Return to Transcripts main page
Lou Dobbs Moneyline
Anthrax Discovered at "New York Post"; Stock Prices Move Higher
Aired October 19, 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.
LOU DOBBS, CNN ANCHOR: Good evening.
Tonight, a look at homeland security and America's war against terrorism.
Anthrax discovered at "The New York Post" newspaper -- tonight, the deputy postmaster general of the United States will join us. He will tell us how big a threat he thinks anthrax is. And we'll be hearing from an expert on bioterrorism about the spread of the bacteria.
As the air attacks continue in Afghanistan, U.S. ground forces are conducting operations against the Taliban and al Qaeda network. Tonight, we'll hear from General David Grange about the inclusion of U.S. ground forces in Afghanistan, their mission and their chances of success.
We'll also take a look at this nation's ports. There are more than 360 of them in this country. How safe are they?
Canada is buying anthrax medicine for its citizens -- the country ignoring Bayer's patent on Cipro. We'll report on that.
And on Wall Street today, investors say: It's only anthrax. After a week of anthrax anxieties, stock prices today move higher.
Now for the latest on the anthrax scare investigation.
Eight people have now tested positive for anthrax infections. A second New Jersey postal worker tested positive today.
And an editorial assistant at "The New York Post" has also tested positive for anthrax. That brings the total of four people who have contracted skin anthrax in New York City. Nationwide, there are more than 30 known exposures to anthrax, most on Capitol Hill.
Some good news today: Three people who work on the Hill who initially tested positive for anthrax exposure were found to be negative. The surgeon general says the number of exposures could go even lower.
Homeland Security Chief Tom Ridge says the strains of anthrax found in New York, Washington and Florida are, in his word, "indistinguishable." Ridge says one could conclude that they all came from the same source.
And a major scare at a Greyhound bus station in Philadelphia today, where police say they found a suitcase with five ounces of C-4 plastic explosive. It was found inside a locker along with 1,000 feet of military detonation cord. The bag had been inside that locker since early October. A bomb squad removed it without incident.
Now for the latest on the war against terrorism: U.S. elite troops on the ground now in Afghanistan. But defense officials tell CNN it is a small liaison mission and is not engaged in direct combat.
Meanwhile, U.S. jet fighters are continuing to pummel Taliban and al Qaeda targets. Those strike aircraft hitting targets around Kandahar. Today marks the first time that bombs have fallen on a Friday, the Muslim holy day of the week.
U.S. intelligence officials say they've received reliable reports that the Taliban have plans to blow up a major mosque in Mazar-e- Sharif and then blame the United States.
Pakistan has turned over the use of one of its air bases in the western part of the country to the coalition, where it could be a crucial staging ground for U.S. and British forces. It is relatively close to Kandahar.
Today, Chinese President Jiang Zemin said he hoped the U.S. targets in Afghanistan would be clearly defined. That came during the first face-to-face meeting between Mr. Jiang and President Bush in Shanghai.
German police issued an arrest warrant today for a 24-year-old Moroccan. Zakariya Essabar is accused of mass murder in founding a terrorist group with some of the hijackers involved in those attacks on September 11.
A college student, arrested in San Diego last month, has been charged with lying to a grand jury in connection with those terrorist attacks. The student lied about whether he knew two of the hijackers.
The United States has launched intense air strikes in Kandahar. U.S. ground forces have been deployed, though the Pentagon insists they are not involved in direct combat.
John Vause has the latest from Islamabad -- John.
JOHN VAUSE, CNN CORRESPONDENT: Yes, hello again, Lou.
Well, the information we're getting from Kandahar tonight: another offensive under way. Some fairly loud explosions rocking that city yet again.
And for the first time now, people on the ground there say they have actually spotted those AC-130 gunships, those very terrifying gunships, going about their business.
Now, people on the ground say that the explosions are quite heavy. We also know that Kandahar was hit earlier during the day. The strikes happened just before dawn. They hit in a residential area. We have some pictures from the Al Jazeera television network which show the extent of the damage which was caused by some of those air strikes.
We know that what they're being -- what they're telling us rather is, in fact, that it was, in fact, a residential area which was hit as well as some offices belonging to the Taliban -- the agricultural ministry, the water works, security offices and the office of vice and virtue, which apparently had been hit three times in the last couple of days.
There's been no way at this stage to verify the full extent of the damage coming out of Kandahar. But as you see there now, the Taliban ambassador, who we just saw there, was telling us earlier that, in fact, the Taliban forces are still pretty much intact. And, in fact, that they have moved most of their hardware out of the way.
