SUSIE GHARIB: Hurricane Ivan slammed into the Gulf coast regions of the country today, resulting in 11 deaths. Damage estimates are still being tallied and tonight at least a million and a half homes are without power. President Bush has signed disaster declarations for the states affected, clearing the way for Federal emergency funds Meanwhile in the oil pits, concerns eased about structural damage to oil rigs in the Gulf of Mexico. Oil prices held firm today, up $0.30 to $43.88 a barrel even though major oil companies are still trying to assess damages to their operations. On Wall Street, investors shrugged off those higher oil prices and focused on a tame inflation report. Stocks were up modestly on news that the August consumer price index, a broad measure of retail inflation, inched up only slightly. It rose 0.1 percent, better than economists expected. The so-called "core" rate, which excludes volatile food and energy costs, also gained 0.1 of 1 percent. Most economists say the benign inflation environment should allow the Federal Reserve to stick to its plan of raising short-term interest rates in a restrained manner.

LAKSHMAN ACHUTHAN, MANAGING DIRECTOR, ECONOMIC CYCLE RESEARCH: I think it reinforces what they`re going to do next week in terms especially of the tone of this measured approach to raising interest rates. So it`s a pretty good bet that you`ll see the Fed raise rates by a quarter point next week as everyone expects.

GHARIB: In spite of the modest increase in August CPI, Achuthan still expects to see a continued rise in inflation at least through the end of this year.

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.

09/16/04: One On One With Captain Fred Freshwater, Chairman of US Airways Pilots' Union Local 94

SUSIE GHARIB: With U.S. Airways flight into bankruptcy this week, negotiations with the airlines` unions have been put on hold. The carrier`s failure to win more concessions from its unions was a major factor behind its return to bankruptcy court. Joining us now with his perspective on the issues, Captain Fred Freshwater, a U.S. Airways pilot and a member of the executive council of the pilots union. Captain Freshwater, pleasure to have you on the program.

FRED FRESHWATER, CHAIRMAN, US AIRWAYS PILOT UNION, LOCAL 94: Thank you Susie. Nice to be here.

GHARIB: For the sake of our viewers so they understand a little bit about your background, you`ve been a pilot at U.S. Air for 27 years, and you were strongly opposed to giving U.S. Air any additional concessions. Tell us why.

FRESHWATER: Well, not exactly. We were in favor of giving some concessions that we felt were necessary and proper. However, we thought the company was going way over board in their ask and they would not give us the proper valuation for what we did offer.

GHARIB: I understand the pilots were very divided on this issue. Many of the pilots were willing to go along with what U.S. Air had been proposing and you were criticized for not going along with it and for not working in the best interests of all pilots. Will you address that?

FRESHWATER: Well, there`s a lot fear out there as you can imagine. A lot of people`s livelihood depend upon the airline. And there was an attempt to put a proposal out to the pilot group and play on that fear. That was not following the proper union procedures and we were opposed to that.

GHARIB: All right. Where are you now in all of this? Are you willing to go back to negotiating with U.S. Airlines even, U.S. Airways even though it`s now in bankruptcy?

FRESHWATER: Absolutely. We have 60 days in order to negotiate with the airlines. And we fully expect that the airline will do an 1113E and abrogate the contract. But even so, we will still continue to negotiate with them.

GHARIB: What do the pilots want, especially your group, the 700 pilots you represent out of the Pittsburgh?

FRESHWATER: Well, we don`t want the company to do what it is attempting to do which is a total shredding of the contract. We would like to reach some amicable accord that the pilots can live with and still maintain somewhat a semblance of their livelihood.

GHARIB: Do you think that the unions and management can work out a deal?

FRESHWATER: Well, the way the company has been bargaining, I am hopeful, but I am not, I think it`s rather unlikely.

GHARIB: It`s unlikely. Why do you say that?

FRESHWATER: Well, each one of their proposals that they have passed across the table has been more draconian and more of a land grab than the previous one and I don`t see how we can reach an accord like that.

GHARIB: So what`s the end point here, what is going to happen to U.S. Air? There are a lot of studies that show that companies are going to bankruptcy court for the second time rarely make it through. What do you think is going to happen to U.S. Air?

