October 2008 Archives

This is the temporary tattoo that 30 people received from Air New Zealand in a wacky promotion. Read about it in today's Business Casual column.

But some people did exactly that. Read why in today's Business Casual column.

Northrop Grumman Corp.'s Redondo Beach-based Space Technology sector said Thursday that it has completed manufacturing and integrating a spacecraft engine that runs on the "green," or non-toxic, propellants of liquid oxygen and liquid methane for possible use on NASA human exploration missions to the Moon, Mars and beyond.

Northrop's TR408 engine can potentially use green propellants produced from lunar or Martian soil, Northrop said.

Manhattan Beach resident Philip M. Neal, the retired chairman of office products giant Avery Dennison Corp., died of heart failure on Wednesday. He was 68.

Neal spent 32 years with the Pasadena-based company. He joined the firm in 1974 as controller.

In November 1990, Neal was elected president and COO. He was appointed CEO in May 1998, and in May 2000 he became chairman and CEO. Neal retired in 2005.

Born in San Diego on August 28, 1940, Neal is survived by his wife, Beverly, and two children, Brian and Kevin Neal.

Even the booming video game industry is being hit by the economy.

(AP) Video game publisher Electronic Arts Inc., whose titles include "Rock Band," posted a wider quarterly net loss Thursday and said it is laying off about 6 percent of its work force to cut costs as it heads into the most lucrative season for the games industry.

The Redwood City, Calif.-based company has a design center in Westchester.

Higher development and marketing costs led to the bigger loss for the July-September period. The quarter's revenue surpassed Wall Street's forecast thanks to the success of games like "Spore" and "Madden NFL 09," but the company did not exude the cheery optimism that has characterized the video game industry in the past few months even amid the economic turmoil.

The company lost $310 million, or 97 cents per share, in the quarter. That was worse than the loss of $195 million, or 62 cents per share, a year earlier. Sales jumped 40 percent to $894 million.

If this is the worst downturn since the Great Depression, as some predict, then we're in for many more months of bad news like this.

Economy shrinks in 3Q, signaling recession

WASHINGTON (AP) -- The economy jolted into reverse during the third quarter as consumers cut back on their spending by the biggest amount in 28 years, the strongest signal yet the country has hurtled into recession.

The broadest barometer of the nation's economic health, gross domestic product, shrank at a 0.3 percent annual rate in the July-September quarter, the Commerce Department reported Thursday. It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001, when the nation was suffering through its last recession.

The latest GDP reading marked a rapid loss of traction for the economy, which logged growth of 2.8 percent in the second quarter, and is sure to buttress the belief of many economists that the nation is in the throes of a painful downturn.

If the airline industry continues to struggle, expect more mergers.

Delta buys Northwest to create biggest airline

WASHINGTON (Reuters) - Delta Air Lines swallowed rival Northwest Airlines Inc on Wednesday in a $2.6 billion merger that created the world's biggest airline and prompted new speculation about further industry consolidation.

The all-stock transaction, the first domestic airline combination in three years, closed after clearing its biggest and last regulatory hurdle earlier in the day -- U.S. Justice Department antitrust review.

Justice officials cited the likelihood of "substantial and credible efficiencies" without harming consumers or competition.

Read the full story.

If GM really is seeking Toyota's help, this would be both nearly unthinkable and embarrassing. There's little doubt now that Toyota will overtake GM as the world's No. 1 auto maker.

But does GM really need advice on how to run its business from its main competitor?

GM dismisses reported Toyota talks as 'pure speculation'

(The Economic Times) DETROIT: Struggling US auto giant General Motors dismissed a Japanese news report on Wednesday that it has asked rival Toyota for help as "pure speculation."

Japanese news agency Kyodo News, citing sources familiar with the plan, reported that GM "has asked for help by Toyota Motor Corp. in turning around its business."

GM sounded out Toyota on the possibility of Rick Wagoner, the GM chairman and chief executive, meeting with Toyota's leadership in Japan soon, but Toyota declined the offer, Kyodo reported.

GM spokesman Tom Wilkinson, contacted by AFP for comment on the report, said the two companies hold talks "on a regular basis" as part of their joint venture that has operated a manufacturing plant in California for the past 25 years.

I can't imagine this trend will continue if fuel prices keep dropping.

(AP) Average U.S. air fares jumped 8.1 percent in the second quarter to their highest level since the government started keeping track 13 years ago.

The Transportation Department said Wednesday that the average domestic itinerary fare in the second quarter rose to $352, breaking the record of $348 set in the first quarter of 2001.

Northrop Grumman Corp. awarded James Monroe High School in North Hills a $6,500 grant in support of an innovative robotics program to give students with skills that can prepare them for possible technical careers in the San Fernando Valley, the company said Wednesday.

The students are part of the School of Engineering and Design at the North Hills area school. The grant will help pay for registration, robot-building kits, transportation to Southern California competitions and supplies and equipment.

But will it be enough?

Sources: Gov't prepares loan modification plan

WASHINGTON (AP) -- The government is considering a plan that would help around 3 million homeowners avoid foreclosure, sources briefed on the matter said.

A final deal had not been reached as of Wednesday afternoon and negotiations could still fall apart, but government agencies were contemplating using around $50 billion from the recently passed bailout of the financial industry to guarantee about $500 billion in mortgages.

Read the full story.

Today, Honda announced pricing for restyled 2009 Honda Element

The entry-level SUV goes on sale today with a Manufacturer Suggested Retail Pricing starting at $20,175 for the 2009 Element 2WD LX, plus a destination and handling charge of $670.

The new Element has added "a more chiseled exterior appearance and a refreshed interior design with an expanded selection of available high-tech and functional features," Honda said.