And that, in fact, corroborates a report that we've been getting here in Islamabad from aid workers who were sent in to try and assess the damage and try and get some kind of toll of civilian casualties. They were in -- in Kabul, rather. They told us that, in fact, they could confirm the deaths of 10 civilians. The Taliban, earlier, telling us that they said 70 civilians had been killed since these air strikes began -- those aid workers saying 10 civilians that they could confirm.
But there also saying to us that the targets, which are being hit by these military airstrikes, were, in fact, junk. That they had -- that the Taliban had moved their hardware to the relatively -- relative safety of the mountains and away from the cities -- the Taliban ambassador here also telling us today that there is, in fact, no split in the Taliban.
There had been some reports that moderate sections of the Taliban were trying to cut a deal with U.S. forces to try and hand over Osama bin Laden. But the Taliban ambassador today saying in fact -- quote -- "There is no moderate Taliban. We are all one" -- Lou.
DOBBS: John, any in that assessment -- you said they confirmed 10 civilians were killed.
Could they confirm who killed them?
VAUSE: Well, that's the question.
The assumption is that they've been hit by stray U.S. bombs and missiles. But we have heard earlier from Donald Rumsfeld, the secretary of defense, that, in fact, that they may have been killed by stray anti-aircraft fire.
As for that damage -- a fairly extensive scene of devastation there. This is in the southeast of Kandahar -- the pictures that we're looking at just there. Those pictures from videophone from the Al Jazeera television network. They were taken to that scene in Kandahar. They were in the office, which is also used by CNN, which was hit quite heavily last night. We know that a wall collapsed and there had been some explosions in the city.
But those aid workers that were taken into Kabul over the last couple of days tell us that moral in the city is actually quite high and that a lot of the people there are getting into some kind of routine. They now know that the U.S. is not targeting civilians, which has been the case during other wars in Afghanistan. They know that the U.S. is actually going after military targets or be it -- there have been some stray bombs which have not hit their mark and have hit some civilian areas. And they seem to be getting into some kind of routine -- Lou.
DOBBS: John, quickly, do you have any information whatsoever about the Northern Alliance and its troop movements?
VAUSE: Well what we do know is that the Northern Alliance has been toing and froing for quite some time now outside the town of Mazar-e-Sharif.
But we do know that the Taliban has reinforced that position and has launched a fairly strong counteroffensive, sending something like 1,000 troops there as well as artillery.
But we do know that -- what we're being told as far as ground troops: We've been told that, in fact, that the U.S. special forces on the ground and, in fact, the U.S. has been, in fact, giving money, food, ammunition to the Northern Alliance -- in general terms as well as sharing information.
The Northern Alliance, for its part, seems to be sitting back and waiting, if you like, for the U.S. to fight its war as much as it can before making any move on Kabul, the capital, which is obviously the prize in this campaign.
DOBBS: OK, John, thank you very much -- John Vause from Islamabad.
Well, General David Grange now joins us from Chicago. General Grange served in the Army -- 30 years as a Ranger, Green Beret. He was in the Middle East during the Persian Gulf War, commanding General of the Big Red One, the 1st Infantry Division.
General, good to have you with us.
GENERAL DAVID GRANGE (RET.), U.S. ARMY: Good evening.
DOBBS: We've just heard John Vause talk about to and froing with the Northern Alliance around Mazar-e-Sharif.
Is it your sense that part of this mission would be close air support in behalf of the Northern Alliance should they decide to engage and to go after the city directly?
GRANGE: Good chance our soldiers would have the communication to talk to the air support to provide that close air support strike for the Northern Alliance. I think, more important though, is just that we -- if we do have, and I hope we do, have boots on the ground to establish that trust, that relationship, with the Northern Alliance anti-Taliban forces.
DOBBS: And could it -- the role has been described by the Pentagon as a liaison role. Would it not be a reasonable mission for those ground forces to be also directing that close air support should the U.S. aircraft engage in it?
GRANGE: Oh, absolutely.
They would be the ones that would direct the aircraft. The anti- Taliban forces would not have the capability to do that type of strikes, I wouldn't think, that close to friendly units.
But the liaison is very important also. And that relationship that's being established is extremely important to the success of this campaign.
1810
forces would not have the capability to do that type of strikes, I wouldn't think, that close to friendly units. But the liaison is very important also, and that relationship that's being established is extremely important to the success of this campaign.
DOBBS: And as the campaign is now nearing the end of its second week, General, how would you assess the success, if it can be done without more specificity on the part of the Pentagon?
GRANGE: Well, the mission can be done. It will be done. There's no doubt in my mind. It's going to take a little time and I think we need to be patient to do it right.
DOBBS: Right.
