Return to Transcripts main page
Lou Dobbs Moneyline
Dow Declines 15.50 to 9,052.44; Nasdaq Tumbles 35.76 to 1,570.19
Aired October 09, 2001 - 18:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, SECRETARY OF DEFENSE: We're not running out of targets, Afghanistan is.
(END VIDEO CLIP)
(BEGIN VIDEO CLIP)
GENERAL RICHARD MYERS, CHAIRMAN, JOINT CHIEFS OF STAFF: We have air supremacy.
(END VIDEO CLIP)
LOU DOBBS, CNN ANCHOR: The air force has apparently done its job in Afghanistan. Now the ground troops are preparing to go in. Good evening. President Bush today notified Congress that he is sending United States troops into Afghanistan. They will be there to combat terrorism. President Bush saying it is not possible to know the scope or the duration of these operations.
This development comes after three days of successful bombing against targets of Osama bin Laden and the Taliban. Former Defense Secretary William Cohen will join us tonight. He'll tell us what the United States' next move should be. We'll also reporting to you on the anthrax scare in Florida. Should an outbreak occur, is there enough vaccine to go around? And in the event of a bio-attack, is the United States equipped to handle it?
Since September 11th fewer Americans and fewer aircraft are flying. We will have for you the remarkable story of what is happening to these airplanes. On Wall Street today, investors were able to handle today's events and to keep the market's losses to a minimum.
Now for the latest on the U.S.- led efforts to attack the Taliban and the terrorist Al Qaeda network. A third round of airstrikes began during daylight hours in Afghanistan today. Targets included airports, airfields and missile defense sites. Today, Joint Chiefs Chairman Richard Myers showed photographs of some of those strikes.
(BEGIN VIDEO CLIP) MYERS: Here you see the camp prestrike, and here is the post- strike photo. We also have a SAM site near the Kandahar airfield. The following photo shows you the SAM destroyed. And finally, here is an airfield in Shindan, Afghanistan, in western Afghanistan. And you see here the results of the strike.
(END VIDEO CLIP)
DOBBS: Also today, German Chancellor Gerhard Schroeder offering President Bush his country's support in the war against terrorism. Germany is now one of eight countries. Those countries include France, Britain and Canada offering full military support. More than 30 other nations are also offering limited cooperation. During a press conference with the German chancellor, the president defended his decision to place tighter limits on classified information. President Bush saying leaks by Congress are simply unacceptable. Some lawmakers have called the new revisions an overreaction.
Nato dispatched the first of five AWACs surveillance aircraft to patrol the skies over the United States. This is the first time that NATO military hardware and personnel have been used to help protect the United States. Four United Nations employees were killed east of the capitol of Kabul as a result of the overnight strikes. And protests against the United States in Pakistan continue. For the latest on those protests and the propaganda war being waged there, we're joined by Christiane Amanpour in Islamabad -- Christiane.
CHRISTIANE AMANPOUR, CNN CORRESPONDENT: Lou, you talked about a propaganda war, and indeed there was about an hour ago a videotape released by the Al-Jazeera Arabic network, whose pictures we have been using over the last few days because they are the only international broadcasters inside Kabul with the satellite transmission facilities who are able to report.
In any event, they broadcast this statement from the Al Qaeda network spokesman. Al Qaeda being Osama bin Laden's suspected terrorist organization. This statement was full of fulminations against the United States, the usual call for jihad, the appeal to the Islamic world to rise up against the United States and threats that the United States would face similar -- what he called "a storm of airplanes" in the future. Again saying that the U.S. had to change its policy in the Middle East.
So this in relation to what's been going on over the last few days and clearly trying to get more people out on the streets. There have been protests here in Pakistan over the last couple of days. These have been in the Quetta area and Peshawar, mostly, which are near the Afghan border. Pakistan's border with Afghanistan.
Yesterday's was quite violent. Today's was not so violent. There have been about five people killed in those protests. But in the Islamic world, the protests have not been as widespread or as violent as many of the organizers and the hardline Islamic clerics and the Taliban and of course these Al Qaeda statements have been calling for. We want to show you another side of Pakistan, one that we don't often get to see and one that is overshadowed in this climate of hard line extremism. And that is tonight in the capital, Islamabad, there was a concert put on by Pakistan's local celebrities: singers, dancers. They put on a performance of song and dance, and they said that they wanted to show that the majority of Pakistan, as they said, were moderates who wanted a progressive and professional country. They wanted us to know that not everybody is the people -- not all Pakistanis are the ones who are on the streets demonstrating.
And perhaps just one more thing that might interest your audience. President Musharraf has been saying that this crisis has severely limited their exports, because people across the sea in the United States and Europe have been afraid that they can't deliver on their commands and demands here. In fact, they are able to deliver, they say, and they want the world to know that they can produce their textiles, they can meet their exports, and they are hoping that they will get those export orders as soon as possible again, Lou.
