported first-quarter net income of $92.3 million, compared with $79 million for the like period a year ago. Revenue for the El Segundo-based computer company rose 29 percent, to $3.55 billion. Molina Healthcare Inc. reported second-quarter net income of $10.9 million, compared with $8.4 million for the like period a year ago. Revenue for the Long Beach-based health care company rose 29 percent, to $195 million. It was Molina’s first reported quarter as a public company. News Corp. reported fourth-quarter net income of $370 million, compared with a loss of $1.74 billion for the like period a year ago (the result of a writedown of an investment). Revenue for the Australian-based parent of the Fox broadcast and cable networks rose 20 percent, to $4.59 billion.
Florida Inquiry: Tenet Healthcare Corp. disclosed another government investigation was under way involving the Santa Barbara-based hospital company, this one involving possible Medicaid fraud at its Florida hospitals. As part of the inquiry, the Florida attorney general subpoenaed loan, purchase and sales agreements dating back to 1992. Tenet, which owns 16 hospitals in Florida, said it was cooperating with the investigation.
TV Deal: A group led by Los Angeles investor Haim Saban has agreed to acquire ProSiebenSat.1 Media, German’s biggest commercial broadcaster, from insolvent KirchMedia. Reuters, citing sources, said that Saban would pay $594 million for Kirch’s 72 percent stake in the broadcaster.
Satellite Settlement: Hughes Electronics Corp. announced that the National Rural Telecommunications Cooperative would give up its right to distribute Hughes’s DirecTV service. Under terms of a legal settlement, DirecTV said it would pay $150 to the NRTC for each subscriber in its territories when the agreement ends in 2011. The $150 per subscriber could help El Segundo-based Hughes negotiate a low purchase price for Pegasus Communications Corp., which markets DirecTV on behalf of NRTC.
Guilty Plea: The former chief executive of eConnect Inc., Thomas Hughes, pleaded guilty in federal court in Los Angeles to three counts of securities fraud and one count of criminal contempt just a week before the case was scheduled to go to trial. Prosecutors say that Hughes oversaw the release of misleading press releases concerning a stock repurchase program.
Suit Settlement: Homestore Inc. agreed to settle a shareholder lawsuit brought by the California State Teachers’ Retirement System for about $64 million in cash and stock. The pension fund is lead plaintiff in the suit against Westlake Village-based Homestore, operator of the Realtor.com web site, which was accused of falsifying financial statements.
PREVIEW
Crisis Session: After an abbreviated summer recess, the state legislature reconvenes on Monday (18th) for the final, month-long stretch of its 2003 session. With the recall election dominating the Sacramento political scene, Democratic legislative leaders will look at reopening the budget deal and scrapping the $4 billion hike in vehicle license fees. Also on the agenda: workers’ compensation reform and key health care legislation.
City Hall Break: L.A. City Hall becomes a ghost town this week and next as the City Council and Mayor James Hahn take their summer vacations. By the time the Council reconvenes after Labor Day, the city could face another fiscal crisis if the statewide hike in vehicle license fees is scrapped.
Earnings Update: Local firms set to release financial reports this week include retailer Hot Topic, which analysts expect will announce earnings of 16 cents per share for the second quarter, compared to 13 cents for the year-earlier period, and Sizzler franchiser Worldwide Restaurant Concepts.
Economic Reports: Pretty slow week, with July’s leading economic indicators, due out on Thursday (21st), about the only significant report due out.
Sports Beat: The Dodgers are in town for most of the week, starting with a three-game series Tuesday-Thursday (19th-21st) against Montreal, and then a three-game weekend series (22nd-24th) against the New York Mets. The X Games wraps up on Monday (18th), and the Sparks are home on Thursday (21st) against Minnesota and Saturday (23rd) against San Antonio. Also on Saturday, the Galaxy is home against New England.
Summer Festivals: If you’re willing to brave the heat, the festival season continues. Among those lined up for this weekend: The Tofu Festival on Saturday (23rd) celebrating the culinary and health benefits of soy bean curd. For information: 562-696-2662. Kidsfaire on Saturday and Sunday (23rd and 24th) at the Los Angeles County Fairplex that features exhibits and children’s entertainment.
For information: 866-444-EXPO. Also on Saturday and Sunday is the Fiesta La Ballona Weekend Fair at Veterans Park in Culver City (310-253-6639);
the Sunset Junction Street Faire, from 3600 to 4600 Sunset Boulevard (323-661-7771); and the Venice Showcase Festival, with featured bodybuilders, at Venice Beach Recreation Center on Ocean Front Walk (310-399-2775).