GRANGE: This is a very fragile alliance, and when you hit some of these targets, some of them are, I'm sure, decoys, just like in Kosovo. Some are real targets. There's a lot of targets hidden, and we have to just take our time and do it properly, set up conditions for success.
DOBBS: One of the things that troops on the ground, the boots on the ground in Afghanistan, and all of the U.S. military there, they're aware that Secretary Powell in meeting with President Musharraf talked about possibly a role for the Taliban in any post-Afghanistan government, post-Taliban government. At the same time, Donald Rumsfeld, the secretary of defense today, said the measure of success will be when the foes are defeated and the Taliban and the al Qaeda are out of Afghanistan. What do you make of that?
GRANGE: Well, I think he's talking about the Taliban leadership that supports the al Qaeda and also this terrorist network. You have about a, I think, about a 10,000 to 12,000 man shock troop, mercenary army made up of Arabs that are not from Afghan tribes...
DOBBS: The 55th Brigade.
GRANGE: ... supporting bin Laden.
DOBBS: The 55th Brigade.
GRANGE: Yeah, the brigade, and so, I mean, those are the type of people we're talking about overthrowing, and as well as some of the hard-core Taliban that wants to keep this oppressive rule. Not the moderates. The moderates have to be a part of the new alliance.
DOBBS: Well, as John Vause just reported, the Taliban says there is only one Taliban.
GRANGE: Well, I don't believe that. That's propaganda.
DOBBS: General, thanks very much for being with us.
GRANGE: Thank you.
DOBBS: General David Grange.
Coming up next here on MONEYLINE, we'll be talking about homeland security. We'll hear from the deputy postmaster general of the United States. He'll tell us what's being done to protect your mail, you and the employees of the Postal Service from anthrax.
We'll also tell you what's being done to raise security levels at our nation's hundreds of seaports, areas that the White House terms "vulnerable."
And the president tonight is in China, bolstering support for the war against terrorism. We'll tell you why not every Asian nation is in support of that war, next here on MONEYLINE.
(COMMERCIAL BREAK)
DOBBS: Well, there are eight known cases of anthrax infection now. There are nearly three dozen cases of exposure, and some Americans are anxious about opening their mail. The United States Post Office will be sending out a postcard soon to everyone in this country, and that postcard will have instruction about just how to safely handle your mail.
We're joined now by John Nolan. He is the deputy postmaster general of the United States, and it is good to have you with us, sir.
JOHN NOLAN, DEPUTY POSTMASTER GENERAL: Good to be here, Lou.
DOBBS: You, you and the Postal Service are right at the center of all of this, anthrax. And how secure do you think right now the Postal Service is? How safe are your employees? How worried are you?
NOLAN: Well, I think we're treating this as a very serious situation, obviously, and doing everything we can to educate our employees, to make sure that procedures are followed that we've had in place for sometime about handling hazardous materials. But also educating the public as to what we're doing and what they can do to be the last line of defense when it comes to mail.
Mail is very safe. We handled in this same period, as you said, six or seven or eight different items have been discovered, we've delivered 21 billion pieces of mail. So, as I was saying to someone the other day, you better be more worried about getting a flu shot than finding anthrax in your mail.
DOBBS: Well, as we reported here last night, 20,000 people will die of the flu this year if history is any gauge. But the concern about anthrax here and the Postal Service's role here, your employees -- and I want to focus first on your employees in the Postal Service -- how confident are they? How, what is their demeanor here?
NOLAN: I'll tell you, I've said a number of times over the years that I wouldn't trade our 800,000 employees for 800,000 other workers anywhere. They're really rising to the occasion. While certainly there would be cause, just because of the media and what they read everywhere, to be very concerned, they deliver. They're delivering every day, and we're very proud of what they're doing.
So I think while they're concerned, we've been providing them a lot of information about what things they should be doing, what to look for. And so we haven't seen very many problems at all.
DOBBS: Good. And in terms of your customers, I know you survey attitudes amongst customers, which comprises just about everyone in this country, what are -- what are those surveys telling you about the way people are reacting?
NOLAN: While there are some people who express some concern about the mail -- we call it the mail moment, where people go to their mail everybody day and it's been so important to Americans forever -- there have been some people that have expressed concern, but overwhelmingly people are saying, look, I'm just not that worried about what's going on.
We think the more information we provide Americans, what to look for, what it might resemble, the more confident they're going to be. And the fact is that the mail is safe.
DOBBS: And the steps that you're taking to ensure the safety of your employees and of course your customers, your -- the Postal Service running a huge deficit, to begin with. Have you got a sense of what that's going to add to your deficit?