Everyone was expecting Toyota to edge out GM as the world's No. 1 auto maker, wether in boom times or during a recession.

GM 3Q global sales drop 11 pct, trail Toyota

NEW YORK (AP) -- General Motors says its third-quarter worldwide sales fell 11 percent on weak U.S. demand, falling short of Toyota's total for the period.

Detroit-based General Motors Corp. said Wednesday it sold a total of 2.11 million vehicles in the third quarter, while Toyota's sales fell 4 percent to 2.24 million. Japan-based Toyota Motor Corp. also blamed a continued drop in U.S. demand for its decline.

For the first nine months of the year, GM sales fell 5.8 percent to 6.66 million vehicles.

It's a real fright.

Torrance neighbors team up to build Halloween horrors from home

Last Halloween, Mario Garit Jr. received an unexpected visitor wearing a costume that if Garit had not been used to horror scenes may have scared him half to death.

"I was dressed up like a fat Britney Spears," explained Garit's neighbor, Michael Hickman.

Read the full story.

GrindTV.com, the Action Sports channel on Yahoo! Sports, announced the launch of a new blog platform to promote amateur and professional journalists.

El Segundo-based Grind TV's new blogging tool complements its user profile pages.

"This new blogging platform will encourage communication between industry, athletes and fans, and will allow us to promote the most active and knowledgeable writers to an audience of more than 20 million sports fans," said Greg "TripleG" Morrow, CEO of GrindTV, in a statement.

The best blogs will be featured on the GrindTV.com homepage and promoted across Yahoo!.

Initial Channels launched include:

* Skate Junky - Skate
* Gnarbucks - Surf
* 270°to Blog - Snow
* The Inland Empire Strikes Back - Moto
* CrankHead - BMX
* The WhirlyBird Diaries - Wake

For more information, go to www.grindtv.com.

Good idea.

SANTA MONICA (CNS)- Charmin today unveiled some luxury public toilets, complete with tuxedo-clad attendants, on Santa Monica's Third Street Promenade as part of the toilet paper maker's "Plush Potties for the People" promotion.

The state-of-the-art toilets have faucets, sinks, a stainless steel baby changing station, vanities and flat screen televisions.

Chelsea Handler, host of the E! show "Chelsea Lately," helped start what Charmin billed as a national tour to set up more plush potties for holiday shoppers.

"As a frequent traveler, I've seen some nasty public restrooms, and it's a horrible feeling to come out feeling dirtier than when you went in," she said. "With the 'Plush Potties' national tour, Charmin is finally offering the opportunity to go in style!"

Mystery shopper scam.

(Service Intelligence) The scam is executed in this way: an individual receives a letter detailing potential mystery shopping work and containing a check usually in the amount of $2,500. The scam requests the recipient deposit the check, and then send a money gram to a specific address with the pretense that the shopper is evaluating the money gram service. The mystery shopper's compensation is stated to be the $200 difference between the check and the money gram. The letter and check appear valid and use the name and logo of a prominent mystery shopping firm. But, in actuality, the check is fraudulent, and when the check bounces, the victim who has already sent the money gram is left liable for the funds forwarded. Because the scam devises the whole process as a mystery shopping assignment and uses the brand names of prominent mystery shopping providers and prominent retail chains, many unsuspecting individuals have fallen for it.

Home prices in LA and Orange counties fell 26.7% in August compared to the same month a year earlier, according to the Standard & Poor's/Case-Shiller index of home prices.

The index also reported that home prices in 20 metropolitan areas around the nation fell 16.6%.

This could help return the US to a more productive manufacturing sector.

Boeing, Machinists agree to tentative contract
BY MOLLY MCMILLIN
The Wichita Eagle

After five days of mediated talks, Boeing and the Machinists union have reached a tentative agreement on a new four-year contract. It's now up to Machinists union members to decide whether to accept the offer when they vote on the contract. Details of the vote are not yet known.

The strike enters its 53rd day today.

Read the full article.

In honor of Air Force Week, the US Air Force Band of the Golden West will perform at the Warner Grand Theatre in San Pedro.

November 14-21 is Air Force Week in Los Angeles.

As part of the Chamber's partnership with the Air Force, there will be a concert by the US Air Force Band of the Golden West on Sunday Nov. 16 at the Warner Grand Theatre in San Pedro.

The free concert will run from 3 to 5 pm.

Free tickets are available from the San Pedro Chamber of Commerce, at 390 W. 7th St. San Pedro, 310-832-7272.

The financial meltdown that is causing banks to fail and depositors to fret over life savings has swept up financial institutions across the nation and world.

Yet, some banks have largely escaped the carnage.

On Friday, Malaga Financial Corp., the Palos Verdes Estates-based community bank, reported a 20 percent increase in its quarterly earnings.
at we didn't do than what we did do."

Read the full article.

I'm not sure if this is good news or just a hiccup?

New-home sales perk up on gains in the West

WASHINGTON (MarketWatch) -- U.S. home builders took a big step in September toward reducing the gigantic oversupply of homes, boosting sales slightly, slashing prices and reducing the number of unsold homes at a record pace.

Sales of new homes rose an estimated 2.7% in September to a seasonally adjusted annual rate of 464,000 in September, the Commerce Department reported Monday, close to the 460,000 pace expected by economists surveyed by MarketWatch.

Read the whole article.

Lauren Palmer is the staff veterinarian at the Marine Mammal Care Center in San Pedro.

Read the full Q&A.

Fresh off its successful defeat of a hostile takeover bid, El Segundo tech firm International Rectifier Corp. said Monday that its board of directors authorized a stock repurchase program of up to $100 million.