FRESHWATER: Well, I think as I said they will do an 1113E and abrogate the contracts and if they do get the contract that they want in place from the bankruptcy court, they will be making money during this bankruptcy. And I fully expect them to hoard cash and come out on the other side of that, possibly 24 months or so in a very strong position. But at that point they`ll have to deal with the unions on the property.

GHARIB: All right. Well, thank you very much for coming in and giving us your views on this very important issue, we appreciate it.

FRESHWATER: My pleasure.

GHARIB: We`ve been speaking with Captain Fred Freshwater of U.S. Airways pilots union.

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.

09/16/04: The Federal Govt. Vs. Big Tobacco

PAUL KANGAS: A huge tobacco case is set to go to trial next week. It`s the Federal government versus big tobacco. The case that dates back to the Clinton administration and has the Justice Department suing the industry for $280 billion in allegedly ill-gotten gains. Stephanie Woods has a preview.

STEPHANIE WOODS, NIGHTLY BUSINESS REPORT CORRESPONDENT: The Justice Department is bringing the case against the tobacco industry under racketeering laws typically used to prosecute organized crime. The Feds allege cigarette makers deliberately conspired to mislead the public about the dangers of smoking, and continue to addict underage smokers.

PAUL BILLINGS, VP, NATIONAL POLICY, AMERICAN LUNG ASSN. They are continuing to sell a lethal product, continuing to addict 90 percent of their users under the age of 18 and continuing to engage in the same patterns of misconduct and misbehavior that we`ve seen for the last 50 years.

WOODS: The industry argues it has changed. Since the 1998 settlement agreement with the states, cigarette makers admit smoking is addictive and causes disease. There are no more cartoon characters, billboards, or teen magazines advertising cigarettes.

WILLIAM OLHMEYER, ASSOCIATE GENERAL COUNSEL, ALTRIA GROUP: The government has to prove in this case that the companies currently engaged in a scheme to defraud and that they had the specific intent to commit fraud in the future and given the way cigarettes are sold today, we don`t think the government can prove what they needs to prove to win the case.

WOODS: The government is seeking $280 billion in allegedly ill-gotten gains. The eye-popping number is an estimate of 30 years of sales to youth addicted smokers. The figure includes $75 billion in sales income, plus more than $200 billion in interest. The companies raised prices to pay for the $246 billion settlement with the states six years ago. But analysts say it would be harder for the industry now to cough up that kind of money.

MARK MCMINIMY, TOBACCO ANALYST, SCHWAB SOUNDVIEW CAPITAL MANAGEMENT: Prices have already been raised considerably since 1998 when they affected the settlement with the states and you`ve got a lot of new competitors out there, a lot of smaller tobacco companies that are selling generic or non-brand names and undercutting the majors already.

WOODS: No matter the outcome, this case will be costly. The Justice Department has already spent about $140 million preparing for trial. The industry won`t say how much it has spent, but Altria`s Philip Morris unit says this is the most expensive and time consuming case in its history. 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.

09/16/04: Property Taxes & The Polls

SUSIE GHARIB: Taxes are always a hot topic and one of the most common tax complaints is property taxes. Now homeowners, fed up with rising tax bills, are taking their frustrations to the polls. It`s a movement spreading across the country, making the contentious issue of property taxes even more political. Angela Terrell Heath reports.

ANGELA TERRELL HEATH, NIGHTLY BUSINESS REPORT CORRESPONDENT: Al and Nancy Aitken moved to Culpeper County eight years ago for more space and lower taxes. Then the housing boom hit and the value of their 10 acres of land soared.

AL AITKEN, CHAIRMAN, VOTORS: Over the years it gradually went up from $115,000 to $423,000 last year and this year it is now $625,000.

HEATH: Based on Aitken`s higher assessment, he will pay close to $6,000 this year in property taxes.

AITKEN: Now I can probably get by with paying taxes at $625,000 but if they continue to go up at the rates that they are going up, there`s going to be a point in the very near future where I won`t be able to afford those property taxes.

HEATH: As housing prices have soared, so have the property taxes that go with them, prompting homeowners to take action this election season. Aitken, an airline pilot, decided to send a message to elected officials that homeowners vote. So he started a state-wide organization called "Votors" or Virginians Over Taxed on Residences. The group`s primary goal is to change the way property taxes are assessed in Virginia. The group wants annual property tax hikes capped at 2 percent or the current rate of inflation. It`s a proposal similar to one California adopted in the late 1970`s called proposition 13.

