11/14/05:
President Bush's Image Improving Asia Tour
SUSIE GHARIB: President Bush is on his way to
Japan tonight. It`s the first stop in a week-long visit to Asia, including
visits with the leadership in South Korea, China and Mongolia.
One goal of the trip: To improve president`s image on the world stage.
Here`s Darren Gersh with a closer look at the president`s agenda, and what
to expect.
DARREN GERSH, NBR CORRESPONDENT: As the president begins an eight-day
visit to four Asian nations, there is a growing sense that the
administration has been neglecting the world`s fastest-growing region.
NICHOLAS LARDY, CHINA ANALYST, INSTITUTE FOR INTERNATIONAL ECONOMICS:
And the broader vision for Asia has not been laid out in a long, long time.
And I think partly as a result, a lot of the Asian countries feel that
they`ve been overlooked, that the administration has focused excessively on
terrorism and Iraq, and they`ve lost interest in the rest of Asia.
GERSH: The president will have a chance to change that impression,
laying out his vision in a series of high profile speeches. Mr. Bush is
expected to press China to adopt a more flexible exchange rate, and clamp
down on rampant theft of U.S. intellectual property. But critics fear
economic issues will take a back seat to national security concerns over
North Korea`s nuclear program and unease over China`s military buildup,
much of it paid for with money made off exports to the U.S.
ALAN TONELSON, U.S. BUSINESS AND INDUSTRY COUNCIL: One thing that the
president doesn`t seem to realize is that the two main ends of his China
policy, the national security portion and the economic and trade portion,
seem to be violently at odds with one and other.
GERSH: With bird flu spreading across Asia, the president will also
reach out to the Chinese, asking for greater cooperation with international
health experts. And Chinese officials have many reasons to cooperate.
Foreign investment and the rising tourism industry depend on China`s clean
bill of health.
DAVID LAMPTON, DIRECTOR OF CHINA STUDIES, JOHNS HOPKINS SAIS: If
China is widely thought or in fact ascertained to be hiding
epidemiological, health information from the World Health Organization,
that is going to work at exactly cross-purposes to China`s basic diplomatic
thrust, which is to reassure the world that it`s a responsible player.
GERSH: No one expects the president to leave Asia with many new
agreements in hand, but he is expected to build relationships and lay out
what one officials calls a positive vision of American engagement in Asia.
Darren Gersh, 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) 2005 Community Television Foundation of South Florida,
Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05:
Markets Overseas are Staying Afloat
SUSIE GHARIB: As we just reported, it was a day of choppy action in the
markets, as it has been all year in the U.S., but it`s been a different
story overseas. Almost all of the international stock markets are positive
for the year. As Suzanne Pratt reports, the outlook for many overseas
markets is still bright.
SUZANNE PRATT, NBR CORRESPONDENT: Most U.S. stock investors know the
drill: A diversified portfolio means more than just different sectors of
the market; it also means different regions of the world. That rule of
investing is even more important this year because stock prices in the U.S.
have been flatlining. And while the U.S. stock market has been lackluster,
foreign stocks are hot. How hot?
In dollar terms, the Morgan Stanley Capital International EAFE Index,
which measures stocks in Europe and Asia, is up nearly 5 percent this year.
The S&P 500 is up only 2 percent, while Dow is down 1 percent.
Individual country returns are even more impressive. Markets in
Austria, Canada, Denmark, Japan and Switzerland have all posted double-
digit gains in 2005.
GEORGE EVANS, INTL. EQUITIES DIRECTOR, OPPENHEIMER FUNDS: And this
comes after a decade in which the U.S. averages were basically
outperforming the foreign markets in particular. So there`s been a real
sort of turn in terms of the out-performance over that period.
PRATT: The stellar foreign performance has not gone unnoticed in the
U.S. Through September of this year, U.S. investors plowed $71 billion
into international mutual funds. Not only is that a record so far, but
it`s more than double what`s gone into domestic funds.
While some experts worry investors are chasing last year`s yield,
others say it`s not too late to join the party overseas.
LEWIS ALTFEST, FINANCIAL PLANNER, L.J. ALTFEST & COMPANY: The outlook
for investing internationally is good. I believe that international will
outperform domestic over the next three to five years. Corporate profits
are very strong abroad.
PRATT: As for which regions of the world look most appealing, many
experts point to Japan.