NOLAN: Well, I'd say so far since September 11th it's probably cost us in the range of 60-70 million dollars just to -- because of everything that's gone on. But I think we're not focusing so much on the costs and the implications. Our first mission is to make sure that the mail is delivered and that we're doing the job Americans want.
But the primary thing at the moment is education. Procedurally, we're doing the things that need to be done. We need to make sure everyone is aware of what they can to keep themselves safe. DOBBS: All right. Well, it is my job to focus on those -- those expenses, and in terms of the expense we're seeing mount up here across the country and what will be added to the federal government, or if it may be so, a deficit next year, you don't have any sense whatsoever at this point of what's going to be required in additional equipment and so forth for the Postal Service.
NOLAN: No. We're examining a number of opportunities from a technology standpoint that may enable us to add further security. But we're still evaluating a number of those things. We're trying to do that makes sense from a cost standpoint. It is costing us money, but how much that will wind up being is really impossible to know at this point.
But we're working closely with our customers, our mailers so that they're doing everything possible. And we're keeping track of it. Hopefully, people will keep those cards and letters coming, because we're anxious to deliver it and we know we can do it in a safe fashion.
DOBBS: Neither rain nor sleet nor -- we'll keep filling in the blanks, I'm sure.
(LAUGHTER)
John Nolan, thanks for being with us.
NOLAN: My pleasure.
DOBBS: The U.S. Postal Service.
The deputy postmaster general, John Nolan.
Well, from our mailboxes to our borders, to our airports, efforts under way to, of course, ensure the public safety. But the public is hardly assured by the security at our nation's seaports.
Peter Viles has the latest for us.
(BEGIN VIDEOTAPE)
PETER VILES, CNN CORRESPONDENT (voice-over): The Coast Guard on its highest state alert since World War II, policing more than 360 ports on both coasts: in many cases, armed Coast Guardsmen climbing aboard incoming ships to inspect them.
But in Baltimore, the Cabinet member who overseas the Coast Guard says those seaports are still, quote, "very vulnerable."
NORMAN MINETA, TRANSPORTATION SECRETARY: The problem is that right now probably about 2 percent of the containers that come into all of our ports in the United States are even looked at. And so we have a long way to go in terms of dealing with port security.
VILES: Federal officials worry most about those truck-sized shipping containers: 17 million enter the country each year, often transferred directly to trains or trucks. The vast majority are never inspected, their movements not tracked.
RICK LARRABEE, PORT AUTHORITY OF NEW YORK: It's a process that really has to start at the beginning of the transportation process. We need to know where that container was packed. We need to know who was responsible for it during its transit, and if we can do that, then maybe we can avoid having to physically inspect every container here in the port.
VILES: Other concerns, the workers for private shipper: There are no background checks. The current schedule of federal vulnerability assessments isn't particularly urgent. It calls for 50 ports to be assessed over a five-year period. And shipping officials fear the Coast Guard lacks the resources to keep security tight for an extended period of time.
The Coast Guard's response so far, requiring 96-hours notice rather than 24 for incoming ships, which gives the service more lead time to decide which ships to inspect: a massive shift of resources away from activities like drug interdiction and fishing patrols to port security, and Coast Guard escorts for vulnerable ships, such as cruise ships and oil tankers.
(END VIDEOTAPE)
VILES: Still, the Bush administration has not taken the ultimate step, a step that was taken during World War I and II, and that is to transfer control of the Coast Guard to the United States Navy from its current home inside the Department of Transportation.
DOBBS: What you describe, Peter, is a woeful lack of resources for the Coast Guard, already burdened without this new world we live in. What's going to be done?
VILES: Well, the -- Congress has been considering an increase in security for the entire seaport system. That legislation now taking on increased urgency. But it is behind other urgent legislation in the line right now in Congress.
DOBBS: A number of priorities, new priorities being created seemingly every day. Pete, thanks very much, Peter Viles.
Well, coming up here in just a few minutes, we'll be telling you what Canada is doing to make certain its citizens receive their supply of anthrax antibiotics and why drug maker Bayer is very upset by Canada's efforts.
And we'll also be telling you about President Bush and China's Jiang Zemin, standing together against terrorism. Not all Asian nations have joined them. We'll have a live report for you tonight from Shanghai.
But first, we want to tell you about a rally on Wall Street. Investors today at least shrugging off concerns about anthrax. The Dow up 40 points. Still down 140 on the week. The broader S&P 500 and Nasdaq also closing higher on the session.
Christine Romans at the New York Stock Exchange with the details -- Christine.
