The Nightly Business Report; Special edition
<v Speaker>Arab leaders turn against Saddam Hussein and impose economic sanctions against Iraq. <v Speaker>While the White House says preparations are underway for a naval blockade. <v Speaker>Coming up, an NBR special report. <v Speaker>Gulf crisis. <v Speaker>John Defterios in the Gulf. Tension in the Middle East has put into question OPEC's <v Speaker>ability to stay together as a cartel. <v Speaker>From London. We'll have a discussion about the impact on the global economy. <v Speaker>And the growing tensions lead to another big decline in the stock market. <v Speaker>Our nightly business report made possible by Digital Equipment <v Speaker>Corporation, whose innovative computer solutions include a complete family <v Speaker>of desktop systems for every need. <v Speaker>The 42 billion dollar Franklin Group of funds, one of America's major <v Speaker>mutual fund organizations for over 43 years.
<v Speaker>Franklin Funds are distributed nationwide by investment professionals. <v Speaker>A.G. Edwards, member of the New York Stock Exchange, serving the investment <v Speaker>needs of individuals and businesses through more than 400 offices <v Speaker>nationwide. And by the financial support of viewers <v Speaker>like you, the nightly business report is produced in association <v Speaker>with the Reuters world's largest electronic publishing. <v Speaker>Good evening. For the past eight days, the world's financial markets have moved in <v Speaker>relation to events in the Persian Gulf. <v Speaker>Tonight, we're going to devote most of our program to a special report on the continuing <v Speaker>Gulf crisis and its impact on world markets and economies. <v Speaker>We begin in the Gulf, where Iraq's Saddam Hussein suffered his biggest setback today <v Speaker>since he invaded Kuwait eight days ago. <v Speaker>He now faces economic sanctions by other Arab countries, a repudiation of his call for <v Speaker>Arab unity against the West.
<v Speaker>President Bush also warned Iraq today against trying to ship any oil out of the Gulf as <v Speaker>warships move into position for a possible naval blockade. <v Speaker>Reuters correspondent John Defterios has the latest now from the Persian Gulf. <v Speaker>For the Muslim Sabbath many pray that this crisis in the Gulf would vanish. <v Speaker>But those prayers weren't answered. At today's Cairo summit some Arab countries call to <v Speaker>support economic sanctions against Iraq. <v Speaker>Many say Saddam Hussein's strong arm tactics have worn out Gulf unity. <v Speaker>The divisions, which were hidden under a fair amount of economic <v Speaker>success or a large amount of cash, have now been prized open. <v Speaker>And the differences between all the Gulf states and also the entire Arab world is coming <v Speaker>out now. <v Speaker>Hussain's decision not to back down will put Arab leaders in a tough position, especially <v Speaker>with oil policy. U.S. military pressure to shut down Iraqi crude shipments <v Speaker>heightens the drama. Gulf leaders must now decide how to supply the West with more oil. <v Speaker>This, analysts say, will test the resolve of the 30 year old OPEC cartel.
<v Speaker>Some of the other OPEC producers will raise their production levels. <v Speaker>But they do have a difficult balance to draw on. <v Speaker>Some of them will be frightened that Iraq might launch reprisal attacks against <v Speaker>them for doing that. <v Speaker>In July, OPEC set a quota of twenty two and a half million barrels a day. <v Speaker>But that number has dropped. With Iraqi and Kuwaiti production now out of the picture <v Speaker>and immediate production boost from OPEC is not needed. <v Speaker>Analysts say there is over a hundred days of surplus production now floating on Gulf <v Speaker>waters. <v Speaker>For this reason, the West faces no real crunch to receive oil now under the control <v Speaker>of the Iraqi leader. <v Speaker>Meanwhile, Saddam Hussein is paying the price for his gamble in the Gulf. <v Speaker>Analysts calculate the loss of crude sales is costing the Iraqi government 70 million <v Speaker>dollars a day in revenue. <v Speaker>In the Gulf. This is John Defterios of Reuters for the Nightly Business Report. <v Speaker>The actions in the Middle East today drove crude prices up, although they ended off their <v Speaker>session highs. West Texas Intermediate closed back above twenty six dollars a barrel <v Speaker>in New York with a gain of fifty six cents in London.
