Stories for July 2014
Thursday, July 31
L.A. Billionaire Now With Providence Health
L.A. billionaire and biotech entrepreneur Dr. Patrick Soon-Shiong will become the global director for cancer services and bioinformatics at Providence Health & Services, the hospital chain announced on Thursday.
CBRE Group Buys Australian Firm
CBRE Group Inc. of Los Angeles bought Paragon Project Management for an undisclosed price, the company announced Thursday.
Herbalife to Expand Chinese Production
Herbalife announced Thursday that it plans to begin manufacturing its products at a facility in China that the company anticipates will be able to produce nearly two thirds of its products sold in that country.
Bank of America's Countrywide Unit to Pay $1.3 Billion
The Countrywide Financial mortgage lender unit owned by Bank of America has been ordered to pay $1.3 billion in damages for selling thousands of defective loans.
EARNINGS: DirecTV, Edison, Oaktree, Occidental, PS Business Parks, Ryland, Superior
DirecTV, Edison International, Oaktree Capital Group, Occidental Petroleum, PS Business Parks Inc., Ryland Group Inc. and Superior Industries International Inc. were among firms reporting earnings.
Poll: Do you use a "mobile wallet?"
Every week the Los Angeles Business Journal asks readers their views on a variety of business and economic issues. A running tally is available on the site and later will be published in the Commentary section of our print edition.
Stocks Fall
The Dow Jones industrial average lost 318 points in Thursday’s trading to close at 16,563. The S&P 500 lost 39 points to close at 1,931. The Nasdaq lost 93 points to close at 4,370. The LABJ Stock Index lost 3 points to close at 197.
Privlo Raises $3.8 Million Seed, $350 Million Debt Financing
Privlo, an online real estate loan provider, announced it had raised a $3.8 million seed round as well as $350 million in debt financing.
Glu Mobile Acquires Long Beach’s Cie Games
Glu Mobile Inc., mobile game studio behind Deer Hunter and the record-breaking Kardashian app, has acquired Long Beach game developer Cie Games for $100 million in a cash and stock deal.
Apple to Lay Off 200 at Beats
New owner Apple is expected to cut 200 jobs at Santa Monica’s Beats Electronics, which produces headphones and operates a music streaming service, Bloomberg reported.
Film Remains a Part of Movie Industry
Eastman Kodak Co. will continue to manufacture film for Hollywood following a deal with filmmakers including Quentin Tarantino, Christopher Nolan, Judd Apatow and J.J. Abrams who want to keep old-school film alive even as most movies rely on digital video, the Wall Street Journal reported.
El Segundo Firm Buys Online Polling Company
El Segundo’s Swagbucks, an online coupon rewards business, acquired online polling firm SodaHead.com of Encino, the Daily Breeze said.
Bank of America Ups Settlement Offer
Bank of America increased its offer to settle the Justice Department’s case related to its sale of weak mortgage securities to some $14 billion, the New York Times reported. The government has demanded $17 billion to resolve the case.
L.A.’s Broken Infrastructure
This week’s water main rupture that sent millions of gallons of water flooding Sunset Boulevard and UCLA is a sign of what one councilman calls an “infrastructure crisis” in a city full of old water lines and bad streets, the Los Angeles Times said. UCLA Chancellor Gene Block estimated the Westwood campus may have incurred tens of millions worth of property damage, the Los Angeles Daily News reported.
L.A., Developer to Settle in Fraud Case
Advanced Development & Investment has agreed to a $7.5 million settlement with the city of Los Angeles to resolve claims the company overcharged for affordable housing projects, the Los Angeles Times said.
Charney a Notable Absence at American Apparel
Founder Dov Charney was fully committed to American Apparel, the Los Angeles Times reported in examining the impact of his suspension from day-to-day leadership duties.
Los Angeles to Update Zoning Code
Los Angeles officials are rewriting the city’s 70-year old zoning code in an attempt to streamline the approval process for new developments. The updated code is not expected to be ready until 2017 or later, the Los Angeles Times reported.
Target’s First Outsider CEO
Target named Brian Cornell, formerly the chief executive of PepsiCo Americas Foods, as its first outsider CEO, the New York Times said. Target has sought new leaders following a serious breach of customer data last year.
Big Weekend Expected for “Guardians”
“Guardians of the Galaxy,” the newest movie set in the Marvel cinematic universe is expected to make $65 million at the box office this weekend, Variety said.
Stocks Down
The Dow Jones industrial average was down 172 points in Thursday morning’s trading to 16,708. The S&P 500 was down 25 points to 1,945. The Nasdaq was down 68 points to 4,394.
Swagbucks Scores SodaHead Acquisition
Prodege, the parent company of online rewards site Swagbucks, announced it will acquire digital consumer polling platform SodaHead.
Wednesday, July 30
AllenCo Fined $99,000 in Environmental Case
The U.S. Environmental Protection Agency said Wednesday that AllenCo Energy has agreed to pay a $99,000 penalty for violating federal environmental laws at an oil field near USC.
Molina Net Income Falls Short
Molina Healthcare Inc. reported meager earnings after markets closed Wednesday, falling well short of Wall Street expectations on profits.
Superior Industries Shutting Down Plant
Aluminum wheel manufacturer Superior Industries International Inc. announced Wednesday it would close its Arkansas plant by the end of the year as it prepares to open a fourth plant in Mexico next year.
EARNINGS: Dine Equity, Stamps.com, TetraTech
Dine Equity Inc., Stamps.com and TetraTech Inc. were among firms reporting earnings.
Princess Cruises Places Order for $800 Million Ship
Princess Cruises will add a third ship to its Royal Princess fleet, a 3,560-passenger vessel that will cost about $800 million, the Santa Clarita company announced on Wednesday.
Dow Jones Down; S&P 500 Flat; Nasdaq, LABJ Up
The Dow Jones industrial average fell 32 points in Wednesday’s trading to close at 16,880. The S&P 500 was flat at 1,970. The Nasdaq gained 20 points to close at 4,463. The LABJ Stock Index gained 2 points to close at 200.
'Dragon' a Drag for DreamWorks
Weak box office results for “How to Train Your Dragon 2” put a drag on DreamWorks Animation SKG Inc. second quarter earnings, which failed to match analysts’ expectations.
TrueCar Inc. Moving to New Santa Monica Offices
Online car sales platform TrueCar Inc. announced that it will move its headquarters to 1401 Ocean Ave. from 120 Broadway, expanding its Santa Monica headquarters presence.
j2 Global Acquires Contactology
Cloud service and digital media network provider j2 Global has acquired Contactology, a North Carolina email marketing service company.
Snapchat Reported in Talks with Alibaba, $10 Billion Valuation
Snapchat is in talks to sell a stake to Alibaba Group, a round of financing that would value the company at $10 billion, according to a report from Bloomberg News.
Workers Repairing Water Main Break
L.A. Department of Water and Power workers have a lot of work to do to repair the water main break that sent 8 to 10 million gallons of water pouring through Sunset Boulevard and the UCLA campus on Tuesday. A cause of the break has yet to be determined, the Los Angeles Times said.
National Economy Grew 4 Percent in Second Quarter
The Commerce Department’s initial estimates show the U.S. economy grew 4 percent in the year’s second quarter, beating estimates and more than reversing the first quarter’s 2.1 percent shrinkage, according to the New York Times.
New ‘Harry Potter’ Team at Warner Bros.
Warner Bros. Entertainment has formed a team to create a film series and other projects related to the “Harry Potter” universe created by author J.K. Rowling, Variety reported.
Work Begins on Long Beach’s Last C-17
Assembly line employees have begun work on the final C-17 military transport jet that Boeing Co. plans to build in Long Beach before closing the factory in about one year, the Long Beach Press-Telegram reported.
Craft Brewers Fear Drought’s Effects
California’s three-year drought is bad news for the state’s craft brewers, which are facing limits on growth and potential price increases due to water supply problems, the Los Angeles Times reported.
U.S., Europe Increase Russia Sanctions
The United States and the European Union announced new sanctions against Russia’s military and its banking and oil industries as western governments attempt to pressure the country into decreasing its support for pro-Russian forces in the Ukraine conflict, the Wall Street Journal reported.
Changes For Arts District
The transformation of L.A.’s arts district from a quirky but rough land of artists’ studios into an increasingly hip neighborhood is worrisome to longtime residents, the Los Angeles Times said.
Investors Await Fed Statement
The Federal Reserve is expected to announce today its monthly asset purchases will drop from $35 billion to $25 billion as it moves to wind down the bond-buying program, but a firm statement on its plans to eventually raise interest rates is less likely, Reuters said.
Twitter’s Big Report
Social media company Twitter reported a loss of nearly $145 million on Tuesday, but the company’s revenue increased more than 100 percent to some $312 million while user growth increased. Investors sent the stock price rising on the news, according to the Wall Street Journal.
Former LACMA Leader Dies
Andrea L. Rich, formerly the president of LACMA and a UCLA administrator, has died at the age of 71. The Los Angeles Times covers the story of her life.
SEC Investigating DreamWorks Animation
The nation’s financial watchdog is probing DreamWorks Animation related to a $13.5 million writedown the studio took on the animated movie “Turbo,” Variety said.
Dow Jones, S&P 500 Down, Nasdaq Up
The Dow Jones industrial average was down 69 points in Wednesday morning’s trading to 16,843. The S&P 500 was down 4 points to 1,966. The Nasdaq was up 9 points to 4,452.
O Labs Launches as New Joint Venture
O Labs, a new joint venture announced Wednesday, plans to back early stage startups by giving more direct access to software developers, legal advisers and marketing strategists.
Tuesday, July 29
Kixer Kicks Off with $1 Million Seed
Native ad-tech company Kixer has raised $1 million in seed funding. The round was led by Lowercase Capital and TenOneTen Ventures and was joined by angel investors including Clark Landry of brand marketing platform Shift.
Amgen Announces Deep Job Cuts
Amgen Inc. announced on Tuesday that it would cut up to 15 percent of its global workforce, or as many as 2,900 jobs, as well as close plants and consolidate its offices at its sprawling Thousand Oaks headquarters complex.
Aecom Buys Hunt Construction Group
Los Angeles engineering and construction firm Aecom has purchased Hunt Construction Group for an undisclosed sum in a deal announced on Tuesday.
L.A. City Attorney Cracks Down on Tobacco Retailers
Los Angeles City Attorney Mike Feuer on Tuesday issued suspensions against 14 retailers for allegedly selling tobacco products to minors and announced other steps to crack down on retailers.
Walt Disney Co. Restructures Leadership in Asia
Walt Disney Co. has appointed 16-year company veteran Paul Candland to the entertainment company’s new position of president for its Asia division.
EARNINGS: Big 5, CBRE, Jacobs
Local companies Big 5 Sporting Goods Corp., CBRE Group Inc. and Jacobs Engineering Group Inc. were among firms reporting earnings.
Stocks Fall
The Dow Jones industrial average lost 70 points in Tuesday trading to close at 16,912. The S&P 500 lost 9 points to close at 1,970. The Nasdaq lost 2 points to close at 4,443. The LABJ Stock Index lost a point to close at 199.
Donald Sterling Loses Clippers Case
Los Angeles Clippers co-owner Donald Sterling lost his legal fight with estranged wife Shelly on Monday when a probate judge ruled that she had the right to sell the team for $2 billion to former Microsoft chief Steve Ballmer. Donald Sterling, however, has filed other related lawsuits that are still active, the Los Angeles Times said.
Time Warner Agrees to Arbitration in Dodgers Dispute
Time Warner Cable has agreed to binding arbitration as a means to resolve its dispute with DirectTV and other television companies over the price to carry SportsNet LA, the only local channel showing Los Angeles Dodgers games, the Los Angeles Times reported.
Labor Panel Rules Against L.A. Pension Plans
A city labor panel ruled Los Angeles Mayor Eric Garcetti’s attempt to save an estimated $4 billion over the next 30 years through such steps as raising recently hired city workers’ retirement age to 65 is invalid because the new rules were made without negotiations with unions, the Los Angeles Daily News reported.
Larry Flynt Selling Hustler Store
Pornography mogul Larry Flynt is selling his original Sunset Boulevard Hustler store, which may be converted into a hotel by its future owners, Bloomberg reported.
Betting on the Bottom Dollar
The newly-announced merger between discount chains Dollar General and Family Dollar is part of American retailers’ competition to win business from consumers who are living paycheck to paycheck, the Wall Street Journal said.
Medicare, Social Security in Different Conditions
Federal officials say Medicare can be expected to have enough money to cover beneficiaries’ hospital bills through 2030 under current law, but Social Security’s disability insurance fund is in danger of being short on money in the near term, according to the Wall Street Journal.
Transformers Movie is First to Make $300 Million in China
Paramount Pictures’“Transformers: Age of Extinction,” earned $317 million on Chinese screens, becoming the first movie to top $300 million in that nation, the Hollywood Reporter said.
Inversions Are Big Money for Investment Banks
Investment banks have earned around $1 billion in fees over the last three years while advising companies on how they can lower their tax bills by moving overseas in a controversial practiced referred to as an inversion, the New York Times said.
Privacy Advocates Want Facebook Probe
Representatives of two nongovernmental organizations have asked the Federal Trade Commission to investigate whether social networking company Facebook is violating a privacy agreement by monitoring its users’ online activities beyond the company’s own website, according to Bloomberg.
