SUSIE GHARIB: Two mega-mergers triggered a rally on Wall Street today. A $16 billion biotech deal and an $11 billion media merger inspired investors. The Dow jumped 80 points and the NASDAQ gained 34. Now to those big mergers. Amgen (AMGN) , the world's largest biotech company, is buying Immunex (IMNX) , maker of the fastest growing arthritis drug. That drug, Enbrel, is expected to boost Amgen's sales significantly: Immunex is forecasting that sales of Enbrel will hit $3 billion by 2005. Analysts say today's deal is likely to continue in the biotech industry.

BOB KIRBY, PHARMACEUTICAL ANALYST, EDWARD JONES: Because of the high fixed cost of developing a drug, and estimates have that anywhere from 400 to $800 million, and then the large cost to market a drug once you do get FDA approval, will drive more consolidation in this industry because the deeper the pockets you have the more likelihood success you'll have as well.

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.

12/17/01: Vivendi Universal Tunes Into USA Networks

GHARIB: Today's other big deal: Vivendi Universal (V) is buying part of USA Networks (USAI) in a bid to turn the Paris based media company into a glitzy entertainment powerhouse in the US. As Erika Miller reports, it's a complicated deal, but one that Wall Street likes.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: In New York, French media giant Vivendi Universal announced a new and aggressive push into the US television market. The company is buying the entertainment assets of USA Networks.

JEAN-MARIE MESSIER, CHAIRMAN & CEO, VIVENDI UNIVERSAL: We saw that it was the right place to compete and the right time. And thanks to these transactions, Vivendi Universal's strategy in the US is coming together.

MILLER: Not only will Vivendi gain the USA Cable Network, but also the Sci-Fi channel and the TV studio that produces "Law and Order" and "Jerry Springer," among other shows. Viviendi plans to merge those units with its own Universal film and theme park operations. The new division will be called "Vivendi Universal Entertainment." It will be run by Barry Diller, chairman and CEO of USA Networks. Until now, Diller has said he never wanted to work for anyone else.

BARRY DILLER, CHAIRMAN & CEO, USA NETWORKS: I'm quite happy to work for - I mean, to work for someone else. It's not an issue for me.

MILLER: Diller will also remain in charge of a separate company called USA Interactive, essentially what's left of USA Networks. It includes the Home Shopping Network, Ticketmaster (TMCS), and Expedia (EXPE). Analysts say the transaction is an important step in Vivendi's transformation from a water utility into a media giant.

VINTON VICKERS, ENTERTAINMENT ANALYST, J.P. MORGAN: In order to be a significant player in the media business, you really need US distribution. And the United States is the largest television market in the world.

MILLER: Today's deal comes on the heels of Friday's announcement by Vivendi that it will buy a 10 percent stake in EchoStar Communications (DISH); that company is slated to become the nation's leading satellite TV provider upon the completion of its merger with Hughes Electronics (GMH), parent of DirecTV.

VICKERS: It's just another step to get distribution. They're going to get a handful of channels which they can program. To the extent that EchoStar is successful in getting DirecTV, clearly they're going to have a platform which is bigger than the largest cable company out there.

MILLER: Vivendi stock rose today. The USA Networks deal is expected to add to earnings next year. USA Network shares also surged, gaining more than 5 percent. That was good news for Vivendi. Its stock price is down about 25 percent since last December. Analysts are predicting the company will become more popular with investors, now that Barry Diller is on board. Erika Miller, "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.

12/17/01: Market Outlook With Phil Orlando, CIO, Value Line Asset Management

GHARIB: Our market guest tonight is predicting a very strong economy and a stock market for 2002. Joining us live from midtown Manhattan is Phil Orlando, Chief Investment Officer of Value Line Asset Management. Hi, Phil.

PHIL ORLANDO, CHIEF INVESTMENT OFFICER, VALUE LINE ASSET MANAGEMENT: Thanks for having me back, Susie.

GHARIB: Well, it's nice to have you on the program, especially since you have such a bullish forecast. You're forecasting Dow 12,600 by the end of 2002, Nasdaq 2,800. Tell us your thinking.

ORLANDO: We're in a synchronous global recession right now and I think the Federal Reserve is exactly doing the right thing. We've had 11 rate cuts to date and as long as the economic employment data continues to worsen, we're likely to see another couple of cuts, at least during the first quarter of next year. We think that monetary policy stimulus, in conjunction with the fiscal stimulus that we expect to get passed by the end of the year is going to drag the United States out of this recession, perhaps after three quarters or so. So that by the second half of next year, we think the economy is going to be in pretty good shape. And that will lead to a global pickup, we think, over the course of 2003.