<v Speaker>North Sea, Brant rose 50 cents. <v Speaker>West Texas crude prices have risen 20 since the invasion, <v Speaker>hitting a four and a half year high of twenty eight dollars 31 cents on Tuesday. <v Speaker>By comparison, one month ago today, West Texas Intermediate closed at eight sixteen <v Speaker>dollars and ninety four cents. <v Speaker>Paul. <v Speaker>Stock prices, with the exception of the oils and gold, came under widespread selling <v Speaker>pressure from the outset of trading today. <v Speaker>Obviously, Saddam Hussein's call for an Arab holy war against the West was the trigger <v Speaker>for today's sell off. But Wall Street's mood was overpoweringly bearish because of fears <v Speaker>the oil shock emanating from the Mideast crisis would hasten the onset of recession in <v Speaker>the United States. In a straight line decline, the Dow Industrial Average fell to a fifty <v Speaker>two point loss at 2704 level shortly after two p.m.. <v Speaker>But cautious buying support appear there and persisted to the final bell when the Dow cut <v Speaker>its loss to forty two point thirty three at twenty seven hundred sixteen point fifty <v Speaker>eight. And since the Iraq since Iraq invaded Kuwait on the 2nd <v Speaker>of August, the Dow Industrial Average has fallen one hundred and eighty two and two
<v Speaker>thirds points, or six point three percent. <v Speaker>The weekly loss in the Dow was ninety three points. <v Speaker>The theoretical high twenty seven, sixty three and the low about 70 points. <v Speaker>Under that trading volume today, down one hundred forty five point three million shares <v Speaker>and little volume has gotten less on this sell off. <v Speaker>That's encouraging, but about three times as much down volume is up volume. <v Speaker>The Dow Transport Index fell nearly twenty four points. <v Speaker>Utilities at one point thirty nine. The Wilshire 5000 dropped thirty four and a quarter <v Speaker>points or nearly so in the closing tick. Still a bearish minus to fifty nine. <v Speaker>Standard Poor's 500, 400, 100 hundred. All multiple point losers. <v Speaker>But the Commodity Research Bureau September index gained one full point. <v Speaker>The bond market gave back some of yesterday's nice gains today as the rise in oil and <v Speaker>gold prices renewed the inflation fears of traders. <v Speaker>It was no sharp sell off, however, as tax freeze, corporates and longer term governments <v Speaker>posted closing losses, averaging only about an eighth point like the long treasuries off <v Speaker>a 30 seconds. Shearson Lehman long Treasury bond index down a two point thirty three. <v Speaker>And the Fed funds just under eight percent on the close. <v Speaker>Now, because of our special report tonight, our look at where the action is on Wall
<v Speaker>Street today. We'll be a little later than usual, but I want to assure you we'll have all <v Speaker>the important closing quotes, Frank. <v Speaker>The dollar has not played its usual role as a safe haven for investors during this <v Speaker>crisis. The dollar has lost ground against most major currencies since the conflict <v Speaker>began. It also closed mostly lower today, managing to gain only against <v Speaker>the Japanese yen. The pound gained more than a half cent against the greenback. <v Speaker>And on the precious metals markets, gold soared on aggressive buying as traders hedge <v Speaker>their bets ahead of an uncertain weekend. Platinum and silver prices also jumped. <v Speaker>None of the world's major stock markets have been able to escape the effects of the <v Speaker>escalating tensions in the Gulf. <v Speaker>While European markets only a minor downturn today, they have posted sharp losses since <v Speaker>Iraq invaded Kuwait. But the biggest impact has been on the Tokyo market, as <v Speaker>Reuters correspondent Terry Gallagher reports. <v Speaker>The sharp rise in oil prices seen since the Iraqi invasion of Kuwait was the last thing <v Speaker>the Japanese economy needed. <v Speaker>Even before the Middle East crisis, Tokyo stock prices were on the defensive, having lost
<v Speaker>about 16 percent since the middle of July. <v Speaker>Stock prices seesawed this week, but the overall trend was definitely downward. <v Speaker>With the Nikkei index closing Friday at the lowest level so far this year of twenty seven <v Speaker>thousand three hundred twenty nine, down one percent on the day, an eleven and a half <v Speaker>percent since the Iraqi invasion sent oil prices skyrocketing all week, <v Speaker>traders tried to assess the impact of higher oil prices and the inflation they would <v Speaker>bring. <v Speaker>But despite the anxiety, because Japan imports virtually all of its oil, the nation <v Speaker>is still in a better position than many others because it has a five month stockpile of <v Speaker>oil on hand. <v Speaker>The fact that just might keep that inflation under control in Tokyo. <v Speaker>Terry Gallagher of Reuters for the Nightly Business Report. <v Speaker>My guest market monitor this week as Mr. Michael Match, managing director and chief <v Speaker>market strategist for the Oppenheimer and Company brokerage in New York City. <v Speaker>Welcome back to the Nightly Business Report, Mike. <v Speaker>Thank you, Paul. Mike, has the advent of the Middle East crisis prompted a <v Speaker>major change in your investment policy?