CHRISTINE ROMANS, CNN CORRESPONDENT: Lou, a nice little late-day rally, and Dow ending above 9,200 for the week. That's something the bulls like to see.
Let me run you through the most actively traded issues here on the Big Board today. Among them, Providian Financial, down more than 50 percent. Slammed as income fell sharply and people were concerned about management woes at the company and the prospects for credit card providers in general in a slowing economy.
Citigroup lower, with all the other financial stocks. Nokia, a darling on Wall Street today after the company said that holiday sales might be looking up, and folks got a little optimistic about fourth- quarter sales numbers.
And Enron down about 10 percent today. For the week, it's down about 27 percent, Lou. It was a week that saw Enron's first quarterly loss in about four years and continuing worries about management there -- Lou.
DOBBS: Christine, thanks. Christine Romans from the New York Exchange.
Coming up next here, the world at war against terrorism and against recession. President Bush in China, building the case for battling terrorism worldwide. China supporting the United States, but that support not universal. We'll have a live report for you coming up next from Shanghai.
Markets around the world, well, we'll tell you how those markets have performed since the September 11 terrorist attacks against America.
And we'll tell you why Bayer is angry with Canada and that country's efforts to protect its citizens. All of that coming right up on MONEYLINE.
(COMMERCIAL BREAK)
DOBBS: President Bush in Shanghai tonight. He is there meeting with world leaders for the second day of the Asian-Pacific Economic Cooperation Summit. Mr. Bush says Washington and Beijing stand "side by side" in the battle against terrorism.
Let's go down to our White House correspondent, Major Garrett, in Shanghai. He's traveling with the president -- Major.
MAJOR GARRETT, CNN CORRESPONDENT: A good Saturday morning to you, Lou.
U.S. officials generally pleased with this first face-to-face meeting between President Bush and Chinese President Jiang Zemin. At that meeting the Chinese president offered to two very tangible pieces of cooperation: continued intelligence-gathering support for the United States campaign in its campaign against terrorism, also a willingness to help shut down the financial flow of money to any terrorist organizations.
The U.S. also pointing out that China has closed its border with Afghanistan. It's a small one, but notable in that China was able to step up to that level. U.S. officials generally pleased with the cooperation.
But Lou, it's also worth pointing out a study in contrast. Later yesterday, the president met with South Korean President Kim Dae-jung, who was much more forceful, much more forward-leaning, as they like to say in diplomatic talk, supporting the U.S.-led coalition against terrorism. President Kim saying every free nation has a stake in this fight, because free people want to occupy tall buildings, fly in planes, open their mail without fear.
South Koreans very, very strong in their support for this global coalition against terror. The Chinese a bit more restrained. But U.S. officials privately acknowledging President Jiang has some limitations. The military always very -- always very suspicious of any Chinese leader appearing too sympathetic to the U.S. Generally speaking, the U.S. pleased with this first face-to-face meeting -- Lou.
DOBBS: Major, thank you very much. Major Garrett reporting tonight from Shanghai.
Markets fell around the world, of course, in the wake of the September 11th attacks, many of those markets declining 20 percent. But in the past month, those markets have recovered.
Kitty Pilgrim now takes a look at why and whether the turnaround is sustainable.
(BEGIN VIDEOTAPE)
KITTY PILGRIM, CNN CORRESPONDENT (voice-over): Terrorism and equity markets don't mix. In the weeks after the September 11th attack, Frankfurt down 19 percent, London down 12 percent, Paris down 16 percent, Singapore down 20 percent. But this week, a month and change after the September 11th attack, major global markets had pretty much recovered. As of Thursday this week, London, Paris, Frankfurt, Tokyo, and a host of other markets had come to break-even or near it.
Even the Dow and Nasdaq, at the epicenter of the attack, came within sight of recouping their losses. Europe and U.S. markets represent a flight to quality. Smaller emerging markets have not recovered as well.
JOYCE CHANGE, J.P. MORGAN CHASE: Investors had been actually quite defensive going into this. There had already been concerns about a U.S. recession, about the outlook for Japan. So they had actually built a fairly comfortable cash position. So you actually went into the downturn in a fairly good technical position with a lot of cash on the sidelines. Some of that has been looking to go back.
PILGRIM: But then came the anthrax scare. The Dow fell 1.4 percent and the Nasdaq fell 1.8 percent this week. On Friday, the market in Germany fell about 1 1/2 percent, much of that because a key indicator of business sentiment came in at eight-year lows. London, Paris and Tokyo also gave back a fraction of their gains, but market watchers, instead of being alarmed, say that alone is a sign of strength.