OKCupid Admits to Experimental Mismatches
OkCupid, a top U.S. matchmaking website, intentionally mismatched users to test its technology, the service said on Monday, weeks after Facebook admitted to misleading users in a psychological study, CNBC reported.
Dow, Nasdaq Up; S&P Down
The Dow Jones industrial average was up 1 point in Tuesday morning trading to 16,984. The S&P 500 was down 2 points to 1,977. The Nasdaq was up 7 points to 4,452.
Monday, July 28
European Regulators Approve Apple’s Beats Purchase
The European Commission has approved Apple’s acquisition of Beats Electronics after determining the deal met merger regulations.
Pogoseat Jumps with $2.3 Million Seed
Pogoseat, an app that lets users upgrade their seats during sporting events, has raised $2.3 million in seed funding.
Herbalife Stock Price Falls on Earnings
Shares of Herbalife fell in after-hours trading Monday after the Los Angeles company reported a decline in net income.
EARNINGS: Alexandria Real Estate Equities, Ducommun; Mercury General
Public companies reporting quarterly earnings Monday included Alexandria Real Estate Equities Inc., Ducommun Inc. and Mercury General Corp.
Beyond Meat Announces New Investors
Beyond Meat, an El Segundo startup that produces synthetic meat products from plants material, announced Monday that it had closed a Series D funding round.
Dow Jones, S&P 500 and LABJ Up, Nasdaq Down
The Dow Jones industrial average rose 22 points in Monday’s trading to close at 16,983. The S&P 500 rose half a point to close at 1,979. The Nasdaq fell 5 points to close at 4,445. The LABJ Stock Index edged up by nearly a point to 200.
Upscale Co-Working Space NeueHouse Leases at Columbia Square
West L.A. real estate company Kilroy Realty Corp. said today that NeueHouse, New York’s stylish members-only coworking space, signed a 15-year lease for 93,000 square feet at Columbia Square, a $400 million mixed-use project in Hollywood on the site of a former CBS broadcast studio.
Albertsons, Safeway Merger Approved
Shareholders of the Pleasanton-based Safeway gave their approval to a $9.2 billion sale of their company to Albertsons. The deal must still pass regulatory approval and may lead to further closures of Southern California grocery stores, the Contra Costa Times reported. Safeway owns Vons and Pavilions stores.
Lawmakers Want FCC to Umpire Dodgers Fight
San Fernando Valley Congressman Tony Cardenas is leading a group of lawmakers calling upon the FCC to mediate a deal between Time Warner Cable and other cable companies that have thus far been unable reach an agreement on televising Los Angeles Dodgers games shown on Time Warner’s new SportsNet LA channel, the Los Angeles Times reported.
Zillow Buying Trulia for $3.5 Billion
A newly announced merger between Seattle’s Zillow Inc. and San Francisco’s Trulia will combine the nation’s two largest websites for real estate listings. Zillow will pay $3.5 billion worth of stock to buy its competitor in a deal that is expected to close next year, the Los Angeles Times said.
Dollar Tree to Buy Family Dollar
Discount store chains Dollar Tree and Family Dollar are poised to become a single company. The Chesapeake, Va.-based Dollar Tree will pay some $8.5 billion in cash and stock to buy Charlotte, N.C.’s Family Dollar, according to USA Today.
South Bay Businesses Lobby for Import-Export Bank
South Bay business interests are among those asking Congress to keep the Export-Import Bank alive. The bank, which subsidizes foreign purchases of U.S. goods, is targeted for closure by House conservatives, the Daily Breeze said.
Are Wildlife Laws Worsening Border Crisis?
Republican lawmakers contend that environmental restrictions in place near the U.S.-Mexican border are hampering the abilities of Customs and Border Protection officers to conduct patrols and surveillance operations, The Hill reported.
Sarah Palin Starts Online Channel
Former Alaska governor and Republican vice presidential nominee Sarah Palin, beloved by Tea Party voters and scorned by liberals, now has her own media venture in the form of a subscription online service called The Sarah Palin Channel, Variety said.
Drought Hurts California Marinas
California’s lake and river tourism industry has been hit hard by the ongoing drought, which has led to a swimming ban and boating hazards at Castaic Lake in Los Angeles County, the Wall Street Journal said.
Virgin America Plans IPO
Airline Virgin America Inc. will go public. The company, partly owned by billionaire Richard Branson, has not yet priced shares to be sold in the offering, Bloomberg reported.
Fast Food Workers Intensify Minimum Wage Push
Some 1,200 fast food workers gathered in Illinois for a union-supported gathering in which attendees met to continue their bid for a $15 an hour minimum wage for food service workers, the New York Times reported.
“Lucy” Triumphs in Box Office
A Hollywood Reporter analysis posits that the Luc Besson film “Lucy,” starring Scarlett Johansson, triumphed at the box office over “Hercules” because female movie fans are now proving to be more important to the success of summer films.
South Bay Training Company Had Showing at Comic-Con
Tempest Freerunning Academy, which trains customers in the sport of parkour at schools in Hawthorne and Chatsworth, hosted an obstacle course based on the popular “Assassins Creed” video game franchise at Comic-Con, the Long Beach Press-Telegram reported.
Fist Bumps Healthier Than Handshakes
A cool and casual greeting may be healthier than an old-fashioned handshake. A new study reports that fewer germs are transmitted via a fist bump or high five than a handshake, according to USA Today.
Stocks Down
The Dow Jones industrial average is down 43 points in Monday morning’s trading to 16,918. The S&P 500 is down 6 points to 1,972. The Nasdaq is down 20 points to 4,430.
Driving Design
Garage offers high-tech treats to car parts makers
New high-tech garage offers makers of aftermarket car parts space for improvement.
Digital Content Turning on TV
Internet: Streaming sites test ad-supported programming.
Former NBC show “Community” will test if digital programs can channel TV-like audiences and ad dollars online.
Direct Quotes
ADVERTISING: PK4’s new ad tech eases online placement.
PK4’s new ad tech will let customers take a more direct approach with online placement.
Calendar
Upcoming local events.
Hotel Buyers Check In With Pricey Purchase
ACQUiSITION: $65 million for Figueroa could be per- room record for downtown.
The Figueroa Hotel, an eclectic tourist haven that has been a fixture in downtown Los Angeles since the late 1920s, has been sold for $65 million, according to sources with knowledge of the deal.
Soundstage Takes New Movie Role
FILM: Thunder looks to trade services for stakes in productions.
Soundstage operator looks to cast itself as producer by offering services for stakes in indie films.
Defeasance Firm in Debt To Hot Real Estate Market
FINANCE: AST expects business boom to continue as interest rates rise.
Hot real estate market lights fire under firms providing debt-clearing defeasance services.
Flying High?
Federal law forbids the commercial use of aerial drones. So some producers have stopped using them but others still are flying them anyway, as the Business Journal recently reported.
Should TV and film producers be allowed to use aerial drones?
Holes in L.A.’s Golf Scene
Ted Lux sees several problems come to the fore to hurt golf in L.A.
conventions
Upcoming local conventions.
News of the Week
Last week’s major news from labusinessjournal.com and other sources
Hedge fund manager and Herbalife foe William Ackman of Pershing Square Capital Management sent shares of his enemy company into a tailspin Monday when he declared on CNBC that he had evidence to prove Herbalife operates as an illegal pyramid scheme.
Advocacy Group Casts Lot With Former Mayor
LENDING: Non-profit seeks Villaraigosa’s help on local impact of bank acquisition.
An advocacy group protesting a local bank transaction wants former Los Angeles Mayor Antonio Villaraigosa to broker a deal and end the dispute.
Investors Climb Aboard In-Flight Wi-Fi Provider
AVIATION: Entertainment, renewal deals and new CEO lift shares of Global Eagle.
Shares of in-flight Internet provider Golden Eagle get lift from arrival of new chief exec.
Office Properties by LAX Take Off With Investors
REAL ESTATE: Continental Tower goes for $98 million in most recent deal.
Desire takes off for headquarters properties near airport.
Why Rival Banks Put Money in East L.A. Lender
BANKING: Investment in Pan American could pay off in public-service benefits.
Investing institutions expect to buoy their business by sinking $6.3 million into floundering Pan American.
Regional Report
News and notes from communities across Los Angeles County
SpinMedia Group, a Hollywood digital media company, has acquired Death and Taxes, a men’s lifestyle site in New York. Financial terms of the deal were not disclosed.
Trial Results Give Healthy Boost to Drug Maker
BIOTECH: Puma’s shares rise in what one analyst calls best-case scenario.
Puma has the right R/x for investors after a positive trial performance for its breast cancer drug.
Mother’s Helper
Five years ago, Mother Co. founder and Chief Executive Abbie Schiller, 42, and her family decided to move in with her parents at her childhood home in Pacific Palisades to keep her then-fledgling children’s entertainment startup above water.
Student Makes Mark With Murals
Khrystaphauer Skinner’s street-art business idea wins camp contest.
Student Khrystaphauer Skinner caught a business program’s top prize with his street-art pitch.
Marketer Relies On Healthy Boost
Cancer survivor taps life lessons in running his firm, Eckim.
Cancer survivor Rob Gough now deals with the demands of running discount coupon websites.
Credit Union Channels TV Spotlight
SCE Federal staff takes turns offering financial tips on daily program.
SCE Federal Credit Union hopes its star rises with employees’ daily appearances on TV show “Tu Mundo Hoy!”
L.A. Improves Public Standing
INVESTMENT: Deals, IPOs help add 13 traded firms to list.
Deals and IPOs help the L.A. area stock up on more publicly traded companies.
Friday, July 25
Puma Biotechnology, Herbalife Among Week’s Big Movers
The Los Angeles Business Journal’s weighted index of the area’s largest public companies rose for the week.
Driving Design
Restaurant chains have test kitchens to try new recipes. James Bond calls upon Q’s lab to add a laser cutter to his wristwatch.
L.A. Improves Public Standing
After several slow years, deals and initial public offerings have roared back, shaking up the Business Journal’s annual list of publicly traded companies in Los Angeles.
Stocks Fall
The Dow Jones industrial average fell 123 points in Friday’s trading to close at 16,961. The S&P 500 fell 10 points to 1,978. The Nasdaq fell 23 points to 4,450. The LABJ Stock Index edged down a point to 199.
Bose Sues Apple’s Beats Over Patent Infringement
Bose has filed a lawsuit against Beats Electronics, claiming 36 patent infringements related to noise canceling technology.
Opera Completes Acquisition of AdColony
Opera Software has completed its acquisition of AdColony, a West Los Angeles mobile video advertising platform that specializes in HD mobile video.
President Calls for ‘Economic Patriotism’ in L.A. Speech
In an address at Los Angeles Trade Technical College, President Barack Obama called for more job training and also criticized U.S. firms seeking tax breaks by moving overseas. The Los Angeles Daily News and Los Angeles Register have coverage.
Fox Sells Italian, German Units
The sale of 21st Century Fox’s pay television units in Italy and Germany to British Sky Broadcasting Group for more than $9 billion may give Fox more power to continue its attempts to buy Time Warner, the New York Times said.
Koreatown Towers Sold for $283 Million
The Vermont towers in Koreatown sold for $283 million to Capri Capital Partners of Chicago and TruAmerica Multifamily of Los Angeles, the Los Angeles Times reported.
Pasadena Group Envisions Experimental Spacecraft
The Planetary Society of Pasadena has taken a lead role in working on a project called LightSail, a relatively inexpensive satellite that employs a solar sail to move through outer space, according to the Los Angeles Times.
Skanska Gets Westside Subway Contract
The Metropolitan Transportation Authority board awarded a $1.6 billion contract for the first phase of a project to extend the Purple Line westward to a Skanska USA-led group despite a lower bid, the Los Angeles Times reported.
Storage Tank Company to Pay EPA Fine
Rancho LPG Holdings in San Pedro will pay a $260,000 EPA penalty after being cited for having insufficient safety information for earthquake-related risks, the Los Angeles Times reported.
California’s White Collar Employment Booming
The rate of job growth in the state’s well-paying professional service occupations such as engineering, law and consulting has more than doubled that of overall employment since the end of the recession, the Los Angeles Times said.
Google to Explore Human Anatomy
Search engine firm Google’s new project, the Baseline Study, will involve the genetic and molecular analysis of human bodies in an attempt to find biological patterns that will help doctors diagnose diseases, the Wall Street Journal said.
Big SUVs Keep G.M. Moving
Sales of large SUVs are a significant boon to G.M. as the automaker copes with billions in costs related to safety problems, especially a malfunctioning ignition switch that led to major vehicle recalls, according to the New York Times.
Burger King’s Youth Movement
Burger King Chief Executive Daniel Schwartz is in his early 30s and two of the fast food company’s other top executives are in their 20s. The youthful leaders are running the company at a time when consumers prefer fancier eateries, Bloomberg Businessweek reports.
Stocks Down
The Dow Jones industrial average fell 147 points in Friday morning trading to 16,936. The S&P 500 was down 12 points to 1,976. The Nasdaq was down 36 points to 4,436.
Thursday, July 24
Breitburn Energy Hits Gusher in $2 Billion Deal
Los Angeles oil company Breitburn Energy Partners announced Thursday that it has agreed to buy QR Energy of Houston for nearly $2 billion in cash and stock.
