Program: Monday, September 15, 2003

The UAW Continues To Drive For Deals With The Big Three
Investors Take A Wait & See To The FOMC Interest Rate Meeting
Senator Byron Dorgan, (D)ND Sounds Off As Capitol Hill Tunes Into TV
India's Economic Outlook Depends On Who You Ask
Commentary: The Pros & Cons Of The Steal Tariff
Paul Kangas' Stocks In The News
Market Stats

09/15/03: The UAW Continues To Drive For Deals With The Big Three

JEFF YASTINE: One down, four to go. The United Auto Workers Union has a tentative contract deal tonight with DaimlerChrysler. But the labor organization is still at the bargaining table with General Motors (GM), Ford (F) and auto parts suppliers Delphi (DPH) and Visteon (VC). Diane Eastabrook reports on the marathon negotiations between Detroit`s automakers and the UAW.

DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: DaimlerChrysler and the United Auto Workers announced the first tentative agreement early this morning, after several days of intense negotiations.

RON GETTELFINGER, PRESIDENT, UAW: The tentative agreement is unanimously recommended by the bargaining committee and our entire international executive board.

EASTABROOK: There are few details about the Chrysler deal. Both sides, though, acknowledge it`s a four year pact that covers 130,000 active workers, retirees and their surviving spouses. But analysts speculate the plan may also include provisions to close plants.

DAVID BRADLEY, AUTO ANALYST, J.P. MORGAN SECURITIES: And it`s quite expensive for auto companies to make their own parts, because the labor costs are much higher at an auto company than at a supplier company. So one of the things Chrysler wanted was the ability not necessarily to shut plants, but to sell plants. And they`re looking now to sell some facilities to outside parts suppliers who would then run those plants for them.

EASTABROOK: The UAW hoped to announce simultaneous agreements with Detroit`s automakers and parts suppliers Visteon and Delphi by the time the old contracts expired Sunday morning. But industry watchers suspect the union hit snags with the remaining companies over issues like health care benefits and hiring new workers at lower wages at the parts plants. While Bradley doubts the UAW will give in on health care benefits, he thinks the companies have probably made some headway on wages.

BRADLEY: Historically, whenever there`s a new UAW-auto industry contract, wages go up a lot and pension benefits go up a lot. This time around it looks like maybe wages go up modestly and pension benefits go up even more modestly.

EASTABROOK: While analysts were skeptical the union and the companies could reach agreements all at once, they have been impressed with the UAW during these negotiations.

CHRISTOPHER STRUVE, AUTO ANALYST, FITCH RATINGS: They understand that the issues are out there, that there needs to be give and take and that ultimately their success or their fate is deeply intertwined with those of not necessarily any one of the big three, but all three of the big three.

EASTABROOK: Chrysler`s 63,000 UAW workers are expected to vote on the proposed deal in a week to 10 days. Industry watchers say workers at Ford, G.M., Visteon and Delphi could potentially vote at the same time if their companies strike deals with the union soon. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Chicago.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/15/03: Investors Take A Wait & See To The FOMC Interest Rate Meeting

JEFF YASTINE: Well, as Paul mentioned, investors spent much of the day looking ahead to tomorrow`s meeting of the Federal Reserve`s Open Market Committee. Erika Miller looks at what`s expected to happen.

ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: It would be a huge shock to financial markets if Federal Reserve policymakers move short-term interest rates tomorrow.

ROBERT BRUSCA, CHIEF ECONOMIST, NATIVE AMERICAN SECURITIES: If the Fed were to cut rates, it would surprise people so much. If the Fed were to hike rates, it would surprise people so much. I mean, it would be such a symmetry of surprise, I can`t imagine them doing either thing, because the Fed has always tried to prepare the market for what it`s going to do.

MILLER: For weeks now, nearly everyone on Wall Street has been confident the central bank will hold its Fed funds target at its current one percent. The big question is whether the Fed will send any hints about future moves in the statement accompanying the decision. Economists predict policymakers will try to walk a fine line between being cautiously optimistic about the economy and conceding serious risks to the recovery.

BRUSCA: I think the Fed has a very delicate task to try to pitch the economy where it is, which is in a soft spot with some improvement, but still major question marks about where it goes in the future. So that, I think, is the tightrope that the Fed is trying to walk.

MILLER: Given the fragile nature of the recovery, most Fed watchers expect the central bank will keep rates low for quite awhile. They predict policymakers will wait until the middle of next year, at the earliest, before considering a rate hike.