Chairman Richard J. Dahl said in a statement: "We have a great deal of confidence in the prospects of our company and believe that the share repurchase program authorization demonstrates our commitment to creating long-term value for all of our shareholders, while at the same time making prudent use of funds. We are, of course, monitoring the macro-economic climate as well as market conditions in general and will be mindful of this and other opportunities for deployment of our resources."

This has dragged on for a long time.

Talks to end Boeing strike continue in Washington

SEATTLE - (AP) Negotiations to end a 51-day strike against the Boeing Co. are being held Sunday with no word on progress.

Federal mediators called machinists union and Boeing (nyse: BA - news - people ) negotiators to the table in Washington, D.C., on Thursday. Neither side has said whether any progress has been made, but both say it's a good sign that the talks are continuing.

Read the full article.

Some issues appeal to voters more than losing an aircraft contract.

McCain's role in killing Boeing tanker contract hasn't cost him Kansas
By Dion Lefler

(The Wichita Eagle) For the third time in three presidential debates, Republican nominee John McCain has cited shooting down an air tanker contract that would have brought hundreds of jobs to Kansas as one his biggest Senate triumphs.

But his comments and other McCain ties to Boeing Co.' s chief rival, Airbus, seem to have done little to diminish his chances of winning Kansas in the November election.

Read the full article.

South Bay home prices continued their steady drop in September, with the areawide median price falling 27.9 percent compared to the same month a year ago, said a report released Friday.

The South Bay's median price for all homes sold in September was $500,000, compared to $693,500 in September 2007, according to the report by Los Angeles-based California Association of Realtors.

The local price drop was less than the countywide decrease of 32.1 percent to a median of $360,000.

The median price refers to the middle figure in which half of homes sold for more and half for less.

Home prices fell throughout California even as the number of properties sold skyrocketed 96.7 percent compared to a year ago.

"This dramatic increase in sales owes as much to market weakness a year ago in the early stages of the credit crunch, as it does to the growth of sales in September this year," CAR president William E. Brown said in a release. "Similar increases occurred in the early 1980s when the market was climbing out of a comparatively steep downturn in sales."

Of the South Bay communities cited in the report, San Pedro saw the most severe drop in median price, by 33.5 percent, to $412,000.

"I think what's really happening is with the waves of foreclosures and bank-owned properties, the ripples are finally hitting this area," said Kim Howard, a Realtor who works mostly in San Pedro. "It started in Riverside and Diamond Bar and those area, and then it hit Carson . . . and it finally hit us."

Howard, who works with Re/Max Execs Palos Verdes, said she expects home prices to slowly stabilize in the second quarter of next year, and possible start to turn around by 2010.

Robert Petersen, a Realtor with ERA Golden West Realty, blamed the previous runup in San Pedro home prices for September's dramatic slump.

"When an area becomes more desirable and more people go to it, the prices increase," said Petersen, whose office is in San Pedro. "It went up a lot. And when everything turned around, it's going to get harder hit in the downturn."

Inglewood also suffered a major price drop, at 31.3 percent, with the September median sinking to $299,000.

Carson's median price skidded 27.3 percent to $360,000.

Torrance's median price fell 18.5 percent to $481,000.

The Palos Verdes Peninsula's price drop was a relatively mild 5.6 percent to 1,075,000.
Bucking the trend, the median price in the beach cities rose 2.1 percent to $995,000 in September. However, this figure may have been skewed by a disproportionately large number of higher-end homes selling that month.

Statewide, the median price of only existing, single-family detached homes dropped 40.9 percent in September, to $316,480.

"There is still no clear sign that the statewide median price has begun to stabilize, and recent events in the economy and financial system undoubtedly contributed to the steep decline in September, both directly and through weakened consumer confidence," CAR vice president and chief economist Leslie Appleton-Young said in a release. "However, individual markets may be faring better than the statewide median at this time.

The South Bay's median home price plunged 27.9% in Setember compared to the same month a year ago, according to the California Association of Realtors.

September's median price was $500,000, down from $693,500.

It's still a big chunk of change.

Judge reduces damage award against Boeing in satellite case
From Tribune news services

LOS ANGELES -- A judge late Tuesday revised the damage amount in a trial involving Boeing Co., saying the Chicago-based aerospace company was found responsible for at least $370 million in damages in a dispute with ICO Global Communications Holdings Ltd. over the completion of a satellite telecommunications network.

The initial award calculated by jurors was much higher, at $742.2 million, but Judge Emilie H. Elias said after the jury panel had left the court that the jurors had made an error in "arithmetic," and she reduced the damages to $462 million.

Read the full article.

Today's business casual column.

Post-9-11 reporting is tricky
By Muhammed El-Hasan, Staff Writer

The question of whether Barack Obama is Muslim and/or Arab continues to dog the presidential candidate.

Recently, the issue seemed to peak - but not end - when a supporter of Obama's rival, John McCain, said at a rally: "I can't trust Obama. I have read about him and ... he's an Arab."

Read the full column.

In around 2000 while working at a Rolling Hills Estates medical office, Aqdas Kuraishi asked one of his patients with a thyroid condition why he had taken so long to come in for a checkup.

"He said, 'I lost my job,'" Kuraishi recalled.

As a result, the patient had also lost his medical insurance and was reluctant to pay for a visit out of his own pocket.

So Kuraishi decided to stop charging him until he found another job six months later.

Kuraishi did the same for several of his other patients who were temporarily unemployed.
Eight years later, with the economy tanking, Kuraishi and a fellow doctor are making the same gesture to their current patients.

"All established patients of our practice who have lost their jobs shall receive their medical care that the doctors do in their office free," Kuraishi wrote as an informal policy. "Your (job) termination slip is your insurance for our services till you find your new position."