City National Beats Expectations
City National Corp. reported strong second-quarter earnings after markets closed Thursday, posting net income of $66.7 million ($1.11 a share), up 12 percent over the same period a year ago.
Reliance Shares Dip as Earnings Fall Short
Shares of Reliance Steel & Aluminum Co. fell on Thursday after the company reported earnings below analyst expectations despite record revenue.
VCA Inc. Beats Expectations
L.A. animal health care company VCA Inc. reported earnings on Thursday that beat analysts’ expectations.
Poll: Are you concerned about climate change?
Every week the Los Angeles Business Journal asks readers their views on a variety of business and economic issues. A running tally is available on the site and later will be published in the Commentary section of our print edition.
Dow Jones, Nasdaq Down; S&P Up; LABJ Flat
The Dow Jones industrial average fell 3 points in Thursday’s trading to close at 17,084. The S&P 500 rose a point to 1,988. The Nasdaq dropped 2 points to 4,472. The LABJ Stock Index was flat at 200.
Chernin and AT&T Reportedly Set to Buy Fullscreen
Fullscreen is said to be close to a deal to sell a majority stake to Otter Media, a joint venture of Chernin Group and AT&T.
Testimony Concludes in Sterling Case
Testimony concluded Wednesday in the probate case between Los Angeles Clippers co-owners and estranged spouses Donald and Shelly Sterling to decide whether the latter had the right to negotiate a $2 billion sale of the NBA team. Both sides are scheduled to return to court Monday for closing arguments, according to the Associated Press.
CEOs Demand Tax Reform
The chief executives of Eli Lilly and Caterpillar said during interviews on CNBC that that U.S. corporate taxes need to be lowered and reformed in response to concerns over so called inversions, or companies leaving the country to seek lower taxes.
Algerian Jet Crashes, Lost Over Mali
An Air Algerie flight with 116 passengers is believed to have crashed in Mali after taking off in Burkina Faso. The plane may have gone down in an area where Islamist militants are battling the Malian government and French military, the Wall Street Journal reported.
American Apparel Gets First Female Board Member
Colleen B. Brown, formerly the chief executive of Fisher Communications, has been the first woman named to American Apparel’s board. Her appointment may be an attempt to signal a change in corporate culture than that which existed under former chief Dov Charney, who has been accused of sexual harassment in the past, the Los Angeles Times said.
Wal-Mart Leader to Resign
Bill Simon, Wal-Mart Stores Inc.’s U.S. chief executive, will leave the company for undisclosed reasons. The retail giant has faced serious competition from online sellers and dollar stores, the Wall Street Journal said.
Presidential Motorcade Blocks Woman From Hospital
A pregnant woman in labor was unable to walk across a street in order to get to Cedars Sinai because the street was closed for President Obama’s motorcade, The Blaze reported.
Jobless Claims Plummet to Eight Year Low
The number of Americans filing jobless claims fell to lowest level since February 2006 last week, a welcome development that analysts did not anticipate, Bloomberg said.
Hermosa Beach Vote Set on Oil Project
Hermosa Beach residents will get a chance to vote on whether E&B; Natural Resources Corp. will be allowed to drill for oil in the city. The vote is set for March 3, the Daily Breeze reported.
Calpers Cuts Hedge Fund Investments
The California Public Employees’ Retirement System is expected to reduce its hedge fund investments by 40 percent this year as other public pension managers are seeing less value in such investments, according to the Wall Street Journal.
T.V. Ads Fall Short
Television advertising revenues booked this summer have fallen some $600 million below last year’s levels, possibly due to advertisers migrating to the Internet or becoming more cautious, the Los Angeles Times said.
Mobile Ads Boost Facebook Profits
Social networking service Facebook’s profit surged to $791 million in the second quarter as the company received some two thirds of its revenue from ads shown on mobile devices, the New York Times said.
Dow Jones, S&P 500 Up; Nasdaq Down
The Dow Jones industrial average was up 11 points in Thursday morning trading to 17,097. The S&P 500 was up 2 points to 1,989. The Nasdaq was down 4 points to 4,470.
Wednesday, July 23
Puma Shares Skyrocket
Shares of Westwood pharmaceuticals firm Puma Biotechnology Inc. increased by nearly 300 percent Wednesday after the firm reported a successful test of a drug being developed to treat breast cancer.
Alarcon and Wife Convicted
Former Los Angeles City Council Richard Alarcon and his wife were convicted Wednesday of voter fraud and perjury in a case involving allegations they lied about their residence in order for him to qualify to run for office.
Skechers Beats Estimates
Shares of shoe company Skechers USA rose in after-hours trading Wednesday after the company’s reported exceeded estimates.
Jakks Shares Fall on Earnings
Shares of Malibu toy firm Jakks Pacific fell nearly 14 percent Wednesday after the firm reported a deeper loss than analysts expected.
Dow Jones Down; S&P 500, Nasdaq, LABJ Up
The Dow Jones Industrial Average fell 27 points in Wednesday’s trading to 17,087. The S&P 500 went up 3 points to 1,987. The Nasdaq rose 18 points to 4,474. The LABJ Stock Index increased by 1 point to 200.
Lions Gate Invests in Next Games
Lions Gate, the studio behind young adult franchises “The Hunger Games,” “Twilight” and “Divergent,” has invested in Finnish game developer Next Games as part of its effort to move into the gaming industry.
East L.A. Bank Saved From Closure
More than a dozen West Coast banks provided $6 million in capital to save Pan American Bank of East Los Angeles from closure, the Los Angeles Business Journal reported.
Presidential Visit to Clog L.A. Traffic
President Barack Obama’s fundraising venture to Los Angeles is going to lead to traffic problems today and Thursday from West Hollywood to Mid-Wilshire to Pacific Palisades. The Los Angeles Times has a guide to street closures.
Contradictory Health Law Rulings
Two appellate courts on Tuesday gave contradictory rulings over the legality of Americans receiving subsidies for health insurance purchased over federally managed exchanges, the Washington Post reported.
New Sterling Filing in Clippers Fight
Embattled Los Angeles Clippers owner Donald Sterling filed a new lawsuit seeking to block his estranged wife Shelly’s attempt to sell the team to former Microsoft head Steve Ballmer, the Los Angeles Times reported. Also, the team’s interim chief executive testified that the organize could enter a “death spiral” if Donald Sterling retains ownership.
Sony Pictures Losing Jeff Blake
Jeff Blake, vice chairman of Sony Pictures Entertainment, is leaving the company after 22 years of work that included overseeing the marketing campaigns for “Spider-Man” flicks, the Los Angeles Times reported. The Wrap examines the studio’s leadership situation.
Shows Moving From Online to Broadcast
Online content producer BiteSizeTV has found a place for its entertainment talk show, “Hollywood Today Live,” on Fox. The move is part of a trend of shows being born online before moving to TV, the Los Angeles Times said.
Oil-by-Rail Project Faces Environmental Challenges
Tesoro Corp.’s plan to carry oil by rail to Vancouver on its way to California could face serious environmental challenges, according to the San Gabriel Valley Tribune.
Renovation Planned for Los Cerritos Center
Santa Monica’s Macerich Co. is seeking approval from Cerritos officials for a $40 million renovation of Los Cerritos Center, a large indoor mall that would get a new cinema if the plan is approved, the Long Beach Press-Telegram reported.
Banking for Low-Income Depositors
Major U.S. banks are developing new services for financially-challenged consumers as a means of boosting their post-recession reputation, even if the new business is not likely to prove profitable, the New York Times said.
Hollywood Reaching Out to Comic Fans
Hollywood studios and TV networks plan to trade exclusive VIP-only events for a more fan-friendly focus at San Diego Comic Con, which begins Thursday, according to Variety.
Dow Jones down; S&P 500, Nasdaq Up
The Dow Jones industrial average was down 13 points in Wednesday morning’s trading to 17,100. The S&P 500 was up 5 points to 1,988. The Nasdaq was up 19 points to 4,474.
Tuesday, July 22
Fellow Lenders Save East L.A’s Pan American Bank
More than a dozen West Coast banks, including eight in Los Angeles County, pumped $6 million of new capital into East L.A. lender Pan American Bank, which was on the verge of being shut down by regulators.
LuckyPennie Banks on Cincinnati Accelerator
LuckyPennie has left its Mid-Wilshire office and set up shop in Cincinnati. But the decision to relocate wasn’t just a flip of a coin.
Realty Mogul Raises $1.5 Million for First Crowdfunded Hotel
Realty Mogul, a Beverly Hills real estate crowdfunding company, has raised $1.5 million from smaller investors seeking a stake in the Hard Rock Hotel in Palm Springs, the first operating hotel in the country to crowdfund an equity infusion.
PK4 Media Acquires Prosperio
Ad tech company PK4 Media has acquired Prosperio, a developer of direct platforms for display and video ads.
Herbalife Shares Rise After Ackman Attack
Herbalife shares rallied Tuesday after a hedge fund manager’s presentation failed to deliver convincing evidence to back up his allegations that the Los Angeles multilevel marketing nutritional supplements company is a fraudulent scheme.
PacWest Beats Expectations on Earnings
PacWest Bancorp in Westwood on Tuesday reported strong second quarter earnings, beating analyst estimates in the first quarter since the company closed its merger with CapitalSource, another Los Angeles bank.
EARNINGS: BBCN, Hanmi, Wilshire
Shares of Koreatown lenders BBCN Bancorp Inc., Hanmi Financial Corp. and Wilshire Bancorp all closed slightly down Tuesday after the three banks reported earnings.
New L.A. Chief for American Airlines
American Airlines Group has selected Juan Carlos “J.C.” Liscano as the airline’s next head of operations at LAX.
Stocks Rise
The Dow Jones industrial average gained 62 points in Tuesday’s trading to close at 17,114. The S&P 500 rose 10 points to close at 1,984. The Nasdaq increased by 31 points to close at 4,456. The LABJ Stock Index gained 2 points to close at 199.
CIT Group to Buy OneWest Bank
CIT Group announced today it will buy OneWest in Pasadena for $3.4 billion in the largest bank merger thus far of 2014, the Wall Street Journal said.
New Terminal OK’d for LAX
LAX commissioners have granted their approval for a new $900 million terminal west of Tom Bradley International that will be built to handle the world’s largest passenger jets, the Los Angeles Times reported.
Court Deals Blow to Obamacare
A federal appeals court ruled today that consumers who buy insurance on federally run exchanges, as opposed to those managed by state governments, cannot receive subsidies for their purchases. The Wall Street Journal is covering the story.
Ballmer Meets Sterling Amid Battle Over Clippers
Former Microsoft chief Steve Ballmer, who wants to buy the Los Angeles Clippers for $2 billion, had a “friendly meeting” with team co-owner Donald Sterling, ESPN reported.
Time Warner May Attract New Offers
Analysts anticipate that 21st Century Fox may not be alone in its attempt to buy Time Warner after it rejected Fox’s $80 billion buyout offer, according to the Los Angeles Times.
Apple Prepares Larger iPhones
Apple is asking its suppliers to assemble 70 to 80 million iPhones with larger screens than current models in a bid to increase its competitiveness versus Samsung and other rivals, according to the Wall Street Journal.
Record Label Seeks Online “Awesomeness”
Universal Music Group has a new label dubbed “Awesomeness Music” to promote performing artists discovered on YouTube, the Los Angeles Times reported.
Probing Bank Accounts for Traffickers
Homeland Security and Treasury Department investigators are examining “funnel accounts” at U.S. banks to look for banking patterns that may point a way to smugglers who bear responsibility for the ongoing border crisis, the Los Angeles Times said.
NFL Draft May Move to Los Angeles
Los Angeles has not had an NFL team within its limits, or even claiming the city’s identity, for about two decades. Even so, either L.A. or Chicago will get to host the 2015 NFL draft, according to the Associated Press.
Leadership Update for CBS Films
CBS Films now has a single president in Terry Press. Press shared the studio’s presidency with Wolfgang Hammer, who now holds a consulting role, The Hollywood Reporter said.
Mobile Advertising to Top Print, Radio
Analysts estimate that spending on mobile advertisements will increase dramatically this year, going up 83 percent to nearly $18 billion. This would put mobile ads above total spending on ads delivered in print newspapers or during radio broadcasts, the Wall Street Journal said.
Weinstein Co. Gives Yahoo Early-Release Rights to Film
Yahoo has struck a deal with Weinstein Co. to release the film company's "One Chance" ahead of its theatrical debut this fall, the Los Angeles Times reports, The agreement is the latest in a series of moves by Yahoo that illustrate its intentions to be a player in the digital video space.
Stocks Up
The Dow Jones industrial average was up 74 points in Tuesday morning’s trading to 17,124. The S&P 500 was up 11 points to 1,985. The Nasdaq was up 36 points to 4,461.
Monday, July 21
Bribes Lead to Prison for Bank Employee
A former Bank of America employee in Simi Valley received 30 months in federal prison on Monday for approving artificially low prices for property short sales in exchange for $1.2 million in bribes.
Herbalife Shares Fall After Pershing Square Renews Attack
Herbalife share prices fell on Monday after the company’s longtime foe William Ackman said he will present evidence Tuesday to show that the Los Angeles supplements company operates as a massive fraud.
Dealflicks Premieres with $1.7 Million Seed
Dealflicks, which calls itself the the Priceline for movie theaters, has raised $1.7 million in seed funding.