<v Speaker>Not really. There hasn't really been that much of a change. <v Speaker>I think this blip up in oil prices temporary. <v Speaker>As a matter of fact, I think this whole developing signals, the end of OPEC and <v Speaker>substantially lower oil prices looking down six or nine months. <v Speaker>I think the uptick in inflation, interest rates is also temporary. <v Speaker>But I do think we're in a recession. I think it's already begun. <v Speaker>I think it'll last through most of 1991. <v Speaker>Doesn't change the, I think, favorable outlook for the stock and bond market. <v Speaker>Well, on your last visit with us, April 6th that I was at twenty seven hundred. <v Speaker>You said it was going to go to 3000 before they'd be any significant correction. <v Speaker>We got there. We've had a correction. Do you think twenty seven hundred is a base for <v Speaker>this sell off? <v Speaker>My guess is the market either made it slow this week or will at the beginning of next <v Speaker>week. I think the reason for the sell off today was no one wanted to buy stocks in the <v Speaker>face of a difficult weekend. I think once the weekend is over, the market will do <v Speaker>considerably better. If it worsens in the sense that Saudi Arabia is drawn into open <v Speaker>conflict, I think we'll have a very short sell off. <v Speaker>But in any event, I think we're within days of the low until the very close to here.
<v Speaker>So you sound as though this thing is going to resolve itself over there. <v Speaker>Do you know something President Bush doesn't? <v Speaker>No, I don't. But I think the ultimate resolution is the end of OPEC, and that's not bad. <v Speaker>What? What? Why will that happen? <v Speaker>Because Hussein, I think, will no longer have any leverage. <v Speaker>And I think it will all split apart. <v Speaker>They're all going to go for higher quotas right now. <v Speaker>I don't think they'll go back to the discipline once this situation is resolved. <v Speaker>So what's your allocation of stocks, bonds and cash? <v Speaker>That depends on your risk aversion. I think bonds are very attractive, particularly the <v Speaker>intermediate sector. I think this blip up in interest rates is only temporary. <v Speaker>And as I say, I think it's the low end of range for the stock market as well. <v Speaker>Well, you gave us some winners last time. You like Unocal. <v Speaker>It's up. Up. You like Phillips Petroleum and Coca-Cola and Pepsi in the latter to a Benz. <v Speaker>Real stars. Are you staying with them all? <v Speaker>No, I think the oil's generally our sales here, particularly the oil service. <v Speaker>Maybe as an insurance policy, you keep some. <v Speaker>I think the growth source will continue to do very well. <v Speaker>And some of the cyclicals and if you look at the market, it's really discounted the <v Speaker>recession as far as economically sensitive stocks are concerned.