Read the fulls story in Friday's edition.

Frances Baldwin stood in the rear patio of a Rancho Palos Verdes house that overlooks the Pacific.

Despite the serene ocean view, Baldwin, the three-bedroom residence and its owner are being swept along by turbulent currents in the housing market.

Read the full story.

Shouldn't Alan Greenspan give America a huge apology and admit that he deserves a lot of responsibility for today's credit crunch.

Greenspan "shocked" at credit system breakdown

WASHINGTON (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan told Congress on Thursday he is "shocked" at the breakdown in U.S. credit markets and that he expects the unemployment rate to jump.

Despite concerns he had in 2005 that risks were being underestimated by investors, "this crisis, however, has turned out to be much broader than anything I could have imagined," Greenspan said in remarks prepared for delivery to the House of Representatives Committee on Oversight and Government Reform.

Read the full story.

Frances Baldwin stood recently in the rear patio of a Rancho Palos Verdes house that overlooks the Pacific.

Despite the serene ocean view, Baldwin, the three-bedroom residence and its owner are being swept along by turbulent currents in the housing market.

Slumping real estate prices and a wave of foreclosures have turned properties "upside-down," where a home's value is less than the mortgage held by the owner.

In the case of the Rancho Palos Verdes house, the owner owes $1.3 million, but the property is worth much less. Baldwin, a long-time real estate professional, has listed it at $1,099,000, but will likely lower the price much further.

Baldwin is trying to satisfy both the owner and the bank through a short sale, in which a property sells for less than the mortgage value, and the bank forgives the difference.

Baldwin, a partner and senior loan consultant at Excel Funding Real Estate Loans in Torrance, has shifted her focus to short sales as her loan business has plummeted. Baldwin's dilemma is a sign of the times, as nearly the entire industry has watched business prospects evaporate.

"The loan part of the business has slowed down by 95 percent," Baldwin said. "I knew this was coming over two years ago."

... Read the full story in Thursday's Business section.

This item should shock no one.

Oct. 22 (Bloomberg) -- U.S. new-home sales will fall 12 percent next year as housing starts drop by a record, Mortgage Bankers Association Chief Economist Jay Brinkmann said.

Read the full article.

Northrop Grumman Corp. said it elected Bruce S. Gordon as a director of the
Century City-based company's board.

Northrop Grumman's board now totals 14 members, 13 of whom are non-employee directors.

"Bruce Gordon is a highly experienced director with a distinguished career as an executive in the telecommunications industry and as the leader of the NAACP," said Ronald D. Sugar, Northrop chairman and CEO.

Gordon currently serves as lead director of Tyco International LTD and as a director of CBS Corp. He previously served on the boards of Southern Company, Office Depot, Best Foods, Infinity Broadcasting and The Bartech Group.

The Pentagon denied a report that it had decided to further delay a multibillion-dollar satellite program that two South Bay firms have been competing for.

Citing an "industry source informed about the decision," Reuters news agency said Monday that the Pentagon had decided to postpone awarding the the contract to develop the so-called TSAT satellite program tuntil fiscal year 2010, instead of this December.

A team led by Boeing Co. was competing for the contract, which could be worth more than $10 billion, against a team led by Lockheed Martin Corp. that includes Northrop Grumman Corp.

If Boeing wins the Department of Defense contract, much of the work would occur at the company's satellite facilities in El Segundo. If Lockheed wins, Northrop's share of the work would occur largely in Redondo Beach.

"We have seen the news reports about TSAT, however, as of right now, no final decision has been made on program status," Pentagon spokesman Chris Isleib said in a statement. "The Department is still reviewing the requirements associated with the TSAT program, but DoD remains committed to fielding a TSAT solution by FY 2019."

Boeing, which has had to cut hundreds of El Segundo jobs this year amid slow or pending satellite sales, has said the TSAT program could help create or sustain about 1,000 local jobs.

Northrop estimates the satellite program would support more than 1,100 jobs at its Los Angeles facilities.

Boeing and Lockheed each said Monday that they were not officially notified of any changes in the TSAT program.

Another pessimistic analysis.

US house prices face long fall to bottom: analysts

WASHINGTON (AFP) - The falling US housing market, the trigger for the global financial crisis, is still far from reaching the bottom, promising more pain for consumers and more bad debt for banks, analysts say.

Read the full story.

Read my take on the real estate market.

These are strong words, but they're coming from someone with a political motive. He's from Alabama, where Northrop would have assembled the aerial refueling tankers. Still, a very interesting piece.

DOD's decision shameful

(Andalusia Star-News) Of all the potential outcomes to the United States Air Force tanker competition, the program's cancellation was the least expected and the most shameful.

Read the full story.

I don't know if Bush has enough time to help find an international solution to our economic woes before he leaves office. But we can't wait.

(AP) CAMP DAVID, Md. - President Bush, looking for answers to an economic emergency with just three months left in office, will host an international summit to discuss ways to fix the world financial system but warned on Saturday against reforms that threaten capitalism. Read the full article.

My take on what's behind the economy's dramatic moves up and down.

Department store chain Mervyns LLC announced plans Friday to close all its 149 California and Southwest stores amid the severe economic downturn and retail slump.

The store closings would leave the South Bay without its three Mervyns stores, in Torrance, Redondo Beach and Westchester.

Mervyns, which filed for Chapter 11 bankruptcy protection in July, said it conducted a "thorough analysis of all available options, including a sale of the company," before deciding on a liquidation.

"The company and its board of directors determined that holding going out of business sales during the holiday season is the best way to maximize value for the company's creditors," Hayward, Calif.-based Mervyns said in a statement.

At the Mervyns in Redondo's South Bay Galleria mall, Christina Zuniga said she was would miss shopping at the store, which she has patronized "forever."