Mattel Adopts Direct Sales for ‘Thomas & Friends’
Mattel announced Monday it will sell “Thomas & Friends” toys directly to customers through a new catalog and website designed specifically for fans of toys based on the popular train-themed children’s program.
Stocks Fall
The Dow Jones industrial average lost 48 points in Monday’s trading to close at 17,052. The S&P 500 slipped 5 points to close at 1,974. The Nasdaq dropped 7 points to close at 4,425. The LABJ Stock Index edged down less than a point to close at 197.
Feds Focus on L.A. Operation of Rail Service Firm
Federal authorities are investigating alleged misconduct on that part of Progress Rail Services, which has operations on Terminal Island. Current and former Progress Rail employers told the Wall Street Journal they were pressured to bill customers for unneeded repairs and even damage working train parts.
Horror Producer Gets 10-Year Deal
NBCUniversal has inked a 10-year multiplatform contract with Jason Blum’s Blumhouse Productions, known for building franchises such as “The Purge” series with minimal budgets, The Hollywood Reporter said. Check out the Business Journal’s earlier article about Blum and his haunted houses:
Chili-Grinding Time Nears for Sriracha
Irwindale hot sauce producer Sriracha, under fire from neighbors who complained about irritating fumes, is planning to offer tours of its factory in August pepper-grinding season begins, the Pasadena Star-News said.
Sterling Court Fight to Resume
The trial pitting Donald against Shelly Sterling is set to resume with new testimony today as the couple spar to determine whether Donald can block the sale of the basketball team, according to the Associated Press.
California Farmers Compete Over Water Contracts
The state’s drought has pushed Central Valley farmers to the point where they have to outbid each other for scarce water supplies or risk crop failures, the San Jose Mercury News reports.
Beware the Century Crunch
The “Century Crunch,” a planned shutdown of Century Boulevard near LAX from Friday through July 28, is the expected to cause major congestion near the airport, the Daily Breeze warns.
Retail Moves From Virtual to Actual
Online retailer Nasty Gal’s recently announced plans to open a brick-and-mortar store in Southern California put the company in a position to follow the likes of Bonobos and JustFab, which have made similar moves to showcase their goods in physical stores, the Los Angeles Times said.
Tribune Publishing Valued as High as $635 Million
Tribune Publishing, set to spin off in August from Tribune Co. with the Los Angeles Times, Chicago Tribune and other dailies in its portfolio, could be worth as much as $635 million. The Los Angeles Times covers an analyst’s view of the new company.
Hobby Lobby Opens in West Covina
Hobby Lobby, noted for its recent victory in a Supreme Court case opposing the Affordable Care Act and contraception, is set to open a new store today in West Covina, the San Gabriel Valley Tribune reported.
Apes Maintain Grip on Box Office
“Dawn of the Planet of the Apes” held its box office lead with a $36 million take during its second week. “The Purge: Anarchy” claimed second place, Variety said.
Stocks Down
The Dow Jones industrial average fell 100 points in Monday morning trading to 17,000. The S&P 500 was down 10 points to 1,968. The Nasdaq lost 19 points to 4,413.
Jeans Maker Back in Fashion After Acquisition
CLOTHING: Revenue, cost savings from Hudson deal boost shares of Joe’s.
Joe’s Jeans buttons up more investors on the strength of its earnings report.
Stable Stock Turns Utility Into Player
water: Rash of new deals also buoys American States’ shares.
Stability of utility stocks and the expectation of new business have buoyed American States.
Standing Up For Smokin’ In Boys’ Room
Lone Wolf Cigars aims to make splash with waterless urinal.
Lone Wolf Cigars hopes to smoke out new customers by upgrading its men’s room with a waterless urinal.
Follow the Bouncing Ball
Sandy Lechtick makes sure to exercise regularly when he’s not running Woodland Hills legal search firm Esquire Inc. But the 65-year-old is not much for golf or treadmills.
Regional Report
News and notes from communities across Los Angeles County
Shot in Arm: Arrowroot Capital, a Santa Monica investment firm focused on software and Internet businesses, has invested $4 million in MedNet Solutions, a life-sciences technology company in Minnetonka, Minn.
Television-Film Company Makes Noise With Library
MEDIA: Lions Gate among content owners boosted by bid for Time Warner.
Producer-distributor Lions Gate’s star rises on increased demand for TV and movie content.
Studio Cues Up Larger Rehearsal, Recording Site
MUSIC: Swing House more than doubles space with Atwater Village facility.
Swing House Studios of West Hollywood routinely rents space to big-name bands such as Aerosmith for recording tracks or rehearsing for tours.
News of the Week
Last week’s major news from labusinessjournal.com and other sources
U.S. Customs and Border Protection officials in Los Angeles last week announced the largest seizure of Giant African Snails ever caught entering the Los Angeles.
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Upcoming local events.
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Upcoming local conventions.
Industrial Projects Make Room for Office Space
Interest builds in industrial properties willing to share room with office space.
Vacancies Down, Asking Rates Up Amid Resurgence
Los Angeles County’s commercial real estate rebound was in full swing last quarter as the office vacancy rate declined, asking rental rates rose and construction increased.
West Los Angeles, Culver City Turn Up Heat in Hot Submarket
The pull of the Westside remained strong in the second quarter as employers continued to surf the economic recovery, expanding space and increasing headcount.
Landlords Chase Higher Rents Despite Return of High-Rise Space
Despite starting off the year strong, the downtown L.A. office submarket had another weak quarter as its stable of traditional high-rise office towers continued to hemorrhage tenants.
Entertainment, Creative Companies Help Turn Submarket Into Star
It might not be obvious by the numbers, but Hollywood’s office submarket had a strong second quarter.
Miracle Mile Paces Field as Residential Development Moves In
The Wilshire Corridor arrived at the midyear mark on a raft of steady performance. Data from Jones Lang LaSalle Inc. show asking rates of $2.42 per square foot were unchanged from the previous quarter and up from $2.35 the year prior.
Santa Monica, Beverly Hills ... Central Valley? Space at Premium
Vacancy rates across the San Fernando Valley dropped to 13.7 percent in the second quarter, declining significantly from a year earlier, when the region was seeing vacancies north of 15 percent. Reasonably strong tenant demand continued throughout the quarter, with 170,400 square feet absorbed, according to Jones Lang LaSalle Inc.
Asian Investors, Lot Bidders Crowd Into Already Tight Submarket
A strengthening recovery and an influx of Asian investors kept the vacancy rate in the San Gabriel Valley industrial market the lowest in the region for the second quarter in a row. Vacancy is at 2.7 percent, down from 5.1 percent just a year ago and 3.5 percent last quarter, according to data from Jones Lang LaSalle Inc.
Submarket Shakes Off First Quarter as Burbank, Glendale Heat Up
The Tri-Cities office submarket bounced back last quarter from a slow start to the year as activity in Glendale and Burbank heated up.
Office Vacancies Rise While Industrial Market Picks Up Steam
The numbers for the South Bay’s industrial and office markets told different stories on the subject of second quarter performance.
State Must Boost Show Biz’s Role
David M. Smith says state should make a bigger production out of supporting show business.
City of Limits?
L.A.’s school district is largely viewed as inadequate, the freeways are usually undriveable during rush hour, developers still face long waits for permitting and crime remains a concern.
What is the biggest challenge facing Los Angeles?
Investors Return To Small Banks
FINANCE: Capital raises show strength of once-snubbed sector.
Small lenders look to capitalize on big investors’ surging interest in the sector.
Direct Lines
BEAUTY: M. Steves’ salespeople to target networks of family, friends to move company’s skin care products.
M. Steves looks to flesh out a direct sales model to deliver its skin care line to consumers.
Industrial Strength?
Tenants, buyers have few options as lack of land limits projects to ease tight market.
Dearth of developable land grounds L.A.’s industrial market as rents soar.
Seaside Resort Clicks With Technology Conference
hospitality: Terranea has channeled Code into boosting hotel’s profile.
Terranea Resort touts its link to Code Conference to promote itself beyond the Internet industry.
Taking Rap
KDAY spins hip-hop into ad sales, ratings
KDAY says it has succeeded in getting advertisers and listeners to take its old-school hip-hop format for a spin.
Venture Capitalist to Set Sail for Overseas Startups
INVESTMENT: One-third of Wavemaker’s new fund to go to Southeast Asian firms.
VC Wavemaker seeks to connect overseas with tech startups in Southeast Asia.
Blow-Dry App More Than Just Hot Air
Beautiq lets customers bring range of beauty services to them.
Beautiq looks to air out the industry with an app letting users bring blow-dry and other styling services to them.
YouTube Tweaks Video’s Big Picture
INTERNET: Small creators left to sort out copyright claims solo.
YouTube policy shift has taken the fight out of some video creators who must now battle copyright claims on their own.
Decline in Asking Rents Helps Put Freeze on Office Development
Fluctuations in the Santa Clarita Valley office market were minimal in the second quarter, confirming a trend toward stabilization.
Malibu Council Approves Limits on Chain Stores
RETAIL: City also places more restrictive citizens’ initiative on fall ballot.
Malibu City Council OKs limits on chain store space and puts further restrictions up to a public vote in November.
Friday, July 18
Moviepilot Looks to Fill Venice Headquarters
Moviepilot, an online film review and publishing site, will undertake an accelerated hiring schedule as it squarely focuses on its U.S. operations in Venice.
Los Angeles County Unemployment Rate Falls
Los Angeles County’s unemployment rate fell to 8.1 percent in June as employers added a net 4,800 jobs, according to figures released Friday.
Lions Gate Entertainment, Aecom Among Week’s Biggest Movers
The Los Angeles Business Journal’s index of the area’s largest public companies was flat for the week.
Stocks Rise
The Dow Jones industrial average rose 123 points in Friday’s trading to close at 17,100. The S&P 500 rose 20 points to close at 1,978. The Nasdaq rose 69 points to close at 4,432. The LABJ Stock Index rose 2 points to close at 197.
L.A. Investments Up 52 Percent from Previous Quarter
Los Angeles County companies raised $472 million in the second quarter, a 52 percent increase from the previous period, according to the latest Money Tree Report.
Microsoft Killing Xbox Entertainment Studios
Microsoft will soon pull the plug on Xbox Entertainment Studios, the short-lived attempt to development original content aimed at gamers, Forbes reports. The failure represents a significant missed opportunity for the tech giant, The Wrap says.
Wearable Tech Showcased in Pasadena
Technologically-enhanced shoes, glasses and even an armband-and-glove device armed with a Taser were among the new products shown at the inaugural Wearable Tech LA conference in Pasadena, the San Gabriel Valley Tribune said.
Time Warner Prepares for Fox Fight
Time Warner may be in for a fight after turning down 21st Century Fox’s $80 billion bid, as Fox chief Rupert Murdoch may not be willing to take “no” for an answer, even if that means paying an even larger sum, the Los Angeles Times reported.
Downtown Building to Become Hotel
Sydell Group Ltd. plans to turn a vacant building into a downtown hotel positioned for hip travelers, the Los Angeles Times said.
Feds Indict FedEx in Prescription Drug Case
The Justice Department has charged shipping company FedEx with illegally transporting prescription medications. The company has denied wrongdoing and faces a fine of at least $1.6 billion, according to the Wall Street Journal.
New Development to Begin in Downtown Long Beach
The construction of a $53 million residential and retail complex is beginning in downtown Long Beach. The project is expected to be built in 2017, the Long Beach Press-Telegram reported.
New Future for San Pedro Offices
Jupiter Holdings, new owners of a mostly-vacant 11-story tower in San Pedro, are renovating the building in a bid to attract new tenants, according to the Daily Breeze.
Americans Holding Much More Cash
Average checking account balances reached $4,436 at the end of 2013, signaling that Americans are holding on to cash instead of increasing spending to pre-recession levels, the Los Angeles Times reported.
Google’s Ad Challenge
Search engine giant Google reported a rise in its quarterly net income, but its earnings were below analysts’ estimates as the company deals with the problem of ad revenue for mobile devices being less lucrative than ads designed for PC users, the New York Times said.
Pharma Firm Makes European Deal
Drug maker AbbVie Inc. has reached a deal to buy the Irish company Shire for $54.8 billion in the largest merger ever motivated by an American firm’s bid to pay lower taxes by relocating to Europe, according to Bloomberg.
Stocks Up
The Dow Jones industrial average was up 88 points in Friday morning trading at 17,064. The S&P 500 was up 13 points to 1,971. The Nasdaq rose 44 points to 4,408.
Thursday, July 17
Snapchat Trademarks Suggest Peer-to-Peer Payments
Two Snapchat trademarks filed last week suggest the company may be considering a monetization plan that relies on peer-to-peer online payments, a revenue-generating strategy already used among messaging apps in Asia.
Ares Management Buys Veterinary Firm
Ares Management of Century City on Thursday announced its purchase of National Veterinary Associates in Agoura Hills.
Colony Financial Plans $336 Million Stock Offering
Colony Financial Inc., a Santa Monica real estate investment company, will seek to raise some $336 million via an offering of 15 million shares of common stock.
Partners Trust Real Estate Acquires Malibu Firm
Partners Trust Real Estate Brokerage & Acquisitions in Beverly Hills announced on Thursday it has purchased Arete Estates, a Malibu firm specializing in high-end real estate.
Stocks Fall
The Dow Jones industrial average lost 161 points Thursday to close at 16,977. The S&P 500 dropped 23 points to close at 1,958. The Nasdaq fell by 63 points to 4,363. The LABJ Stock Index dipped 2 points to 195.