GHARIB: And yet, Phil, when you gave us your forecast at the beginning of 2001, you also had similar numbers outlook for the Dow and the Nasdaq and you were also, by then the Fed had already begun its rate cutting and you were very optimistic about monetary policy working for the stock market and it didn't turn out that way.

ORLANDO: Well, clearly we had a very extraordinary and tragic event on September 11 and with that, frankly, all fundamental bets were off. But what we are looking at on a going forward basis in terms of monetary and fiscal policy stimulus, corporate share repurchases, cost cutting, that sort of thing, we think, is going to result in a very strong pickup in the second half of next year.

GHARIB: Let's say that Washington doesn't come through with an economic stimulus package. How does your forecast change?

ORLANDO: Well, I think that certainly might mute the strength of the economic pickup and perhaps push things out a quarter or so. But certainly the aggressiveness of the monetary policy easing that we've seen from the Federal Reserve, 11 cuts, 475 basis points of easing to date-and we may get another couple of quarter point cuts in the first quarter of next year-that certainly is going to be working through the pipeline and result in a strong pickup in earnings next year.

GHARIB: So what should investors do? If you're talking about a strong pickup by the second half of next year, should they just sit out this turbulent time right now or invest now? What is your view on that?

ORLANDO: Well, I think you've got to be in the game right now. The market as a discounting typically look six to nine months ahead. So I think the strong rallies that we've seen since September 21 in the equity market and in the last month or so the big sell-off we've seen in the bond market are telling us that this economic and corporate earnings rebound that we're expecting the second half of next year is on target. So investors need to be participating now.

GHARIB: All right, so let's talk about what they should be buying. If the long-term investor wants to buy a stock now, hold it, let's say, to the end of 2002, what would be some sure bets?

ORLANDO: Well, I think right now the safest thing to do would be to stick with the companies that are doing well right now-areas in health care, consumer non-durables, basic retailing.

GHARIB: Can you make a stock or two, because we're running out of time?

ORLANDO: Sure. Metamune (ph) in health care, Best Buy (BBY) in retail, Freddie Mac (FRE) and Fannie Mae (FNM) in financial services. I think those companies are going to do fine right here and you can shift into more cyclical issues later next year when the visibility for earnings improves.

GHARIB: OK. Well, thank you very much. We appreciate your thoughts.

ORLANDO: Thank you very much.

GHARIB: We've been speaking with Phil Orlando of Value Line Asset Management.

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.

12/17/01: US Travel Companies Try To Get Japanese Travelers Back On The Map

SUSIE GHARIB: The U.S. travel industry is gradually recovering from the September 11 attacks, with one exception. The number of Japanese visitors is way down. So as Lucy Craft reports, American travel companies recently tried to boost business with a trade promotion show in Tokyo.

LUCY CRAFT, NIGHTLY BUSINESS REPORT CORRESPONDENT: The U.S. travel industry is pulling out the stops to reel in Japanese tourists who have stayed away from American destinations in droves since mid-September. Hawaii, the U.S. state most heavily reliant on tourist yen, is spending an additional $5 million for next year on a promotional blitz to win back Japanese vacationers. But Hawaii, of course, is not alone. A U.S. airline has retained this retired sumo hero to pass out autographed plaques and talk up the virtues of travel in the U.S..

UNIDENTIFIED MALE: Oh, Redland?

UNIDENTIFIED FEMALE: Yes, tallest trees in the world.

CRAFT: And even the U.S. National Park Service, for the first time ever, will order a team of Rangers to pass out trinkets, maps and reassuring words for safety obsessed Japanese tourists. Japanese visitors to Yellowstone, the Grand Canyon and other parks are down by 20 percent, a setback not only in terms of lost entrance fees, but also in reduced revenue for park area hotels, restaurant and shops which have come to depend on Japanese patronage.

GEORGETTE TOLBERT, DIRECTOR OF TOURISM, NATIONAL PARK SERVICE: We get a tremendous amount of Japanese tourists and they spend a lot of money.

CRAFT: The American travel industry has good reason to be worried. Nearly 18 million Japanese traveled abroad last year. That's about one out of every send Japanese citizens. Their favorite destination was the U.S. and free spending Japanese tourists have long been prized by the American travel industry. Now Americans are wondering when the affluent but nervous Japanese tourists will be back.

JEFF SANDY, INTERNATIONAL SALES DIRECTOR, TREK AMERICA TOURS: I don't think anybody knows. And I would like to say it'll be April because that's when they start booking again for the summer season, but I would be shocked if our business was better from Japan by April.

