REVIEW
June 20 – 26
Recall Update:
Proponents seeking to have Gov. Gray Davis recalled from office have turned in more than a third of the 879,158 signatures of voters needed to qualify for the ballot. Groups seeking to recall Davis say they have gathered nearly 800,000 names. They have until mid-July to turn in enough signatures to qualify for a special election in November. Otherwise, the next opportunity for a recall election would be in March 2004.
Lowered Expectations:
Tenet Healthcare Corp. slashed profit estimates for the second quarter and for 2003 because of rising costs and lower payments from the government. Managed care insurers are resisting efforts by the Santa Barbara-based company to charge more, while new billing policies are limiting payments from the government.
Power Charge:
Regulators accused 60 companies of violating California’s power-market rules during the energy crisis in 2000 and 2001, even as the state was ordered to honor $12 billion in electricity supply contracts it signed as prices soared. The Federal Energy Regulatory Commission ordered hearings to examine evidence that power traders, including Enron Corp. and Dynegy Inc., engaged in “manipulative practices” to boost profits. The companies may be forced to refund those monies if proven guilty of the charges. But the FERC refused to allow Western states, including California, abrograte long-term supply contracts.
More Gemstar:
Gemstar-TV Guide International Inc. was sued by former general counsel Jonathan Orlick, who claims he was fired without cause after he attempted to retrieve documents that Gemstar failed to provide to the Securities and Exchange Commission. Gemstar said in a statement that any allegations that the company isn’t cooperating with the SEC “are completely and categorically untrue.”
FDA Decision:
Amgen Inc. moved closer to U.S. approval of expanded marketing claims for its Enbrel rheumatoid arthritis drug by winning the backing of a government advisory panel. The Food and Drug Administration concluded that the benefits of Enbrel in treating a painful spine disorder outweigh its risks. Enbrel is the biggest product that Thousand Oaks-based Amgen acquired last year with its purchase of Immunex Corp.
Ahmanson Talks:
Washington Mutual Inc., owner of the controversial Ahmanson Ranch development, is in discussions with state officials about possibly selling its 2,800-acre property in east Ventura County and abandoning plans for a golf course development. However, state officials stressed that it would not overpay for the property.
Sticker Shock:
Shares of Avery Dennison Inc. fell sharply last week after the Pasadena-based label maker lowered its earnings guidance for the second quarter. The company cited slower sales, higher costs and legal costs stemming from an ongoing investigation by the Justice Department into the adhesives industry.
Downtown Decision:
A Superior Court Judge ruled that a city-approved downtown redevelopment project area was invalid because much of it was included in an area that the courts had earlier determined should not be subject to additional property taxes. The ruling jeopardizes the city’s plans to revitalize the 879-acre City Center district through various residential and commercial projects.
PREVIEW
June 30 – July 6
Spy Stuff:
It’s hokey and low-tech and impossibly sexist but how can you resist the early James Bond movies? On Saturday (5th), the One Colorado complex in Pasadena will present 1962’s “Dr. No,” starring Sean Connery and Ursula Andress, the first of seven screenings in July at the center’s courtyard. All screenings are free and start at 8:30 p.m.
Fourth of July:
The calendar was thoughtful enough to have the holiday fall on a Friday this year, so expect the airports and freeways to be jammed on Thursday as a three-day weekend awaits. On Friday, there will be the usual fireworks extravaganzas, including a post-game show at Dodger Stadium and a salute to America concert at the Hollywood Bowl. Governments offices and most non-retail businesses will be closed.
Sports Beat:
The Dodgers are in town for a three-game series Tues-Thurs. (1st-3rd) against San Diego and a three-game weekend series (4th-6th) against Arizona. The Galaxy is home on the Fourth against New England and the Sparks are home on Saturday (5th) against Seattle. In other sports, it’s the last week of Wimbledon (women’s finals on the 5th and men’s finals on the 6th) and the U.S. Women’s Open golf championship on Thurs-Sun.
Economic Reports:
June’s U.S. unemployment report is out on Thursday (3rd), one day earlier than usual because of the holiday. Also, on Tuesday (1st) it’s the Chicago Purchasing Managers Index and on Wednesday (2nd), it’s May factory orders.
First Day:
Four new members take their seats on the Los Angeles City Council on Tuesday (1st): Tony Cardenas, Martin Ludlow, Greig Smith and Antonio Villaraigosa. Also on Tuesday, the election for council president is supposed to take place. As of late last week, current president Alex Padilla was unopposed for re-election.
Fore!:
The Valley Industry and Commerce Association holds its fifth annual golf tournament on Monday (30th) at Robinson Ranch Golf Course in Santa Clarita. For information: 818-817-0545.
Council Greet:
The Central City Association hosts its annual elected officials’ reception on Wednesday (2nd) at 5 p.m. at the California Plaza on Grand Avenue in downtown L.A. It’s a chance to meet the new faces on the L.A. City Council and say farewell to the four departing members. Information: (213) 624-1213 or www.ccala.org.