JAY PELOSKY, MORGAN STANLEY: We have an anthrax scare shutting down the House of Representatives in Washington, D.C., and that is a 2-percent one-day event for the markets. If that had happened at any other point prior to September 11th, I think we would have seen a much bigger market reaction...
1830
JAY PELOSKY, MORGAN STANLEY: ...Anthrax scare, shutting down the House of Representatives in Washington, D.C. And that is a two percent, one day event for the markets. If that had happened at any other point prior to September 11, I think we would have seen a much bigger market reaction.
(END VIDEOTAPE)
PILGRIM: Now, there's no question that the volatility will continue. And market watchers say don't confuse a rebound in world markets with a rebound in global growth. That, unfortunately, is not expected to happen until well into the second half of next years -- Lou.
DOBBS: A strong rebound, that's impressive.
PILGRIM: We'll take it.
DOBBS: Absolutely. Kitty, thank you.
Coming up next here, the latest on the attacks against the Taliban and al Qaeda in Afghanistan. U.S. ground forces are now in Afghanistan. Canada wants anthrax medicine. It's willing to ignore patent laws in order to have it. We'll have that story for you next. And the plea for a bailout. Travel agents fighting for financial help from the federal government. That story and more when MONEYLINE continues.
(COMMERCIAL BREAK)
DOBBS: Now for the latest developments in the war against terrorism and the anthrax investigation. U.S. jets, striking Kandahar, the Taliban stronghold by day and night today. This while a small number of U.S. elite troops are now on the ground in Afghanistan, conducting at least a liaison mission, perhaps more.
And Defense Secretary Donald Rumsfeld visits Whiteman Air Force Base in Missouri, home of the B-2 bombers. The Defense Secretary the U.S. military operation in Afghanistan will be over once the Taliban and the al Qaeda are gone from Afghanistan.
As we reported to you, President Bush meeting with Chinese president Jiang Zemin in Shanghai today. Mr. Jiang saying that he hopes the U.S. military campaign in Afghanistan will be against clearly defined targets.
And two new cases of anthrax investigation -- infection, rather to report to you. One, a New Jersey postal worker who contracted skin anthrax. That, at Hamilton Township. The other case, an editorial assistant at "The New York Post." Eight people have now tested positive for anthrax infection nationwide. More than 30 others have been exposed to anthrax.
Well, for more on anthrax and the potential threat to bioterrorism, Dr. C.J. Peters is the director of the Center of Biodefense at the University of Texas in Galveston, Texas. He is also the former chief of Special Pathogens with the Centers for Disease Control.
Doctor, it's good to have you with us.
C.J. PETERS, CENTER FOR BIODEFENSE: Thanks.
DOBBS: All right, if I may, turn to first anthrax. We are watching with great interest and reporting it seems like almost hourly about anthrax. We also reported here last night that 90,000 people in this country die as a result of infections of Staph contracted in hospitals during medical procedures. 20,000 people die of flu.
Put the threat of anthrax in the most realistic context you possibly can for us, for the viewers.
PETERS: Well, I think we've got two ways to look at anthrax. First of all, it's a natural disease. It's been around since biblical times. It was in the book of Exodus in the Bible. So it's something that we've lived with and we've dealt with.
Now the question is, why and how are we going to deal with the human dissemination of anthrax against other humans, rather than seeing anthrax as just a natural threat?
I expect it a very crude sort of preparation of anthrax to be used in letters or other sorts of exposure devices when I was thinking about anthrax before the last month or so. But what we've seen is a relatively sophisticated preparation of anthrax, apparently. And it has been used in letters against people all over the country, targeting, of course, the important people, media people, politicians.
We've got a handle on that. We passed the test. We have an algorithm to deal with that. It comes in. The powder's tested. The people are placed on antibiotics, etcetera. So we, I think, we've done a good job of dealing with this. And it's not a big deal in terms of our nation, our people.
However, the really sophisticated nature of these preparations that have been reported, the fact that the powder that contained the spores in Florida was sufficiently fine to get into the deepest parts of the lungs of two people and caused inhalation anthrax is a real worrisome event. DOBBS: But is it also not true, doctor, that these again to put this a little bit in context, the Surgeon General today making a point that these are not weaponized forms of anthrax? PETERS: Well, I think the Surgeon General is right on target that we're on top of this. But what does weaponized mean? Weaponized requires that we have very fine powder of a very concentrated form of anthrax. And it's been reported that this is the kind of anthrax preparation that we're facing.
If so in the future, I'm sorry I didn't mean to interrupt you, but in the future, I think the threat is greater. Today, under control. But in the future, if this same product can be produced in quantity and disseminated, then I think we'll have bigger trouble.