<v Speaker>I think companies like Rennolds Metal Metals, Scott Paper, to have a growth component as <v Speaker>well as a cyclical one are quite attractive as well. <v Speaker>Well, those are some of the cheeriest words that I've heard from anyone all week. <v Speaker>And I I certainly hope that you are right on target. <v Speaker>And that's my view. Very good. Well, your view has proven to be quite correct in the <v Speaker>past. Let's hope. But we'll be in the future. <v Speaker>Thanks, Mike. OK. <v Speaker>My guess. Market Monitor, Michael Maps of Oppenheimer and Company. <v Speaker>As tensions heat up in the Persian Gulf, many Americans are wondering what kind of impact <v Speaker>the crisis will have on the U.S. economy. <v Speaker>Experts say we'll see effects ranging from feeding the inflation rate to derailing <v Speaker>already protracted budget negotiations. <v Speaker>We have two reports, beginning with Scott Gerbi in New York. <v Speaker>For most Americans, the most visible manifestation of the invasion of Kuwait is that the <v Speaker>gas pumps prices are up 30 percent in one week. <v Speaker>It could not have come at a worse time. <v Speaker>The run up in oil prices will add to the cost of virtually every business in the United <v Speaker>States. <v Speaker>The economy was already on the brink of recession.
<v Speaker>Most economists say this shock will push it over, but few are predicting doom and gloom. <v Speaker>I don't think this is a walking off the cliff scenario. <v Speaker>My own judgment is it's going to be a relatively mild recession. <v Speaker>And my second judgment is quite unlike the 1970s. <v Speaker>It's going to be difficult for oil prices to sustain even current levels <v Speaker>in what I believe is essentially a disinflationary global environment <v Speaker>and frankly, a slower growth global environment, which means lower energy <v Speaker>demand. <v Speaker>That's the good news. The bad news is that higher energy prices mean higher inflation. <v Speaker>Today, the Labor Department reported that producer prices in July fell one tenth of one <v Speaker>percent. <v Speaker>But that is probably the last decline we'll see for a while. <v Speaker>I think just the degree of increase in price that we've seen so far <v Speaker>in oil prices probably going to raise inflation rates throughout the entire <v Speaker>industrialized world by at least one to one and a half percentage points. <v Speaker>It is tolerable. <v Speaker>There is a wildcard that economists are really unable to quantify.
<v Speaker>Businessmen make decisions on expansion and individual consumers make purchasing <v Speaker>decisions based in large part on their feelings about the future. <v Speaker>Those feelings are going to change. <v Speaker>One week ago, we were looking at the end of the Cold War with lower levels of anxiety <v Speaker>and higher expectations for peace and social reform now because of Saddam <v Speaker>Hussein. The anxiety is back and the future is on hold <v Speaker>in New York. Scott Garvie for The Nightly Business Report. <v Speaker>This is Dennis Moore. Operation Desert Shield is costing three hundred million dollars <v Speaker>a month without a shot being fired. <v Speaker>But it's shooting even bigger holes in the effort to cut the federal budget deficit. <v Speaker>There will be additional costs, a lot of logistical support <v Speaker>getting the materials there. <v Speaker>Beginning now to get. <v Speaker>Regrettably, this is just something that we have to do near daily White House <v Speaker>negotiations, a deadlock before the invasion without coming anywhere close to cutting <v Speaker>50 billion dollars from the deficit.
<v Speaker>Now, I would be shocked if now if we got a real deal above <v Speaker>30 billion and probably something like 20 billion as MARCHELINE, military <v Speaker>cost is less important than that reduction than the political possibilities. <v Speaker>Defense cuts, for example, won't seem so appealing. <v Speaker>Saddam Hussein has proven that their mean people in the world <v Speaker>and some people had forgotten that and forget any kind of broad energy <v Speaker>tax while the public is still pumped up over gasoline prices. <v Speaker>On the other side of the equation, the president could also get some help in the budget <v Speaker>battle from what might be called the Falklands effect. <v Speaker>Fighting off the Argentine invasion of those islands gave Margaret Thatcher's <v Speaker>conservative government a big political boost back in 1982. <v Speaker>This year, no new taxes. <v Speaker>Right on. <v Speaker> Conservative Republicans may find new taxes more palatable politically if President <v Speaker>Bush succeeds in protecting Saudi Arabia. <v Speaker>The job is still going to be here. <v Speaker>And as much as Congress hates the idea of having to make a tough decision.