DOBBS: Christiane, you make a important point. These demonstrations that we've witnessed over the last couple of days in Pakistan in some of the cities, they have been, as these things go, relatively small. There has been, as you point out, some violence. Also President Musharraf has taken steps to assure this will be significantly restrained in the future. Correct?
AMANPOUR: That's absolutely right. And there's been an increased police presence out in the streets. Today for instance, in one of those cities where there was a very violent demonstration yesterday, police prevented a further demonstration from coming into the city today. And so it dwindled to only a few hundred on the outskirts of city. And they have brought out what they call their civil armed forces, sort of a national guard.
And they say as a last resort, they are prepared to deploy the army. And in controlling the demonstrations, they have authorized as a last resort, and in self-defense, they have authorized their police to use live fire. As I said, five people have been killed when authorities say they tried to storm a police station and use weapons themselves, the protesters -- Lou.
DOBBS: As you point out, Christiane, the Al Qaeda spokesman today trying to -- frankly, it's propaganda. What is really remarkable, it seems to me, in these highly emotionally-charged times is that we have heard very little from throughout the Islamic world that would suggest that Al Qaeda is anything more, really, than a lonely and it seems isolated voice.
AMANPOUR: I think you're absolutely right. Most of the Islamic world -- remember, there are more than one billion Muslims around the world -- most of the Muslims around the world have condemned those terrorist attacks on the United States. And many, many people have said if it is proven that Osama bin Laden is guilty, then he should be punished.
Now, separate from that, though, as a way of explaining some of the anti-American sentiment that we've seen over the last year -- especially in the Islamic world, separate from those attacks -- is the very real issue of the Palestinian situation, the sympathy for Iraqi civilians inside of Iraq.
Those issues are used by these terrorists and these hardliners to inflame public opinion. Many of the Middle Eastern leaders, and particularly the prime minister of Lebanon, who I spoke to yesterday, said that while the moderate Arab allies of the United States understand this military campaign, they really want the United States to now get very seriously and heavily engaged again in bringing peace in the Palestinian-Israeli situation, because that will eliminate this public reaction that is inflamed by the images of Palestinian suffering.
DOBBS: At this point, the world itself is engaged. Christian, thank you very much. Christiane Amanpour from Islamabad.
While the United States continues to strike back against terrorists in Afghanistan, there is growing concern in this country about bioterrorism. That concern underscored by an apparent outbreak of anthrax, at least one case and exposure in another in Florida. For more on the ongoing investigation there, we're joined by John Zarrella in Delray Beach -- John.
JOHN ZARRELLA, CNN CORRESPONDENT: Lou, the latest information: within the half hour state and local health officials held a news conference at the emergency operation center not far from here. We're at the Health Center here in Delray. And during that news conference they elaborated is that so far what they have found is that there is no evidence of anthrax at the home of Bob Stevens. Bob Stevens is was the man who died last Friday afternoon of anthrax, the one victim of anthrax. He worked at America Media, which is a publishing company that publishes supermarket tabloids.
The second man, Ernesto Blanco, who suffers from anthrax inhalation, also worked at America Media. That building of course has been shut down. The FBI is going through that.
On the law enforcement front, we have learned from law enforcement sources, Lou, that that FBI has taken the lead in this investigation. It has no suspects and it has no answers at this point. But they have discounted two rumors that surfaced yesterday. One that an envelope may have showed up at the building. It did not show up that building. And also that an intern from that America Media was somehow sent a prank letter. That has also been disputed and knocked down by the FBI.
Here at the health department, some 770 people have been tested over the past couple of days. They have been given nasal swabs. That is to test for the spores from anthrax. About 103 people came in today, and they have also been given antibiotics as precautionary measure. Talked with one woman who was a friend of Bob Stevens. She worked at America Media, and she says that she can't believe that there won't be other people who were at least exposed.
(BEGIN VIDEO CLIP) DEBBIE DUNKWORTH, AMA EMPLOYEE: If they found the spores in the building and it's inhalation, obviously it was gotten there. And if the other person now has a spore, somebody else has got to come up with spores too. I can't imagine it's just the two if it's in the building.
(END VIDEO CLIP)
ZARRELLA: It may be seven to 14 days, Lou, before they have results, although this test on the spores, the nasal test could be in, in the next four to seven days. It's a long, agonizing wait no matter how many days for the more than 700, close to 800 people who have to wait for those results -- Lou.
DOBBS: As we're waiting for those results now, in addition this case is now almost a week old. Who else is going to be brought into this? The Centers for Disease Control are already involved. The FBI, as you point out. Local health authorities, local law enforcement and state law enforcement.