DOBBS: And in terms of bigger trouble, do you believe that we're taking sufficient steps to be prepared and ready for that bigger trouble, whatever it may be?
PETERS: I think we had already started to do this before this event occurred. We were already on the road. But I don't think there's any amount of preparation that can deal with a massive dissemination of anthrax spores that are prepared in the proper format.
DOBBS: All right. Dr. C.J. Peters, good to have you with us. We hope you'll be back soon.
PETERS: Thanks.
DOBBS: Thanks.
Drug-maker Bayer is locked in a heated battle now with the Canadian government and it's about the anthrax antibiotic Cipro. The Canadian government has ordered a generic version of that drug produced, saying it wants to protect the Canadian public. Bayer is threatening a lawsuit, saying it wants to protect its patent.
Tim O'Brien has the story.
(BEGIN VIDEOTAPE)
TIM O'BRIEN, CNN CORRESPONDENT (voice-over): Cipro has become the drug of choice to fight anthrax. Although Canada has not confirmed any of its citizens have tested positive, health officials in Ottawa say they aren't taking any chances.
So they made a deal with the country's largest drugmaker, Apotex, Inc., to produce generic versions of Cipro, knocking 25 percent off the price, $1.50 a tablet, down from $2. Officials of Bayer, which hold the patent in Cipro, said they were disappointed to learn of the deal through the news media and have made a counteroffer to the Canadian government.
PHIL BLAKE, BAYER, INC., CANADA: We believe that in this time of national challenge, that the confidence of Canadians and their health care system will be enhanced by using a product that is tried, tested and true.
O'BRIEN: Blake would not discuss the specifics of the offer, but expressed confidence Bayer could meet all of Canada needs, whatever they are. Under Canadian law, the government is not bound by patent laws, as is private industry. Patent lawyers say it's the same in the U.S.
LORA MOFFATT, PATENT ATTORNEY: They can do this at anytime, for any reason. They're the agency, the government, essentially grants you the monopoly. So if they need to use it, they can use it. They just have to pay for it later.
O'BRIEN: Health and Human Services Secretary Tommy Thompson, however, sees no need for that at this time. But...
TOMMY THOMPSON, HEALTH & HUMAN SERVICES SECRETARY: We have negotiated and are in the process of negotiating with all of these companies, generic companies as well, in regards of purchasing antibiotics, enhance purchase going from 2 million individuals up to cover an additional 10 million or 12 million.
O'BRIEN: Two other, less expensive generic drugs, penicillin and Doxycycline have also been shown to be effective in treating anthrax and are readily available.
(END VIDEOTAPE)
O'BRIEN: And cost is becoming a large part of this equation. The Federal Trade Commission is reportedly looking to whether Bayer maintaining an artificially high price. A month's worth of Cipro costs about $350 in the U.S. Generic suppliers in India, however, provide the same quantity for about $10 -- Lou.
DOBBS: That seems like a little imbalance, Tim.
O'BRIEN: It does.
DOBBS: What's the reason for it?
O'BRIEN: I can't explain that. I really don't know. Of course, there are different economies, but they can get the higher price here. And they do have a monopoly because of their patent. That's a large part of it.
DOBBS: Sounds like a wonderful opportunity for an import. Thanks, Tim O'Brien in Washington.
Just ahead here on MONEYLINE, we'll take a look at some of your thoughts. And we also have for you a dire warning form the country's travel agents, why they say 100,000 jobs are now threatened.
Californians are putting the threat of power blackouts behind them, only to be faced with another huge problem. And we'll be telling you about that as well. California looking to build on today's rally. We'll also take a look at the markets. All of that, a lot more still to ahead. Stay with us. (COMMERCIAL BREAK)
DOBBS: Well, it wouldn't be a war without protests. And this one, apparently, no exception. This week, two anti-war demonstrations drawing sharp criticism. At Amherst College, a campus gathering to discuss the meaning of patriotism interrupted by an anti- patriotic outburst by outsiders. Amherst junior Mike blood ending a peaceful rally with the pledge of allegiance, only then to be shocked by the sudden appearance of seven non-Amherst students, shouting the flag does not represent them, and as you see there, burning the flag and standing on it. Amherst students and officials today distancing themselves from that incident.
And the city of Berkeley living up to its legacy, voting to condemn the U.S. bombing in Afghanistan. The city now paying a price for that. The Berkeley chamber of commerce reports the cancellation of restaurant reservations and several large conferences in Berkeley.
Time now to take a look at some of your comments, a very clear message from many of you.
Johnny Fields writing to say, "Give it a break. All this attention to anthrax makes people more fearful. Keep us up to date, but don't make it seem like this anthrax problem is the end of the world."
