Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

11/20/01: Market Outlook With Salomon Smith Barney's John Manley

SUSIE GHARIB: Our guest tonight says that the bull market has returned to
Wall Street. John Manley is senior equity strategist at Salomon Smith Barney,
and he joins us live from his firm's trading floor.
Nice to see you, John.

JOHN MANLEY, SR. EQUITY STRATEGIST, SALOMON SMITH BARNEY: Good to be here,
Susie.

GHARIB: John, you know, I'm sure you here there a lot of skeptics about the
market. They still don't think that they trust the numbers that we've been
seeing. Why are you so confident?

MANLEY: Well, I think one thing to remember is just as a year-and-a-half ago
there were very few portfolio managers who had seen a bear market, there are
now very few portfolio managers who have seen the recovery of a bear market.
I think what happens is the earnings numbers start to get better. The prices
run ahead of the fundamentals. But they both run in the right direction. The
numbers I'm seeing indicate that we saw the worst numbers we're going to see
for earnings last month. We're already seeing, I think, significant
improvement in the numbers for technology and semiconductors this month. It's
a positive sign.

GHARIB: But a lot of the earnings experts that I've been talking to are
saying still that the fourth quarter is going to be bad and the outlook for
the first and second quarter of next year is going to be gloomy?

MANLEY: Well, if you look back on prior bottoms, the market bottomed long
before the earnings bottomed. That's one of the tricky things. I wish we
could use earnings to predict prices. Unfortunately, prices predict earnings.

GHARIB: So aside from that, what about the war? To what extent is that a
risk factor here?

MANLEY: You can't determine how bad it can be or how good it can be. It's
one of those things that is almost impossible to look at. The one thing I
would say, if you go back and you look at roughly similar examples as best we
can, look at Pearl Harbor, Korea, Kuwait, by the time the market had gotten
back to its pre-attack levels, which is where we are right now, very seldom
did it go down an awful lot. So I wouldn't too much faith in this because the
world is always different, but the wars have not held back markets, even when
they drag on, as World War II and Korea did.

GHARIB: So you say we're already in a bull market. How far is it going to
take us? What is your forecast for the Dow and the NASDAQ for the rest of
this year?

MANLEY: Well, I think the Dow can probably go up another 5 or 6 percent
towards the end of the year. The NASDAQ will probably follow through with
that and maybe a little bit more. Next year, probably 10 to 15 percent on the
Dow, 15 to 20 on the NASDAQ. It's going to be tough. Technology has to prove
itself somewhere in the middle of the year. I'm betting it does. But I think
that's a problem for the 2002. Right now, the numbers start to get better,
that probably pulls the stock basically higher.

GHARIB: So what stocks do you think are going to be driving this move up?

MANLEY: Well, again, I'd focus on more cyclical names. Because the
reduction in expectations, the destruction of
confidence occurred in more cyclical names. So I'll focus on stocks like
Intel (INTC), for example, or IBM (IBM), where I think numbers can get
better, where you still have very, very good companies. It probably goes
forward, some of the financial stocks like Bank One (ONE) as well.

GHARIB: Anything else? There are a lot of investors who have been hesitant
to get back in the market. They maybe sold some stocks at losses. They're
sitting on cash, but worried to go back in. For the cautious long-term
investor, can you give us some names of stocks that you think would be good
for the long-term?

MANLEY: Sure, I think one of the things we did today was to raise back our
oil weighting to a more market weighting after having been underweighted. I
think ExxonMobil (XOM) is definitely a high quality name. The people can feel
very confident longer term. Halliburton (HAL) is probably more an aggressive
way of playing that. Again, very good quality, very long-term positives. If
you want to play the health care side, we're only market-weighted there, but
I still think that Pfizer's (PFR) a very good play for someone who's buying
stock for their kids college education down the road.

GHARIB: Any sectors that you're staying away from, it's still to early, that
won't participate in this rally?

MANLEY: Well, the ones, I think, that won't participate are the ones that
have held up. We lowered our weightings in consumer staples a bit. We don't
have a huge weighting in non-cyclical areas. We're still underweight in
transportation, although we're looking for an improvement in the economy. But
that's just because it's such a big gamble, it's such a leveraged area. I
tend to favor cyclicality, I tend to move away from noncyclicality or
defensive names at this point in time.