PETE SEPP, SPOKESMAN, NATIONAL TAXPAYERS UNION: Twenty five years ago, homeowners in California started the modern property tax revolt. We`re now in the next generation of that revolt in places like Maine and Florida and Virginia where homeowners are upset not only over rising assessments but the rising level of government excuses for increasing those taxes.

HEATH: Homeowners in Ohio, Texas, Maine and Washington have succeeded in getting property tax relief measures on the November 2nd ballot. The growing property tax revolt worries county officials in booming areas.

FRANK BOSSIO, CULPEPER COUNTY ADMINISTRATOR: It`s the lifeblood of how we fund everything just by its own nature and by act of law. So that`s how important they are.

HEATH: County Administrator Frank Bossio says 85 percent of the property taxes collected here are spent on schools and those taxes are needed to meet the increased demand for government services brought on by all of the new residents moving into the county.

BOSSIO: When we have growth, that growth is largely paid for by real estate taxes, and with growth of course comes more students and with more students, more schools, more need for services.

HEATH: Bossio and government leaders say property taxes are needed especially now when many cities are facing deficits. Cities and counties collect more than $300 billion in property taxes each year. Local officials say if the ballot initiatives pass in November the savings for individual homeowners will be relatively small compared to the huge collective loss from city coffers and the curtailment of government services. But Aitkin says local governments need to spend less and make wiser decisions, rather than looking to taxpayers to fill the gap. Angela Terrell Heath, NIGHTLY BUSINESS REPORT, Culpeper, Virginia.

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.

09/16/04: "Tech Talk"- DVD's & Political Toys

SUSIE GHARIB: What do a hot DVD release, a home networking guide, and a computer game for political junkies have in common? They`re all part of Scott Gurvey`s "tech talk."

SCOTT GURVEY, NIGHTLY BUSINESS REPORT CORRESPONDENT: Analysts say the big revenue boost the movie companies have been getting in recent years from DVD sales may have peaked, both because video on demand services are becoming a reality and because most of the classic films have now been released. But you may still get trampled if you go to the video store next Tuesday when the DVD edition of the original "Star Wars Trilogy" goes on sale. The four disc set includes the three films and a film length documentary. "Star Wars" creator George Lucas has updated the films with new special effects, things he couldn`t technically achieve way back in 1977. The set will cost about $45. And if you need a place to view them, Creative Labs has hit the street with the first portable media center to run Microsoft`s familiar media software. It can hold 85 hours worth of movies and is selling for about $500. If you have more than one computer at home but have been reluctant to link them together because you`ve heard networking is not easy to set up, we recommend a new book published by Cisco press. Home networking, a visual do-it- yourself guide does a great job of teaching the fundamentals to beginners. It does exclusively show products from Cisco`s Linksys division in its examples, but in fact we`ve tried home network products from many manufacturers over the years and have found the Linksys brand the most consistent in terms of good quality and ease of use. With the charges flying hot and heavy during this year`s political campaigns, you might want to check out a web site funded by the Annenberg Public Policy Center of the University of Pennsylvania. Factcheck.org does what it says, check the facts. It has already been cited by both the Bush and Kerry campaigns as proof the other side was lying in its ads or public statements, on different issues of course which says to me that it must be doing something right. And if you think you could run a political campaign better than the pros, have I got a game for you. The political machine from Stardock Ubisoft let`s you run the Bush campaign or the Kerry campaign, deciding issue policy, writing speeches, raising funds, designing advertisements, even choosing the locations of campaign headquarters. You can play one candidate while the computer plays the other. You can also stage fantasy campaigns with a wide variety of candidates or make up your own candidate. And you can play online with others over the Internet. The political machine is for Windows computers and sells for $20. Happy campaigning. Scott Gurvey, NIGHTLY BUSINESS REPORT, New York.

GHARIB: I`d vote for you Paul if you played that game.

KANGAS: It`s too complicated.

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.