EVANS: Most international investors have been underweight Japan for
10 to 15 years. You know, we`re seeing a lot more opportunities in Japan.
As I said, there`s a lot of restructuring going on, they`ve got some world-
class companies there, and valuations are attractive.
PRATT: Historically, financial planners have recommended putting 20
percent of your portfolio into international stocks. Right now, however,
many believe that number should be increased to 25 percent.
Suzanne Pratt, 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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05:"One On One" With MGM/Mirage
CEO Terrence Lanni
JEFF YASTINE: MGM/Mirage is one of the world`s largest gaming
and resort companies. Its latest acquisition, Mandalay Resort
Group, brought its number of rooms on the Las Vegas Strip
to more than 37,000. I recently spoke with chairman and CEO
Terrence Lanni, and began by asking him how things are working
post-merger.
J. TERRENCE LANNI, CHAIRMAN & CEO, MGM/MIRAGE: It really
hasn`t been difficult. It probably was made easier, very frankly,
because there was never an issue about culture, because whatever
culture was there left with most of the management that left.
YASTINE: Las Vegas casinos, from everything I read, sound
like they`re posting great numbers in terms of visitors, in
terms of the amount of money that`s spent on gambling. I`m
curious what`s driving that particular trend?
LANNI: Well, I think it`s a series of things. I mean, and
this is anecdotal, I don`t have any evidence to support this,
but I`m personally convinced that following 9/11 Americans
really adjusted their whole lifestyle. I mean, that level
of comfort and protection that we felt that we had went out
the door, or the window, if you will, following 9/11. And
as a result of that, I think people are living frankly much
more for the day. And I think that`s one of the reasons consumer
spending, again anecdotally, has continued at such a brisk
pace, that people are not sure that what they`re going to
see tomorrow or the next day or years ahead. And they`re enjoying
themselves more. Las Vegas is a perfect answer to that type
of particular point of view.
YASTINE: Do energy prices worry you? When we see gas prices at the
level that they`re at these days, is that something that you worry that
will impact how many visitors come to Las Vegas?
LANNI: I never worry about what I can`t affect, and I certainly can`t affect
energy prices. I do take some comfort in the fact that if
we take a look at Europe, Europe has been at
$6.00 equivalent a gallon forever, and ours is at $3.20, $3.40.
It`s a very high number, but we don`t seem to see any abatement
in our business as a result of that, although I`m sure people
of more modest means have to make selections and alternatives
if they are going to maybe use the car and not go out to the
movies or something of that nature. And that`s the normal
situation. People adjust to whatever the circumstances they
face.
YASTINE: I wanted to talk about Project City Center for a
few minutes. This is a 66 acre project. It`s got retail, residential,
casino and resort right on the Strip, and for a 66 acre swath
of that area. I`m curious if you can speak to the significance
of what this means to the Strip.
LANNI: I`ve always said that you never... The city is only
a city if people live in the downtown area. That`s why Los
Angeles isn`t a city. San Francisco is. Chicago is. New York
is because people live at all levels of economic strata, live
in those cities downtown. Not the case here in Las Vegas.
The residential component is very new for the Strip --very,
very new. And yes, there`ve been hundreds of projects of condominiums
announced for the Strip. Now, if I were a gambling person,
I would suggest to you that if 20 of those come to fruition,
that`s probably about what it will be. Anyone with any kind
of an idea and a picture of a building and a friend who went
to architecture school will draw it and say they`re going
to build it. And a lot of them aren`t going to get built.
Ours are all being built.
YASTINE: Our guest, Terri Lanni, chairman and CEO of MGM/Mirage.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05: "Las Vegas on a Roll,"-Part 3: The Name of the Game Is High Tech
JEFF YASTINE: Well, turn on the TV, and chances are you`ll see someone playing
Texas hold`em poker or blackjack. They`re hugely popular in
the Vegas casinos, and one of the last places where computers
and technology have yet to make inroads. Until now. This week,
as we continue our series, "Las Vegas on a Roll," it`s clear
most every betting game on a casino floor is set for a technology
upgrade. It`s one of the most popular card games in a casino,
blackjack. But while the cards and chips have remained the
same for the last 100 years or more, that`s about to change,
thanks to high-tech gaming tables, like this one, which allow
casinos to track cards, chips, players and the dealer all
at the same time.