GHARIB: OK, thank you very much, John. Really appreciate you coming by.

MANLEY: Thank you.

GHARIB: We've been speaking with John Manley of Salomon Smith Barney.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

11/20/01: A Multi-Billion Dollar Royal Cruise Line Merger

PAUL KANGAS: A $3 billion merger is in the works tonight in the cruise
industry as P&O Princess (POC) and Royal Caribbean (RCL) team up to create
the world's biggest cruise line. But as Scott Gurvey reports, this deal comes
at a time when the industry is facing stormy seas.

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: The cruise industry was
in rough water due to the slowing economy before the September 11 terrorist
attacks. Now London-based P&O and Miami-based Royal Caribbean hope economies
of scale will mean more profits at a time when fear is keeping many
passengers home. The merged company will have 41 ships, 75,000 rooms and
40,000 employees. It will be number one in size, dropping Miami-based
Carnival (CCL)to second place.

ROBIN FARLEY, LEISURE ANALYST, UBS WARBURG: In this industry, bigger is
absolutely better. Scale is very, very clearly important in this industry. We
look back to other acquisitions when Royal Caribbean bought Celebrity back in
'97 with significant cost savings. The fact that Carnival is the largest
cruise operator now, you can see they're also the lowest cost operator. So
the larger you get the lower your unit costs generally are.

GURVEY: The companies expect to save $100 million within a year through
marketing efficiencies and by improving purchasing systems and combining tour
operations in Alaska. Still, the companies say they don't plan major job cuts
because they will have 100,000 rooms by 2005. There are 14 ships on order
and experts say in spite of current problems, that capacity will be needed.

PETER OAKES, LEISURE & RESTAURANT ANALYST, MERRILL LYNCH: This industry has
extremely high satisfaction levels and with the boomers just aging into the
prime cruising years, I think that's a magical combination, that once we get
the consumer a little more comfortable with traveling, some of these 9-11
fears dissipate even further, we get some stability with the economy, I think
collectively those would be some pretty solid underpinnings to make the
supply/demand get back into balance.

GURVEY: Many analysts see more consolidation ahead for the industry and say
some of the smaller players may not survive. Two of them have already filed
for bankruptcy. Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

11/20/01: America Rebuilds Thanks To Firefighters

SUSIE GHARIB: In the weeks since the September 11 attacks, firefighters have
emerged as heroes in the eyes of the public. As we continue our coverage
tonight of America Rebuilds, a reason for Thanksgiving, Jeff Yastine talks
with some of those firefighters and looks at the tools that they rely on to
get their job done.

JEFF YASTINE, NIGHTLY BUSINESS REPORT CORRESPONDENT: Firefighters-the events
of September 11 were a stark reminder of the extraordinary commitment of the
job. It requires equal measures courage, strength and resilience. Perhaps
then you'll understand the special connection between firefighters and their
fire trucks, the mechanical workhorses they rely on not just to get to their
calls, but to do their jobs.

LT. RAY BELL, METRO-DADE FIRE RESCUE: People count on the fire department to
save their life. Well, I count on the fire truck to save my life. If the pump
fails or the engine breaks down while we're inside fighting a fire, you know,
firemen can get killed, and we can't have that happen.

YASTINE: Firefighters say that's part of the reason you'll see them so often
washing and maintaining their vehicles. It's pride and the need for things to
work right. Making sure things work right is foremost for workers and
executives at Emergency One, one of just a handful of manufacturers of fire
trucks in the U.S. A division of Federal Signal (FSS), the company builds and
ships fire trucks and rescue vehicles for departments around the world.

JAY JOHNSON, VICE PRESIDENT OF MARKETING, FEDERAL SIGNAL: The fire service
has to count on a product like a fire truck or a rescue vehicle. It's not
something that they can question when they go back to the station, well, how
is this going to perform? So it's a fundamental requirement of the process,
the reliability.

YASTINE: The business of building these machines from aluminum and steel is
no cookie cutter operation either. Each unit is designed and constructed to
the specifications of the department that ordered it. A basic truck might
cost $100,000. The most sophisticated carries a price tag of nearly $1
million. This facility and a sister company, Salisbury Fire , built two of
the replacements for the vehicles destroyed in Washington and New York.

