To view previous transcripts, check our list of recent broadcasts or select a year below to view older transcripts. Also, search recent transcripts by keyword or visit our searchable archives hosted by Quote.com.
| Select a year: | 2000 | 2001 | 2002 | 2003 | 2004 |
|
Program: Monday, December 22, 2003
12/22/03: Fannie Mae & Freddie Mac Lose More Favor With The Fed SUSIE GHARIB: Freddie Mac and Fannie Mae get an "F" from the Fed. The Federal Reserve said today that those "government-sponsored companies" are failing in their primary task of making homeownership more affordable, despite billions of dollars of subsidies. The Fed weighed in on one of the controversial issues surrounding Fannie and Freddie in a study released today. Angela Terrell Heath has more. ANGELA TERRELL HEATH, NIGHTLY BUSINESS REPORT CORRESPONDENT: In its report today, the Federal Reserve says Fannie Mae and Freddie Mac benefit from an ambiguous relationship with the government. Congress created the two private mortgage giants to provide funding to the mortgage marketplace. The report says because people believe the two companies are backed by Uncle Sam, the companies are able to borrow money at a lower rate than others. The Fed put a dollar value on that implicit subsidy at as much as $164 billion, much higher than other estimates. Following on the Freddie Mac accounting scandal, analysts say this is more evidence for the companies` critics. CHARLES GABRIEL, POLITICAL STRATEGIST, PRUDENTIAL: It seems to add a little bit more ammunition for the detractors or those who would really have the Bush administration play a hard line in trying to pass legislation through the Congress that would seriously constrain Fannie and Freddie through a new regulatory regime. TERRELL HEATH: The Fed estimates Fannie and Freddie only save home owners 0.07 percent on their mortgages, but the value of Uncle Sam`s perceived backing is worth $72 billion to company shareholders. In a statement, Freddie Mac says, "today`s staff report is an interesting, but fundamentally flawed, academic exercise." Fannie Mae says, at first blush, "the report bears no resemblance to the reality experienced in the housing industry and capital markets every day." But the report is already adding to calls for reform. ANTHONY YEZER, ECONOMICS PROF., GEORGE WASHINGTON UNIV.: They ought to seriously consider ways of making Fannie and Freddie more competitive. One way would be to, in fact, break them in half. So with four firms competing against one another, probably more of this implicit subsidy would go to the homeowner. TERRELL HEATH: Even supporters say both companies need to disclose more information to the Securities and Exchange Commission about their massive mortgage portfolio. REP. EDWARD MARKEY (D), MASSACHUSETTS: They should be registered at the Securities and Exchange Commission in the same way that every other financial document that is provided by other companies is provided to the Securities and Exchange Commission. The American people deserve no less. TERRELL HEATH: The report is likely to give the Federal Reserve a seat at the table as Congress decides how to reform two of the nation`s largest financial companies in the country. Angela Terrell Heath, 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.
SUSIE GHARIB: Shoppers jammed into the stores today, buying last-minute holiday gifts. Historically, the Sunday and Monday before Christmas are two of the most heavily shopped days of the year. And merchants are counting on the final shopping spree to turn the season from ho-hum to ho-ho-ho. Erika Miller reports. ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: Shoppers were out in full force today, picking up last-minute holiday gifts. Most were quick to defend their procrastination. UNIDENTIFIED MALE: I wait late for everything. UNIDENTIFIED FEMALE: I figured maybe I`d be able to find cheaper things, maybe things would go on sale. MILLER: A lot is riding on how generous shoppers feel in these final days before Christmas. The week before Christmas typically accounts for more than 40 percent of holiday sales, according to the International Council of Shopping Centers. And this year, not all retailers will benefit from the last-minute surge. MICHAEL NIEMIRA, INTL. COUNCIL OF SHOPPING CENTERS: Some retailers are doing quite well, others are complaining that that they`re seeing either low-end plan sales or even below plan. MILLER: Wal-Mart is one of the chains expecting a disappointing season. It says even a last-minute dash probably will not be enough to make up for the sluggish start to the season. Luxury stores, on the other hand, are expected to do well. DANA TELSEY, RETAIL ANALYST, BEAR STEARNS: The reason why the high-end retailers are doing well is we`ve gone through two Christmases which have not been as robust. You do have a rising stock market, employment`s better. And people can buy some of the accessories and giftable items, whether it`s leather goods or jewelry. That has been the popular items. MILLER: The National Retail Federation is sticking by its prediction that sales will jump 5.7 percent from last year, but many retailers are not as optimistic. They say security concerns could make some Americans reluctant to shop, especially if it means going to a crowded mall. Yesterday, the Department of Homeland Security raised its terror alert to the second-highest level. Others predict that warning will have little impact. NIEMIRA: I think because the malls and stores have taken more precaution, consumers have basically been, I think, accustomed that this is a new way of life. MILLER: Shopping this week can make or break the year for many retailers. Analysts say the holiday season generally accounts for about half of retailers` annual sales and an even bigger percentage of profits. 