SpinMedia Acquires Men's Lifestyle Site, Looks to Expand
SpinMedia Group has acquired men’s lifestyle site Death and Taxes, the latest effort by the digital media company to turn its fortunes around.
Microsoft to Lay Off 18,000
Microsoft is poised for the largest layoff in its history, eliminating 18,000 jobs in the next year, most shed from companies acquired from the phone maker Nokia, the New York Times said.
Barbie Sales Hurt Mattel
The declining popularity of Barbie dolls is a burden for Mattel as the El Segundo toy maker reported lower net income for the second quarter, according to the Wall Street Journal.
Fox May Continue Time Warner Hunt
Rupert Murdoch’s pursuit of Time Warner could lead to a steep price, as the cost of an acquisition could be driven up to $91 billion, the Los Angeles Times reported. Also, the New York Times assesses the logic of big media mergers.
Tesla to Produce Lower Cost Models
Tesla Motors’ work to put electric autos on American roads will continue with the company’s planned introduction of the Model 3 in 2017 with a price of about $40,000, the Los Angeles Times said.
Netflix Ending Saturday Shipments
Netflix will end its Saturday shipments in a move that could save the company millions in mailing costs as it continues its transition from a DVD-by-mail service to a streaming service, the Los Angeles Times said.
Disney, Netflix Announce Canadian Deal
Walt Disney Co. and Netflix announced an agreement in which the latter company will have the exclusive right to stream theatrically screened movies to Canadian audiences, according to Variety.
Wilmington Residents Want Stricter Air Rules
Wilmington residents praised the EPA’s effort to enact tougher air pollution rules for the petroleum industry during a public hearing held on Wednesday, the Daily Breeze reported.
Warehouse Orders Up
The growth of Internet commerce is creating increased demand for Southern California warehouse spaces as the region’s population and proximity to key seaports makes it an ideal spot for fulfillment centers, the Los Angeles Times reported.
Drought Crackdown: A Lone Cop Walks the Beat
There may be state approval for new fines, but the Department of Water and Power has but one man in charge of enforcing water conservation rules, the Los Angeles Daily News said.
Diversity Push at Marvel
Marvel Comics will place an African American comic book character in the iconic role of Captain America, the company’s chief creative officer announced on “The Colbert Report,” a move that could later translate to the film series, according to The Wrap.
Stocks Down
The Dow Jones Industrial Average slipped 37 points in Thursday morning trading to 17,101. The S&P 500 lost 7 points to 1,974. The Nasdaq fell 23 points to 4,403.
Wednesday, July 16
East West Net Income Rises
Pasadena’s East West Bancorp on Wednesday reported a double-digit percentage increase in profits for its latest quarter.
Love Culture Files for Reorganization, Seeks Sale
Love Culture, the fashion company that was part of the recent upswing in clothing manufacturing in Los Angeles, filed for Chapter 11 bankruptcy on Wednesday.
Poll: Should film companies be allowed to use aerial drones?
Every week the Los Angeles Business Journal asks readers their views on a variety of business and economic issues. A running tally is available on the site and later will be published in the Commentary section of our print edition.
Stocks Rise
The Dow Jones industrial average rose 78 points in Wednesday’s trading to close at 17,138. The S&P 500 gained 8 points to close at 1,982. The Nasdaq increased by 10 points to close at 4,426. The LABJ Stock Index edged up less than a point to close at 197.
Siemer Ventures Announces $45 Million Fund, Rebrands
Siemer Ventures, an early-stage technology VC, has announced its third fund, a $45 million raise to focus on e-commerce and ad-tech startups. In announcing the fund, the Santa Monica firm said it would also rebrand as Wavemaker Partners.
Fox Bid for Time Warner Could Trigger Big Mergers
Rupert Murdoch’s Twenty-First Century Fox made an $80 billion takeover bid for Time Warner and although it was rebuffed the bold approach could put Time Warner in play and ignite a new spate of mega-mergers among big entertainment companies, the New York Times reports.
State OKs Fines for Water Wasters
California water regulators have voted to approve fines up to $500 a day for residents who waste water on lawns, landscaping and car washing after conservation measures to date have failed to achieve the 20 percent reduction in water use sought by Gov. Jerry Brown, the Associated Press reports.
L.A. Times Included in New Tribune Spinoff
The Los Angeles Times, along with the Chicago Tribune and other dailies, will be spun off from the Tribune Co. to the new Tribune Publishing as of Aug. 4, a move that could precede a sale of the newspapers, the Chicago Tribune reports.
U.S. Bank Tower to Get Observation Deck
The 72-story U.S. Bank Tower, the tallest building in Los Angeles, is set to be renovated with an observation deck and restaurant as its owners try to attract tourists, the Los Angeles Times said.
California’s Manufacturing Output Rises, Jobs Drop
California is producing more goods, but automation means fewer workers are needed for factory jobs in the state, according to a study covered by the San Gabriel Valley Tribune.
TV Production on Upswing
Television production in Los Angeles jumped 34 percent compared with the same time period last year as producers sought more new shows for the summer, according to the Los Angeles Times.
How Hollywood Courts Latinos
The Wrap examines how film studios crafts marketing campaigns designed to appeal to Latino movie fans.
Assessing Box Office Decline
Men and young people making fewer trips to the cinema, creating a challenge for film studios struggling through a 20 percent drop in North American summer revenue, the Hollywood Reporter said.
Corporate Tax Reforms Up for Consideration
The Obama Administration is seeking lower corporate taxes and other reforms to halt the trend of “inversions,” U.S. companies moving overseas to cut their tax burdens, according to the New York Times.
Noriega Sues Over “Call of Duty”
Former Panamanian dictator is suing Santa Monica-based Activision Blizzard Inc. over his depiction in the video game “Call of Duty: Black Ops II,” according to the Los Angeles Times.
Stocks Up
The Dow Jones industrial average gained 42 points in Wednesday morning trading to rise to 17,103. The S&P 500 rose 5 points to 1,979. The Nasdaq climbed 14 points to 4,431.
Tuesday, July 15
Tapiture, a Men’s Shopping Site, Seeks to Broaden Appeal
With top sellers like beard maintenance kits and skull-shaped ice cube molds, Tapiture has no doubt who its customers are and what they want to buy. But the social sharing and e-commerce site is trying to shed the gender-specific image that comes with being dubbed the “Pinterest for Men.”
Malibu Limits Chain Store Space
Malibu’s City Council voted Monday to restrict the amount of space chain stores can lease in Civic Center shopping centers, but much less than a citizens’ initiative would. The council also voted to place the citizens’ initiative on the November ballot.
Smart & Final Going Public
Smart & Final Stores Inc. has filed for an initial public offering.
Banc of California Expects OK of Branch Purchases
A Banc of California executive said Tuesday he anticipates federal regulators will approve their planned purchase of 20 bank branches in Los Angeles and Orange counties despite the objections of an activist group.
Lions Gate Makes Chinese Streaming Deal
Santa Monica studio Lions Gate Entertainment Corp. has made a deal to bring its TV shows and movies to a new streaming service in China.
Air Lease Corp. Makes Major Boeing Buy
Air Lease Corp. in Century City will purchase 26 Boeing Co. aircraft valued at $3.9 billion, both companies announced Tuesday.
L.A. Port Traffic Rising
Traffic at the Port of Los Angeles increased by nearly 14 percent on a year-over-year basis in June as shippers moved up their cargo due to the possibility of a work stoppage at the nation’s busiest seaport.
Six Flags Roller Coaster Still Closed
After four riders were injured last week, Six Flags Magic Mountain’s Ninja roller coaster is still being examined without an expected reopening date.
Dow Up; S&P, Nasdaq, LABJ down
The Dow Jones industrial average rose 5 points in Tuesday’s trading to close at 17,061. The S&P 500 slipped 4 points to close at 1,973. The Nasdaq lost 24 points to close at 4,416. The LABJ Stock Index lost a point to close at 197.
Snapchat Introduces Geofilters Feature
Snapchat has announced a new feature that will allow users to add customized filters depending on where the photo was taken.
SpaceX Gets Another Launch Success
Private spaceflight firm SpaceX had its latest successful launch Monday when a rocket made by the Hawthorne company loaded with six satellites took off from Florida, the Daily Breeze reported.
Norwegian Firm to Buy AdColony
Norway’s Opera Software is set to pay $350 million for Brentwood-based AdColony, which specializes in video commercials for online platforms, the Los Angeles Times said.
Tobacco Firms to Merge
Cigarette maker Reynolds American will buy competitor Lorillard in a $27.4 million deal, the New York Times said today.
City Tries to Stop Marijuana Farmers Market
The Los Angeles City Attorney’s Office will go to court to halt a farmers market for medical marijuana that opened over the Fourth of July weekend in Boyle Heights, City News Service reported.
TV Shutout Continues for Dodgers Fans
A Time Warner executive expressed doubt that any deals allowing Dodgers fans who are not Time Warner Cable subscribers to view the baseball team’s games will be made before season’s end, Southern California Public Radio reported.
California to Get Nearly $200 Million in Citigroup Deal
Citigroup’s $7 billion settlement with the federal government to resolve claims the banking firm misled investors on the risks related to securities backed by subprime mortgages will send nearly $200 million to California, the Associated Press said.
Fox Combines TV Units
Entertainment firm 21st Century Fox is forming the new Fox Television Group to combine the operations of Fox Broadcasting Co. and 20th Century Fox Television, according to the Los Angeles Times.
Actors’ Union Approves Contract
SAG-Aftra’s national board has approved a new three-year labor deal for film and television performers, the Los Angeles Times reported.
New Chairman Named at Latham & Watkins
The L.A. law firm of Latham & Watkins has chosen William H. Voge to succeed the retiring Robert M. Dell in its first leadership switch in more than two decades, the New York Times reported.
Decision on New Water Restrictions
State water officials today will consider new rules to curb water wastage, including $500 penalties for people who waste water in the middle of a drought by overwatering lawns, hosing off driveways or washing a car with a hose lacking a shutoff valve, the Sacramento Bee reported.
Giant Snail Pictures
The Los Angeles Times has photos of the 67 giant African snails that U.S. Customs and Border Protection recently seized at LAX.
Stocks Down
The Dow Jones industrial average was down 19 points in Tuesday morning trading to 17,035. The S&P 500 was down 7 points to 1,970. The Nasdaq was down 34 points to 4,406.
Monday, July 14
Activists Oppose Banc of California Acquisitions
The California Reinvestment Coalition, an organization that lobbies for banks to do more business in low-income communities, on Monday said it opposes Banc of California’s plan to acquire 20 Southern California bank branches from Popular Community Bank.
Customs Intercepts 67 Giant African Snails
An illegal shipment of 67 “extremely invasive” giant snails from Africa to San Dimas was intercepted at Los Angeles International Airport, the U.S. Customs and Border Protection service announced on Monday.
Stocks Rise
The Dow Jones industrial average rose 112 points in Monday’s trading to close at 17,055. The S&P 500 gained 10 points to close at 1,977. The Nasdaq increased by 25 points to close at 4,440. The LABJ stock index edged up by less than a point to close at 198.
Demand Media Sells Creativebug for $10 Million
Demand Media has sold Creativebug, an online video arts and crafts business, to Otter Media for $10 million.
Aecom Buying URS for $6 Billion
L.A. engineering firm Aecom Technology Corp. will buy San Francisco’s URS Corp. in a $6 billion deal that is expected to give Aecom new opportunities in the energy sector, the Los Angeles Times said.
Citigroup to Pay $7 Billion Mortgage Settlement
Citigroup and the Justice Department have agreed to a $7 billion settlement over claims related to the bank’s actions in downplaying risks of subprime mortgages that were packaged into securities sold to investors, the New York Times said.
Truce Called in Port Strike
Striking short haul truckers will go back to work after Los Angeles Mayor Eric Garcetti negotiated a cooling off period. The truce is expected to give the Los Angeles Harbor Commission time to investigate drivers’ claims, the Long Beach Press-Telegram reported.
Profile: Sparks Networks
An activist investor has shaken up the board at Los Angeles-based Spark Networks Inc., the company behind dating websites including JDate.com and ChristianMingle.com, the Los Angeles Times said.
Automakers Backing Hydrogen Tech
Toyota and Honda, which have tested hydrogen fuel cell technology in the South Bay for years, are planning to sell hydrogen-powered autos next year amid state plans for a network of hydrogen stations, according to the Daily Breeze.
Marijuana Delivery a Growing Business
Southern California is now home to hundreds of marijuana delivery services following the efforts of cities to restrict or ban medical cannabis dispensaries, according to the Los Angeles Times.
Powerful Telescope Tested in Redondo Beach
Engineers and technicians recently tested the sunshield for the James Webb Space Telescope at Northrop Grumman Space Park in Redondo Beach, the Daily Breeze reported.
U.S. Drug Maker Pursuing $54 Billion Merger
Pharmaceuticals firm AbbVie in Illinois is near an agreement to buy the Irish drug maker Shire for some $54 billion, the Wall Street Journal said.
Fox Crests $1 Billion in Box Office
Hits like “Dawn of the Planet of the Apes” and “X-Men: Days of Future Past” helped 20th Century Fox become the first studio to top $1 billion in domestic box office receipts this year, according to Variety.
