Business
Column: L.A.'s ultimate heartbreak industry isn’t Hollywood. It's local journalism
Whenever I think of the perilous state of local news, I think of Delicious Pizza in West Adams.
Great pizza! Small space, cool atmosphere. In the fall of 2017, I found myself there along with other journalism castoffs cursing the news gods.
I had just resigned as editor of OC Weekly after I refused to lay off half the staff. Daniel Hernandez was out of a job at VICE News after nearly four years there. Julia Wick had led the original LAist until its owner shut down the website because he claimed it wasn’t economically successful. Former LA Weekly editor-in-chief Mara Shalhoup was axed alongside most of her writers and editors after a new owner acquired the venerable alt-weekly.
Over beers and slices, we laughed and shared stories and fretted about the eternal erosion that is American journalism. None of us were about to give up on our beloved profession, though. There was talk of creating our own publication, but nothing serious. Instead, we hugged and went on to the rest of our lives.
Today, Mara is ProPublica’s South editor. Daniel edits The Times’ food section. Julia is on The Times’ 2024 election team. I’m a Times columnista, of course, frequently using Southern California’s past as a prism to understand what’s happening now and what might occur in the future.
And boy, does it not look good for local journalism — again.
Last month, the nonprofit Long Beach Post, which expertly covered the port city while the Press-Telegram atrophied, laid off nearly everyone. The publication’s board of directors maintained the move was necessary to save it from financial ruin — but former staffers insist it was retribution for their attempt to form a union.
Reporters for Knock LA, which focuses on social justice issues and law enforcement corruption, accused the publication’s sponsors, the leftist group Ground Game LA, of exiling them after they asked to spin off Knock into its own standalone entity.
For the record:
4:09 p.m. April 17, 2024An earlier version of this article said that Ground Game LA is the fiscal sponsor of Knock LA. Knock LA is part of Ground Game LA, and the two organizations share funding.
In the for-profit world, L.A. Taco, which centers food coverage while covering working class communities across Southern California, furloughed nearly everyone on its small team. Editor-in-chief Javier Cabral said they would be laid off if the publication isn’t able to hit 5,000 members by the end of April. (They were at 2,800 as of Monday). This follows the shuttering of one of California’s oldest continuously operating newspapers, the Santa Barbara News-Press, last year.
And, of course, there’s this paper. More than 100 of my colleagues were laid off last summer and earlier this year. Others took buyouts, and it seems recently that farewell emails from colleagues moving on to other jobs or retiring hit my mailbox daily.
It’s easy to portray what’s going on in local media as unprecedented and catastrophic, especially in the face of similar layoffs nationwide during an election year where accurate facts and nuanced coverage matter more than ever. But Southern California has always been an ossuary of failed publications done in by apathetic readership, clueless owners or a combination of both.
A 2006 rally at De La Guerra Plaza in front of the Santa Barbara News-Press newspaper’s offices. The newspaper, one of the oldest in California, ceased publishing last year.
(Michael A. Mariant / Associated Press)
Every generation in L.A. seems to suffer a journalism mass extinction event. In addition to what’s happening right now and what happened in 2017, there was the shuttering of two alt-weeklies, Los Angeles CityBeat and the Long Beach-based The District Weekly, at the turn of the aughts. I remember the demise of La Banda Elastica and Al Borde, two Spanish-language publications that focused on rock en español through the late 1990s and 2000s. Older folks will remember the end of the L.A. Herald Examiner in 1989, whose grandiose downtown headquarters are now used as a satellite campus by Arizona State University.
L.A.’s heartbreak industry isn’t Hollywood; it’s journalism. To paraphrase what the late A. Bartlett Giamatti said about baseball, it’s designed to break the hearts of those who work it.
You join the profession knowing that long hours, low pay and no respect from the public is the norm, yet you jump in anyway. You revel in your colleagues, your shared sense of mission and the stories you do — but then the reality of economics sets in, and you realize the good times won’t last. You wonder why readers don’t subscribe, why editors and publishers don’t innovate. You see co-workers lose their jobs or leave the profession — and then it’s your turn, one way or another.
It’s easy to armchair quarterback why publications fail. Blame technology, fragmented audiences, a lack of trust in news — it’s all of that, and more. But these conditions existed before photos appeared in newspapers, and will persist long after whatever Elon Musk inserts in our brains so we can’t quit X.
What’s going on in Southern California journalism is sadly familiar — yet not hopeless. There is something new with this generation of journalism orphans. In the past, we downed shots and mourned as our publications died. Now, to paraphrase another literary luminary, Dylan Thomas, reporters are not going gentle into that good night.
Long Beach Post and Times staffers have publicly protested against their bosses. Knock L.A.’s banished writers and editors are shaming their former benefactors online. L.A. Taco is asking for money like an NPR host during a fund drive pounding nitro cold brew.
“We went public with our dire situation, because how can you expect help if you don’t ask for it?” said Cabral, 35, who I’ve known since he was a teenager with his own food blog. “Journalism for me has always been a fleeting career in flux that pulls the rug right under you when you start to get comfortable.”
I wish all of these folks well as they try to make it, including my colleagues at The Times, which has been unionized since 2018 and where we’ve worked for almost a year and a half without a contract. But even if we all fail, the dream to do good journalism in Los Angeles will never die. More publications are already rising.
The Los Angeles Public Press is barely a year old but is already making an impact with its coverage of the San Fernando Valley and Southeast L.A. County. Caló News, which focuses on Latino issues, will launch its own initiative to cover southeast L.A. County this summer. Newsletters run by individuals are filling in news holes and getting subscribers in the process. Hyperlocal publications like The Eastsider and This Side of Hoover are still informing readers about their communities.
Last month, I attended a forum at City Club LA hosted by the nonprofit Latino Media Collaborative, which sponsors Caló News, about what it deemed a “crisis” in Southern California journalism. Among the speakers were former La Opinión publisher Monica C. Lozano and California Community Foundation Chief Executive Miguel A. Santana. The conference room was packed with reporters young and old hoping to plug into the millions of dollars that local and national philanthropic organizations are planning to spend on L.A.-focused news operations in the coming years.
I wish them well, too — because someone has to succeed in this cursed industry, right? Right?
Business
China’s Exports and Imports Set Records in April Amid High Energy Costs
China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.
China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.
The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.
Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.
China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.
The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.
China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.
Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.
Overall exports of electronics and machinery were up 20 percent in April from a year earlier.
China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.
With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.
Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.
China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.
China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.
The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.
China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.
“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.
But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”
Business
Disney’s ABC challenges FCC, escalating fight over free speech
Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.
Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.
The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.
The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.
In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.
“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.
The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.
In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.
“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”
ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.
In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.
But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.
Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.
Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.
(Genaro Molina/Los Angeles Times)
Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.
“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”
The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.
ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.
“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”
ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.
The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.
The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.
“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.
On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.
The company has produced more than 11,000 pages of documents to comply with the request, Disney said.
The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.
Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
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