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.

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