TIM MCGEE, CHIEF ECONOMIST, U.S. TRUST: We haven`t really seen much strength in the labor market and the inflation rate is very low. So I think the Fed is quite content to wait and see some improvement in the labor market before they even start to discuss moving interest rates.

MILLER: The Fed is expected to announce its decision on interest rates at 2:15 Eastern time tomorrow. Assuming there`s no change in rates, experts say market reaction is likely to be fairly tame. 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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/15/03: Senator Byron Dorgan, (D)ND Sounds Off As Capitol Hill Tunes Into TV

JEFF YASTINE: Tomorrow, the U.S. Senate will vote on a measure that would toss out new media ownership rules passed by the Federal Communications Commission. Those new rules let broadcasters own larger numbers of local television stations and lets one company own both a newspaper and broadcast station in the same city. The rules have become a political football of sorts on Capitol Hill. And as Stephanie Woods reports, one key player is emerging on that field.

STEPHANIE WOOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: Senator Byron Dorgan is outraged about what he calls the galloping concentration of media. He worries that what happened in the small city of Minot, North Dakota, where Clear Channel Radio (CCU) owns six stations, could happen nationwide if the FCC`s new ownership rules go into effect.

SEN. BYRON DORGAN (D), NORTH DAKOTA: One company bought all the commercial radio stations in Minot. The FCC said that was fine. There are eight stations: one religious, one public broadcasting and six commercial. One company bought all the commercial stations. And then late one night, there was a train derailment. An anhydrous ammonia car exploded, enveloped that community at 2:00 in the morning in a plume of deadly gas. One person died. Many went to the hospital. And they tried to call the radio stations and nobody answers. Well, you know, what`s happening across this country is with this concentration, a whole lot of folks are just running homogenized programming through some board stemming from some operations center thousands of miles away. That is not what local broadcasting is supposed to be about.

WOODS: Have you had the experience where a local newspaper publisher will say you know what, we really want to endorse you but we`d like to see you vote a certain way? Do you worry that that will, that that kind of pressure will increase with them owning broadcast stations, as well?

DORGAN: That`s not part of my motivation, but there`s no question that this issue is lobbied very heavily by the American Newspaper Association, the publishers, by the broadcasters. I mean, look, there are a lot of big interests that have a lot of big money at stake, and they want a, you know, a kind of Katie by the door approach to merger mania. I mean that`s just to have more and more concentration. I just think that when fewer and fewer people control what the American people hear and read and see, I think it`s unhealthy for a democracy.

WOODS: FCC Chairman Michael Powell is addressing this criticism with the creation of a localism task force. But Dorgan says it`s too little too late.

DORGAN: Well, that`s like slowing down after you`ve been picked up for speeding. You know, Michael Powell first does the rules that will allow massive concentration and then says he wants to study localism. I don`t have the foggiest idea what he`s thinking about.

WOODS: President Bush has threatened to veto any effort to overturn the FCC`s new rules and the measure faces an uphill battle in the House.

DORGAN: So if the House is incapable of seeing the light, maybe they can feel the heat, at least. I think it puts pressure on the House of Representatives. You know, they can sit over there and twiddle their thumbs and say we`re not going to act because we like what the FCC has done. But I think the American people will begin to put some pressure on the House of Representatives and ask the question, who do you represent? Whose interests do you represent? And the House is going to have to answer that at some point.

WOODS: Dorgan predicts victory tomorrow`s vote, but not by a veto proof margin. Stephanie Woods, NIGHTLY BUSINESS REPORT, Washington.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/15/03: India's Economic Outlook Depends On Who You Ask

JEFF YASTINE: Well, the government of India is dealing with a lot of economic red ink these days. Rising deficits and growing subsidies are posing a challenge for the nation`s leaders. But as Anish Trivedi reports from Mumbai, they`re confident they can solve the problems.

ANISH TRIVEDI, NIGHTLY BUSINESS REPORT CORRESPONDENT: It`s going to be one of the best years in recent times. The Indian economy, trudging along at a constant five percent GDP growth rate in the past, is expected to grow at close to seven percent this year. A lot of that has to do with a better than expected monsoon, with good rains dispelling fears of a drought. A quarter of the country`s GDP still comes from agriculture, a sector that has performed poorly in the past few years. For the Indian government, that`s good news, particularly in an election year. But external agencies like the IMF are calling India a disaster just waiting to happen. A recent report said that a growing fiscal deficit and mounting subsidies were dredging down the Indian economy. Local experts say they agree with that analysis, but believe it is being viewed out of context.