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. 12/22/03: Economic Outlook With Gary Thayer, Chief Economist From A.G. Edwards JEFF YASTINE: If 2003 was a year of recovery for the U.S. economy, then the economic growth expected for 2004 should be one of the best of this decade. That`s the outlook tonight for next year from Gary Thayer, chief economist at A.G. Edwards. I talked with Thayer earlier today and began by asking him why he thinks all the pieces, including job growth, should come together in the next 12 months. GARY THAYER, CHIEF ECONOMIST, A.G. EDWARDS: Well, we`re very encouraged by what we`re seeing right now. The economy has started to grow at a more robust pace. We have interest rates at - short-term rates at a 45-year low. We`ve had three tax cuts over the last few years. And we`ve got the dollar coming down to a level where American businesses are more competitive against foreign producers. So all of these things we think are coming together at the right time to give us some potentially very good growth next year. YASTINE: Now, there has been a lot of talk about whether this economic upsurge we`re seeing can be self-sustaining or not. What is convincing you that what we`re seeing here is for real? THAYER: Well, again, you know, over the last couple of years, we`ve had some good things happening, but some bad things happening at the same time. And now what we`re seeing is a more combination of good things happening all at once. And that I think will make it more sustainable. In addition to the favorable policies, we have corporate earnings rising, we have companies starting to increase capital spending where they had been holding back for a while. And we are also beginning to see hiring pick up. So these are things that we think will give the recovery more sustainability in the new year. YASTINE: Now, how does what you`re saying square with the headlines I keep seeing about programming jobs going overseas, teleservicing, telemarketing jobs going overseas to India and China, those as well as manufacturing, how does that go with what you`re saying as far as that we will see net job growth next year in the economy? THAYER: Well, obviously, there will always be some parts of the economy which will not do as well as the others, and there will always be headlines that make it look like things are not doing well. But the preponderance of evidence we think has turned favorable and will continue to be favorable in the year ahead, provided the economy can avoid another major shock to confidence. YASTINE: And this would be either something terrorist-related - what else? What else would worry you about next year? THAYER: Well, if we were to have some surprising financial disruption, you know, a major problem in a foreign market or something like that, that would cause the investors to lose confidence in the dollar or something of that nature. That could cause some problems that would hinder growth. But right now, things are firing on all cylinders. YASTINE: You mentioned the dollar. Let`s talk about that for a second. It has had a fairly steady decline throughout 2003. I`m betting that you`re saying we`re going to see continued decline, but it`s going to be orderly. Is there any concern that it might be disorderly, you might see something of a collapse? THAYER: Well, up to this point it has been orderly, you`re right. We`ve seen the dollar come down. U.S. policy-makers still have credibility with foreign investors, saying that we favor a strong dollar policy. I think it`s keeping some people willing to buy dollars for the longer term investments. But the big risk would come if foreign investors lost confidence in policy-makers here in the United States. And we don`t see that at this point in time. YASTINE: How much of this is relying on the Fed holding steady on rates and not making some sort of indication that they will raise them next year? And if they did raise them, what sort of impact does that have? THAYER: Well, actually a rate increase could actually help support the dollar next year. Right now, we are keeping our interest rates lower than most of the other major industrialized countries, and that`s not making our investments look that attractive on an interest rate comparison. And if the Fed starts to nudge rates up and adopts a less stimulative policy, I think that would actually help the dollar a bit next year. YASTINE: All right, we have about 20 or 30 seconds left. I`m guessing that you`re saying, also, that the tax cuts we saw this year will have also a lingering effect on into 2004? THAYER: Sure. The tax cuts we saw this year I think are going to be beneficial, make consumers feel a little bit better about their finances, plus we`ll probably see some bigger tax refunds than normal this first and second quarter of this year, so that could also help with spending. YASTINE: All right. Well, I guess a lot of people are going to wait and see how 2004 ends up. Let`s hope it`s right. Our guest, Gary Thayer, chief economist at A.G. Edwards.