DAVID SCHWARTZ, DIRECTOR, GAMING STUDIES RESEARCH CENTER, UNLV: If
you can deal more hands of blackjack in an hour, the casino will make more
of a profit.
YASTINE: Inside the table are optical sensors which read the cards
being dealt and the denomination of the chips. That data can be displayed
in real-time on computer screens.
Of course, the dealer and players can`t see that information, but
casino management and security can. Suddenly, it`s a lot easier to spot
someone using counterfeit chips or cards, or running simple scams at a busy
table.
SCHWARTZ: For example, somebody would walk up to, let`s say, a
blackjack table, put down $500 in cash, and get back $500 in chips. Now,
how do you know that they`re getting back $500 in chips, that they`re not
getting back $600?
Pretty much unless you have a pit boss staring at the dealer making
sure they give him $500, you don`t know that for sure. And that`s a pretty
common scam. It`s one that people usually get caught at, because after a
while it will be noticed. Things like that won`t be able to happen when
you have table tracking that`s really certain.
YASTINE: Slot machines, unlike card tables, have seen a lot of
technology upgrades over the years. Nowhere is that more evident than at
Bally Gaming and Systems, a unit of Alliance Gaming. Today`s slot machines
are packed with computer circuitry. Most are now equipped with flat panel
video displays, although some units are still made with the old-fashioned
spinning wheels which indicate a player`s jackpot or a losing bet.
So what`s the latest in slot machine technology? Try downloadable
games. Right now, even video slot machines like this can play only one
kind of game and have only one kind of theme. But the new machines being
developed here can be reconfigured at will, so this one machine could be a
quarter-slot in the morning, a nickel-slot in the afternoon, and a penny-
slot in the evening.
ROBERT LUCIANO, CHIEF TECHNOLOGY OFFICER, BALLY GAMING AND SYSTEMS:
Video really transformed the way slots and real type games could be played.
YASTINE: Executives like Robert Luciano say slot machines are also
starting to look and feel like video games, offering more entertainment for
slots players and more ways for casinos to make money from them.
LUCIANO: These new games offer extraordinarily better math than what
was previously available on the old spinning reels, and hence their
popularity. You also have the ability to do bonus screens and secondary
spins and those kind of things, which again adds more interest to the
player. People are here to be entertained. They want to have a lot of
fun. And the math models and the basic composite of a multi-line, multi-
reel game offers that flexibility.
YASTINE: Having fewer workers on the casino floor is another driver
in new casino technology.
SCHWARTZ: If they have new technologies, they can usually save money
with labor. And if you look at the way casinos have developed over the
past 30 years or so, they`ve become less and less labor-intensive, and more
and more technology-intensive.
YASTINE: Technology such as this. At a recent gaming industry
convention, a computer-controlled roulette wheel with ho human dealer and
no roulette table. Players use electronic consoles to place their bets
instead.
UNIDENTIFIED FEMALE: Ten seconds remaining until betting is closed.
YASTINE: One Korean company is selling a computerized horse-race
betting system without real horses, jockeys or track.
Even table games like blackjack can be reduced to bits and bytes,
right down to the virtual dealer.
UNIDENTIFIED FEMALE: Thank you.
YASTINE: Now, if you want to learn more about Las Vegas, check out
American Experience`s "Las Vegas: An Unconventional History," airing
tonight and tomorrow night on most PBS stations.
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05:"Commentary"-Reviewing The Tax Reform Panel's Recommendations
SUSIE GHARIB: In tonight`s commentary, a few thoughts on
the recommendations from the president`s tax reform advisory
panel. Here`s Glenn Hubbard, dean of the Graduate School of
Business at Columbia University and former chairman of the
White House Council of Economic Advisers under President George
W. Bush.
GLENN HUBBARD, DEAN, GRADUATE SCHOOL OF BUSINESS, COLUMBIA
UNIVERSITY: What if the government put out a proposal that
could raise annual household incomes by as much as 9 percent?
You`d probably have two reactions: We should do it, and if
something that promising hasn`t happened, there must be a
political stumbling block. Both are true for tax reform, and
the report issued by President Bush`s tax reform panel this
month breathes new life into an important debate. While the
panel`s recommend prototypes for reform aren`t perfect, its
two solutions, with bipartisan support, point us in the right
direction. The bulk of the gain from reform comes from reducing
the tax code`s bias against saving and investment, which slows
capital formation and wage growth. Both of the panel`s options
would reduce taxation on returns to saving, and one option
would move to full expensing of capital investment, a tonic
to business investment and America`s manufacturing sector.