ALOK VAJPEYI, COO, DSP MERRILL LYNCH: That is a problem and that will remain a problem going forward. We are running a fiscal deficit of over five percent and we have consistently been doing that in the past, as well. But despite that, what I am saying, and that is what concerns the external agencies, be they the IMF or the rating agencies. But the fact also is that we can manage that fiscal deficit for a short-term over the next few years, as long as we grow consistently across all the sectors, be they industry, be they service, be they agriculture.

TRIVEDI: That may sound optimistic, but it is backed by some strong macroeconomic indicators.

VIJAY KALANTRI, PRESIDENT, ALL INDIA INDUSTRIES ASSOCIATION: Our food stocks are good, our foreign inflow is good, our infrastructure growth is good and we have industry, the manufacturing sector is doing well. And now our service sector is also growing at 18 percent to 19 percent.

TRIVEDI: Exports, too, are on the rise. Foreign exchange reserves have reached $85 billion. But agencies like the IMF are concerned that the country may find itself in a debt trap. That view has few takers in India.

AJAY SONDHI, VICE CHAIRMAN, KOTAK MAHINDRA: On the contrary, if India was to repay all its short-term debt of any sort, the total outflow for the country would be less than half of our current total balance of payment reserve position that we have. Therefore, India is in a very, very strong position as far as external reserves are concerned.

TRIVEDI: While that may be true, economists remain concerned about a lack of fiscal discipline, particularly in providing popular subsidies on power and fertilizer to India`s largely rural population.

VAJPEYI: It is a problem. It has to be dealt with. I think to a certain extent all the governments through the `90s and now are actually talking about it, trying to do something. It`s not a problem that`s going to be easily solved, because it requires a huge amount of political will.

TRIVEDI: That will may be some years in coming. Recent Indian governments have been a coalition of political parties, each with its own agenda. Finding a common platform for growth may not be easy. But until that happens, the debate will continue over whether Indian is the last of the Asian tigers waiting to explode from the jungle or just a time bomb waiting to go off. Anish Trivedi, NIGHTLY BUSINESS REPORT, Mumbai.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/15/03: Commentary: The Pros & Cons Of The Steal Tariff

JEFF YASTINE: And tonight`s commentator says the United States has a chance to make its steel industry more competitive, but there is a need to be -- for the changes to make that happen. Here`s Glenn Hubbard, Professor of Economics and Finance at Columbia University and former Chairman of the White House Council of Economic Advisers under President George W. Bush.

GLENN HUBBARD, COMMENTARY: Even as our economy`s recovery gathers steam, there`s another tax cut that would add a boost to job creation, especially in the troubled manufacturing sector, and it doesn`t cost anything. Last year, the United States imposed tariffs on imported steel. A tariff is a tax driving up steel prices, but with the revenue going to the domestic steel producers instead of the government. As consumers, we lose as prices of products containing steel, like cars, go up. Now, the steel tariff will protect some steel jobs at home for a while, so couldn`t the effect on the economy be a wash? No. Each steel job protected costs three jobs in steel using manufacturing firms. But there`s a better way. Parts of the steel industry are competitive in world markets. Removing protection will allow the industry to consolidate with these firms as leaders. There`s a better way for steel workers, as well. Personal reemployment accounts, which President Bush proposed earlier this year, would give workers, including steel workers, support for training and health insurance. And workers elsewhere in manufacturing are more likely to keep their jobs if the tariffs go. The U.S. imposed steel tariffs to provide breathing room for the steel industry. Now that President Bush has broad authority to pursue trading agreements with other countries, we should take the first step by removing the steel tariffs and get a job creating tax cut at the same time. I`m Glenn Hubbard.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

9/15/03: "Paul Kangas' Stocks In The News"

PAUL KANGAS: The stock market opened slightly higher on brokerage upgrades of IBM (IBM) and Applied Materials (AMAT). But the early advance was undermined by a downgrade of Motorola (MOT) and a weaker than expected 1/10 percent rise in August industrial production. By the way, we don`t have our usual stock market chart tonight due to a computer glitch. Meanwhile, after moving single digits lower for most of the morning, the Dow was up 22 points at midday, while the NASDAQ was down 3 points. Stocks remained mired in slightly lower ground for the rest of the day, with many investors on the sidelines ahead of tomorrow`s Federal Reserve meeting on interest rates, which we`ll have a preview of shortly. So the Dow Industrial average ended with a loss of 22 3/4 points, at 9,448.81. And the NASDAQ Composite closed down 9 1/3 points, at 1,845.70, while the Standard & Poor`s 500 Index fell 3.82, ending at 1,014.81. In the debt market, the 10-year note dipped 4/32, to 99 27/32, putting the yield at 4.27 percent.