"I'm here all the time for all my clothes," said Zuniga, 42, of Lawndale. "I like their stuff. It's inexpensive and it's close to my house."

Zuniga, a dental assistant, said she does not know where else to find her favorite brand of jeans, High Sierra, the "only ones that fit me really well."

Mervyns is one of three main anchor tenants at the Galleria, in addition to Macy's and Nordstrom. Mervyns anchors the south end of the enclosed mall, where the shopping center concentrates its lower-cost retailers such as Payless Shoe Source.

A mall official did not return a call seeking comment.

It may be difficult to find another anchor in the short term because most retailers are not expanding, said Gregory Stoffel, an Irvine shopping center analyst.

"But let's also acknowledge that Mervyns was not a terrific anchor anyway," Stoffel said. "If you remove a store that's not performing really well, usually the impact on a good center is fairly minimal because if (the retailer) had been doing well at all, it wouldn't be going out of business."

The Mervyns announcement comes three days after specialty retailer Linens 'N Things said it would liquidate all its stores including a location in Torrance.

Torrance Mayor Frank Scotto said he was concerned about his local Mervyns closing even though it is not among the city's top tier of sales tax generators.

"Unfortunately for the city, it's very difficult times in terms of retail outlets, and we know the future may bring even more difficult times," Scotto said. "We are watching the situation very closely, and we will try to assist any of these stores or outlets to either remain in the city or continue to be viable."

Scotto added that it is too late to do anything about Mervyns.

Fran Fulton, Torrance's economic development manager, said the city has helped other local businesses with training and other expenses on a case-by-case basis.

"We do have an economic development fund, so it kind of depends on what they need," Fulton said.

Mervyns said it plans to retain an outside professional services firm to assist in the liquidation sales of inventory.

"We are disappointed with this outcome but the company's declining liquidity position and the extremely challenging retail environment, together with the fact that we have exhausted all other possibilities, requires that we take this action," John Goodman, Mervyns CEO, said in a statement.

"Consumers know Mervyns for our style, quality, and great value and we are confident that the deep discounts available through going out of business sales will drive significant traffic in our stores."

Read today's Business Casual column. (I know it doesn't say Business Casual online, but you'll have to take my word for it.)

A friend sent this to me. A sign of the times.

CEO -- Chief Embezzlement Officer. CFO -- Corporate Fraud Officer. BULL MARKET -- A random market movement causing an investor to mistake himself for a financial genius. BEAR MARKET -- A 6 to 18 month period when the kids get no allowance, the wife gets no jewelry, and the husband gets no CENSORED. VALUE INVESTING -- The art of buying low and selling even lower.

P/E RATIO -- The percentage of investors wetting their pants as the market keeps crashing.

BROKER -- What my broker has made me.

STANDARD & POOR -- Your life in a nutshell.

STOCK ANALYST -- Idiot who just downgraded your stock.

STOCK SPLIT -- When your ex-wife and her lawyer split your assets equally between themselves.

FINANCIAL PLANNER -- A guy whose phone has been disconnected.

MARKET CORRECTION -- The day after you buy stocks.

CASH FLOW-- The movement your money makes as it disappears down financial the toilet.

YAHOO -- What you yell after selling it to some poor sucker for $240 per share.

WINDOWS -- What you jump out of when you're the sucker who bought Yahoo @ $240 per share.

INSTITUTIONAL INVESTOR -- Past year investor who's now locked up in a nuthouse.

PROFIT -- An archaic word no longer in use

Southern California foreclosures dropped by 58% from August to September, according to Mt. Pleasant, Penn.-based Default Research, which tracked the industry.

The largest declines in Southern California came from Ventura (65%), San Diego (60%) and Los Angeles (59%) counties.

Northern California saw a similar drop in foreclosures, by 54%.

But there's a catch. The significant decline "is largely due to state Senate Bill 1137 which was passed last July and went into effect on September 8, 2008."

The new state law is meant to slow down the foreclosure process.

"While we hope to see these positive numbers continue in the future, they are not reflective of the still dismal foreclosure situation in California," said Serdar Bankaci, founder of Default Research, in a statement. "Because the new law requires lenders to contact residence at least 30 days before filing a Notice of Default, the result is a lower number of recordings now. However, we expect to see the numbers increase again starting in November and December."

Amid a major slump in home prices and volatile world stock markets, the nation's rental apartments represented the "epitome of stability," according to a report released Wednesday.

Nationwide, rental prices and occupancy rates were "virtually unchanged," says the report by Novato, Calif.-based RealFacts, which collects rental data for large apartment complexes.

The report, for the third quarter of this year, found that Torrance rents rose 2 percent to $1,555, compared to the same period last year. Occupancy dropped slightly by 1.9 percent to a still-robust 97.3 percent.

By comparison, Long Beach rents rose 3.3 percent to $1,492 in the third quarter, while occupancy was at 95.6 percent, unchanged from the same time last year.

Los Angeles County's rents rose 2.6 percent. That brought the average rent for a unit in a large apartment complex to $1,716.

Los Angeles County's rise was low by historical standards, but still higher than Orange County's increase of 1.8 percent, to $1,603, the report says.

The occupancy rate in Los Angeles County in the July-to-September period was 94.7 percent, down 1 percent over last year.

Orange County's occupancy rate was slightly lower at 94.5 percent.

Rents at some apartment buildings rose for Beach Front Real Estate Services, a Long Beach property management and investment firm with 2,500 units across Southern California including the South Bay.

"I would say they've probably gone up a tad," said Kyle Kazan, CEO of the real estate firm. "But I don't think that trend will go from the third quarter of this year to the third quarter of next year. I think it will be reversed. I think we're seeing the tipping point now."