JOHNSON: Just outside of Syracuse, New York. They were building an order for
FDNY and they, if you will, attacked the truck to get it built quickly and
get it delivered that evening. The sales manager literally drove it in and
delivered it.

YASTINE: One thing firefighters say they have noticed one thing in the wake
of the September attacks, a recognition from the public of the risks they
take, as well as a thankfulness that wasn't apparent before.

BELL: People who always understood what we do didn't really have the
appreciation, and to know, and knowing that these firemen in the World Trade
Center definitely knew that this fire was not a good fire and that firemen
were going to die and they still continued on up and they knew that they may
not make it out alive. But to save as many people as they could, they took
that risk.

YASTINE: Jeff Yastine, NIGHTLY BUSINESS REPORT.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.

11/20/01: Commentary: The Race To Repair The Economy

SUSIE GHARIB: Tonight's commentator says that time is running out to fix the
U.S. economy. Here's Barbara Hackman Franklin, President of Barbara Franklin
Enterprises and former U.S. Secretary of Commerce.

BARBARA HACKMAN FRANKLIN, COMMENTARY: With the bad economic news, we need
all the hope we can get. Last week, a hopeful sign emerged from Doha, Qatar.
The nations of the World Trade Organization agreed to a new round of global
trade talks. But if President Bush is to make good on the Doha commitment,
the President needs trade promotion authority, also known as fast track, and
he needs it right now.
The Congress must settle differences over labor and environmental issues and
pass a bill the President can sign. Then our government can work aggressively
for freer trade. That will have a positive economic impact, though not right
away. What would have far quicker impact is the economic stimulus package
Congress is working on. Tax relief for consumers, businesses and dislocated
workers, that would give confidence and our economy a boost.
Congress should get a bill to the President soon. There is great urgency. The
international monetary fund is now predicting worldwide GDP Growth of 2.4
percent this year and next, and that borders on a global recession. We cannot
let this happen, and pulling the U.S. economy out of the doldrums is crucial.
Decisive action on the economic front together with good news about the war
could stave off a further downturn. Congress holds the key. Prompt action is
the order of the day. I'm Barbara Hackman Franklin.

Nightly Business Report transcripts are available on-line post broadcast. The program is transcribed by eMediaMillWorks. Updates may be posted at a later date. The views of our guests and commentators are their own and do not necessarily represent the views of Community Television Foundation of South Florida, Inc. Nightly Business Report, or WPBT. Information presented on Nightly Business Report is not and should not be considered as investment advice. © 2001 Community Television Foundation of South Florida, Inc.



11/20/01: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Stocks on Wall Street opened lower today, despite all the talk
as to how yesterday's 109-point closing gain in the Dow Industrial Average
created a new bull market because it was 20 percent above its September 21
low. This was greeted with some skepticism partly because price/earnings
ratios are still rather high, while the outlook for corporate earnings
remains guarded. Not only that, but many badly bruised investors were only
too happy to lock in some of their recent gains. In a steady early downturn
then, the Dow fell 68 points by 11:00 a.m., while the NASDAQ Index was off 25
points. The market slowly improved over the mid- session hours after traders
saw volume was only moderate on the opening selloff, while there was
practically a standoff between advancing and declining issues on the Big
Board. This helped the Dow cut its loss to only 17 points by 2:00 this
afternoon, and NASDAQ was down 20 then. The budding recovery was short
circuited by a selloff in chip stocks, which spread into other sectors. The
Dow Industrial Average finally closed with a loss of 75.08 at 9901.38. The
NASDAQ Index came in with a loss of 53.91 and now stands at 1880.51.

Big board volume up about 27 million shares from yesterday and about an 8 to
5 ration of down volume over up volume.

The Dow Transport Index off just over 43 points.

Utilities, however, up just over 3 1/2 points.

The Closing Tick neutral at +34.

Standard & Poor's 500 down nearly 8 1/2 points.

Just over a 5-point drop on the 100.

The MidCap 400 fell 3.62.

Bridge Futures Price Index up 0.55.