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.
SUSIE GHARIB:Tonight`s commentator says the jobs outlook in the U.S. is getting better than ever. Here`s Glenn Hubbard, professor of economics at Columbia University and former chairman of the White House Council of Economic Advisors. GLENN HUBBARD, COMMENTARY: Was November`s weaker-than-expected jobs report coal for the holiday stocking? Is rapid productivity growth the Grinch that stole the holiday? No. Now, productivity growth has been amazing, jumping at an annual rate of more than 9 percent last quarter, and if businesses become more efficient, they don`t have to add jobs. But eventually more workers are needed to meet the growth in demand from the economy`s surge. Indeed, if economic growth averages 4 percent over the next year, as most private forecasters expect, the unemployment rate should fall to around 5.5 percent with vigorous payroll employment growth. And the current job market is likely better than the government`s payroll count suggests. Weekly unemployment claims have fallen to levels that imply significant job gains. And purchasing managers report hiring at levels not seen since 2000. Also, the payroll survey doesn`t capture the growth in small business hiring, and small business owners have benefited most from the job-creating tax cuts championed by President Bush. The National Federation of Independent Business says small business hiring now matches the `80s fever pitch. Washington shouldn`t try to overfill the jobs stocking, though. President Bush`s proposal for personal reemployment accounts would offer needed support for retraining and education. But another extension of unemployment insurance benefits would significantly raise the unemployment rate. There is good reason for holiday optimism about the job market, thanks to the powerful growth and flexibility of our economy. 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.
SUSIE GHARIB: And finally, just two more shopping days until Christmas, so if you haven`t wrapped up your gift buying, we have some suggestions. Tonight, in our "Gifts & Gadgets" segment, Scott Gurvey has a grab bag of stuff that might be perfect for those last-minute gifts. SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: If you`ve been thinking of buying a new car just to get one of those nifty navigational units, try instead the newest portable unit from Navman. RUS GRAHAM, VICE PRES., MARKETING, NAVMAN USA: It`s a stand-alone dedicated unit. It has an Intel (INTC) processor and an auto-grade video screen. It allows you to move it from vehicle to vehicle, whether the vehicle is in the United States or Europe, Canada, et cetera. You can move it from vehicle to vehicle, put in your address, and go from there. GURVEY: And to spiff up your home or office computer, try adding a tablet as you input device. WACOM is the market leader and has just introduced the Graphire3. MARK MEHALL, PRODUCT MANAGER, WACOM TECHNOLOGY: What`s unique about our pen is that it has a pressure-sensitive tip. The harder you press, the more ink, or the more of the effect comes out. We also have a built-in eraser just like a normal pencil. GURVEY: That eraser is not just for drawing. The WACOM pen works with written documents too. You can annotate and highlight right in Microsoft (MSFT) Word. From Cakewalk, comes the all-in-one digital media experience called Mediaworks. It helps you put music and photos on CD. Verbatim not only makes the blank CDs but also blank DVDs that look like movie reels, and a label kit for making professional-looking labels. And if there is anything else you need, you might try picking up a copy of the "Internet Yellow Pages" from Que Publishing. Sometimes tech has nothing to do with computers. You really need a turkey to show off the Redi-Chek remote cooking thermometer from Maverick Housewares, but from my Thanksgiving experience, I`ll tell you it works great. You set the pager-like unit for the meat you`re making, and it beeps when the cooking is done. And by the way, how to you like my tie? It`s a holiday gift from my wife, Amy. Not just low-tech, no tech. Happy holidays. 