Review
JUNE 18 – 24
Tuna Suit: The makers of Bumble Bee, Chicken of the Sea and Starkist brands of canned tuna were sued by the state of California for failing to warn customers that their products contain mercury. State Attorney General Bill Lockyer says the companies are violating Proposition 65, which requires businesses to notify consumers about chemicals that can cause cancer and birth defects. Lockyer last year filed a similar suit against grocery stores and restaurants that sell shark, swordfish and tuna. The tuna industry said its products are safe.
Casino Deal: Gov. Arnold Schwarzenegger signed agreements with five casino-operating Indian tribes to provide about $1 billion to the state, fulfilling his campaign promise to wrest money from gaming to ease state budget deficits. The new pacts would remove a 2,000 slot-machine limit at casinos run by those tribes in exchange for the payments. The new pacts may be models for arrangements with dozens of other tribes.
Gas Update: The slide in gasoline prices continues. For the week ended June 21, an average gallon of regular in Los Angeles was $2.284, down from $2.317 the previous week, according to the Energy Information Administration. Statewide, the average price was
$2.259, down from $2.289. While the price of crude oil has stabilized in the past two weeks, there is some
concern about tightening gasoline
supplies this summer, which would boost prices.
Kroger Results: Citing the aftereffects of the Southern California supermarket strike, Kroger Co., the parent of Ralphs, reported first-quarter net income of $262.8 million, down from $351.5 million for the like period a year earlier. Revenue for the Cincinnati-based company (which includes the strike’s final month) rose 3.9 percent, to $16.9 billion. Ralphs has been using discounts and other promotions to attract customers lost because of the 4 & #733;-month labor dispute.
Piracy Reward: The movie and theater industries are offering a $500 reward to theater employees who catch people illegally recording films. The reward program comes after the industry introduced an ad campaign about movie piracy and is experimenting with other measures, such as technology that would jam camcorders in theaters.
Global Audit: An independent review by Deloitte & Touche LLP concluded that Global Crossing’s management had no prior knowledge of understated costs involving the telecommunications company. The audit centers on a restatement of the company’s 2003 results and was one of the conditions placed on a bridge loan with Singapore Technologies Telemedia, its largest shareholder. Separately, a federal judge ruled that Global Crossing’s former chairman, Garry Winnick, must defend against claims that he and other executives misrepresented the company’s finances.
Vivendi Cuts: The video game unit of Vivendi Universal laid off 350 workers, half of them in Los Angeles, amid a limited number of hits. Vivendi Universal Games, publisher of the “Crash Bandicoot” and “Warcraft” series, said it is in the midst of a restructuring that involves cost cutting.
Settlement Reached: Gemstar-TV Guide International Inc. agreed to a $10 million settlement involving
allegations by federal regulators that the Los Angeles-based company had
inflated revenue from 1999 through 2002. The money will be distributed to shareholders affected by the
questionable accounting.
Preview
JUNE 28 – JULY 4
Happy Fourth: Since Independence Day falls on a Sunday this year, Monday (5th) will be a day off for most of the nation including U.S. financial markets and most government offices, which means no mail delivery.
Rate Hike: Federal Reserve policymakers meet Tuesday and Wednesday (29th and 30th). For weeks, the betting has been that rates will be increased by at least 0.25 percent from a low of 1 percent.
Economic Reports: Monday (28th): May personal income and personal spending. Tuesday (29th): Conference Board consumer confidence data for June. Thursday (1st): May construction spending. Friday (2nd): June unemployment data, May factory orders.
Sports Beat: The Dodgers are home against the Giants in a three-game mid-week series (29th-1st) and then travel south to Anaheim for a three-game weekend series (2nd-4th) against the Angels. Anaheim is at Oakland Tuesday-Thursday (29th-1st) and then plays host to the Dodgers. The Galaxy is home on Sunday (4th) against San Jose and the Sparks are home on Tuesday against New York and Friday against San Antonio. The U.S. Women’s Open golf championship runs Thursday-Sunday at South Hadley, Mass., and overseas, it’s the finals at Wimbledon on Saturday and Sunday, and the start of the Tour de France.
Bear Witness: In its only California presentation, the Smithsonian Institution presents “September 11: Bearing Witness to History,” a traveling exhibition that evokes memories and experiences of the 2001 terrorist attacks. The exhibit opens on Thursday (1st) at the Japanese American National Museum (369 E. First St. in Little Tokyo) and runs through Aug. 15. The exhibit, organized by the Smithsonian’s National Museum of American History, includes 45 objects from the scenes of the devastation. For information: 213-625-0414.
Entrepreneur Awards: Ernst & Young announces the winners of its annual Entrepreneur Award for Los Angeles on Tuesday (29th) at the Beverly Hilton Hotel. This year, there are 20 finalists. For information: 213-977-3402.
Getty Exhibit: The figures, fashions and forms of the courtly art that dominated Paris, Prague and Milan in the 1400s will be on display at the Getty Center beginning Tuesday (29th) and continuing through Aug. 29. For information: 310-440-7360.