You mention these two reports. The reporting here -- I know reporters have to be frustrated with the lack of information. I've watched two of the press conferences there with local authorities. There's a lot of confusion -- well, frankly, it's very confusing information that they are trying to share. What do you expect we are going to see in the next day or two from the FBI, which has taken the lead?
ZARRELLA: I think what the problem is, is that last week they thought maybe it was naturally occurring. Now they're saying, we really don't know what it is. The FBI has got a long, difficult task ahead. Every piece of information, Lou -- the fact that they have ruled out bob Steven's house as a source of the anthrax is good information toward the investigation.
As they get lab test results in from the building that was tested, from these employees that have been tested -- the building being America Media, which they did find an anthrax spore on a keyboard -- as those results start to come in and they can narrow down where the anthrax came from -- perhaps a worker who worked on one floor may be exposed but somebody else isn't. That will help in the investigation. There's a lot of misinformation that is getting out there, and it's very tough on the FBI right now to try and control all this and centralize what information they have -- Lou.
DOBBS: Let's try to go through this, and unfortunately I'm putting the burden on you. Let's start out with a couple things. The very detailed descriptions of an envelope with a powdery substance in it. That turns out to be absolutely untrue. Is that correct?
ZARRELLA: Correct. Absolutely untrue, according to the law enforcement sources.
DOBBS: An intern who allegedly had implied at least some sort of statement that could be taken as a threat -- that's untrue. ZARRELLA: Right. It turns out that he was just saying good-bye and he had actually sent them a gift of candy or something and so that was totally untrue.
DOBBS: And at this point, we have seen the pictures of people being swabbed down, washed down, over at the Postal Service, in the building. Do we have any definitive understanding as to this point as to whether or not anthrax spores have been detected within the America Media building there?
ZARRELLA: One. They did find one spore on the keyboard of Bob Stevens at his work area. That's when they closed immediately down the building, following Steven's death. Then the second man, Ernesto Blanco, turning up with anthrax exposure. Then they find the one spore at bob Steven's desk. They closed down the building. And they are still going through that building, the CDC and the FBI.
DOBBS: And at this point, do we know whether this is an environmental anthrax, a natural anthrax, or is it a manufactured anthrax. When will we know the answers?
ZARRELLA: We will only know the answer when they finish the molecular testing, the real, detailed biology, which could be still days if not weeks away -- Lou.
DOBBS: OK, John, Thank you four keeping the record straight for all of us. John Zarrella.
Anthrax is a crude but highly effective weapon of terror. While dangerous, it is treatable. But is there enough anthrax vaccine to go around? Peter Viles has the report.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): The anthrax scare in Florida shedding light on a festering government problem: Washington's continuing inability the produce an anthrax vaccine under government contract. Americans who want the vaccine for personal use and call the sole licensed manufacturer will hear this message.
(BEGIN AUDIO CLIP)
UNIDENTIFIED MALE: This is the Anthrax Vaccine Information Hotline. All the stockpile that currently exists is owned by the Department of Defense.
(END AUDIO CLIP)
VILES: The military first used the vaccine extensively during the Gulf War, and its use was controversial. Fearing side effects, hundreds of soldiers refused the shots. The pentagon pushed on. In 1998 it set out to vaccinate all military personnel by the year 2005. Now three years into the program only 520,000 personnel have received shots, less than a quarter of the military work force.
SEN. TIM HUTCHINSON (R), ARKANSAS: Our troops are unprotected and our civilian is population is unprotected from a vaccine standpoint. I make there some conclusions. We cannot have a sole source for vaccine.
VILES: That sole source is Bioport, privately held, based in Lansing, Michigan. Its lab has repeatedly failed government inspections, and currently does not have clearance to release the vaccine -- and may not get it for four to six months.
KIM BRENNEN ROOT, SPOKESWOMAN, BIOPORT: There is a formidable stockpile available. When we have FDA approval for our renovated anthrax vaccine manufacturing facility, we are prepared to release vaccine.
VILES: With a vaccine unavailable, attention has turned to antibiotics to treat anthrax after exposure. Bayer's Ciprofloxacin is the leading product, a billion-dollar-a-year drug used for various infections. Sales surged in New York even prior to the Florida scare. But Bayer says supplies are adequate, telling MONEYLINE it can handle what it terms, quote, "a moderate increase in prescriptions. We have fulfilled every government order that we have received this year," Bayer said in a statement, "and have fulfilled every commercial order to date."
Meantime, federal officials, mindful of e-mails like this one, have been urging Americans not to hoard drugs like Cipro.
SUE BAILEY, FORMER SECRETARY, OCID: There's not anything they can do. They should not run out to get Cipro and think about masks.
(END VIDEOTAPE)
VILES: The government has stockpiles of drugs stored at eight separate sites around and has in total enough antibiotics in that stockpile to treat two million cases of anthrax. In fact, drugs from that stockpile were sent to New York immediately after the attacks here on September 11th.