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. Copyright (c) 2003 Community Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use. 12/22/03: "Paul Kangas' Stocks In The News" JEFF YASTINE: Well, once again, the Dow and other blue-chip indices notched bigger gains, while tech issues lagged behind in a light-volume, pre-holiday trading day. After a strong start, early trading was weakened by news from Wal-Mart (WMT) that holiday sales are coming in at the low-end of estimates. We`ll have more on that next. Yesterday`s increase in the terror-threat level also weighed on stocks. Still, the Dow bent, but it did not break. At noontime it was flat. The NASDAQ picked up support in the afternoon from bargain hunters, not wanting to miss out on a potential Santa Claus rally. And in late afternoon, an earthquake was reported in central California, but even that did not hurt the major indexes, which all finished higher for the day. The Dow ended the day up 59 points at 10,338. The NASDAQ gaining almost 5 points to close at 1955. And finally, the S&P 500 rising 4 to close at 1092. In the bond market, the 10-year note closed down 7/32 to 100 20/32, and that puts the yield at 4.17 percent. And there it is, Ford (F) shares gaining $1.55. You heard the news, it was the volume leader on the big board. Calpine (CPN) shares up $0.19. The company is selling its 50 percent stake in a Texas power plant to GenTex Power, the terms of that deal were not disclosed. Time Warner (TWX) was down $0.18. Chairman Dick Parsons says that the company will seek "horizontal acquisitions," and will stick to its current lines of business. There you see Pfizer (PFE) up $0.03. The company is buying Esperion Therapeutics for $1.3 billion, or $35 a share. Analysts see that as prudent for Pfizer, saying it will boost the firm`s position as the top seller of cholesterol-improving treatment. Pfizer, of course, makes Lipitor. Esperion has a promising cholesterol drug in the works. Micron Technology (MU) up $0.44. Lucent (LU) was down two pennies for the day. GE (GE) rising $0.11. Nokia (NOK) shares off $0.10. AT&T Wireless (AWE) gaining $0.06. And Sprint PCS (PCS) up $0.23. On our "Widely Helds" here`s a look at Freeport-McMoRan (FCX), losing about 4 percent today, $1.71. S&P downgraded it from hold to avoid on a less optimistic outlook for sales and earnings in the coming year. NCR (NCR) gaining nearly $3. Morgan Stanley upgraded this one to overweight at Morgan Stanley sees restructuring at NCR giving improved margins and potentially better revenue traction in 2004. Also on our gainers, we have Whitehall Jewelers (JWL) rising $2.33 or 15 percent, despite reporting a wider-than-expected third-quarter loss because of ongoing legal troubles and restatement of earnings. The company says that November same-store sales have a gain of 9 percent and it sees December sales tracking stronger-than-expected. EDO (EDO), the defense contractor, rising $2.95 as Raymond James upgrades this one to strong buy. Earlier this month, EDO won a $33 1/2 million contract from the Navy. Roto-Rooter (RRR) gaining more than $7 for the day. C.L. King, the brokerage, upgrading this one to strong buy. On Friday, Roto-Rooter said it was buying the remainder of Vitas Healthcare that it doesn`t already own for about $30 a share cash. SuperValu (SVU) shares up 2 1/2 despite a slip in third-quarter profits thanks to one-time costs of closing its Denver operations and a labor strike at its St. Louis stores. And earnings came in about $0.06 short of estimates, but the company sees higher fourth-quarter results. Huaneng Power International (HNP) up more than $5. It received approval from the Chinese government to build two new 1000-megawatt power plants. Genesee & Wyoming (GWR) up more than $1 1/2. The company is buying three short-line railroads from Georgia-Pacific (GP) for about $56 million. On our losers, DJ Orthopedics (DJO) falling $4.74, or 16 percent on news it has filed to sell up to $85 million in new stock. Concerns, obviously, from investors on dilution, the stock being down today. And Nam Tai Electronics (NTE) down 2 1/4. The company says it is not aware of any reason for the movement in its stock. Perhaps some profit-taking. Over on the NASDAQ, Microsoft (MSFT) was down $0.18. Intel (INTC) off $0.15. eBay (EBAY) rising $1.32. It opened a Hong Kong auction site. Cisco Systems (CSCO) up $0.19. Esperion Therapeutics (ESPR), there`s the reaction from the deal with Pfizer. It was NASDAQ star of the day, jumping over $11 or 52 percent on news of that buy-out from Pfizer. Amgen (AMGN) off $0.69. Oracle (ORCL) gaining $0.11. Applied Materials (AMAT) up $0.14. Qualcomm (QCOM) notching $1.22 gain. Dell (DELL) losing about $0.33. On our NASDAQ "Movers," Inspire Pharmaceuticals (ISPH) down $3.22. The FDA has requested additional clinical studies on its new treatment for the treatment of dry eye. Vans (VANS) shares down $0.46. The Wedbush Morgan firm downgrading this one on the stock from hold to sell. First Sentinel Bancorp (FSLA) rising 2 1/2. The company agrees to be acquired by Provident Financial (PFS) for about $640 million in stock and cash. That`s about $22 1/4 a share cash. And over on the American Exchange, Cheniere Energy (LNG) up more than $3, or 43 percent. The company signed a deal with ConocoPhillips (COP) and Freeport LNG Development to build an LNG, or liquefied natural gas receiving terminal on the Texas-Mexico border. And those are the "Stocks in the News."