Kazan said the apartments where he was most likely to raise rents were at under-priced buildings for which his company had recently taken over management.

As the economy weakens, the higher-end apartments have been seeing the greatest softening in tenant demand, Kazan said.

California's battered housing market will see even darker days next year as home prices drop 6 percent, even as the sales volume rises, a forecast released Wednesday says.

In 2009, the median existing home price in California will drop to $358,000, from a projected $381,000 this year, according to the report by the Los Angeles-based California Association of Realtors.

However, next year's drop will be much milder than this year's expected 31.7 percent slump in the median home price.

The median price is the middle figure where half of homes sold for more and half for less.

However, sales for 2009 are projected to increase 12.5 percent to 445,000 units, compared with 395,600 units projected for this year, the forecast says. Home sales this year will be ahead of 2007 sales by 12 percent.

"The current uncertainty about the financial system and economy is likely to persist over the next several weeks, and could extend into next year," CAR president William E. Brown said in a release. "Our forecast assumes that the financial system will begin to show signs of stabilization late in 2008 and into early 2009."

Brown further said he expects the economy to be "at its weakest period over the next three quarters through the second quarter of 2009, with recessionary economic conditions throughout that time period, before we begin to see a turnaround in the second half of next year."

Sales of distressed California properties, such as foreclosed homes, are expected to peak in early 2009, Brown said.

It's called SweetWave Coffee, Tea and More in Redondo Beach.

While growing up in the Philippines, Valentin Asiddao liked to hang out at an art gallery that doubled as a coffeehouse.

When he came to the United States for college, he brought along his love of coffee and art.

Read the full article.

Toyota said Tuesday it is starting a rewards program for Visa credit cards.

Issued by Toyota Financial Services, the credit cards provide rewards points to users, who can redeem the points for parts and accessories, an eligible vehicle lease or purchase, or service from participating Toyota dealerships.

For more information, visit www.ToyotaRewardsVisa.com or call 866-614-8845.

Probably some great deals to be had.

(AP) NEW YORK -- Specialty retailer Linens 'n Things, which filed for bankruptcy protection in May, plans to begin liquidation sales at its stores as early as Thursday after failing to find a buyer that wanted to operate the company.

"It's a straight going-out-of business liquidation sale," said James Schaye, president and chief executive of Hudson Capital Partners, one of the members of the investment group buying the company's assets. He expects the process for the company's approximately 371 remaining store locations will take about 11 weeks.

With the U.S. government planning to buy shares in banks, and having taken over Fannie Mae and Freddie Mac -- not to mention its involvement in insurer AIG -- is our nation heading toward socialism?

Some free-market purists have railed against our government's actions, which are meant to stabilize the crippled financial markets. But like with the New Deal many in the 1930s, some capitalists see the government's actions as a way to save our free-market system rather than replace.

After this whole financial mess is cleaned up, there is sure to be residual increased government involvement -- pronouned R-E-G-U-L-A-T-I-O-N -- in our financial markets for a long time. These things go in cycles. Look how long the New Deal-inspired programs took to finally disappear amid massive deregulation, only to return in a different form because of the current financial crisis.

After all, many blame deregulation for the financial debacle. (Read my take on this.)

It may be odd that we are using the trappings of socialism to save capitalism, but that seems to be exactly what is happening.

Vishay Intertechnology Inc. said on Monday that it was ending its effort to buy El Segundo-based International Rectifier Corp. three days after a decisive shareholder vote.

On Friday at the International Rectifier annual meeting, investors voted down a slate of three Vishay-supported board candidates. Shareholders also defeated Vishay's proposed bylaw amendments meant to support its takeover bid.

"As we have consistently said, we can not pursue our proposal in the face of opposition from a board of directors that has refused to engage in any discussion with us regarding our offer," Vishay said in a statement Monday. "We regret that International Rectifier stockholders will not be able to participate in what would have been a compelling opportunity to create significant value for them."

International Rectifier, known as IR, a maker of power management computer chips, welcomed Vishay's decision to back down.

"International Rectifier's board and management are pleased with the support and input we received from our shareholders," chairman Richard J. Dahl said in a statement. "We are optimistic about the future growth opportunities for our business, and we will remain focused on executing our strategic roadmap to create value for our shareholders."

From the start, IR had rebuffed Vishay's efforts to negotiate an acquisition, even after the suitor raised its initial $21.22 offer to $23 a share and further hinted at an even higher bid. IR had insisted that the Pennsylvania computer chip maker was grossly undervaluing the South Bay company's potential value based on expected growth.

The end of Malvern, Pa.-based Vishay's hostile takeover bid means that IR's 4,500 worldwide employees, including about 600 in El Segundo, would be spared the trauma of an acquisition, which often leads to job cuts to eliminate redundancies.

Over the past year, IR had made senior management changes after former CEO Alex Lodow's October 2007 resignation following the discovery of accounting irregularities.

On Aug. 1, the company said it completed its restatements for the periods involved in the irregularities.

The firm had been involved in a previous sale to Vishay. Last year, the local firm sold its power-control systems business to Vishay.

On Monday, IR's stock closed at $15.46, up $1.49 or 10.67 percent, on the New York Stock Exchange. The stock's rise coincided with a broad rise in stocks Monday amid efforts by world governments to shore up unsteady financial markets.

Vishay Intertechnology said today it was withdrawing its tender offer to buy outstanding shares of El Segundo-based tech firm International Rectifier.

On Friday at International Rectifier's annual meeting, share holders shot down a Vishay-proposed slate of three director candidates. That defeat effectively ended Vishay's hostile takeover bid.