DOBBS: Are there plans to raise the level of those antibiotics so it would be available to the larger population.
VILES: Reports are that they would increase that stockpile of two million treatments to 10 million.
DOBBS: The last I looked we're a nation of 280 million.
VILES: This is one of those things. In all seriousness, you would not want to try to vaccinate the entire population against every possible threat. So vaccination for all is not a possibility. You have the same issue with the stockpile.
DOBBS: I'm not sure I entirely agree with that policy. But as you say, if that's the way it is, with the number of people we have in this country, that doesn't somehow -- perhaps it's counterintuitive, but it doesn't seem adequate.
VILES: If it's any comfort to you, there's a third strain of research going on, on an antidote: a drug that you could take after infection that would cure you, more powerful than an antibiotic. And the government is supporting that research.
DOBBS: As would I. Thanks a lot. Peter Viles.
The biotechnology industry has been stepping up efforts in the defense against biological and chemical weapons. Bruce Francis has that part of the story.
(BEGIN VIDEOTAPE)
BRUCE FRANCIS, CNN CORRESPONDENT (voice-over): These mice may just be the ground forces in the defense against bioterror. They have been genetically modified to produce human antibodies by Abgenix of Northern California. The company is now accelerating its work with the U.S. Army.
GEOFFREY DAVIS, CHIEF SCIENTIFIC OFFICER, ABGENIX: We are providing mice to an investigator there who is using the mice to make antibodies to some of the lead candidates of infectious agents that might be used in a biowarfare kind of scenario.
FRANCIS: Across the biotech industry, scientists are intensifying research into diagnostics, vaccines and treatments for potential bioterror threats. Money from Washington will help.
SEN. TOM HARKIN (D), IOWA: We're going to have about a $20 billion anti-terrorism bill go through. I believe that a good portion of that is going to be used to help make sure that we are ready for any bioterrorism that occurs in America.
FRANCIS: Although most of that money will go towards beefing up the public health system, the biotech industry expects that more money will be available for research as well. Current projects include: vaccines in pill form from Allergenicx in South San Francisco. Most vaccines now have to be refrigerated and then injected.
SRI of Menlo Park, California, is working on a lightweight testing device that can help detect toxic chemicals and microbes in the field. And Alnis Biosciences of Emeryville, California, is working on a technology to help synthesize antibodies for bioterror agents. Industry groups say that the response the still in its early stages, and that the medical dividends from the will help many fields.
(END VIDEOTAPE)
FRANCIS: Biotech companies are aware that a huge increase in the scale of demand for bioterror defenses changes the dynamics of the industry, creating potentially huge markets for complex products where there had been only small niches before -- Lou.
DOBBS: Bruce, thank you very much. Bruce Francis. Coming up next on MONEYLINE, a remarkable story. While the terrorist attacks have crippled air travel, they have boosted business for one company in the middle of the desert. We'll also be taking a look at the effect the decline in consumer confidence and the feeling of personal safety -- or lack of it -- could have on our economy. And how all of that could affect the markets. Strategist Tom Galvin will be here. He says the way consumers feel will determine how investors fare. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The Dow Jones industrials extending yesterday's losses. We go now to Christine Romans at the New York exchange and Greg Clarkin at the Nasdaq marketsite -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: We cracked a billion shares here today, Lou, but the market was lower. It really didn't do much at all. When you look at the action on the day, you can see that down 15 at 9,052 was really a subdued session. The big board movers included Equity Office Properties, Sam Zell's company, joining the S&P 500 after the bell today, but it was lower on the session because Merrill cut its ratings on real estate investment trusts.
Meanwhile, Ford moving higher on optimism of October sales. Also speculation that Ford imminently will cut its dividend by a third. Chevron and Texaco very firm here today. This is the last time you are going to see these two stocks trading under different sticker symbols. As of tomorrow, they merge. CVX becomes their combined ticker symbol.
Meanwhile, Motorola down 37 percent over the last two weeks. Two got hit again today. Very active after the bell. Motorola comes out in line with expectations: a loss of seven cents in its quarter. The third quarterly loss in a row. The conference call is not until tomorrow morning, though, so analysts and reporters don't get a chance to grill company executives until tomorrow at 8:00 eastern.
DOBBS: We will have to deal with that frustration, Christine. Earnings warnings leading the Nasdaq today to a 36 loss. Greg Clarkin tells us all about that from the Nasdaq marketsite.
GREG CLARKIN, CNN CORRESPONDENT: Lou, what we're seeing right now on the Nasdaq is a great degree of hesitation among investors to get involved in this market. That's witnessed by the volume. Last week averaging over two billion shares a day, 2.7 on one day. Today, the volume 1.5 billion. A lot of hesitation for people to go along in this market.