<v Speaker>My guess is that we'll finally settle down and make it. <v Speaker>Maybe but life goes on, said the president before he left for Maine, and at least for <v Speaker>now. So do budget politics as usual. <v Speaker>In Washington, Dennis Moore for the Nightly Business Report. <v Speaker>The current crisis has raised questions about the status of the U.S. <v Speaker>oil industry. It's been in a slump since the mid 80s. <v Speaker>And as Bill Watts reports from Houston, the incidents of the past week may still not be <v Speaker>enough to bring about a revival in America's oil patch. <v Speaker>Bidding on a new boom in the oil patch could be risky business despite the Middle East <v Speaker>crisis. There's no consensus in the industry about what oil will cost in a few months <v Speaker>or a year. <v Speaker>We think that price is probably in the mid 20s, mid <v Speaker>twenty dollars per barrel. That says very little about what could happen to <v Speaker>the price of oil in the very short term. <v Speaker>A stable price of twenty five dollars a barrel for oil would jumpstart the industry. <v Speaker>But the key is stability. <v Speaker>Many experts expect economic forces to reel in prices once the crisis
<v Speaker>is resolved, dropping them to the high teens. <v Speaker>So the present price run up won't cause an appreciable effect on domestic drilling. <v Speaker>A drilling project is no more bankable today than it was two months ago. <v Speaker>And if you look at three to five years on these prices, <v Speaker>you don't look out over the next few months. It takes six months to drill a well. <v Speaker>The problem is this. Drilling rigs are plentiful, but money is scarce. <v Speaker>Banks which got burned during the last bust won't be so eager to lend on the chance that <v Speaker>oil prices will remain high. <v Speaker>What's more, the shrunken industry has lost over a third of its experienced help. <v Speaker>Manpower is a problem right now, as you know that all field work is hard. <v Speaker>It's rough work. It's out away from home. <v Speaker>There's a lot of people that would like to come back in this business, but they have got <v Speaker>to be shown that they can have a stable livelihood. <v Speaker>In the short run, oil companies with existing production streams will make more money, <v Speaker>but that will mean much to the many firms which went out of business in recent years.
<v Speaker>If there is a relatively permanent increase in the price of oil, domestic production will <v Speaker>go up. But this badly scarred industry is not ready to place its bets <v Speaker>on that eventuality just yet. <v Speaker>In Houston, I'm Bill Watts for the Nightly Business Report. <v Speaker>To wrap up our special report on the Gulf crisis we go to Linda O'Brien on special <v Speaker>assignment in London. <v Speaker>The great hopes for the economic boom in the decade of the 90s have been deflated in only <v Speaker>eight days as Saddam Hussein has become a major factor in the world's economy <v Speaker>as well as its politics. <v Speaker>The crisis in the Middle East has for now overshadowed the events of Eastern Europe and <v Speaker>raised the specter of global recession. <v Speaker>With me to discuss the outlook, London based Router editors Colin Mooney and Geoff <v Speaker>Atkins. Welcome to The Nightly Business Report. <v Speaker>We have heard that the US oil industry needs twenty five dollars a barrel oil in order to <v Speaker>get a jumpstart. But what would that level on a sustained basis mean in terms of the <v Speaker>world economy? <v Speaker>Here in Europe, we're talking about stagflation rather than recession.