The most active New York Exchange issue, NorTel Networks (NT), traded 16.6 million shares. It moved up a $0.05 the share. The company had no comment on a published report that France Telecom (FTE) placed over a $1 billion networking equipment order with the firm.

Then, second in volume, Johnson & Johnson (JNJ) down only $0.79 on the close. But earlier on the session it was as low as $50.20 on news that Boston Scientific`s (BXS) new artery stent has proven to be effective and could give J&J some tough competition.

Taiwan Semiconductor (TSM) a $0.75 loss there.

Sprint PCS Group (PCS) down $0.14.

Fifth in volume was AOL Time Warner (AOL), with a $0.30 loss.

Liberty Media (L) down $0.18.

Lucent Technologies (LU) dropped $0.02.

And then Home Depot (HD) up $1.19. The threat of Hurricane Isabel has a lot of people on the East Coast flocking to Home Depot`s stores to buy plywood, batteries, etc.

And, incidentally, Lowe`s (LOW) stock was up $1.25 to $52.70.

Nokia (NOK) down $0.22.

General Electric (GE), tenth in volume, was down $0.13 a share.

IBM (IBM) ended with a loss of $0.17, but traded as high as $89.95 this morning after UBS Financial upgraded it from "neutral" to "buy" because of its relatively moderate price and also because of improving business conditions.

Motorola (MOT) down $0.12. Soundview Financial downgraded it from "outperform" to "neutral," but Motorola did introduce its first mobile phone powered by Microsoft (MSFT) software.

And then came AT&T (T) with a gain of $0.36. The company is boosting its quarterly dividend from $0.1875 to $0.2375. That`s a 27 percent boost in the dividend. It`ll now be paying $0.95 a year and at this price of the stock, that`s a yield of 4.3 percent per share.

Boston Scientific (BSX) up $4.62. The company`s Taxus drug coated stent has proven to be effective in treating clogged arteries and that, as I mentioned, puts Boston Scientific in a very strong competitive position against Johnson & Johnson`s stock.

And Alpharma (ALO), a $1.35 gain there. The company`s Purepac unit got final FDA approval for its generic version of Pfizer`s (PFE) epilepsy drug called Neurontin. The stock had a nice move on that news.

On the down side, Barr Laboratories (BRL) fell $2.77. The company is seeking shareholder approval to double the number of authorized shares to 200 million and it also plans to reincorporate in the State of Delaware.

Footstar Incorporated (FTS) down $1.77. The Chairman and CEO, Mickey Robinson, has resigned amid investigation of accounting discrepancies at the company.

Manpower (MAN) down $1.78. Lehman Brothers downgraded it from "over weight" to "equal weight."

And then Allstate Corporation (ALL) down $0.43. It traded as low as $34.89. Analysts say that Allstate has the greatest insurance damage exposure to Hurricane Isabel, at least at this point in its progress.

The NASDAQ`s most active issue was Microsoft (MSFT) with a $0.02 gain.

Followed by Intel (INTC), down $0.35.

Then Qualcomm (QCOM), a $0.63 gain.

Cisco (CSCO) down $0.27. A real mixture here.

eBay (EBAY) up $1.26, number five in dollar volume.

Applied Materials (AMAT) ended with a loss of $0.39, but it did trade as high as $21.54 after Merrill Lynch, as I mentioned, upgraded it from "neutral" to "buy" this morning.

Oracle (ORCL) dropped a $0.10.

Amgen (AMGN) a $0.02 loss.

SINA (SINA) was up $2.26.

And Nextel Communications (NXTL) edged up $0.04 a share, number 10 in volume.

Angiotech Pharmaceuticals (ANPI) had a big day on the up side, with a gain of $5.85. Boston Scientific uses this company`s drug coating technology, so that was good news for both firms.

And then Brightpoint (CELL) up $2.70 a share. The company has declared a 3 for 2 stock split.