You can see what the Nasdaq did on the day, down 35 points or so. Here's how some of the big names fared. Microsoft dealt a legal setback from the Supreme Court. They refused to hear an appeal of a lower court ruling that the company violated antitrust laws. That stock selling off.
Sun Microsystems. Cisco Systems was down as well. Chips stocks hit especially hard today. We saw a spate of negative research notes. That took Intel down.
And then a company that has been really been booming lately, Cepheid, this is a company that develops technology to detect a bacteria that could cause diseases. "The New York Times" reports they are working with the Army to develop a test to detect that even quicker. That stock up sharply today. It is now up -- over a couple hundred percent in the last few weeks or so.
Volume worth noting. 31 million shares for a stock that generally trades 99,000 on any given day. Viisage Technology -- they are in the face recognition business -- that stock's up 700 percent since the World Trade Center attacks. And LAM Research, after the closing bell, the chip equipment company coming out, topping estimates. But ahead of those numbers that stock was down sharply -- Lou.
DOBBS: Greg, thank you very much. Obviously with those stock moves, fears about personal safety influencing investment and consumer decision. And that is the conclusion of a special study on consumer confidence released today. Kathleen Hays is here to put that in context for us -- Kathleen.
KATHLEEN HAYS, CNN CORRESPONDENT: As you know, the University of Michigan does a survey of consumer sentiment every month. Dr. Curtin, who heads that survey, did a special survey covering the period from September 15 to October 5 to find out how people are feeling after the attacks. The first question, the main question of the survey: Is your sense of personal safety shaken by the attacks? 20 percent said, "Yes, a great deal." 29 percent said "Somewhat." 51 percent said "Not affected much."
More people felt more affected, however, in the northeast and the south. He also asked about peoples' expectations of unemployment. We haven't just been shaken by the attacks. We're also worried about a recession. "Do you expect unemployment to rise in the year ahead?" 61 percent yes.
What's interesting about this survey, it has been very accurate at predicting what unemployment actually does three quarters after the fact. People are looking for unemployment to be over six percent early next year. We'll see if that comes true. It has in the past.
More signs of personal distress on the personal bankruptcy front. The American Bankruptcy Institute expects that this year we will see 1.5 million bankruptcies. This is a total number, but about 90 percent is personal. That will beat the previous record of 1.4 million. What's driving it? A high level of consumer debt.
On the sentiment survey, Lou, how many people do you think said they would spend or save more tax rebate checks if they got them.
DOBBS: Spend or save?
HAYS: Only 15 percent said they would spend more tax rebates. 85 percent said they would actually save them. Speaking to that question of debt and personal bankruptcy. People are worried right now. If we get money back, I guess we're not going to take it to the store.
DOBBS: That too shall change.
HAYS: At some point, yes.
DOBBS: Kathleen, thanks. Kathleen Hays.
Still ahead here on MONEYLINE, former Defense Secretary William Cohen will be here. We will be discussing, of course, the latest developments in Afghanistan. Then, how much of your civil liberties are you willing to give up in return for personal security and national security? Tonight, we'll have a report for you on what the government wants to and what you may well have to lose. We'll also have a report on where airplanes go when they're not being used, and there are a lot of airplanes not being used. The remarkable answer will surprise you, I suspect. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Law enforcement agencies want broader powers to help ensure those September 11 attacks aren't repeated. But proposed legislation might well sacrifice privacy for personal security. It has some experts concerned. Steve Young has the story.
(BEGIN VIDEOTAPE)
STEVE YOUNG, CNN CORRESPONDENT (voice-over): It aims to prevent terrorist acts in America with closer monitoring of regular and cellphones, computers and bank accounts. Called an act to "provide appropriate tools required to intercept and obstruct terrorism, the bill is better known as the Patriot Act.
The legislation would increase electronic surveillance and give U.S. intelligence agencies more sensitive information about U.S. citizens and residents. The Bush administration says it's necessary to fight the kind of war terrorists are now waging.
JOHN ASHCROFT, ATTORNEY GENERAL: We cannot wait for terrorists to strike to begin investigations. The death tolls are too high, the consequences are too great. We must prevent first, prosecute second.
YOUNG: Ashcroft says fighting terrorism has to become a national priority, and that America is tougher on drugs and organized crime than it is on terrorists. The American Civil Liberties Union is critical, saying the government already has sweeping powers of electronic surveillance that granted following the Oklahoma City bombing.
NADINE STROSSEN: No government official has claimed that it was inadequate surveillance powers that led to the terrible tragedy on September 11.
YOUNG: The civil liberties group says the Patriot's Act would pressure banks and security firms to hand over the records of customers believed to be suspicious, without notifying them and with a minimum of judicial supervision. The conservative House Majority leader Richard Armey says he doesn't believe the bill overreaches. But in any case, it sunsets at the end of 2003.