Sotheby’s to Team With eBay
Online auction house eBay is expected to announce a partnership with the high-end auctioneer Sotheby’s to webcast the latter’s auctions around the world, the New York Times said.
Stocks Up
The Dow Jones industrial average was up 134 points in Monday morning trading to 17,078. The S&P 500 was up 12 points to 1,979. The Nasdaq rose 30 points to 4,445.
Changing Image
ENTERTAINMENT: Visual effects shop Hydraulx also hopes to be known for soundstage, equipment rentals at new HQ.
Visual effects shop Hydraulx hopes to get a lift from soundstage and equipment rental business.
Parents Give Birth to Businesses
TECHNOLOGY: Mobile devices open doors to educational products.
TECHNOLOGY: Increase in mobile devices has raised some parents’ interest in producing educational products for kids.
Phone-Linked Doorbell Welcomes $4.5 Million
Internet: Video-streaming security device pushes right button with investors.
Investors come calling on Bot Home Automation with $4.5 million for its Wi-Fi-enabled video doorbell.
Brewin’ R&D
New rules let UCLA put money into startups
UCLA may graduate to startup investing now that University of California has axed its funding ban.
Syntho-Lawns Take Root Amid Water Worries
LANDSCAPING: Drought inspires homeowners, HOAs to consider alternatives.
Businesses step into alternative turfs as the drought dries up interest in grass lawns.
Metal Broker Aims to Take Shine to British Market
GOLD: Rosland Capital to adapt U.S.-centric pitch in hopes of stoking interest.
Expansion into Britain may test the mettle of brokerage Rosland Capital.
Getting Religion
The Supreme Court ruled that private companies don’t have to meet all requirements of the Affordable Health Care Act if they conflict with the religion.
Was the Hobby Lobby ruling a victory for religious freedom or an intrusion of religion into law?
Chief Issue for Los Angeles
LAPD Chief Charlie Beck makes the grade with USC President C.L. Max Nikias.
Music Company Still in Tune With Santa Monica
LEASE: Universal renews for 10 years in transaction valued at $100 million.
Universal Music Group, the largest music company in the world, has committed to keep its global headquarters in Santa Monica.
conventions
Upcoming local conventions
calendar
Upcoming local events.
News of the Week
Last week’s major news from labusinessjournal.com and other sources
New York hedge fund Standard General stepped in to provide $25 million in financial support that will enable American Apparel Inc. to avoid a default.
Social Media Platform Looking to Take Credits
ENTERTAINMENT: Website NeonGrid seeks to be IMDb for video, music industries.
Bustling Culver City is home to a number of companies with products and services that bridge the worlds of entertainment and technology.
Investment Firm Pulls Into Operator of Gas Stations
RETAIL: Fortress’ deal for Appel-owned United Oil also includes Apro.
Appels pull out of United Oil after the family-founded gas station operator’s sale to Fortress.
Software Maker Backs Up Strategy With Earnings
TECHNOLOGY: Shares of Simulations Plus climb as firm plans more growth.
Investors stock up on Simulations Plus after the software maker’s strong earnings report.
Regional Report
News and notes from communities across Los Angeles County
Hooked Up: Pasadena’s Jacobs Engineering Group Inc. has completed its acquisition of Federal Network Systems, an Ashburn, Va., provider of communication system technology and services.
OK, Soccer Break’s Over...
Most bank executives wouldn’t brag about how many of their employees were watching sports during the workday. Then there’s Alan Rothenberg.
Bakery Still Sweet on Cupcakes
Hotcakes Bakes sees future in bigger space with added items.
Hotcake Bakes believes Angelenos haven’t had their fill of cupcake trend.
Snack Maker Raises Bar Distribution
Company expands into stores with some help from ‘Tonight Show.’
This Bar Saves Lives has sold some chain stores on its charitable fundraising product.
Beer to Take Wing at Airports
Golden Road crafts special brew as means to boost brand.
Craft brewer Golden Road targets airport distribution to help the brand take off.
Car Lender Eyes Lots of Growth
finance: Westlake expands services to major dealerships.
Subprime auto lender Westlake Financial Services has taken a turn for major dealerships.
Investors Arrive Seeking Returns
investment: Face time seen as key to cracking L.A. market.
Firms hope the value of having a physical presence in Los Angeles will show up in more business.
Boutique Hotel Project Checks Into Redondo Beach
development: Work starts on Shade with scheduled opening for November 2015.
Nearly a year after its ceremonial groundbreaking, construction has begun in earnest in Redondo Beach on the second location of Shade, a luxury boutique hotel.
Home Field
After post-college graduation break, Jeff Hyland found his niche as broker of L.A.’s biggest estates.
Broker Jeff Hyland has made a home for himself in L.A.’s high-end residential brokerage industry.
Friday, July 11
Science Inc. Acquires App-Maker InLight
Technology studio Science Inc. has acquired Armenian app-maker InLight as part of its effort to expand its mobile content portfolio.
Yahoo Buys Video Streaming Startup RayV
Yahoo announced Friday it had acquired video tech startup RayV, with offices in Hollywood, as part of its push to improve its video streaming technology.
SpaceX Advances on Right to Bid for Military Launches
Private rocket company SpaceX of Hawthorne has moved a giant step closer towards its goal of launching rockets for the U.S. military.
CBRE Makes Another German Acquisition
Los Angeles real estate company CBRE Group Inc. announced its second German acquisition of the year on Friday.
Ixia to Remain on Nasdaq, Panel Decides
Ixia announced Friday a Nasdaq hearings panel has determined to continue listing the company on the exchange if certain conditions are met.
American Apparel, AeroVironment Among Big Movers
The Los Angeles Business Journal’s weighted index of the area’s largest public companies declined for the week.
Stocks Up
The Dow Jones industrial average gained 29 points in Friday trading to close at 16,944. The S&P 500 rose by 3 points to close at 1,968. The Nasdaq increased by 19 points to close at 4,415. The LABJ Stock Index rose a half point to 198.
Charney Now Consulting for American Apparel
Dov Charney is for now playing the role of paid consultant at American Apparel, the Los Angeles Times said, as Bloomberg Businessweek details Charney’s attempts to regain control of the company after the board turned against him.
Tobacco Giants in Merger Talks
Reynolds American and Lorillard confirmed they are in talks that could lead to a merger between the tobacco firms. A deal would put Camel, Newport and e-cigarette brands under the same banner, the New York Times reported.
Shelly Sterling Testifies Donald OK’d Clippers Sale at First
Shelly Sterling testified her estranged husband Donald was at first enthusiastic about the prospect of a $2 billion sale of the Clippers to former Microsoft chief Steve Ballmer, the Los Angeles Daily News said.
Obamacare Added 8 Million to Insurance Rolls
Three studies show the Affordable Care Act has reduced the number of uninsured adults by at least 8 million people, the Los Angeles Times said.
Lender to Pay $10 Million Settlement
Ace Cash Express, which has 1,500 storefronts in California and other states, will pay $10 million to settle federal claims that it illegally put its customers in a cycle of debt, the Los Angeles Times said.
Box Office of the Apes
The newest “Planet of the Apes” movie made $4.1 million in Thursday night’s box office and is expected to make $60 million over the weekend, The Wrap reported.
Cash Hunt Hits the Valley
People hunted for cash at Balboa Park after Bay Area developer Jason Buzi, formerly known only as “hiddencash,” left money stashed at the locale, the Los Angeles Daily News said.
Study on Brain Bolsters Buffett View
A Caltech study on neuroscience and market bubbles seems to confirm Warren Buffett’s maxim “be fearful when others are greedy and be greedy when others are fearful,” the Pasadena Star News reported.
Dow Jones, S&P 500 Down; Nasdaq Up
The Dow Jones industrial average fell 23 points to 16,892 in Friday morning trading. The S&P 500 slipped 2 points to 1,963. The Nasdaq climbed 6 points to 4,402.
Thursday, July 10
Former MySpace Exec Talks L.A. Tech Scene
Like so many empires, MySpace came, conquered and collapsed into a wasteland. And Ted Dhanik was there, from the company’s launch in 2003 to its quick descent when confronted with new-kid-on-the-block Facebook.
Scripps Ends Talks With USC
Talks have broken off regarding an acquisition of Scripps Research Institute of La Jolla by USC or a merger or partnership between the two.
Skechers Accuses Fila of Infringement
Footwear maker Skechers USA announced Thursday that it has filed a federal lawsuit against Fila U.S.A., alleging that the latter company has infringed upon the patents and design of one of its products.
Stocks Down
The Dow Jones lost 71 points in Friday’s trading to close at 16,915. The S&P 500 slipped 8 points to close at 1,965. The Nasdaq fell 23 points to close at 4,396. The LABJ Stock Index edged down a point to 198.
LACMA Wants to Build New Tower
Los Angeles County Museum of Art leaders, who have already revealed their plans to build a wing of the museum over Wilshire Boulevard, are also considering a new high rise housing a hotel, condos and galleries near Wilshire Boulevard and Fairfax Avenue, the Los Angeles Times said.
Donald Sterling Calls Wife a ‘Pig’ in Court
Los Angeles Clippers co-owner Donald Sterling called his estranged wife Shelly Sterling a “pig” in a Los Angeles Courtroom Wednesday after he testified that he is willing to sue the NBA until his dying day, the Los Angeles Daily News reported. The Sterlings are fighting each other in court to determine whether Shelly Sterling had the right to agree to a $2 billion sale of the team.
Fed to Stop Bond Buys
The Federal Reserve will conclude its bond purchases in October, bringing an end to a controversial program that began during the past financial crisis as an attempt to stimulate the economy. The Wall Street Journal has coverage.
GOP Wants Speedier Deportations
Congressional Republicans are demanding changes to a 2008 law requiring migrant children whose countries of origin are other than Canada or Mexico be placed with sponsors in the United States if they are subject to deportation proceedings, which can last years. Former President George W. Bush signed the law as a measure against human trafficking, but some lawmakers want an expedited process as President Barack Obama seeks $3.7 billion to address an influx of children crossing the border illegally, the Wall Street Journal said.
New Promenade for San Pedro
The Downtown Harbor and Town Square, a $32 million project in San Pedro, is billed as a new venue for public events near the waterfront. The square is part of what may add up to more than $1 billion of enhancements planned through 2030, the Los Angeles Times said.
Portugal Troubles Worry Investors
Worries about economic problems in Portugal led to a sell-off in American markets on Thursday, Bloomberg said.
New Fines for Wasting Water
California water officials are set to consider new $500 fines for wasting water as the state’s serious drought continues, the San Jose Mercury News reported.
Rage Guitarist Supports Truckers
Tom Morello, best known as the guitarist for the band Rage Against the Machine, performed an acoustic set Wednesday for striking truck drivers outside a Terminal Island container terminal. The drivers are demanding to be classified as employees instead of independent contractors, the Long Beach Press-Telegram said.
Trump Can Keep Flagpole
The California Coastal Commission will allow Donald Trump to keep a 70-foot flagpole at the seaside Trump National Golf Course as long as Rancho Palos Verdes officials amend the city’s own rules, the Daily Breeze reported.
“Game of Thrones” Leads Nominations
HBO’s “Game of Thrones” followed by FX’s “Fargo” scored the most Emmy nominations, the Hollywood Reporter said.
Stocks Fall
The Dow Jones industrial average fell 91 points in early trading to 16,895. The S&P 500 slipped 10 points to 1,963. The Nasdaq dropped 27 points to 4,392.
Wednesday, July 9
American Apparel Agrees to Rescue Deal
American Apparel cut a deal that with its main investor that will allow the downtown Los Angeles clothing manufacturer to pay off a loan and avoid a default and potential bankruptcy, the company announced Wednesday.
MacFarlane Partners Buys Downtown Property
Real estate firm MacFarlane Partners has completed its purchase of vacant downtown property near the intersection of Fifth and Olive streets in downtown Los Angeles where the company plans to build a pair of residential buildings.
Dodgers Found Partly Liable in Stow Beating
A Los Angeles jury ruled on Wednesday that the Dodgers organization was negligent in the 2011 beating of Giants fan Bryan Stow and will need to pay Stow’s family millions of dollars in damages.
City Seeks Receiver for DWP Institutes
Los Angeles City Attorney Mike Feuer has asked a court to appoint a receiver to oversee the actions of two organizations run by the Department of Water and Power and a local union.
AeroVironment Shares Take Off on Earnings
Shares in AeroVironment Inc. jumped more than 13 percent on Wednesday after reporting better than expected fourth quarter earnings.
USC’s Keck Acquires OC-Based Practice for Cancer Network
Keck Medicine of USC, the University of Southern California’s medical enterprise, has acquired Orange Coast Oncology Hematology Medical Associates for an undisclosed price as part of a cancer-treatment network allowing local patients to avoid trips to Los Angeles for care.
Poll: What Is the Biggest Problem Facing Los Angeles?
Every week the Los Angeles Business Journal asks readers their views on a variety of business and economic issues. A running tally is available on the site and later will be published in the Commentary section of our print edition.
Stocks Rise
The Dow Jones industrial average gained 79 points in Wednesday’s trading to close at 16,986. The S&P 500 rose 9 points to 1,973. The Nasdaq increased by 28 points to 4,419. The LABJ Stock Index edged up a point to 200.
General Assembly Announces Second Los Angeles Campus
General Assembly, an educational startup that offers tech courses, said it would open its second Los Angeles campus later this year in downtown’s Arts District.
