REVIEW
Big Losses: Global Crossing Ltd., which plans to emerge from a bankruptcy filing that cost investors $40 billion, said it had losses of $25.7 billion in 2000 and 2001, reflecting the falling value of its fiber-optic network. The restated results, the first full-year of filings since 2000, highlight the collapse in demand for fiber-optic network capacity as well as the company not properly reporting revenue from swaps of capacity with competitors. As the company emerges from bankruptcy protection, Global Crossing is selling a 61.5 percent stake to Singapore Technologies Telemedia Pte. Separately, J.P. Morgan Chase & Co. has filed suit against former Chairman Gary Winnick and other former officers and directors for $1.7 billion, alleging that Winnick and others had devised a massive scheme to hide the company’s poor financial performance.
Economic Forecast: UCLA’s Anderson Forecast looks for modest statewide employment growth in 2004 of just under 1 percent, or about 134,000 jobs. The widely watched forecast noted that sluggishness in manufacturing and the continued caution by employers will keep the numbers low despite signs of an economic turnaround. Nationally, the UCLA economists expect even slower job growth than in California.
Hollywood Hire: Sony Corp. has hired Michael Lynton as chairman and chief executive of the company’s entertainment unit, in charge of film, television and technology operations. Lynton, a former AOL executive, will have joint responsibility to approve all studio films, along with executive Amy Pascal, who has been promoted to chairwoman of the motion picture group.
Bond Postponement: California postponed a $1.5 billion general obligation bond sale. The sale will occur next year after Gov. Arnold Schwarzenegger (right) proposes a budget for the fiscal year that begins July 1. A postponement will let the sale “be conducted in the context of more complete information about the state’s budget and fiscal picture,” according to a statement from state Treasurer Philip Angelides. California has the lowest credit rating and highest borrowing costs of the states. Separately, California had its credit rating on $30 billion of bonds cut one level by Moody’s Investors Service, to Baa1, the third lowest of 10 investment grades. The state is now rated the same as Puerto Rico and the District of Columbia.
Refinancing Slows: Countrywide Financial Corp. said mortgage funding in November fell 24 percent from the previous month as loan refinancing and home purchases slowed. Calabasas-based Countrywide lent $22.2 billion, down from $29 billion in October. Demand for mortgages is slowing as a seasonal lull in the real estate market and higher interest rates reduces home sales.
Gas Prices: There was another slight drop for the week ended Dec. 8. A survey by the Energy Information Administration found that in Los Angeles the price of a gallon of self-serve regular was $1.673, down from $1.695 the previous week. The statewide average was $1.652, down from $1.680.
Grocery Bill: Kroger Co., parent of the Ralphs supermarket chain, reported third-quarter net income of $110.2 million, compared with $254.6 million for the like period a year earlier. Sales for the quarter ended Nov. 8 rose 3.8 percent, to $12.1 billion. Cincinnati-based Kroger cited the ongoing supermarket strike for the lower earnings results. Earlier, Albertsons Inc. said it had lost $132 million in sales from Oct. 11 through Oct. 30.
PREVIEW
Sports Beat: Now that the football season is winding down, it’s pretty much all basketball and hockey. The Lakers are home on Friday (19th) against Denver and Sunday (21st) against Phoenix. The Clippers are home on Monday (15th) against New Orleans and Wednesday (17th) against Milwaukee. The Kings are home on Tuesday (16th) against Edmonton, Thursday (18th) against Phoenix and Saturday (20th) against Colorado. In college basketball, USC is on the road while UCLA is home on Wednesday against Loyola Marymount and Saturday against UC Santa Barbara.
Economic Reports: Tuesday (16th): November’s consumer price index, housing starts, building permits, capacity utilization and industrial production. Thursday (18th): November leading indicators.
L.A. Reform: L.A. City Attorney Rocky Delgadillo (right) discusses reform and revitalization of his office on Wednesday (17th) during a breakfast meeting at the Peninsula Hotel and sponsored by the law firm Alschuler Grossman Stein & Kahan. For information: 310-255-9107.
Nano World: The Los Angeles County Museum of Art opens an exhibition on the world of nanoscience on Sunday (14th). The “Nano” exhibit is described as a merging of the arts and the atom. Modular spaces using embedded computing technologies provide a better understanding of nanoscience, which is an area of science involving the study of materials that have very small dimensions. For information: 323-857-6522.
Museum Talk: Philippe de Montebello, the long-time director of New York’s Metropolitan Museum of Art is in town on Tuesday (16th) at the L.A. County Museum of Art to discuss “Art Museums and the Public Trust.” Session will be at the museum’s Bing Theater and begins at 7:30 p.m. For information: 877-522-6225.
Party Time: On Tuesday (16th), L.A. politicians are throwing their holiday bashes. County Supervisor Zev Yaroslavsky is hosting his holiday party, which also marks his birthday. Later, city leaders and staff will gather under the third floor rotunda for an informal holiday bash hosted by Councilman Tom LaBonge.
Piracy Parley: Film industry insiders discuss the growing threat of film piracy and steps being taken to combat it at a luncheon Wednesday (17th) at Lawry’s The Prime Rib in Beverly Hills. The event is sponsored by the entertainment law section of the Beverly Hills Bar Association. For information: 310-553-6644.