(END VIDEOTAPE) But a lot of laws have sunset provisions. And the ACLU's president says the only recent one that set and didn't rise again was the law establishing the independent counsel -- Lou.
DOBBS: Steve, thank you very much.
Well, for more analysis now on the military situation in Afghanistan, we're joined by William Cohen, former Defense Secretary, regular MONEYLINE contributor. Bill, good to have you with us.
WILLIAM COHEN, FORMER DEFENSE SECRETARY: Lou.
DOBBS: These attacks, the third day. Today, the Defense Secretary said that targets have been hit and highly effectively. What's your judgment?
COHEN: Well, as I understand it, about 85 percent of the targets have been taken out. And that means that the United States basically owns the skies, so that our pilots can fly nighttime, daytime with little threat. They'll still be some threat that they could be hit, but with a minimum amount of threat.
So that means that whatever other forces are assembled on the border are really strike forces going in, special forces going in and out. Help to the Afghan opposition groups. They'll be able to do that very effectively.
DOBBS: The spokesman for al Qaeda today, Osama bin Laden's number two purportedly, in a diatribe, if you will, against the west. Does that surprise you, the way he is trying apparently to conduct a modern propaganda war?
COHEN: It doesn't surprise me. Basically, what he's trying to do is to equate the al Qaeda terrorist goals with that of Islam and to say this is an attack upon Islam, and then try to energize all of those in the Muslim faith to take up the cause of the al Qaeda network. That's something that has to be resisted by certainly the governments in the region, but by everyone who treasures freedom.
DOBBS: As we watch the reaction here from principally Muslim countries around the world, it has been a muted response. Many analysts, experts, if you will so-called experts, have said you've got to be very careful here because there will this attempt to equate an attack against the al Qaeda and Osama bin Laden with an attack against a religion, the religion of more than a billion people, the Muslim religion. Does that -- it seems overblown at this point?
COHEN: At this point. But you have to be careful to the extent that the television images keep being shown on television in that region, it will try to inflame the situation so it looks like indeed it's a Western attack upon helpless people.
And frankly, I was surprised by all of the headlines I've been reading about U.S. attacks Afghanistan. We conducted attacks in Afghanistan against the Taliban. And that point has to be made over and over again. This is not an attack in and against Afghan itself or Afghan people. This is against the terrorist network.
DOBBS: And it has been, as the former Defense Secretary, has this been in your judgment a measured surgical response?
COHEN: Absolutely. We have taken great care to minimize any potential loss of life, innocent human life. And very few other countries, I think, would take the kind of measures that we have to prevent that from taking place.
DOBBS: Were you at all surprised with the President's notification today to Congress that U.S. ground troops would be going in?
COHEN: Not at all. As a matter of fact, we've known for some time that we're going to prepare the ground for potential special forces Seals and others, to go in and conduct lightning strikes. But I think it's also clear this President doesn't want to commit a large land force into that region. It would be really adverse to our interests. So I think we'll see forces in and out and not a large presence there.
DOBBS: I want to turn, if I may, to the Homeland Security aspect of this conflict, the situation in Florida. One man has died of anthrax. Another has been exposed to it. And we have a ton of questions a week later.
You were the first Defense Secretary to order the troops be immunized against anthrax. That was a controversial decision at the time. Are you surprised how long it's taking to investigate and get clear answers here about whether or not people have been exposed to anthrax, whether this is environmental anthrax or whether or not it is an agent, if not terror, a criminal agent?
COHEN: A little surprised, but I think the authorities want to be very clear here, so they don't set off a panic with the people. And so, another day or two, I think is probably warranted. But the decision, if it is something adverse and has been introduced by foul hands as such, I think they'll want to know that fairly quickly and see how many people might have come into contact with this, so that they can start taking the preventive measures to prevent it from really harming more people.
DOBBS: Are you surprised at how long it's taken to get to some answers here?
COHEN: A little surprised. But again, I think they want to exercise extreme caution here, for fear of setting off panic.
And one thing we have to do is to continue to prepare ourselves for this threat that will be the threat that will remain with us for the duration, namely, that of chemical, biological or other types of weapons of mass destruction.
With respect to anthrax itself, we have to point out it is not contagious. If we are talking about if smallpox or something else, then you really have a concern that could spread exponentially very quickly. So we still have time here in terms of the relative exposure, the amount of people who may have been exposed in time for treatment, but I think that time is marching on. And I would expect an answer fairly soon.
DOBBS: And as we all know, it is now a new world.
COHEN: It's a grave new world.
DOBBS: Bill, thank you very much. Bill Cohen.
Well still ahead here , the terrorist attacks on the United States have meant fewer flyers, fewer aircraft in the skies. Where have those planes gone? Well, the answer will surprise you. We'll have that answer for you next. And how will investors fare over the weeks ahead? Our stock market strategist suggests it all depends on how you feel. Stay with us.