CRAFT: While U.S. and European tourists have begun returning to some American vacation areas, Japanese are continuing to shy away, especially from cities which featured prominently in terrorist attacks like Washington, D.C. and New York.

MARK A. WILSON, DIRECTOR OF INTERNATIONAL MARKETING, NEW YORK STATE DEPARTMENT OF ECONOMIC DEVELOPMENT: It seems as though they don't realize that things have changed since September 11 and that we are moving ahead and that people are enjoying New York.

CRAFT: For Hawaii, which depends not only on individual travelers and honeymooners, but also subsidized corporate incentive tours, the damage from terrorism and its aftermath has been especially acute.

TONY S. VERICELLA, PRESIDENT & CEO, HAWAII VISITORS & CONVENTION BUREAU: After, of course, the attacks on America and the tragedies of September 11, those types of business, of course, will be gone for at least a, probably a 12 month period or longer because not just of the economic difficulties that continue here, but the issue of third party responsibility, which you know is quite strong in Japan. And companies are reluctant to encourage company paid group business and people traveling when they feel that there's a little bit of uncertainty there.

CRAFT: For their part, Japanese tourism officials are downplaying the crisis. Travel bookings will rebound quickly, they argue, as soon as Afghanistan appears stable.

JUN ISHIYAMA, DIRECTOR & SECRETARY GENERAL, JAPAN ASSOCIATION OF TRAVEL AGENTS: Japanese are hyper sensitive about security. Also, it's a case of propriety. Japanese feel it's inappropriate to vacation in a country which has just suffered a tragedy. So when the war ends, they'll rush back to the U.S. That's just the Japanese mentality.

CRAFT: Some American firms say the plunge in Japanese tourism will hasten bankruptcies among smaller U.S. travel companies. Some U.S. tour businesses, meanwhile, say they are scrambling to cultivate new markets in areas such as Latin America in order to reduce their dependence on Japan. Lucy Craft, NIGHTLY BUSINESS REPORT, Tokyo.

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.

12/17/01: Commentary: Finding Optimism In The Economy

SUSIE GHARIB: Tonight's commentary looks at the economy from the glass is half full viewpoint. Here's Irving R. Levine, Dean of International Studies at Lynn University and former Chief Economics Correspondent for NBC News.

IRVING R. LEVINE, COMMENTARY: The latest cut in interest rates is yet another blow for people who have depended on CDs and T Bills for income. But such folks should take heart. It could have been worse. Let's say, for example, that an investor had put $100,000 into stocks that reflected the Dow Jones Industrial average at its peak in January of last year. With the Dow down 16 percent since then, the investor's portfolio would have shrunk to $84,000, a paper loss of $16,000. It would have been even more painful if the investor had put the $100,000 in stocks that matched the S&P 500. That Index is down 25 percent, producing a $25,000 loss on paper. But let's say our hypothetical investor was a cautious person and had put that $100,000 into money market funds, CDs or T Bills at the market's peak. Even at a miserly three percent average interest, the investor would have earned about $6,000 by now and the $100,000 would be intact. Of course, history has shown that a person who remains fully invested in stocks may in the long run ride out market slumps and come out way ahead. But it's also true that the investor who played it safe during the market's tumble has had peace of mind and even a little income.

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.

12/17/01: Paul Kangas' Wall Street Wrap Up

PAUL KANGAS: Those sizable acquisitions by Amgen and Vivendi set a positive tone as Wall Street opened for trading today, and so did the progress in the Afghan War over the weekend. The market was also due for a technical rebound after the Dow Industrial Average fell more than 2 percent last week. So by 10:30 this morning, the Dow snapped back with a 70 point gain, NASDAQ Index was up 30 points. The early upturn generated increasing bullish confidence throughout the rest of the morning and past the noon-hour with many investors turning to the buy side in the belief the traditional year-end demand for stocks, often called the Santa Claus rally, was in its initial phase. By 2:00 this afternoon, the Industrial Average was sporting a 110 point gain, and the NASDAQ Index was up 36 points. While the NASDAQ market held its gains nicely for the rest of the session, the blue chips came under some late selling pressure that cut the closing gain in the Dow Industrial Average to 80.82 points, putting it at 9,891.97. But the NASDAQ Index came in with a nice gain of 34.28, ending at 1987.45.

Big board volume not impressive, down a bit from Friday at 1.23 billion shares, about a 7 to 5 ratio of up volume over down volume.

The Dow Transport Index up nearly 42 points. Some of the airlines were firm.