And Dynacq International (DYII) tumbling $5.93. The story here, first of all, it provides health care facilities. And the new "Barron`s" magazine says new legislation governing worker`s compensation could severely crimp profits of companies like Dynacq International.

And those are the stocks in the news tonight.

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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.

09/15/03: Market Stats

			       
				   
                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE
DOW CLOSE              9448.81     -22.74       - .2
HIGH                                         9490.91
LOW                                          9436.60

NASDAQ COMP.           1845.70      -9.33        -.5
HIGH                                         1861.81
LOW                                          1843.79

VOLUME                                       1,134.8
PREVIOUS                                     1,245.2
UP VOLUME                                      395.1
DOWN VOLUME                                    730.2

DOW TRANSPORTS         2732.98      -2.62       - .1
DOW UTILITIES           244.21      -1.50       - .6
CLOSING TICK                                    +614

S&P 500                1014.81      -3.82       - .4
S&P 100                 509.96      -2.34       - .5
MIDCAP 400              520.13       -.55       - .1
REUTERS/CRB             240.42      -1.77       - .7

NYSE COMPOSITE         5730.44     -18.82       - .3
VALUE LINE              328.55       -.94      -0.29
RUSSELL 2000            507.64      -1.42      -0.28
WILSHIRE 5000          9842.92     -34.39      -0.35

U.S. TREASURIES
5-YEAR NOTE 3.125%
Sept. 15,2008        100            +3/32       3.12

10-YEAR NOTE 4.25%
Aug. 15,2013          99 27/32      -4/32       4.27

30-YEAR NOTE 5.375%
Feb. 15, 2031        102 23/32     -12/32       5.19

LEHMAN BROS.
LONG BOND INDEX        1718.38      +1.53  


DOW CLOSE              9448.81     -22.74       - .2
ADVANCES                                        1462
DECLINES                                        1788
NEW HIGHS                                        131
NEW LOWS                                           8

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
NT     Nortel Networks    4.13       +.05       +1.2
JNJ    Johnson & Johnson 50.84       -.79       -1.5
TSM    Taiwan Semi       11.30       -.75       -6.2
PCS    Sprint PCS Group   5.68       -.14       -2.4
AOL    AOL Time Warner   15.77       -.30       -1.9
L      Liberty Media     10.52       -.18       -1.7
LU     Lucent Tech        2.22       -.02        -.9
HD     Home Depot        32.78      +1.19       +3.8
NOK    Nokia             15.38       -.22       -1.4
GE     GE                31.40       -.13        -.4

NASDAQ CLOSE           1845.70     - 9.33       - .5
VOLUME                                       1,466.3
PREVIOUS                                     1,714.7
ADVANCES                                        1497
DECLINES                                        1698

NASDAQ ACTIVES
MSFT   Microsoft         28.36       +.02        +.1
INTC   Intel             27.99       -.35       -1.2
QCOM   Qualcomm          43.45       +.63       +1.5
CSCO   Cisco Systems     20.39       -.27       -1.3
EBAY   eBay              53.88      +1.26       +2.4
AMAT   Applied Matl      20.58       -.39       -1.9
ORCL   Oracle            12.45       -.10        -.8
AMGN   Amgen             68.50       -.02        -.0
SINA   Sina              39.67      +2.26       +6.0
NXTL   Nextel Comms      19.04       +.04        +.2

AMEX CLOSE              983.17     - 4.83       - .5

INDEX SHARES
DIA    DIAMONDS TRUST    94.83       -.22        -.2
QQQ    NASDAQ 100        33.49       -.35       -1.0
SPY    S&P DEP.RECEIPTS 102.09       -.36        -.4

STOCKS IN THE NEWS
INTC   Intel             27.99       -.35       -1.2
MOT    Motorola          10.70       -.12       -1.1
T      AT&T              22.26       +.36       +1.6
BSX    Boston Scient     66.02      +4.62       +7.5
ALO    Alpharma          20.18      +1.35       +7.2
BRL    Barr Labs         71.30      -2.77       -3.7
FTS    Footstar           8.65      -1.77      -17.0
MAN    Manpower          37.03      -1.78       -4.6
ALL    Allstate          35.56       -.43       -1.2
ANPI   Angiotech Pharm   49.70      +5.85      +13.3
CELL   Brightpoint       30.20      +2.70       +9.8
DYII   Dynacq Intl       19.67      -5.93      -23.2