ANNOUNCER: After the break, Lou is joined by chief investment officer of Credit Suisse First Boston, Tom Galvin.
(COMMERCIAL BREAK)
DOBBS: Now for the latest developments in the war against terrorism. The President has informed Congress of his decision to deploy U.S. troops to Afghanistan. The President's notification letter says it is not possible to know the scope or the duration of any such combat operation.
The Pentagon reports it's hit 85 percent of its intended targets in Afghanistan. Defense Secretary Rumsfeld says the U.S. military can now carry out strikes around the clock. And a spokesman for the terrorist group al Qaeda says "the storm of airplanes will not stop until the United States ends its attacks on Islam.". It was the first statement from al Qaeda since the terrorists -- since the strikes against Afghanistan began Sunday.
President Bush names two seasoned officials to new positions in the Office of Homeland Security, retired Army General Wayne Downing named new national director for combating terrorism. Richard Clark is a special adviser to the president on cyberspace security.
Well, Wall Street has managed to regain most of its losses since reopening after the terrorist attacks, but Thomas Galvin says it will take until the end of November for investors to fully sense and perhaps react to the situation. Tom Galvin joins us now.
Tom, good to have you with us.
THOMAS GALVIN, CREDIT SUISSE FIRST BOSTON: Thanks, Lou.
DOBBS: You think that investors have not, at this point, fully reacted to the events of September 11 and all that has followed?
GALVIN: I think from what little history we have over the past hundred years in military strikes, it's usually taken at least 10 to 12 weeks for us to get a sense of stability in the markets, stability on the part of the consumer, get some more feedback as to exactly how much consumers have retrenched.
We have some anecdotal news so far. When you look at discounters like Wal-Mart, some home improvement firms, also auto dealers clearly seeing a little bit better sell-through in September than was expected. And we're actually seeing consumers stabilize. And I think that's important for the investor base to feel that the ongoing consumer buying power is still with us.
DOBBS: Kathleen Hays was reporting earlier on the special University of Michigan sentiment survey, that was conducted, suggesting some people have some anxiety about their personal safety, the suggestion being that'll influence both their consumer and investing decisions. Do you buy that?
GALVIN: I think that has to be true. I think our lives clearly have permanently changed. But that said, you know, as I also look at other areas in the world where terrorism is not so new. I mean, people still go shop in northern Ireland, they still go to Euro Disney, even though we sometimes have terrorist attacks in Paris.
We also see people go on cruises in the Mediterranean, even though sometimes we've got strife in the Middle East. So I do think we will, you know, we're strong an America. We will ultimately realize I think our military actions are going to make us a safer place. And that'll eventually get shoppers back in the store.
DOBBS: Yes, and I think one thing perhaps is escaping many people is that this is not simply, well first of all, it is a committed U.S. engagement against terrorism. But certainly as importantly, if not more importantly, it's a committed worldwide effort against terrorism that simply has to prevail.
So that has to -- if successes are achieved, I would think build consumer confidence?
GALVIN: And I also think it is important that it is global in the sense that coming out of the Gulf War, those NATO-aligned countries, they were successful in those military operations, ultimately developed a stronger globalized economic framework.
And potentially can envision, if some of these global parties that have come together in this crisis, we could actually build a much stronger globalized economy going forward from here, than what we stood previously. So I think there are actually some potentials out there, we're not willing to realize or put into stocks today.
DOBBS: What is your best counsel to investors in these interesting and perhaps difficult times?
GALVIN: Well I can tell you, when I meet with professional fund managers, what they're doing is they have set price targets that they want on stocks. They're in no hurry. They're trying to prune their list of stocks to those that they have great confidence to survive, because it's unpredictable how long we're going to be. They want good cash flow companies that I think will be around and survive, I think, the current economic tough times. DOBBS: OK, Tom, thanks very much for being with us.
GALVIN: Thanks, Lou.
DOBBS: Tom Galvin.
Coming up next here on MONEYLINE, we'll hear from you. And some very passionate feelings about Abby Joseph Cohen. And a small airport in the middle of a California desert. That story next on MONEYLINE.
(COMMERCIAL BREAK)
DOBBS: In tonight's corporate brief, Chevron completing its $38 billion merger of Texaco, making it the world's fourth largest oil company, the second largest U.S. oil company. Texaco selling refining assets to Shell for $3.8 billion. That would make Shell the nation's largest gasoline retailer.
Elsewhere, energy giant Burlington Resources buying the natural gas concern Canadian Hunter Exploration, paying $2.1 billion. Credit Suisse First Boston announcing 2,000 job cuts today, possibly signaling the beginning of a new round of layoffs on Wall Street.
And Internet analyst Mary Meeker is off the hook. A federal judge dismissing eight lawsuits against the Morgan Stanley analyst. Investors who bought Internet stocks recommended by Meeker wanted reimbursement for their losses when those stocks tanked.