<v Speaker>Economists generally think that assuming that oil prices stay at present levels, <v Speaker>world growth will lose about a half a percent over the next year <v Speaker>and inflation perhaps a half to three quart-. <v Speaker>Again, an inflation of about half to three quarters of a percent. <v Speaker>But if that level goes to, say, thirty dollars a barrel, what will it mean for the global <v Speaker>economy? <v Speaker>Well, obviously, any further military escalation in the Gulf area could well send prices <v Speaker>up to that level. I think the general feeling among Allanah says that if there is a <v Speaker>standoff, the current situation that although <v Speaker>Kuwait and Iraq produce about forming a buzzword today, that could be made up <v Speaker>by the very high stocks which the Western countries hold and cooperation from the rest <v Speaker>of the OPEC members have indicated that they would turn up the taps to make good that <v Speaker>shortfall if we cooperate in reducing staff. <v Speaker>If we see sustained higher oil prices, which regions of the world are going to be the <v Speaker>hardest hit? <v Speaker>Well, obviously in Europe, East Europe will suffer pretty severely. <v Speaker>They have relied very heavily on the Soviet Union in the past for oil supplies at fixed
<v Speaker>prices and fixed fixed amounts. <v Speaker>Soviet Union is now said in future they must pay world market prices in hard currencies. <v Speaker>Frankly, they don't have enough hard currencies to to pay for this extra oil. <v Speaker>They will be looking elsewhere for supplies. <v Speaker>Will companies that are now going to be facing higher inflation costs or could be facing <v Speaker>higher oil costs, will they be willing to invest? <v Speaker>The kind of money that we've been hearing about in Eastern Europe, with the exception <v Speaker>of East Germany, which, as you know, is underwritten by the strong Western and Mark as a <v Speaker>result of unification? <v Speaker>This really adds another question mark to companies as to whether they should invest in <v Speaker>Eastern Europe. They really have to decide, is the domestic market there strong <v Speaker>enough to earn them a profit or can. <v Speaker>Can factories there with low wage wage costs be a source of exports <v Speaker>and earn the money that way? <v Speaker>What about oil producing nations? Are we going to see some gainers in this whole <v Speaker>scenario? <v Speaker>Yes. You get some of the developing countries with large foreign debt, such as Venezuela, <v Speaker>Nigeria, Ecuador, they're obviously going to benefit in the industrialized world.
<v Speaker>It's a mixed bag, really. <v Speaker>Countries like the UK have some benefits because we're a net export oil exporter. <v Speaker>And but we also have the inflationary cost of the increased prices. <v Speaker>Was United States, for example, which is a large importer that's going to worsen the <v Speaker>balance of payments. <v Speaker>What about Japan? Which is so heavily dependent on imported oil. <v Speaker>Well, Japan and West Germany are similar cases. <v Speaker>Totally independent. Almost everything depends on imported oil. <v Speaker>But they have very strong economies and they have very robust economies and are running <v Speaker>large surfaces and trade and payments so they can take the hit. <v Speaker>They can afford it. <v Speaker>What is the view from analysts as to what is really going to happen? <v Speaker>Very briefly, what is going to happen? <v Speaker>Well, if things to as they are, I think that the general feeling is that the prices will <v Speaker>probably settle down, too, in terms of dollars about the low 20s rather than the high <v Speaker>20s. That's barring any major escalation in the Middle East. <v Speaker>Thank you very much. I've been speaking with writer editors Colin Mooney and Jeff <v Speaker>Atkins'. <v Speaker>And now let's look at what happened on Wall Street today. <v Speaker>The Dow Jones Industrial Average down forty two and a third points for the week.
<v Speaker>Overall, down just over ninety three points. <v Speaker>Only 432 issues closed higher 1031 lower. <v Speaker>Only seven new highs for the year and one for the year. <v Speaker>And one hundred and twenty three new lows topping the active list on three point four <v Speaker>million shares. Kemper Corp. down an eighth couple of blocks of stocks. <v Speaker>And no news that I saw. A United Telecom bucked the overall trend with a seven point <v Speaker>gain. Global Marine and a rising three eights. <v Speaker>Boeing gave up what it gained yesterday with that one and a quarter point loss. <v Speaker>Philip Morris and other Dow stock dropped five eighths of a point. <v Speaker>Houston Industries off one quarter. Southwestern Public Service. <v Speaker>That's the winding down of a dividend play was actually yesterday off an eighth. <v Speaker>Today, Placer Dome moved up seven eighths of a point. <v Speaker>A lot of the mining stocks doing well. Wal-Mart down three quarters. <v Speaker>Company had a 25 percent increase in second quarter earnings out yesterday, but the stock <v Speaker>has reacted rather negatively. Waste management and their tenth in volume with a one in <v Speaker>five eight point drop among widely held issues. <v Speaker>American telephone last night, Chevron moving up one and an eighth and the firm oil <v Speaker>group. And Oppenheimer had some positive words about Chevron. <v Speaker>Disney, however, down three full points. <v Speaker>The Hurt on the Street column in today's Wall Street Journal says don't blame the Middle