A loss of nearly 2 points on New York Stock Composite Index

Exactly a 3 1/2-point loss on the Value Line.

Russell2000 Small Cap Index fell 3.81.

The broadly-based Wilshire 5000 losing just about 83 3/4 points.

The bond market resumed its downturn today partly in negative reaction to a
surprise three-tenths percent rise in the October Index of Leading Economic
Indicators. That was partially offset by the report of a 31 percent drop in
the US September trade deficit.

But tax free and corporate issues still closed with losses of a 1/4 to a 1/2
point.

The Treasury market ended broadly lower, 5-year notes down 8/32.

And the 10-year notes down 17/32.

But the long end was most affected by the selling with the 30-year down 1
6/32.

The Lehman Brothers Long-Term Treasury Bond Index down nearly 17 points.

Well, the Dow's attempt to get through 10,000 level today was spurned a bit,
just a relatively mild setback, off 75 points. The broader market lower by
about an 8 to 7 margin. 93 new yearly highs and only 34 new lows, however.

Enron (ENE) topped the active list on a hefty 62.8 million shares. The stock
down $2.07, a big percentage drop. The company cut its previous third quarter
earnings estimate by $0.03 a share and also says the independent auditor has
not yet finalized the financial statements because of the ongoing
investigation which apparently is getting quite complicated.

Xerox (XRX) backing down $0.30 after being up $0.72 yesterday when it got
some financing from G.E. Capital.

Lucent Technologies (LU) down $0.52.

And then Nortel Networks (NT) lost $0.39.

EMC (EMC), fifth in volume, down $0.75.

Global Marine (GLM) moved up $0.32. Today, the company completed its merger
with Sante Fe International (SDC).

ExxonMobil (XOM) up $0.95. As you just heard, John Manley said that Salomon
Smith Barney came out with some positive comments on the oils, and especially
this one, and, of course, January New York oil futures in New York were up
$0.75 a barrel today.

AOL Time Warner (AOL) a $0.78 loss.

Nokia (NOK) down $1.20. The company says the sale of its new handset models
will start around the first half of next year, but some analysts thought it
would be a little earlier than that.

General Electric (GE), tenth in volume, down $0.15.

Deere & Company (DE) fell $2.82 after reporting a fourth quarter loss of
$0.45 a share, excluding one time charges. That was, however, a $0.01 better
than expected.

HEALTHSOUTH (HRC) up $1.15. The Van Casper Brokerage (ph) upgraded it from
"buy" to a "strong buy" with an $18 a share target. Also, Lehman Brothers
made positive comments on HEALTHSOUTH.

The Limited (LTD) down $0.37. The company had third quarter, excluding one
time gains, a loss of $0.03 a share, but not as bad as the $0.04 per share
loss expected.

SunGard Data (SDS) down $1.92. The company repeated its earnings guidance
for 2001 of $0.88 to $0.91, and that excludes the Comdisco (CDO) acquisition.

Target (TGT) down $1.92, let's make it $1.29. Third quarter earnings down 14
percent at $0.25 a share, although that was in line with the Street estimate.

And Texas Instruments (TXN), in the weak chip stock sector, a good example
of that, down $1.71.
There we see P&O Princess Cruises (POC) moving up $2.85 on that merger with
Royal Caribbean (RCL), which itself gained $1.09.

Then Dal-Tile International (DTL) up $3.87. This company is going to be
acquired by Mohawk Industries (MHK) for $11 a share in cash plus about a
quarter share of Mohawk. Today, that would be a value of around $22.50 for
Dal-Tile shareholders. Mohawk was down on that news.

Epcos (EPC), this is the big German electronic parts manufacturer. The
company had a fourth quarter loss and warned that 2002 sales and earnings
will fall short of this year's levels.

France Telecom (FTE) down $4.65. The company plans an offering of three
million euros worth of convertible bonds. Earnings dilution potential there.
The company also says there is no truth to the recent rumor that it's going
to acquire

Jazztel (JAZZ), which has been running up on that rumor.

Nasdaq trading, nearly a 54 point loss, 2.8 percent, and volume moved up a
little over 70 million shares from yesterday. 1,327 up and 2,206 down.

Microsoft (MSFT) fell $1.14. You heard the news there.

Ci