Utilities down nearly 3 points.

The Closing Tick moderately bullish at +590.

Standard & Poor's 500 up 11 1/4 points.

Nearly a 6 1/2-point rise in the 100.

The MidCap 400 gained just over 5 points.

The Bridge Futures Price Index losing 0.13.

A gain of nearly 4 3/4 in the New York Composite.

The Value Line up just about 3 points.

Russell2000 Small Cap Index up 8 2/3.

And the broadly based Wilshire 5000 gained 106 1/4 points.

It was a very volatile day for the bond market, where prices plunged in early trading due to hedging strategies which involved heavy selling. When the sell-off created some very attractive higher yields, buyers then moved in to capture them and wiped out most of the early losses.

By the close, tax free and corporate issues were mostly unchanged, while the Treasuries managed to post some modest gains.

The 5-year notes up 1/32.

As was the case with the 10-year notes.

The 30-year bond up 14/32.

But interestingly, the Lehman Brothers Long-Term

Treasury Bond Index down almost 23 1/2 points.

But maybe an inkling of Santa Claus on the Street here today, up nearly 81 on the Dow. Advancing issues outpaced decliners by a 17 to 13 margin and 40 more new yearly highs than new lows.

General Electric (GE) topped the active list on 21 1/2 million shares, moving up $0.65. The company's G.E. Capital unit is going to buy Security Capital Group (SCZ). We'll see that stock in a moment. And also, G.E. after the close affirmed that it will have double digit earnings growth both in 2002 and 2003.

Qwest Communications (Q) moved up $1.11. There's a growing belief this company's business has pretty well bottomed out and may pick up next year.

Lucent Technologies (LU) moving up $0.17.

And then Pfizer (PFE) gained $0.89. Pfizer expects to meet Wall Street earnings estimates for this year of $1.30 a share, maybe even better than that.

Calpine (CPN) down $0.30 in that troubled group.

AT&T (T) moved up $0.89.

EMC (EMC) a loss of $0.29.

And there you see it, Dynegy (DYN) down $3.24. In addition to the news you heard, Williams Capital Group has downgraded Dynegy from "strong buy" just to "neutral."

AT&T Wireless (AWE) lost $0.08.

And then tenth in volume, K Mart (KM) down $0.63. Moody's Investor Services has downgraded K Mart's unsecured debt to junk status.

American Home Products (AHP) down $0.25. It traded as high as $59.50 today, though. The company does own 41 percent of Immunex (IMNX).

AMR (AMR) down $0.62. As expected, the Department of Justice has recommended against the company's alliance with British Air (BAB).

Ford Motor (F) down $1.10. The company is cutting back production indefinitely on even its Explorer SUV, a very popular vehicle.

Medtronic (MDT) up $1.27. The FDA approved the company's new generation Capa 900 Series (ph) heart pacemakers.

United Technologies (UTX) moving up $1.39. Last Friday, the A.G. Edwards Brokerage upgraded it from "hold" to "buy."

And Wal*Mart (WMT) moved up $1.79. It was the best point gainer in the Dow today.

Security Capital Group (SCZ) up $4.59. As I touched on, G.E.'s Capital unit is going to acquire this company for $26 a share in cash and/or cash and stock worth $26.

MFS Special Value Trust (MFV) up $1.35. My guest market monitor last Friday on this program, Tom Herzfeld, the closed end fund expert, recommended this stock. It had taken a sharp dip and he said it's time to "buy."

LSI Logic (LSI) up $1.05. Bear Stearns repeated a "buy" in the belief the company is on track to meet fourth quarter earnings expectations.

Mirant (MIR) one of the big losers, down $2.35. The story here, Williams Capital Group downgraded it from "strong buy" to just "neutral."

And then ACLN Limited (ASW), this company transports used and new cars to the continent of Afghan capital, down $5. Herb Greenberg, columnist with Realmoney.com on the Internet, doubts the rumor that the company raised $150 million from J.P. Morgan Chase to buy three new ships. As a matter of fact, after the close the company said it canceled its contract with a Malaysian ship building yard.

Royal Caribbean (RCL), more troubled waters here, incidentally, down $1.91. Disappointment that rival Carnival Cruise is also in the bidding for Princess (POC) or PNO Princess Cruises. PNO has rejected Carnival Cruise's bid, incidentally.

Nasdaq trading, a 34 1/4 point gain. Volume down a bit, some 57 million shares fewer than last Friday. Twenty stocks up for every 15 lower.

Amgen (AMGN) topped the active list, up $3.46, positive reaction to the Immunex bid.

Microsoft (