9/16/04: "Paul Kangas' Stocks In The News"

PAUL KANGAS: The good news on consumer prices and the easing of oil futures got Wall Street off to a higher start this morning as did some bargain hunting after yesterday`s sell off. By mid-morning the Dow was up 45 points and the NASDAQ Index gained 15. The early upturn lost momentum this afternoon plagued by very light volume and a late surge in oil prices. So the Dow Industrial Average fell to just a 13-point closing gain, putting it at 10,244.49. The NASDAQ Composite ended up only 7 1/2 points at 1904.08. Standard & Poor`s 500 rose 3 points to 1123.50. The tame inflation data sent the 10-year note up 24/32 and dropped the yield to a five-month low of only 4.08 percent.

Most active big board issue on 53.3 million shares, NorTel Networks (NT) down $0.30. The company says its third quarter revenues will be lower than the second quarter. Incidentally the company`s first half results are due out next week.

Coca-Cola (KO) losing another $1.12 after dropping $1.71 yesterday on the company`s earnings warning.

Lucent Technologies (LU) a $0.04 loss there.

Nokia (NOK) moved up $0.32.

And Pfizer (PFE), fifth in volume, was down $0.07 a share.

Motorola (MOT) rising $0.44.

J. P Morgan Chase (JPM) gained $0.50.

Texas Instruments (TXN) a $0.26 drop. After the close however, the company said it`s boosting its annual dividend from 8 1/2 to $0.10 a share and it also plans to buy back up to $1 billion worth of its stock. In after hours trading TXN was as high as $22.18 a share.

Wal-Mart Stores (WMT) down $0.14. Company said today it`s considering expanding into Russia.

Time Warner (TWX) gained a nickel, tenth in big board volume.

Electronic Data Systems (EDS) up $0.27. The company says U.S. Air`s bankruptcy will hurt its third quarter earnings by $0.03 per share.

Guidant Corp. (GDT) fell almost $2, even though the company had FDA approval for its stent system to treat coronary artery disease. However, the Smith Barney brokerage downgraded the stock from "hold" to "sell" because it appealed (ph) to the recent run up on take over speculation has been overdone on Guidant.

Illinois Tool Works (ITW) rising $2.51. Prudential Securities upgraded it from "neutral" to "overweight."

And Watson Pharmaceuticals (WPI) up $1.29. Raymond James financial brokerage upgraded it from "market perform" to a "strong buy" with a $42 a share target.

Mentor Corporation (MNT) losing $1.88. The Robinson Humphrey brokerage downgraded it from "buy" to "neutral" as the company`s breast implant sales have been declining.

Meritage Homes (MTH) the builder, up $5.46. Company sees 2005 earnings rising 20 percent to $10.25, maybe as high as $10.55 and that`s well above the Street estimate of $9.45 a share.

ESCO Technologies (ESE) which makes filtration products, was downgraded by the Baird brokerage from "outperform" to "neutral." Stock dropped just over $3.

Best Buy (BBY) moving $1.02. The company today announced it`s boosting its quarterly dividend by $0.01 to $0.11 a share.

NASDAQ`s most active eBay (EBAY) down $1.72.

Intel (INTC) $0.31 loss there.

Microsoft (MSFT) moved up $0.07.

Research In Motion (RIMM) up $3.07. Vodaphone will introduce the company`s Blackberry product in Europe and Australia.

TASER International (TASR) down $3.21 after some big gains yesterday.

Yahoo! (YHOO) down $0.11.

Cisco Systems (CSCO) gained $0.03.

Oracle (ORCL) lost a dime.

Google (GOOG) rising $1.97, tenth in volume.

QUALCOMM (QCOM) was down $0.17.

NitroMed (NTMD) up $2.60. The American Heart Association will show the company`s heart treatment for African-Americans in the month of November.

Very busy on the American exchange today. American Science and Engineering (ASE) up $3.25. The company got a $23 million order from the U.S. government for its mobile screening systems which detect nuclear material.

And then Dynamex (DDN) up $1.04. Higher fourth quarter earnings, $0.26 versus $0.19 last year. Revenues up 10 percent. Company says revenues next year should be up 8 to 12 percent and earnings around $1.05.

And finally on the downside on the American exchange, Team Inc. (TMI) which is in the industrial repair business, reported it`s going to have sharply lower first quarter earnings of around $0.02 a share, way down from last year`s $0.17 per share.

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.