American Apparel, Investors May Have Deal
American Apparel and investors at Standard General, now its largest shareholder, may soon reach an agreement to reconstitute its board and shore up its financial situation, the New York Times reported.
Sterling Hostile in Court Hearing
Clippers co-owner Donald Sterling was argumentative during a Tuesday court hearing in which he fought his estranged wife’s efforts to sell the Los Angeles Clippers, as related in a Los Angeles Times story.
Citigroup Close to $7 Billion Mortgage Settlement
Citigroup and the Department of Justice may soon agree to a $7 billion deal to avoid a lawsuit over claims the bankers sold bad mortgages prior to the Great Recession, the Wall Street Journal reported.
Houses Attract Foreign Buyers
Los Angeles was the top destination for foreign nationals and recent immigrants who spent $92 billion on U.S. homes in the 12 months that ended in March, according to a survey reported in the Los Angeles Times.
Programming Chief Leaves ABC Family
Kate Juergens, credited with helping to develop shows that attracted young viewers to ABC Family, is leaving the Disney-owned network as programming chief after being passed over for its president’s post, the Los Angeles Times said.
Las Vegas, Hollywood Team Up
Las Vegas resorts are looking to product placements in feature films and television as a new means of advertising, according to the Los Angeles Times.
Government Overpaid By $100 Billion
The federal government admitted to overpaying citizens $100 billion in unwarranted claims during 2013 for the likes of unemployment benefits and tax credits, the Associated Press reported.
Doctors Sue Over Health Program
The Los Angeles County Medical Association has gone to court over Cal MediConnect, a program intended help people obtain health care that doctors say is suffering from bureaucratic problems, the Los Angeles Daily News reported.
Spielberg Wants Insiders to Lead DreamWorks
DreamWorks co-chair Steven Spielberg has given responsibility for day-to-day creative leadership of the studio to Holly Barro, who is a candidate to succeed Stacey Snider, the co-chair chief executive who is headed to Fox. Spielberg has interviewed others, but seems likely to stick with internal leadership, Variety said.
Anthem Blue Cross Accused of Fraudulent Enrollments
Consumer Watchdog of Santa Monica is accusing insurer Anthem Blue Cross of misleading enrollees about which doctors and hospitals participate in health plans, Kaiser Health News reported.
United States Has Only One Top Ten Bank
JPMorgan Chase & Co. is the only U.S. bank to be among the world’s Top Ten banks, as ranked by assets. China has four institutions on the list, including the leading Industrial & Commercial Bank of China, the Chicago Tribune reported.
Stocks Up
The Dow Jones industrial average was up 38 points in early trading to 16,945. The S&P 500 was up 6 points to 1,970. The Nasdaq was up 20 points to 4,412.
Tuesday, July 8
United Oil Sold to Fortress Investment Group
United Oil, the Gardena-based gas station and convenience store operator, has been sold to the asset management firm Fortress Investment Group for an undisclosed price.
MGID Moves Headquarters to Santa Monica
Native advertising company MGID is moving its U.S. headquarters to Santa Monica from New York. The company, which has 200 employees worldwide, plans to have roughly 30 people at its headquarters by the end of 2015.
Three Terminals Close Briefly in Port Trucker Strike
Longshoreman walked away from their jobs at three local port terminals Tuesday morning in support of striking short haul truckers before an arbitrator ordered them to go back to work.
Westwood Law Firm Acquired
Washington law firm Venable has acquired Westwood firm Weingarten Brown, the firms announced Tuesday.
Stocks Fall
The Dow Jones industrial average fell 118 points Tuesday to close at 16,907. The S&P 500 lost 14 points to close at 1,964. The Nasdaq dropped 60 points to close at 4,391. The LABJ Stock Index fell slightly to close at 198.
Fast Food to Get Pricier
In-N-Out Burger and Chipotle Mexican Grill have made things a little more expensive for diners in search of a quick meal as California’s drought pushes food prices upward, the San Gabriel Valley Tribune reported.
Neurologist Testifies in Sterling Case
A neurologist testified that brain scans and a medical examination convinced her that Los Angeles Clippers co-owner Donald Sterling was living with Alzheimer’s, the Los Angeles Times reported.
Lender Wants American Apparel Money
American Apparel creditor Lion Capital has demanded repayment of a $10 million loan over the attempt to fire Chief Executive Dov Charney, the Wall Street Journal said.
Contractor Recommended for Purple Line Extension
Los Angeles Metro staffers are recommending that a joint venture involving Skanska, Traylor Bros. and J.F. Shea gets the $1.64 billion contract to extend the Purple Line from Koreatown toward Beverly Hills, Westside Today reported.
Looking for a Bitcoin ATM
The founder of Robocoin, a Las Vegas startup, is attempting to bring the virtual currency known as Bitcoins into the physical world via a system of ATMS that can convert Bitcoins into hard cash, the Los Angeles Times reported.
Affordable Care Act Still Has Backlogs
Thousands of people who signed up for health insurance in accordance with the Affordable Care Act have yet to benefit from coverage due to enrollment troubles, the Wall Street Journal said.
Compton Celebrates Dr. Dre
Compton has a new, and more favorable, view of Dr. Dre in light of the entertainer’s evolution from gangsta rap star to billionaire businessman who founded Beats Electronics, the Los Angeles Times reported.
Protest at Burbank Hobby Lobby
Protesters upset over the recent Supreme Court ruling allowing Hobby Lobby and other closely-held corporations to cite owners’ religious views as a reason to restrict contraceptive coverage on employees’ health plans rallied outside a new store in Burbank, the Los Angeles Daily News reported.
Networks Launch Emmy Ad Spending Blitz
Networks are budgeting as much as $3 million to spend on “For Your Consideration” campaigns as they pursue Emmy awards, prestige and a possible boost in syndication opportunities, the Los Angeles Times reports.
Chinese Firm to Sue Over “Transformers”
Chongqing Wulong Karst Tourism Co. said it will sue Paramount Pictures over claims that American producers failed to keep their promise to give the firm’s logo star treatment in the new Transformers movie, according to The Wrap.
Stocks Down
The Dow Jones industrial average fell 114 points to hit 16,910 in midday trading. The S&P 500 lost 13 points to 1,964. The Nasdaq slipped 63 points to 4,388.
Monday, July 7
Harbor Truckers Go On Strike
Hundreds of truckers who work at the ports of Los Angeles and Long Beach went on strike on Monday to protest what they called unfair labor practices.
Daily Journal Hires New Auditor, Appeals Nasdaq Delisting
In an effort to remain listed on the Nasdaq, downtown Los Angeles legal newspaper publisher Daily Journal Corp. has fired accounting firm Ernst & Young and hired BDO USA as its new auditor.
Amgen, Bind Therapeutics Cease Collaboration
Amgen Inc. has opted out of a collaborative agreement with Bind Therapeutics Inc., a company developing tiny particles that adhere to medicines and help the drugs circulate longer in the bloodstream and enter cells.
Post Production House to Close
Pacific Ocean Post, a Santa Monica audio post production company, on Monday confirmed a report that the company is closing effective immediately.
Stocks Fall
The Dow Jones industrial average fell 44 points in Monday’s trading to close at 17,024. The S&P 500 dipped 8 points to close at 1,978. The Nasdaq dropped 34 points to close at 4,452. The LABJ Stock Index lost 2 points to close at 198.
Disney Chooses Startups for Accelerator Program
Walt Disney Co. said it had selected 11 companies for the first round of its Disney Accelerator program.
Oculus to Host Virtual Reality Conference
Oculus VR Inc. will host a September developer conference in Hollywood to bring together engineers, designers and other creative professionals to collaborate on creating virtual reality experiences.
Clippers Trial Begins
The legal fight between estranged spouses and Los Angeles Clippers co-owners Donald and Shelly Sterling is scheduled to begin today. At issue is whether Shelly Sterling had the power to declare Donald Sterling mentally incapable of running the NBA team’s business and negotiating a $2 billion sale of the team, the Associated Press reported.
Hedge Fund May Aid American Apparel
Standard General, the New York hedge fund that allied itself with ousted American Apparel chief executive Dov Charney, may pay a $10 million debt owed by the company and thus save the Los Angeles-based clothing company from a wave of defaults. Bloomberg and the Wall Street Journal have coverage.
Governments Are State’s Biggest Lobbyists
Local governments spend more on lobbying Sacramento than any single segment of private industry. A review of lobbying records showed local governments spend $45 million a year to sway legislators, the Whittier Daily News said.
U.S. Leads World in Oil Production
The United States has overtaken Saudi Arabia and Russia as the planet’s leading producer of crude oil and liquids obtained from natural gas. The development is the result of the producers employing the controversial practice of “fracking” to obtain oil from shale formations in North Dakota and Texas, Bloomberg said.
Export-Import Debate Intensifies
Congressional debate over whether to retain the 80-year-old Export-Import Bank active is intensifying between one faction who views the bank as a vital tool for U.S. businesses and another that views it as a vehicle for corporate welfare, the Wall Street Journal said.
Push for Higher Wages Continues
California’s minimum wage increased to $9 an hour at the start of this month, but advocates for higher wages here and nationally continue to call for further hikes, the Los Angeles Times reported.
Labor Deal for Actors
The three-year labor deal that SAG-AFTRA and Hollywood producers agreed to late Thursday will be the first entertainment industry-wide contract for basic cable live action production, The Wrap reported.
Weak Box Office for Holiday
The Fourth of July holiday box office may have been the weakest in a decade. Filmgoers spent only $130 million or so on movie tickets, which is about 43 percent less than film fans spent last year. The latest “Transformers” movie, in its second week of release, was the top performer, Variety said.
Fairfax Newsstand Lives On
The Internet hasn’t killed Centerfold International Newsstand, which continues to do business on Fairfax Avenue even as digital pressures on daily newspapers have squeezed old-school newsstands, the Los Angeles Times said.
Bond Market Experiences Stress Over Repo Trades
The $1.6 trillion market for “repos,” trades known more properly as repurchase agreements involving the use of Treasury loans as collateral for short-term cash, is in a sticky situation as borrowers are having trouble coming up with the needed securities, Bloomberg said.
Long Beach Harbor Commissioner to Leave
Long Beach Harbor Commissioner Susan E. Anderson Wise plans to leave the panel that governs the Port of Long Beach as of July 14, or earlier if a replacement can be found by then. Wise’s planned departure follows the appointment of former FedEx Canada leader Jon Slangerup as the port’s next chief, the Long Beach Press-Telegram reported.
Stocks Down
The Dow Jones industrial average fell 63 points in early trading to 17,005. The S&P 500 declined 8 points to 1,977. The Nasdaq dropped 24 points to 4,462.
Business Journal Picks Up Passel of Local Trophies
AWARDS: Press Club honors include wins for reporter, photographer of year.
Business Journal takes honors at L.A. Press Club, including trophies for photographer and reporter of the year.
Downtown Bar Owners Up for Another Round
HOSPITALITY: Must to give it go in new space after first version’s sudden closing.
Co-owners make space for a new Must after their first bar was shut down in a surprise eviction.
Casden Lets Go of Hard-Won Westwood Property
SALE: Palazzo deal latest fallout from developer’s split with ex-partner Cerberus.
Beverly Hills developer Alan Casden, who in recent years has struggled to hold on to a diminishing real estate portfolio, has sold one of his most prized remaining properties.
Filling Up
INTERNET: Chewse sees opening in online food-ordering sector for service focused on businesses.
Chewse looks to take a bite out of the online food-ordering sector by catering to businesses.
Oil Company May Face Hole
energy: Lost bids, regulation could hurt Breitburn production.
Some analysts don’t dig oil company Breitburn’s chances of maintaining its momentum.
Inglewood Gets Down to Business
DEVELOPMENT: Retooled city policies help pull in projects.
Inglewood’s blooming attraction of businesses can be traced to a bedrock shift in how the city operates.
Two L.A. Firms Start to Clean Out Some Junk
FINANCE: Bond buyers at TCW and DoubleLine see risks outweighing rewards.
Two local portfolio managers are breaking their bonds with the riskiest of junk offerings.
Giving Birth to Nerd Herd
UCode centers offer programming classes for kids 6 and older.
UCode helps little kids get with the programming with its coding courses.
Hitting the Books
Summer has arrived and that means it’s time for many Angelenos to head to the beaches or lie by the pools with a book as accompaniment. So the Business Journal asks:
What’s your summer reading?
Inglewood for the Score?
An NFL stadium in Los Angeles? Maybe Inglewood would be the best place, Charles Crumpley opines.
Inglewood for the Score?
An NFL stadium in Los Angeles? Maybe Inglewood would be the best place, Charles Crumpley opines.
Conventions
Upcoming local conventions.
Calendar
Upcoming list of local events.
News of the Week
Last week’s major news from labusinessjournal.com and other sources
Valencia pharmaceuticals company MannKind finally accomplished its mission of getting Food and Drug Administration approval for inhalable insulin.
‘Hana Bank’ Battle Faces Supreme Test This Fall
LENDING: High court may decide whether Korean or L.A. business can use name.
Downtown L.A. lender Hana Financial Inc. lost the latest round in its long-running trademark fight with South Korean banking conglomerate Hana Financial Group last year.
Lender Accuses Ex-Exec Of Working on Its Dime
FINANCE: Monroe Capital says Warren Woo used its assets to set up his business.