Richard J. Dahl, chairman of International Rectifier, said in a statement:

"International Rectifier's board and management are pleased with the support and input we received from our shareholders. We are optimistic about the future growth opportunities for our business, and we will remain focused on executing our strategic roadmap to create value for our shareholders."

How often does that happen? Congratulations to Paul Krugman.

Paul Krugman, a professor at Princeton University and an Op-Ed page columnist for The New York Times, was awarded the Nobel Memorial Prize in Economic Sciences on Monday.

Read the full story.

Today's At Work Q&A.

These are possible benefits of the economic downturn.

International Rectifer Corp., the El Setgundo-based maker of power management computer chips, successfully rebuffed a hostile takeover bid Friday at it annual meeting.

The South Bay firm said that shareholders re-elected all three of the company's board nominees over a dissident slate of candidates nominated by Vishay Intertechnology Inc.

Malvern, Pa.-based Vishay had hoped a win by its board candidates could push International Rectifier to accept its $23-a-share purchase offer.

Shareholders also defeated Vishay's proposed bylaw amendments meant to support its takeover bid.

Reader Neil Proffitt of Redondo wrote the following comment on Friday's Business Casual column:

People want out from under the landlord. They desperately desire a place to call their own. And so they fall for these to-good-to-be-true loans.

The fine print is always the killer. Reading it may damage your eyesight but it may save your money.

HomeGoods, the Framingham, Mass.-based furniture retailer, plans to open a store in Torrance on Sunday.

The 25,000 square-foot store is located at Torrance Crossroads shopping center at the southwest corner of Crenshaw and Lomita boulevards.

This will be the 19th HomeGoods store in the Los Angeles market.

The planned store opening comes as furniture stores have been closing nationwide, as the industry suffers from a weak economy and reduced demand caused by the drop in home sales.

HomeGoods touts itself as "the country's only off-price store dedicated to home fashions," offering items for 20-60 percent less than competitors.

Today's Business Casual Column.

Anyone who has seen the unruly mound of papers on my desk at the Daily Breeze knows I have an unorthodox filing system.

Read the full column.

A reader calling him/herself "Wheeling" wrote this enlightening message regarding my blog item on The Aerospace Corp. executives and managers tooling around work in wheelchairs.

Here's what Wheels has to say:

First, I applaud the effort. Second, I predict that what they will find is that it is hard to get around, and tiring. Because that's what everyone discovers. That's the problem with most of these experiments. You don't go from being completely able-bodied to using a wheelchair in one day. For those of us who use wheelchairs, there is often extensive training and a shift.

Their shoulders will hurt. But if they did it everyday for a few months, their shoulders would stop hurting so much. However, they would discover that finding dress shirts with enough room in the shoulders becomes harder. In the short term, their desks might be too short. If they were really disabled that could be fixed fairly easily. But what they might discover is that it is difficult to get a desk that is high enough for the chair, and a keyboard that is low enough to not make your shoulders ache when you type all day.

They might find that the bathrooms are tough to navigate (or they might cheat here). But they might not discover that the stalls are do-able with practice, but the pipe under the sink is a burn hazard. I guarantee that with only a day, they will miss the benefits that come from life in a chair. They will never know the joy of flying down a hill, because fear will hold them back.

They won't understand the fun of dancing with a chair, because they will not see the possibility of that being dance. They won't notice all the little things that only those of us whose eyes fall a few feet lower see. They will miss the flowers, or the giant moth that likes to settle in the lower branches of the bushes.

If the goal is to make a good PR story, and maybe even remind people about how far accessibility has to go, then this is a good opportunity. But I'm always saddened by the fact that it could be understood so much better by following a person who is actually disabled around, and having them point out the good and the bad.

"Uuuugh!"

The dispirited groan came from Royce Morales after she was asked about sales at her cozy shop.

"It's been tough, especially the last month or so. Maybe 30 percent lower," said Morales, who owns Harmony Works, a gift shop in Redondo Beach's posh Riviera Village shopping district. "This is a very affluent area, but I just think everybody is scared."

Read the full story.

Here's the latest video from the recent rocket launch.

Here's a blurb from SpaceX founder Elon Musk's latest message to the press and supporters:

A week spent reviewing data has confirmed that the flight went really well, including the coast and restart. The mood here at SpaceX is just ecstatic! This is the culmination of six years of hard work by a very talented team. It is also a great relief for me, who led the overall design of the rocket (not a role I expected to have when starting the company). I felt a little sheepish receiving the AIAA award for the most outstanding contribution to the field of space transportation two weeks before this flight.

Tesco USA, the El Segundo-based grocery chain, said it opened three new stores in Las Vegas, the company said Wednesday.

This brings the company to 22 stores in the Las Vegas area.

The stores, known as Fresh & Easy Neighborhood Market, are the size of a Trader Joe's.

The company plans to open three more stores in Nevada's Clark County.

Tesco USA, the American arm of the British parent company Tesco, plans to open hundreds of stores in California, Nevada and Arizona.

Has the economic slowdown hurt you?

Is your 401(k) turning into a 201(k)?

Are you having trouble sleeping at night?

If so, then I'd like to hear your story.

muhammed.el-hasan@dailybreeze.com

Cox Communications said that effective Oct. 7, it will offer two more Hindi-language Indian channels in Palos Verdes and Orange County, bringing the total number of international channels available to Cox Digital Cable customers to 21.

The two channels being added are STAR India PLUS and Sony Entertainment Television Asia, popularly known as SET Asia.

STAR India PLUS is India's number one Hindi pay-TV channel for seven consecutive years and features soap operas like Kyunki Saas Bhi Kabhi Bahu Thii, and reality and game shows.