09/16/04: Market Stats

                                      NET    PERCENT
                         CLOSE     CHANGE     CHANGE

DOW CLOSE             10244.49     +13.13       + .1
HIGH                                        10281.88
LOW                                         10228.64

NASDAQ COMP.           1904.08      +7.56        +.4
HIGH                                         1914.38
LOW                                          1898.36

VOLUME                                       1,113.3
PREVIOUS                                     1,255.9
UP VOLUME                                      727.5
DOWN VOLUME                                    366.6

DOW TRANSPORTS         3233.41     +17.66       + .6
DOW UTILITIES           294.25      +2.62       + .9
CLOSING TICK                                    +786

S&P 500                1123.50      +3.13       + .3
S&P 100                 543.35       +.72       + .1
MIDCAP 400              592.17      +4.06       + .7
REUTERS/CRB             272.63       -.46       - .2

NYSE COMPOSITE         6574.61     +28.29       + .4
VALUE LINE              360.80      +2.74       + .8
RUSSELL 2000            574.54      +6.02      + 1.1
DJW 5000              10956.52     +43.67       + .4

U.S. TREASURIES
5-YEAR NOTE 3.375%
Sept. 15,2009        100 14/32     +15/32     + 3.28

10-YEAR NOTE 4.25%
Aug. 15,2014         101 13/32     +24/32     + 4.08

30-YEAR NOTE 5.375%
Feb. 15, 2031        107  9/32    +1 8/32     + 4.88

LEHMAN BROS.
LONG BOND INDEX        1766.16     +17.70


DOW CLOSE             10244.49     +13.13       + .1
ADVANCES                                        2459
DECLINES                                         837
NEW HIGHS                                        147
NEW LOWS                                          11

                                      NET    PERCENT
NYSE MOST ACTIVES    4PM CLOSE     CHANGE     CHANGE
NT    Nortel Networks     3.50       -.30       -7.9
KO    Coca-Cola Co       40.04      -1.12       -2.7
LU    Lucent Tech         3.28       -.04       -1.2
NOK   Nokia              13.89       +.32       +2.4
PFE   Pfizer             31.78       -.07        -.2
MOT   Motorola           16.79       +.44       +2.7
JPM   JPMorgan Chase     39.58       +.50       +1.3
TXN   Texas Instrument   21.59       -.26       -1.2
WMT   Wal-Mart Stores    52.77       -.14        -.3
TWX   Time Warner        16.71       +.05        +.3

NASDAQ CLOSE           1904.08     + 7.56       + .4
VOLUME                                       1,330.3
PREVIOUS                                     1,595.0
ADVANCES                                        1954
DECLINES                                        1076

NASDAQ ACTIVES
EBAY  eBay               92.33      -1.72       -1.8
INTC  Intel              20.11       -.31       -1.5
MSFT  Microsoft          27.26       +.07        +.3
RIMM  Rsch In Motion     73.10      +3.07       +4.4
TASR  Taser Intl         39.88      -3.21       -7.5
YHOO  Yahoo!             32.79       -.11        -.3
CSCO  Cisco Systems      19.59       +.03        +.2
ORCL  Oracle             11.23       -.10        -.9
GOOG  Google            113.97      +1.97       +1.8
QCOM  Qualcomm           40.40       -.17        -.4

AMEX CLOSE             1245.91     + 6.67       + .5

INDEX SHARES
DIA   DIAMONDS TRUST    102.75       +.21        +.2
QQQ   NASDAQ 100         35.32       +.05        +.1
SPY   S&P DEP.RECEIPTS  113.14       +.36        +.3

STOCKS IN THE NEWS

EDS   Electronic Data    20.10       +.27       +1.4
GDT   Guidant            61.55      -1.99       -3.1
ITW   Illinois Tool Work 90.99      +2.51       +2.8
WPI   Watson Pharm       29.67      +1.29       +4.6
MNT   Mentor Corp        33.25      -1.88       -5.4
MTH   Meritage Homes     77.18      +5.46       +7.6
ESE   Esco Tech          66.17      -3.08       -4.5
BBY   Best Buy Co        53.63      +1.02       +1.9
NTMD  NitroMed           22.29      +2.60      +13.2
ASE   American Science   28.50      +3.25      +12.9
DDN   Dynamex            15.14      +1.04       +7.4
TMI   Team Inc           14.81      -2.89      -16.3