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.
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10338.00 +59.78 + .6
HIGH 10338.00
LOW 10255.26
NASDAQ COMP. 1955.80 +4.78 +.3
HIGH 1958.74
LOW 1941.62
VOLUME 1,236.7
PREVIOUS 1,590.1
UP VOLUME 824.1
DOWN VOLUME 404.9
DOW TRANSPORTS 3005.27 +17.84 + .6
DOW UTILITIES 263.32 +1.96 + .8
CLOSING TICK +736
S&P 500 1092.94 +4.28 + .4
S&P 100 542.28 +2.02 + .4
MIDCAP 400 570.66 +2.58 + .5
REUTERS/CRB 256.79 -4.08 - 1.6
NYSE COMPOSITE 6321.84 +37.54 + .6
VALUE LINE 356.49 +1.92 0.54
RUSSELL 2000 549.37 +2.49 0.46
WILSHIRE 5000 10619.58 +40.12 0.38
U.S. TREASURIES
5-YEAR NOTE 3.375%
Nov. 15,2008 100 27/32 -8/32 3.19
10-YEAR NOTE 4.25%
Nov. 15,2013 100 20/32 -7/32 4.17
30-YEAR NOTE 5.375%
Feb. 15, 2031 105 26/32 -8/32 4.98
LEHMAN BROS.
LONG BOND INDEX 1748.04 -3.64
DOW CLOSE 10338.00 +59.78 + .6
ADVANCES 2041
DECLINES 1223
NEW HIGHS 399
NEW LOWS 6
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
F Ford Motor 16.79 +1.55 +10.2
CPN Calpine 4.78 +.19 +4.1
TWX Time Warner 17.92 -.18 -1.0
PFE Pfizer 34.30 +.03 +.1
MU Micron Tech 12.77 +.44 +3.6
LU Lucent Tech 2.88 -.02 -.7
GE GE 31.00 +.11 +.4
NOK Nokia 17.04 -.10 -.6
AWE AT&T Wireless 7.41 +.06 +.8
PCS Sprint PCS 5.29 +.23 +4.6
NASDAQ CLOSE 1955.80 + 4.78 + .3
VOLUME 1,292.9
PREVIOUS 1,879.9
ADVANCES 1641
DECLINES 1530
NASDAQ ACTIVES
MSFT Microsoft 27.18 -.18 -.7
INTC Intel 30.42 -.15 -.5
EBAY eBay 62.69 +1.32 +2.2
CSCO Cisco Systems 23.98 +.19 +.8
ESPR Esperion Thera 34.53 +11.83 +52.1
AMGN Amgen 61.16 -.69 -1.1
ORCL Oracle 13.20 +.11 +.8
AMAT Applied Matl 22.00 +.14 +.6
QCOM Qualcomm 52.25 +1.22 +2.4
DELL Dell 33.00 -.33 -1.0
AMEX CLOSE 1143.91 - .37 - .0
INDEX SHARES
DIA DIAMONDS TRUST 103.61 +.87 +.9
QQQ NASDAQ 100 35.56 +.14 +.4
SPY S&P DEP.RECEIPTS 109.66 +.73 +.7
STOCKS IN THE NEWS
FCX Freeport-Mcm 39.56 -1.71 -4.1
NCR NCR Corp 39.27 +2.86 +7.9
JWL Whitehall Jewl 10.17 +1.33 +15.1
EDO EDO Corp 24.43 +2.95 +13.7
RRR Roto Rooter 51.78 +7.26 +16.3
SVU SuperValu 27.95 +2.57 +10.1
HNP Huaneng Power 65.45 +5.17 +8.6
GWR Genesee & Wyo 31.59 +1.58 +5.3
DJO DJ Orthopedics 23.90 -4.74 -16.6
NTE Nam Tai Electrnc 28.36 -2.26 -7.4
ISPH Inspire Pharma 13.14 -3.21 -19.6
VANS Vans 12.13 -.46 -3.7
FSLA First Sentinel 21.34 +2.56 +13.6
LNG Cheniere Energy 9.99 +3.03 +43.5
|
| <%dobanner 11,1901%> |
NBR
appreciates the support of its national underwriters -- A.G.
Edwards, Inc. and Franklin
Templeton Investments. The program is produced
by NBR
Enterprises/WPBT2 and distributed by American
Public Television.
Copyright © 2005 Community
Television Foundation of South Florida, Inc. ALL RIGHTS RESERVED. Terms
of use
Click
here to contact NBR.