What`s the catch? Despite bipartisan support for extending
tax reductions on saving and investment, some will cry that
this change just benefits the rich. Now, first, tax cuts on
capital are called pro-growth, because they increase wages
and living standards. Second, and controversially, the panel
would pay for these reforms by scaling back some popular tax
benefits, including reducing the home-mortgage interest deduction
for high-income taxpayers. The recommendations won`t become
law soon, but they are something we should embrace, while
we work to overcome political obstacles to such a welcome
change. 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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05:
"Paul Kangas' Stocks In The News"
JEFF YASTINE: And a ho-hum day for the broader markets, despite Wal-Mart`s
news. The Dow managed to break above the 10,700 level for a few minutes
early in the session on the strength of its retail components, Wal-Mart and
Home Depot, but other than that, it was a choppy session. The Dow finished
in positive territory, rising over 11 points, to 10,697 and a fraction.
The NASDAQ finishing marginally lower, falling 1.5 points to 2,200 and a
fraction. And finally, the S&P 500 following suit, down about a point, to
1,233.
And in the bond market, the 10-year note rose 16/32nds to 99 4/32nds,
the yield at 4.61 percent.
And starting things off, Georgia Pacific (GP), rising more $12. As
you heard, Koch Industries agreeing to take that paper producer private in
a deal worth just over $13 billion. $43 a share in cash, that news buoying
other paper and packaging related stocks today.
Pfizer (PFE) falling $0.18. Time Warner (TWX) dipping $0.06.
Motorola (MOT) losing $0.70. Exxon Mobil (XOM) gaining $0.13.
Shares of Abbott Labs (ABT) taking a hit, falling over $3 on mixed
study results for two of its what were thought to be promising heart drugs,
Simdax and TriCor.
And there`s Wal-Mart (WMT), advancing $0.30, but its smallest
quarterly profit in four years. The retailer, though, giving an upbeat
holiday forecast.
Citigroup (C) rising $0.24. Lucent (LU) losing a nickel. GM (GM)
down $0.74.
Lowe`s Company (LOW) jumping nearly $3. The home improvement retailer
posting a healthy 26 percent jump in third-quarter profits. Solid demand
for building materials in the wake of the recent hurricanes in the
southeast. Home Depot earnings are due out tomorrow.
And here`s a look at Computer Sciences (CSC) rising more than $2.
Lockheed Martin (LMT) wants to acquire the company, according to today`s
"Wall Street Journal." The rumored price tag: About $65 a share.
Shares of Starwood Hotels (HOT) rising $0.76. Starwood selling more
than three dozen properties to Host Marriott (HMT) in a $4 billion
transaction. By the way, Host Marriott is changing its name. It will be
now -- now be known as Host Hotels and Resorts.
And speaking of lodging, investors camping out for shares of RV
makers, after a brokerage upgrade. And here`s how they fared today. Thor
Industries (THO) rising more -- nearly $2. Winnebago (WGO) up more than
$2. Monaco Coach (MNC) up nearly $1.
And here`s another buyout. Enterasys Networks (ETS) jumping more than
$2, being taken private by a pair of investment groups. They`re paying
$13.92 a share for Enterasys stock.
Now, on the downside, Tyson Foods (TSN) plucked for a loss of almost
$2. Disappointing quarterly results and a cautious outlook because of that
continuing ban on U.S. beef exports.
Over on the NASDAQ, Google (GOOG) rising more than $6.5 to brush up
close to that $400-a-share level again. Microsoft (MSFT) rising a
fraction. Apple (AAPL) losing $0.09. Intel (INTC) gaining $0.24. Cisco
(CSCO) down $0.12.
Dell (DELL) rising $0.06. Amgen (AMGN) picking up $0.55. Sandisk
(SNDK) advancing $0.37. The company is launching a USB flash drive which
uses fingerprint recognition to secure the personal data on the drive.
Sears Holdings (SHLD) down $1.28. eBay (EBAY) also down for the day.
Compaq Technologies (CMPX) is rising $1.31, taking a buyout offer from
Encore Medical (ENMC) for $109 million. Compaq makes electrical
neurostimulation devices for the medical industry.