<v Speaker>East crisis. Blame the sluggish economy and the threat of recession. <v Speaker>On the recent drop in Disney was one hundred thirty six and a half. <v Speaker>Last month, Dupont fell one and a half. <v Speaker>Kodak down a full point. General Motors was trading ex-dividend 75 cents a share, off <v Speaker>five eighths. Considering that and then a United Airlines parent, you l down six and a <v Speaker>half points in a very weak airline group because of higher oil prices. <v Speaker>American Barika Resources, a gold producer up one and three quarters, and Homestake <v Speaker>another gold up one and a half September. Gold on the Comex was up over 11 dollars an <v Speaker>ounce today to three ninety eight ninety, and some of the contracts actually traded over <v Speaker>four hundred dollars an ounce. SL industry is a big casualty the day down one and three <v Speaker>quarters, the company says. Due to soft business and all of its lines, it sees a <v Speaker>significant drop in fourth quarter earnings, down from last year's 14 cents per share. <v Speaker>FERA Incorporated. The Slacks manufacturer down five eighths. <v Speaker>Front-Page Wall Street Journal, a rather negative on the company and the squabble that's <v Speaker>going on within the founding family. <v Speaker>U.S. Aira Inc. down one and five eighths in the week. <v Speaker>Airline group in L.A. gear dropped seven eighths of a point, a rather negative profile
<v Speaker>about the company and the new Business Week edition. <v Speaker>Magazine on the American Exchange. <v Speaker>A loss of two point one seven on the index today. <v Speaker>For the week, it dropped seven point thirty one or two point one percent. <v Speaker>Trading volume up a million shares from yesterday's pace for every two stocks. <v Speaker>Higher, about three lower, topping the activist Continental Air Holdings up another <v Speaker>quarter after gaining one and three quarters yesterday when Frank Lorenzo said he's <v Speaker>calling it quits and selling his stock. <v Speaker>And we see a series of the Nikkei put warrants. <v Speaker>The PaineWebber, Solomon and Denmark's all up because the Nikkei dropped over <v Speaker>200 points today or the last session. <v Speaker>And then Echo Bay in there with a three point gain. <v Speaker>That's the course of Canadian gold stock. <v Speaker>Nasdaq trading a loss of four point ninety five and the index today for the week, it <v Speaker>dropped nine point for three points, or about two point two percent. <v Speaker>Trading volume, quite light at one hundred and twelve million shares well down from <v Speaker>yesterday's space and 720 to issues higher. <v Speaker>Twelve hundred and forty three or forty eight lower. The 100 index fell just over five <v Speaker>and three quarter points. Sun Microsystems stopped the activists rising one and a quarter <v Speaker>after the market closed yesterday. Sun reported earnings of 51 cents in its fourth
<v Speaker>quarter versus a twenty five cent per share, a loss the year before. <v Speaker>Quite a turnaround. Intel dropped a point. <v Speaker>Microsoft dropping five eights. But Amgen gained a point after a strong performance <v Speaker>yesterday. Nike down two and three quarters. <v Speaker>MCI Communications fell five eights and exabyte, dropping three and seven eighths points. <v Speaker>Goldman Sachs cut nine times earnings estimates. <v Speaker>Apple Computer dropped three quarters kind of peripherals down a point and have no change <v Speaker>in Nordstrom. Webster Close have three and one quarter points today. <v Speaker>Edison Brothers is beating six dollars a share. <v Speaker>Cash for a takeover. JLG Industries dropped three and seven eighths. <v Speaker>The company's going to lay off another 150 workers due to slow orders coming <v Speaker>in. They make work platforms, among other things. <v Speaker>And finally, the office club dropped one and a half. <v Speaker>Salomon Brothers brokerage cut earnings estimates there. <v Speaker>That's our Wall Street wrap up, Frank. <v Speaker>Thank you, Paul. <v Speaker>Taking a quick, quick look now at some of our other top business stories of the day, a <v Speaker>federal class action lawsuit was filed today in New York against Donald Trump and <v Speaker>companies associated with the bond offering for his Taj Mahal casino.
