DECEMBER 6-12

Direct Competition: News Corp. was reportedly planning a new offer for Hughes Electronics Corp. in the wake of EchoStar Communications Corp. dropping out of its proposed $27 billion purchase of the parent of satellite service DirecTV. Regulators had opposed the acquisition of Hughes by Littleton, Colo.-based EchoStar because they said it harmed competition. By paying El Segundo-based Hughes $600 million to end the bid, EchoStar now clears the way for Rupert Murdoch's News Corp. or perhaps John Malone's Liberty Media Corp.

Done Deal: Northrop Grumman Corp. reached an agreement with the Justice Department that would allow completion of its $11.8 billion purchase of TRW Inc. Los Angeles-based Northrop, which makes sensors and electronics for satellites, agreed to continue selling parts to rivals like Boeing Co. and Lockheed Martin Corp. Also last week, shareholders of both companies voted to approve the merger. Northrop would remain the nation's third-largest defense contractor, behind Boeing and Lockheed.

Burger Profits: CKE Restaurants Inc., Santa Barbara-based operator of Carl's Jr., reported third-quarter net income of $9.5 million, compared with a net loss of $1.7 million for the like period a year ago. The results included several extraordinary events, including a $5.5 million tax benefit. Revenue fell to $313 million from $325 million a year earlier. CKE projects a fourth quarter loss of at least 6 cents a share.

Ad Upturn?: Advertising sales at the broadcast television networks will rise about 4 percent next year, according to David Poltrack, head of research and planning at CBS. The four major networks have increased their ad sales about 6 percent this year.

It's a Small World: Walt Disney Co. has deferred on a theme park in mainland China for at least eight years because of concerns over disrupting development of a Disneyland in Hong Kong. Disney's delay is seen as a boon for competitor Universal, which has announced plans to open a movie theme park in Shanghai in 2006. The Disney project in Hong Kong, which involves a joint partnership with the Hong Kong government, was expected to open in 2006.

Perc Ban: As expected, the South Coast Air Quality Management District voted to bar dry cleaners from using perchloroethylene, a suspected carcinogen, by 2020. The ruling, which affects 2,200 dry cleaners in the L.A. area, was a compromise between regulators and the industry, which had opposed a previous ban on the purchase of perc machines by 2004.

Energy Swap: The Federal Energy Regulatory Commission issued a proposed decision awarding $1.8 billion in refunds from energy suppliers for alleged overcharges during the slate's energy crisis in late 2000 and early 2001. FERC also found that California owed the energy suppliers $3.1 billion. If its board upholds the decision early next year, California would end up having to pay the suppliers $1.3 billion. The Davis administration had sought $8.9 billion in refunds from the suppliers.

Hotel Deal: After an often bitter three-year campaign to gain union recognition, Hotel Employees and Restaurant Employees Local 11 reached an agreement with Loews Santa Monica Beach Hotel allowing union organizers into the hotel to seek employee support for representation, starting in January.

Studio Cuts?: Universal Studios executives are cutting casts to prepare the company for a possible sale or spin-off, the Los Angeles Times reported. As part of the cost cutting, the 38-story Universal City Plaza may be sold, the newspaper reported. Top studio executives were asked to speak with Vivendi Universal SA Chief Executive Jean-Rene Fourtou about the budget reductions.

DECEMBER 16-29

Holiday Schedules: This last full week before Christmas should be a wild and woolly one at the malls, especially on Saturday (21st), which if tradition holds shapes up to be the season's busiest shopping day. Retailers will stay open extra hours through Christmas Eve. Then most everything shuts down on Wednesday - including many supermarkets - before the after-holiday rush begins on Thursday. The financial markets will have a short trading day on Christmas Eve and, of course, will be closed on Christmas.

Mass Transit: L.A's popular express Rapid Bus system has two new routes opening on Monday (16th). One goes for 12 miles along Vermont Avenue from the Sunset Boulevard Metro Rail station down to the Metro Green Line at the Century (105) Freeway. The other 10.5-mile route goes from Union Station down Broadway (just east of the Harbor (110) Freeway), also to the Metro Green Line. The Metropolitan Transportation Authority will allow riders on these new Rapid Bus routes to ride free on the first day.

Sports Beat: For diehard Bruins football fans with little else to do on Christmas Day, there's the Las Vegas Bowl, with 7-5 UCLA against 7-6 New Mexico. As for college basketball, UCLA takes on Northern Arizona on Tuesday (17th) at Pauley Pavilion, while USC plays LaSalle on Saturday (21st) at the Sports Arena. In the NBA, the Lakers are home against Sacramento on Christmas Day and again on Sunday the 29th against Toronto, while the Clippers are at Staples on Monday (16th) against San Antonio, Wednesday (18th) against Portland, Friday (20th) against Phoenix, Saturday (21st) against Denver, and the following Saturday (28th) against Golden State. The Kings are home on the 17th against St. Louis, the 19th against Anaheim and the 26th against Phoenix.

Ranch Dressing?: Ventura County Supervisors will vote on the first phase of the 3,050-home Ahmanson Ranch development on Wednesday (18th), after taking public comment in a day-long session. The Washington Mutual-owned project, just north of Calabasas, was approved by the board in 1992 but has been held up by extensive litigation ever since.

New Year Outlook: There is yet another forecast conference for 2003, this one sponsored by Technolink Association on Tuesday (17th) at the Omni Hotel in downtown L.A. The sessions will cover the real estate, education, energy and general technology. Program begins at 11:30 a.m. For information: 949-443-4026.

Economic Indicators: The best indicator of how the economy did during the holiday season will be seen in the first few days after Christmas, as retailers tally up receipts. The University of Michigan's consumer sentiment survey on Monday the 23rd and the final third quarter gross domestic product numbers on Friday the 20th are among the highlights over the final two weeks of the year. Also being released: the November consumer price index (17th) and the November leading economic indicators (19th).

COPYRIGHT 2002 CBJ, L.P.
COPYRIGHT 2003 Gale Group