Intuitive Surgical (ISRG) climbing over $5.5. It was mentioned by
Barron`s this weekend as a strong young company with growth prospects.
That sent the stock to a new all-time high.
And finally, Amazon.com (AMZN), losing $0.15 in regular trading, but
rose more than 5 percent higher after hours. Amazon is being added to the
S&P 500 index. That will happen after the close on Friday. It replaces
AT&T, which of course was acquired by SBC Communications (SBC).
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) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
11/14/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10697.17 +11.13 + .1
HIGH 10710.06
LOW 10674.28
NASDAQ COMP. 2200.95 -1.52 -.1
HIGH 2206.88
LOW 2197.12
VOLUME 1,399.2
PREVIOUS 1,296.5
UP VOLUME 597.8
DOWN VOLUME 771.5
DOW TRANSPORTS 4059.21 -14.04 - .3
DOW UTILITIES 386.48 -1.55 - .4
CLOSING TICK +523
S&P 500 1233.71 -1.01 - .1
S&P 100 568.81 -.20 - .0
MIDCAP 400 719.88 +.41 + .1
REUTERS/CRB 315.08 -.51 - .2
NYSE COMPOSITE 7549.17 -12.23 - .2
VALUE LINE 403.71 -.74 - .2
RUSSELL 2000 663.93 -2.73 - .4
DJW 5000 12353.81 -9.05 - .1
U.S. TREASURIES
5-YEAR NOTE 4.50%
Nov. 15,2010 99 25/32 -9/32 4.55
10-YEAR NOTE 4.50%
Nov. 15,2015 99 4/32 -16/32 4.61
30-YEAR NOTE 5.375%
Feb. 15, 2031 108 13/32 -29/32 4.80
LEHMAN BROS.
LONG BOND INDEX 1733.88 -3.23
DOW CLOSE 10697.17 +11.13 + .1
ADVANCES 1253
DECLINES 2080
NEW HIGHS 118
NEW LOWS 167
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
GP Georgia-Pacific 47.28 +12.63 +36.5
PFE Pfizer 22.25 -.18 -.8
TWX Time Warner 17.76 -.06 -.3
MOT Motorola 22.86 -.70 -3.0
XOM Exxon Mobil 56.65 +.13 +.2
ABT Abbott Labs 40.52 -3.21 -7.3
WMT Wal-Mart Stores 49.30 +.30 +.6
C Citigroup 48.24 +.24 +.5
LU Lucent Tech 2.73 -.05 -1.8
GM GM 23.74 -.74 -3.0
NASDAQ CLOSE 2200.95 - 1.52 - .1
VOLUME 1,430.3
PREVIOUS 1,465.6
ADVANCES 1291
DECLINES 1742
NASDAQ ACTIVES
GOOG Google 396.97 +6.57 +1.7
MSFT Microsoft 27.35 +.07 +.3
AAPL Apple Computer 61.45 -.09 -.2
INTC Intel 25.37 +.24 +1.0
CSCO Cisco Systems 17.35 -.12 -.7
DELL Dell 29.46 +.06 +.2
AMGN Amgen 81.65 +.55 +.7
SNDK SanDisk 61.35 +.37 +.6
SHLD Sears Holdings 113.52 -1.28 -1.1
EBAY eBay 43.53 -.36 -.8
AMEX CLOSE 1699.73 + 3.15 + .2
INDEX SHARES
DIA DIAMONDS TRUST 107.17 +.13 +.1
QQQ NASDAQ 100 40.71 +.00 +.0
SPY S&P DEP.RECEIPTS 123.69 -.07 -.1
STOCKS IN THE NEWS
LOW Lowes Companies 64.89 +2.92 +4.7
CSC Computer Science 55.00 +2.15 +4.1
HOT Starwood Hotels 60.02 +.76 +1.3
THO Thor Industries 35.12 +1.99 +6.0
WGO Winnebago Inds 32.69 +2.04 +6.7
MNC Monaco Coach 14.65 +.97 +7.1
ETS Enterasys Nwks 13.18 +2.61 +24.7
TSN Tyson Foods 16.51 -1.99 -10.8
CMPX Compex Techs 6.19 +1.31 +26.8
ISRG Intuitive Surg 104.85 +5.51 +5.6
AMZN Amazon.com 42.53 -.15 -.4
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