Newsletter: California Inc.: Zombies, bikes, jobs and grills
Welcome to California Inc., the weekly newsletter of the L.A. Times Business section.
Here’s a rundown of upcoming stories this week and the highlights of last week.
When trading resumes Tuesday, investors will be watching whether the stock market can retain the momentum it had at the end of last week when U.S. stocks had almost completely recovered from the losses suffered after British citizens voted to leave the European Union. The Bank of England has promised to take steps to boost the British economy, but U.S. investors may be looking close to home when the latest national jobs report is released Friday.
LOOKING AHEAD
Zombies released: Universal Studios Hollywood will open its “The Walking Dead” attraction Monday, one of several new attractions this summer at Southern California theme parks. “Walking Dead” will rely on a combination of animatronics and real-life actors playing zombies who chase and lunge at park visitors. Competing for business, Disney California Adventure has a new stage musical based on the film “Frozen,” Knott’s Berry Farm has restored the “Ghost Rider” roller coaster and Magic Mountain has integrated virtual-reality goggles into a thrill ride.
Counting drops: A plan to manage water releases from California’s largest reservoir without hurting agricultural interests will be presented Wednesday to the state Water Resources Control Board. The plan, which the board must approve, would allow farmers to get as much, or more, water from Lake Shasta than they have in recent years. Fisheries interests had called for stricter limits on agricultural water allocations in order to help Chinook salmon and the delta smelt, two endangered fish species.
Bicycle sharing: A new option for Los Angeles commuters will launch Thursday when the city’s $11-million bike-sharing network opens for business. Nearly 1,000 bicycles will be available for short-term rental at 65 kiosks near downtown Los Angeles transit stops and destinations, including Union Station. Transit officials hope the program can help solve the “first mile, last mile” gap between rail stations and workplaces. Riders will be able to pay to rent bicycles with their Metro fare cards.
TSA scrutiny: A congressional panel will meet Thursday to discuss misconduct at the Transportation Security Administration, the agency responsible for airport screening. The hearing, by the House Transportation Security Subcommittee, will review the results of a congressional investigation into the extent of misconduct by TSA employees, how effectively management addresses rule-breakers and ways to improve the agency’s integrity.
Employment data: On Friday, the Labor Department will issue the June jobs report. Economists expect the report to show that the economy created about 180,000 net new jobs during the month, a strong rebound from a startlingly low 38,000 in May. The unemployment rate is forecast to tick up to 4.8%. In mid-June, Fed Chairwoman Janet L. Yellen said a rebound in job growth could trigger an increase in the central bank’s benchmark interest rate in July, but the Brexit vote changed the calculus.
THE AGENDA
Monday’s Business section looks at that very American rite of summer, which reaches a pinnacle on July 4: grilling on the outdoor barbecue. Gas, charcoal, electric, whatever — grills are found everywhere, from the backyards of posh Beverly Hills homes to the infields of NASCAR speedways. But they are now so commonplace that there’s only modest sizzle in new-product sales. Still, the millennial generation is just as hooked on outdoor cooking as its forebears, partly because they watch “BBQ Pitmasters” and similar shows. “People are looking to bring those barbecue techniques home,” said Richard Wachtel, founder of GrillingWithRich.com.
STORY LINES
Here are some of the other stories that ran in the Times Business section in recent days that we’re continuing to follow:
Tesla fatality: The man killed while using the autopilot function of a Tesla Model S electric vehicle posted a YouTube video a month before the fatal crash showing the technology saving him from another collision and wrote that he was “very impressed.” The fatality — thought to be the first in the auto industry related to an autopilot feature — sparked questions about the limitations of the technology and what is seen as the inevitable march toward self-driving vehicles.
Pollution settlement: Volkswagen has agreed to pay as much as $14.7 billion to settle government accusations that it cheated on emissions tests and to compensate owners of nearly half a million of its cars. The German automaker will spend up to $10 billion to buy back or modify VW and Audi 2.0-liter diesel vehicles in the U.S. — a figure that depends on how many car owners take advantage of the offer. It also will pay $2.7 billion into a trust to support environmental programs and reduce emissions, as well as shell out $2 billion over a 10-year period.
Joining forces: Lionsgate, the movie and TV studio behind “Hunger Games” and “Orange Is the New Black,” is planning to acquire Starz, the premium cable network that has long operated under the shadow of HBO and Showtime. The $4.4-billion acquisition, comes at a time when it’s becoming increasingly difficult for smaller, independent studios and stand-alone cable channels to compete with conglomerates such as Walt Disney Co., Time Warner Inc. or 21st Century Fox.
Flaws found: An audit of the California Public Utilities Commission found problems in the agency that oversees energy companies in the state. State utility regulators signed illegal contracts with private law firms, failed to maintain paperwork and paid vendors even when work didn’t meet specifications, the audit by the California Department of General Services found. The commission has been under scrutiny since the 2010 gas pipeline explosion in the Bay Area city of San Bruno, the subject of a criminal investigation.
Brexit impact: While the stock market was regaining its footing, U.S. Treasury bond yields reached record lows Friday as fallout from Britain’s vote to leave the European Union continued to shake up financial markets. Rattled investors have turned to the perceived safety of bonds, causing yields to fall. Rates have dropped below zero for some bonds from Germany, Japan, Switzerland and France.
WHAT WE’RE READING
And some recent stories from other publications that caught our eye:
Genetic engineering: Bloomberg takes a look at the scientific “discovery of the century” and the feud between those trying to take credit for it. At stake in this patent fight: billions of dollars, control of new industries and, maybe, the future of human evolution.
Free wheels: The Milken Institute Review investigates the hidden price of free parking. You probably like not having to pay to park your car at the mall or in front of your house, but “One way or another … someone always pays, often indirectly, in the form of higher prices for something else.”
Airport revamp: Brazil is spending $600 million to give the outdated Rio de Janeiro airport a “digital makeover” before the Olympics. “The threat of Zika looms over everything. If you’re headed to Rio anyway, there is some good news: The airport is getting a little better, or at least easier to escape,” Wired reports.
Visiting Cuba: American Airlines is offering some unusual help for people who want to travel to Cuba. “Normally obtaining visas to countries that require them for entry by American citizens, such as Brazil and China, is the responsibility of passengers,” the Miami Herald reports.
Tesla Solar: Many have derided Elon Musk’s plan to combine Tesla Motors and SolarCity, but Bloomberg says the deal could solve one of the solar industry’s growth obstacles: “Adding solar requires customers to sort through competing technologies and complex financing schemes with no household names to turn to.”
SPARE CHANGE
When Simon Ramo died last week at 103, he left behind an astonishing legacy: The Caltech graduate was the chief architect of the intercontinental ballistic missile system, co-founded aerospace giant TRW — he was the “R” — and helped shape Southern California into the nation’s center for high-tech weapons research. Ramo was awarded dozens of patents, his last at 100, making him the oldest person ever to receive one.
In a 2013 interview, you can see how all of this was possible, with the centenarian displaying a more formidable intellect than people half his age. And while TRW no longer exists as an independent company, it has its own peculiar legacy. Here is one example to jog your memory.
For the latest money news, go to www.latimes.com/business. David Lazarus is on vacation.