Coming up on MONEYLINE, a cutback in air travel results in the grounding of hundreds of planes. We'll take a look at where these aircraft are now. Next on MONEYLINE. Stay with us.
(COMMERCIAL BREAK)
DOBBS: The airline industry has taken a major economic hit over the past month, of course. Airlines have cut their flight schedules, grounding hundreds of planes in the process. All of that, leading to an overflow of unused planes, and a lack of storage space. One option?
Casey Wian tells us all about it.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): A U.S. Airways Boeing 737 lands as scheduled at a California airport. But this plane won't be leaving anytime soon. And this is no ordinary airport. In the desert, 95 miles north of Los Angeles is the Mojave Airport. Test pilots are its normal inhabitants. But now, it's home to more than 150 unneeded commercial aircraft.
DAN SABOVICH, GENERAL MANAGER, MOJAVE AIRPORT: It's just one of the few places in the country that you can store an airplane and not worry about it. You don't have to worry about the salt water corrosion or anything like that. There's no dew out here in the desert. When the airplanes come in, they tape them up, tape all the holes up, tape the engines up. And then they park it.
WIAN: More planes arrive daily, at least 40 in the past week. Airlines don't have enough passengers. So many have too many planes. U.S. Airways is idling more than 100. Most will be stored here.
Other carriers and Avtel, a company they hired to store and maintain planes, won't discuss their operations because of concerns about security and negative publicity.
(on camera): The last time the Mojave Airport had this many commercial jets stored was during the recession of the early 1990's. About 95 percent of those eventually went back into service.
(voice-over): At about $250 a month for a narrow-bodied jet to $500 for a 747, it's a financial windfall for the airport. At least $3 billion worth of planes are parked here.
For aircraft manufacturers, that will hurt future orders. Boeing has already lowered delivery projections through next year by 150 planes. The Mojave Airport expects as many as 200 unused jets by the end of this year. It says it has room for a couple hundred more.
Casey Wian, CNN Financial News, Mojave, California.
(END VIDEOTAPE)
DOBBS: "WOLF BLITZER REPORTS" begins in just a few minutes here on CNN. For a preview, let's go now to Wolf in Washington -- Wolf.
WOLF BLITZER, HOST, CNN'S "WOLF BLITZER REPORTS": Thank you very much, Lou. We'll check the latest developments in day three of the U.S.-led airstrikes. We'll also check the reaction to a statement from an al Qaeda spokesman saying the September 11th attacks were "a good deed," and thousands more young people are ready to die in the battle against the United States. I'll talk live also with the NATO Secretary-General George Robinson. That and much more up next -- Lou.
DOBBS: Well, thank you very much. Coming up next here, we'll take a look at your e-mail and what we can expect tomorrow.
(COMMERCIAL BREAK)
DOBBS: Tonight's MONEYLINE movers, shares of Cepheid jumping 86 percent today, building on yesterday's gain of more than 30 percent. The companies products help detect biological agents. The firm getting attention after the anthrax case in Florida and increased fears of biological warfare.
Shares of Microsoft today down six percent. The Supreme Court rejecting Microsoft's request to overturn a ruling finding the company violated antitrust laws.
And Myriad Genetics climbing 12 percent today in price. The biotech company says it has found a way to kill cancer cells without damaging healthy cells. While the compound is in a very early stage of development, it could lead to the creation of several cancer- fighting drugs. Over the past 52-weeks, shares of Myriad have fallen more than 70 percent from its high.
Tomorrow companies are expected to report quarterly results, including Yahoo, Pepsico, Genentech, Abbott Labs and Redback Networks.
And taking a look at some of your thoughts tonight, we had what can only be described as a passionate response when we took a look at Abby Joseph Cohen's track record last night. We took a look at about half a dozen calls that she had made this year and saw how the stocks fell, or were flat more than 60 percent of the time after her bullish call.
That didn't please some viewers though. That wasn't enough. Andy Zielinski writes: "All people ask for is honesty and truth. And your defense of Abby Joseph Cohen is why Wall Street will spend years repairing the damage of fraud that permeated the tape for the past five years." Ouch.
Christopher Jones writes: "Don't treat the numbers to make this woman smart because she's not."
Bud Rossi in Hamilton, Ohio: "What matters is the longer-term trend. All the while Abby Cohen made her rah-rah calls, the market was declining, not rising."
George Young in New Orleans. "When she declares a bull market, the bears come out." Well, those bears of course were out long before Abby Joseph Cohen was making those calls. But she's unfortunately been a bull against all odds in a bear market.
Tell us what's on your mind. E-mail us at moneyline@cnn.com. And for this Tuesday evening, that is MONEYLINE. Thanks for being with us. I'm Lou Dobbs. Good night from New York. "WOLF BLITZER REPORTS" begins right now.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