Sony Entertainment Television Asia is one of India's popular Hindi-language based international general entertainment broadcasters. Its programming targets family audiences with drama, reality, comedy, horror, Bollywood and live events.

The Aerospace Corp., an El Segundo-based quasi-governmental think tank that serves the Air Force, plans to observe National Disability Awareness Month with seven of its executives and managers using wheelchairs to get around at work Wednesday.

On Thursday, participants of the "physical challenge" will discuss at a panel discussion their experiences and what they learned.

TAC also planned to put on a theater production today to dramatize challenges faced by the disabled.

Vishay Intertechnology, which is trying to buy El Segundo-based International Rectifier in a hostile bid, issued the following statement Monday about possibly raisiing its $23 a share offer.

"... if International Rectifier can, through good faith negotiations, demonstrate to Vishay that a further price increase is justified, Vishay would be willing to improve its offer. In this regard, Vishay would seek to obtain substantiation of International Rectifier's new business plan, particularly the $60 million reduction in cost of goods sold within two years and the projected substantial increase in revenues and gross margin."

Good news for local businesses.

Marvel signs long-term lease with Raleigh

(The Hollywood Reporter) Marvel Studios is keeping its movies in California.

The company has signed a long-term lease with Raleigh Studios to film four bud-budget movies at Raleigh's Manhattan Beach complex. The films are "Iron Man 2," "Thor," "The First Avenger: Captain America" and "The Avengers."

As part of the agreement, Marvel will move its Beverly Hills-based executive and production offices to Raleigh's facility in Manhattan Beach.

Read the full story.

Edsel D. Dunford, a former TRW Inc. president and longtime South Bay resident, died Friday. He was 73.

Dunford died after a long battle with cancer, according to Northrop Grumman Corp., which purchased TRW in 2002.

The Rolling Hills resident, "played a significant role in the design and development of U.S. space systems, from early missions to the planets to complex communications, command, intelligence, surveillance and reconnaissance systems," Century City-based Northrop said in a statement Monday.

In 1961, Dunford started his aerospace career at Ford Aeronutronics.

In 1964, he joined TRW, spending most of his career at the company's Redondo Beach-based space and defense business.

In his 30 years with TRW, Dunford rose through the ranks, being appointed executive vice president and general manager of the Redondo Beach business in 1987. Four years later, he was elected president and chief operating officer at TRW's corporate headquarters in Cleveland, Ohio.

Dunford retired from that position in 1994.

"He was involved in just about every one of the major space programs that TRW was involved with from the '60s forward," said Dan McClain, a Northrop vice president of communications who had served under Dunford. "To me, he personified the sense of the old-school steely-eyed missile men. He was a true Cold War warrior and one of the people who made sure our country remained secure during that scary time."

McClain also remembered Dunford as warm with "a really good sense of humor."

Dunford was honored as a member the National Academy of Engineering and a fellow of the American Institute of Aeronautics and Astronautics. He also served as chairman of the Aerospace Industries Association.

In addition, the aerospace veteran served on several U.S. government advisory groups, including as chairman of the U.S. Air Force/National Research Council committee to evaluate the National Aerospace Initiative in 2004.

Dunford served in the U.S. Army before earning a bachelor's degree in electrical engineering from the University of Washington and a master's degree in engineering from UCLA. He also completed the Executive Program at Stanford University.

UCLA and the University of Washington schools of engineering each honored Dunford as Alumnus of the Year. The USC's Viterbi School of Engineering selected him for the Daniel J. Epstein Engineering Management Award in 1993.

After leaving TRW, Dunford co-wrote and co-produced a documentary called "The Cold War and Beyond," which included both U.S. and Russian perspectives on that period. The film aired in 2003, and was a finalist at the Hollywood Film Festival that year.

Dunford is survived by his wife, Lorie, sons, Wyman, Stan and Philip, daughter Marlo Garrett and step-children Matt Henning & Abbey Greene.

A gathering in his honor will be held on Oct. 16, from 5-9 p.m. at Rice Mortuary, 5310 Torrance Blvd. in Torrance.

In lieu of flowers, the family is asking that donations may be made in Dunford's memory to Torrance Memorial New Hospital Tower Fund c/o Laura Schenasi, 3330 Lomita Blvd., Torrance.

In today's profile.

The most striking element of his office is a stuffed lion that rears its head at Gerber's desk. He hunted that lion during an expedition in Mozambique.

Read the fulls story.

Q&A with a home stager In today's biz section:

At some real estate open houses, the interiors look so fashionable that it seems like an interior designer was behind it.

In some cases, a designer was involved. The practice is known as staging, where the inside of a home for sale is prepared to look stylishly lived in even if no one occupies the residence.

Redondo Beach resident Christine Stahlberg started working as a home stager last October. The 26-year-old runs CMS Interior Design out of her home.

Read the full article.

Also read the latest Business Casual column.

Here's a good explainer from US News & World Report.

Also check out this week's Business Casual column on this subject.

What do the mismanaged banks that would benefit from a federal bailout have in common with corn farms?

Find out in today's Business Casual column.

Elon Musk, the founder of Hawthorne-based rocket developer SpaceX, made a novel suggestion on how to improve schools.

A few weeks ago at an aerospace conference, Musk suggested that we do away with the conventional school teacher role, which he said was inconsistent and often amateurish.

Instead, we should spend millions of dollars to create lesson videos with engaging speakers and special effects to capture the attention and imagination of students. He likened it to the latest Batman move "Dark Knight," which brought top actors and top special effects to create a topnotch movie.

Teachers in the classroom would then be facilitators in the classroom instead of instructors, in Musk's view.

He acknowledged that his ideas were controversial, but Musk doesn't seem like the type of guy who shrinks from challenges or controversy.