<v Speaker>The suit seeks the return of the money raised in the offering. <v Speaker>It alleges the Bonds prospectus made false claims about the New Jersey casinos ability to <v Speaker>generate cash. U.S. <v Speaker>Transportation Secretary Samuel Skinner is asking airline presidents to meet with him to <v Speaker>discuss how the recent sharp increase in jet fuel prices will impact the airline <v Speaker>industry. Nearly every major carrier has announced fare increases since fuel prices <v Speaker>began rising last week. <v Speaker>The state of North Carolina has filed suit against Exxon, charging the oil giant with <v Speaker>deceptive trade practices since the Iraqi invasion of Kuwait. <v Speaker>North Carolina's attorney general charges Exxon quoted wholesale prices, which had failed <v Speaker>to honor and imposed retroactive wholesale price hikes. <v Speaker>An Exxon spokesman had no immediate comment on that suit. <v Speaker>And bargainers for the United Auto Workers Union today rejected a plan to give workers a <v Speaker>financial stake in Chrysler Corporation and set up a new way to figure their profit <v Speaker>sharing. Chrysler had floated the proposal to give employees stock in the company in <v Speaker>return for concessions as part of the contract talks now under way.
<v Speaker>And that's our wrap up of the nightly business report for Friday, August 10th. <v Speaker>For all of us, good night. <v Speaker>This program is produced in association with Reuters, the world's largest <v Speaker>electronic publisher, which provides a nightly business report with news market <v Speaker>data and communications services worldwide and is made possible <v Speaker>by A.G. Edwards providing personalized financial services <v Speaker>and investment advice to individuals and businesses. <v Speaker>A.G. Edwards, a century old tradition of service to investors. <v Speaker>Franklin group of funds with more than one million seven hundred thousand shareholders <v Speaker>and fifty five different funds. <v Speaker>Franklin has been helping investors reach their financial goals since 1947. <v Speaker>Digital Equipment Corporation, whose innovative computer solutions include <v Speaker>a complete family of desktop systems for every need
- The Nightly Business Report
- Special edition
- Producing Organization
- WPBT-TV (Television station : Miami, Fla.)
- Contributing Organization
- The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia (Athens, Georgia)
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- "The Iraqi invasion of Kuwait on August 2 put Iraq in control of 30% of the world's proven oil reserves. This special edition of the Nightly Business Report looked at the economic ramifications of the invasion, with reports from around the world. "Although a small news organization (based out of Miami Public TV Station WPBT), The Nightly Business Report drew on its own staff and its association with Reuters to provide comprehensive coverage of the unfolding crisis. This included sending co-anchor Linda O'Bryon to London and Reuters correspondent John Defterios (normally stationed in London) to Dubai in the Persian Gulf on a moment's notice. In addition, the program included reports from Reuters Correspondent Terry Gallagher in Tokyo, NBR New York Correspondent Scott Gurvey, Washington Correspondent Dennis Moore and Houston contract reporter Bill Watts. "All this was presented without sacrificing NBR's usual stock market coverage, or its weekly 'Market Monitor' feature on stock market trends."--1990 Peabody Awards entry form.
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- Asset type
- Media type
- Moving Image
Producing Organization: WPBT-TV (Television station : Miami, Fla.)
- AAPB Contributor Holdings
The Walter J. Brown Media Archives & Peabody Awards Collection at the
University of Georgia
Identifier: cpb-aacip-8e0b98dc34d (Filename)
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- Chicago: “The Nightly Business Report; Special edition,” 1990-08-10, The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC, accessed June 26, 2022, http://americanarchive.org/catalog/cpb-aacip-526-kp7tm7344m.
- MLA: “The Nightly Business Report; Special edition.” 1990-08-10. The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Web. June 26, 2022. <http://americanarchive.org/catalog/cpb-aacip-526-kp7tm7344m>.
- APA: The Nightly Business Report; Special edition. Boston, MA: The Walter J. Brown Media Archives & Peabody Awards Collection at the University of Georgia, American Archive of Public Broadcasting (GBH and the Library of Congress), Boston, MA and Washington, DC. Retrieved from http://americanarchive.org/catalog/cpb-aacip-526-kp7tm7344m