Ex-employer of Warren Woo alleges high-profile executive went for broke using its assets to launch firm.
Investors No Longer Like Look of Lens Maker
bIOTECH: Staar shares fall after company receives FDA warning on records.
FDA warning blindsides investors in implantable-lens maker Staar Surgical.
Regional Report
News and notes from communities across Los Angeles County
Tastemade Inc., a Santa Monica multichannel YouTube network focused on food, has closed a Series C round of funding, led by Cincinnati’s Scripps Network Interactive and Liberty Media Corp. in Englewood, Colo.
Pressure To Provide Some Relief
Skilled Wound Clinic’s service trains nurses to treat bed sores.
Skilled Wound Clinic’s treatment program doesn’t take bed sores lying down.
Misgivings on Mayor Money?
CONTRACTING: Ex-exec says MCS violated campaign laws.
Former employee accuses workforce development business of skirting campaign laws to support Eric Garcetti.
Saying ‘Da’ to Business
Ilya Kuntsevich studied economics as a college student in Russia, but his training wasn’t exactly the industry standard for employees of big international companies.
Sky’s Limit
Some drone-using filmmakers aren’t waiting for OK
Some drone-using production businesses await approval to get off the ground, but at least one’s flying now.
Thursday, July 3
Ares Management to Buy Majority of London Builder
Ares Management-controlled funds are poised to obtain a majority stake in English homebuilder London Square in a deal worth more than $171 million.
State OKs Tax Credits for Bomber
State lawmakers on Thursday approved expedited legislation designed to give the state the upper hand in landing subcontracts for a strategic bomber project.
Rocketdyne to Produce Engines for NASA
A $2.8 billion contract for Boeing Co. to build NASA’s next generation rocket is good news for Aerojet Rocketdyne in Chatsworth.
Ex Exec Says MCS Violated Campaign Laws
Last year, L.A. officials awarded four contracts worth $545,000 to Managed Career Solutions for workforce development services. Backing the company was then-Councilman Eric Garcetti, a longtime supporter.
Reed’s, Sport Chalet Among Week’s Big Movers
The Los Angeles Business Journal’s weighted index of the area’s largest public companies rose for the week.
Stocks Rise
The Dow Jones closed above 17,000 for the first time Thursday, gaining 92 points to 17,068. The S&P 500 rose by 11 points to close at 1,985. The Nasdaq climbed 28 points to close at 4,486. The LABJ Stock Index gained 1 point to close at 200.
TeleSign Secures $9 Million in Additional Series B Funds
TeleSign, a developer of mobile identity verification technology, announced Wednesday it had raised $9 million from Telstra, Australia’s largest provider of telecommunications services.
Fuisz Media Raises $2.1 Million Seed Round
Fuisz Media, a tech company specializing in creating interactive videos, announced this week it had raised $2.1 million in seed funding.
Charney Surrenders Stake; Suspends Fight to Stay CEO
Ousted American Apparel Inc Chief Executive Officer Dov Charney has handed over his entire stake and voting rights to creditor Standard General, Reuters reported, citing sources close to the matter. He has also suspended the battle to keep his post.
NASA OKs Mars Mission With Rocketdyne Engines
NASA gave the go ahead for a $2.8 billion contract with Boeing Co. Space Launch System, planned as a vehicle that may one day carry humans to Mars, the Los Angeles Times reported. Engines will be built by Aerojet Rocketdyne.
Optimism From Jobs Report
U.S. unemployment improved to 6.1 percent in June. The national gain of 288,000 nonfarm jobs has economists feeling good about job seekers’ prospects, Bloomberg reported.
L.A. Reaches Labor Agreement With Police
Los Angeles has a one-year deal in hand with the union representing LAPD officers that allows for police to earn increased overtime payments while limiting salary increases, according to the Los Angeles Times.
World Cup Ratings Beat Baseball, Basketball Championships
Television ratings for last month’s World Cup match between the United States and Portugal topped ratings for the World Series and NBA Finals, with 18.2 million viewers watching on ESPN and another 6.5 million watching Univision, The Wrap reported.
Layoffs at L.A. Works
The nonprofit L.A. Works laid off 13 employees and is struggling in the wake of Los Angeles County Supervisors’ decision to cancel its contract to provide job training to jail inmates, the San Gabriel Valley Tribune reported.
Santa Monica Airport Tenants Dispute Closure Plans
Actor Harrison Ford was among the tenants of Santa Monica Airport who filed a federal complaint claiming that grant dollars given to the airport will require it to remain open until 2023 despite plan to close the airport next year, the Los Angeles Times reported.
High Gas Prices for Holiday
Gasoline prices over the Fourth of July weekend will be at their highest point since 2008. Average prices for a gallon of unleaded gasoline reached $3.67 on Wednesday, which is almost cheap when compared to the $4-plus prices that have prevailed in California. The Wall Street Journal has coverage.
War Hero Louis Zamperini Dies
Louis Zamperini, who survived 47 days adrift in the Pacific Ocean and two years in a Japanese prison camp during World War II, died of pneumonia at the age of 97, the Associated Press reported.
Stocks Up
In midday trading, the Dow Jones gained 64 points to reach 17,040. The S&P 500 is up 7 points to 1,981. The Nasdaq is up 19 points to 4,477.
Wednesday, July 2
Bot Home Automation Secures $4.5 Million Funding
Security startup Bot Home Automation said it had raised $4.5 million to fund its Wi-Fi-enabled video doorbell called DoorBot, which streams live video of visitors to a person’s device.
Playa Vista’s Latitude Office Property Trades for $132 Million
ASB Real Estate Investments said today that it had sold Latitude 34, a prominent but vacant Playa Vista 300,000-square-foot office complex, for $132.7 million.
Report: Bondholder Wants American Apparel Sale
One of American Apparel’s leading creditors may be attempting to engineer a sale of the company, according to a report in the New York Post.
Breakthrough Status for Amgen Leukemia Drug
The U.S. Food and Drug Administration has given Breakthrough Therapy Designation status to blinatumomab, a drug in development at Amgen Inc. for treating certain cancers.
Poll: What is your view on the Hobby Lobby ruling?
Every week the Los Angeles Business Journal asks readers their views on a variety of business and economic issues. A running tally is available on the site and later will be published in the Commentary section of our print edition.
Dow Jones, S&P 500 Up, Nasdaq, LABJ Down
The Dow Jones industrial average rose 20 points in Wednesday’s trading to close at 16,976. The S&P 500 gained 1 point to close at 1,975. The Nasdaq fell by less than a point to 4,458. The LABJ Stock Index edged down by a fraction of a point to 199.
MakersKit Builds a $1.5 Million Seed Round
MakersKit, creator of do-it-yourself craft boxes and how-to video tutorials, has raised $1.5 million seed funding.
Tinder Chief Calls Sex Harassment Claims ‘Inaccurate’
In an internal memo to Tinder staff, later released to the public, Chief Executive Sean Rad called allegations of sexual harassment and discrimination by a female former executive full of “inaccuracies and omissions.”
American Apparel Fight May Go To Shareholders
Since enlisting the aid of a hedge fund to attain control of 43 percent of American Apparel’s shares, ousted chief executive Dov Charney may need to make an appeal to friendly shareholders in order to continue his bid to reclaim the top job at the company he founded, Bloomberg Businessweek said.
Protestors Block Immigrants
A rally in the southwestern Riverside County city of Murrieta blocked three buses carrying immigrants who illegally entered the country in Texas as part of an influx of thousands of minors headed to the United States from Central America. Protestors demanded the immigrants be deported instead of being placed with family members in this country, the Los Angeles Times reported.
Council Favoring $39 Million in Hotel Aid
The Los Angeles City Council voted 11-0 on Tuesday to negotiate a $39 million tax subsidy for a developer planning a hotel and residential tower near L.A. Live, the Los Angeles Times said.
Hiring Up
U.S. companies have been hiring at an increased pace and economists expect June to be the fifth consecutive month when the tally of new jobs tops the 200,000 mark, Bloomberg said.
LAX Labor Troubles Averted
Los Angeles Mayor Eric Garcetti announced a three-year deal with some 2,500 airport employees represented by SEIU United Service Workers West. The agreement removes danger of labor troubles disrupting Fourth of July travel, according to the Los Angeles Times.
Aerospace Firms Battle Over Bomber Credits
It’s Northrup Grumman on one side and Boeing along with Lockheed Martin Corp. on the other in a dispute over whether a California proposal for an aerospace tax credit gives the latter side an unfair edge in the competition to build the Air Force’s next stealth bomber, the Los Angeles Times reported.
Labor Demands $15 Minimum Wage for L.A. Workers
The Coalition of L.A. Labor Unions is demanding that Los Angeles pay a $15 minimum wage for city employees and contractors, the Los Angeles Times said.
Universal to Open China Office
Universal Pictures will open a new office in China as the movie studio seeks more business within the planet’s second-largest market for movies, the Hollywood Reporter said.
Hollywood Labor Talks to Continue
Producers will continue negotiations with performers represented by SAG-AFTRA for another day after the two sides announced the second 24-hour extension of talks, The Wrap reported.
Clippers Case Continues
The battle between estranged spouses and Clippers co-owners Donald and Shelly Sterling continued in court Tuesday, as Donald Sterling’s side questioned the behavior of the doctor who declared him to be mentally incompetent. At issue is whether Shelly Sterling has the right to sell the NBA team to former Microsoft leader Steve Ballmer without Donald Sterling’s assent, the Los Angeles Daily News reported.
Apartment Rents Going Up
Apartment rents have risen for 18 straight quarters despite a lack of comparative increase in wages. The trend may be the result of younger Americans preferring to rent in cities and tougher lending standards forcing others to forego home ownership, the Wall Street Journal said.
Stocks Up
The Dow Jones industrial average was up 12 points in early trading Wednesday to 16,968. The S&P 500 was up 2 points to 1,976. The Nasdaq was up 5 points to 4,464.
Tuesday, July 1
Sport Chalet Sells for $70 Million
Sport Chalet Inc. will be acquired by Vestis Retail Group for about $17 million plus accumulated debt, the company announced Tuesday.
American Homes to Buy Beazer Rentals
American Homes 4 Rent on Tuesday announced it will acquire Beazer Pre-Owned Rental Homes Inc. for a little more than $260 million in debt and stock.
Stocks Rise
The Dow Jones industrial average rose 129 points in Tuesday’s trading to close at 16,956. The S&P 500 gained 13 points to close at 1,973. The Nasdaq climbed 50 points to close at 4,459. The LABJ Stock Index rose 1 point to 199.
MiTu Taps Tech Executives for Senior Positions
MiTu, a Latino-focused multichannel network, has added to its executive team as it moves to integrate more cross-platform programming for its audience of millennials.
Tinder Suspends Co-Founder Over Sexual Harassment Allegations
Tinder has suspended Justin Mateen, its chief marketing officer and co-founder, after a former executive filed a lawsuit Monday claiming she was sexually harassed and discriminated against based on her gender while working for the dating-app company.
American Apparel Battle Continues
Ousted American Apparel chief executive Dov Charney has gained control of about 43 percent of the company’s stock as American Apparel’s board is trying to keep Charney from controlling a majority stake, the New York Times reported.
Actors, Producers Keep Talking
Labor talks involving SAG-Aftra and Hollywood producers will continue for at least one more day. The parties have agreed to keep negotiating Tuesday on a three-year contract to govern work arrangements for prime time television and feature films, The Wrap reported.
California Minimum Wage Increases
The state’s minimum wage rises to $9 today. The hike is one of several new laws taking effect, the Associated Press said.
Ban on Plastic Bags Expands to Small Shops
Los Angeles’ ban on plastic bans expands to liquor stores and other small retailers today. The ban has affected supermarkets and other large vendors for the past six months, City News Service reports.
Health Service Cuts Unlikely After Hobby Lobby Ruling
The Supreme Court’s 5-4 ruling allowing closely held firms to obtain religious exemptions to a requirement that health insurance cover birth control is not likely to cause firms to seek other exemptions to Obamacare, Bloomberg reports.
Plans for Burbank-to-Palmdale Rail
High-speed rail officials want to begin construction of a planned Burbank-to-Palmdale segment at some point in the coming years instead of limiting construction to the Central Valley, the Los Angeles Times said.
Port Labor Talks to Extend Beyond Deadline
Collective bargaining talks between the International Longshore and Warehouse Union and Pacific Maritime Association are expected to be prolonged for weeks, the Associated Press said.
L.A. Accused of Labor Law Violation
Los Angeles officials violated labor laws when they took action to cut new workers’ pensions without meeting with labor representatives, according to a hearing officer’s report, the Los Angeles Times said.
Companies Pursue LGBT Customers
Jet Blue, Wells Fargo and Anheuser-Busch are among the big businesses that are actively pursuing LGBT consumers, who are part of a market segment estimated to have some $830 billion in spending power, the Pasadena Star News said.
G.M. Recalls Increase by 8.5 Million
Automaker G.M. announced plans to recall 8.5 million cars, almost all of which need to be taken back because of ignition switch problems. G.M., which attributed three fatalities to crashes involving the newly recalled cars, has recalled 29 million autos so far this year, according to the Wall Street Journal.
Stocks Up
The Dow Jones industrial average climbed 122 points in midday trading to 16,948. The S&P 500 is up 12 points to 1,973. The Nasdaq is up 49 points to 4,457.