Judy Shuler writing to say, "Even though only one person has died from anthrax, and a handful have been infected," well now there are more than 30 who have been infected of course, "there is practically nothing else on the news except the anthrax issue. I found yesterday my degree of anxiety began to rise, as the barrage of one media report after another began to have an effect."
And Frank Waltman writes, "Gary Condit, Monica Lewinsky, O.J. Simpson, and now anthrax. Nothing in moderation, everything in excess. Can't the media give it a break?"
Well, anthrax, of course, can be a deadly disease. It is important to distribute as much information as possible. And we agree with you. Its appearance in apparently linked cases around the country requires us, of course, to keep you informed.
Information prevents panic, after all. But the same information repeated over and over, can also breed anxiety. And that, is why God made the remote control and gave you the right to use it.
And if you're not thinking we're not hitting the right balance here at MONEYLINE, just let us know: moneyline@cnn.com.
Well, airline stocks today weaker, capping off a dismal week. The future of most carriers still uncertain, despite having already tapped into the government's $15 billion aid package. Now the nation's travel agents say they too will be going out of business if they don't get help, and soon.
Fred Katayama has the story. (BEGIN VIDEOTAPE)
FRED KATAYAMA, CNN CORRESPONDENT (voice-over): At Hillside Travel in New York City, business has slowed so much since the terrorist attacks, it has laid off 20 percent of its staff and cut the working hours of remaining employees in half.
RICHARD COPELAND, CEO, HILLSIDE TRAVEL: The first 10 days, there was no business. We probably had about $50, $60 worth of revenue in each office having five, six people working in an office.
UNIDENTIFIED FEMALE: Rosenbluth International.
KATAYAMA: At the world's third largest travel agency, Rosenbluth International has cut pay 10 percent and furloughed one-fifth of its North American staff. Bookings have fallen nearly 30 percent since the attacks.
(on camera): September normally kicks off the peak season for travel agents. Instead, the industry has lost $5 billion in revenue since September 11. Even before the attacks, it was suffering from cutbacks in business travel and commissions.
(voice-over): Now, the industry is asking Washington for help, but it can't agree on what. The American Society of Travel Agents wants $4 billion dollars in subsidized loans. Carlson, the second largest travel agency, and the owner of the Radisson Hotel brand, favors tax credits for travelers. Without help, experts say expect bankruptcies.
ARNIE WEISSMANN, EDITOR-IN-CHIEF, "TRAVEL WEEKLY": Basically, instead of writing tickets, they're writing cancellations. And they can't do that for very long.
KATAYAMA: Airlines could get hurt, since agents handle three- fourths of all flight reservations.
HAL ROSENBLUTH, CHMN. & CEO, ROSENBLUTH INT'L: Without the agency industry once again, the airlines can have all the fuel and all the planes, but there will be absolute gridlock since they'll be no real vehicle to make reservations.
KATAYAMA: Another sector dependent on them, has lent a hand. Some cruise lines are doubling commissions to agents. Hillside Travel isn't sitting still. It's e-mailing customers to convince them it's safe to travel again.
Fred Katayama, CNN Financial News, New York.
(END VIDEOTAPE)
DOBBS: And coming up next, after the power crisis in California, the state faces another challenge. We'll have that story for you. And the markets manage a rally today. We'll take a look at what to expect in the days and weeks ahead on Wall Street.
(COMMERCIAL BREAK)
DOBBS: California's power company, Edison international today, said it's on track to pay back its creditors after ringing up huge bills this bill to pay for power. But now the state of California itself is facing a cash crisis. A giant budget deficit looms. And state agencies are bracing for deep cuts.
Casey Wian reports from Los Angeles.
(BEGIN VIDEOTAPE)
CASEY WIAN, CNN CORRESPONDENT (voice-over): California Governor Gray Davis has ordered all state agencies, except for those needed for public safety, to prepare 15 percent budget cuts. Just last year, California had $12 billion in extra cash and spent lavishly on education, welfare, even registration refunds for car owners. Now California's coffers are more than billion dollars short and counting.
GRAY DAVIS, GOVERNOR, CALIFORNIA: I now believe we have to prepare for the worst. And 15 percent cuts give us some options to make sure that we live within our means.
WIAN: The culprits include the tech slump, plunging capital gains tax receipts, the broader economic slowdown, and since September 11, a sharp downturn in the state's travel and industry. The full effects won't be known for months, but deficit estimates for next year's state budget range from $6 to $12 billion.
And that doesn't count another $6 billion spent buying power that was supposed to be funded through a bond sale. It's been postponed indefinitely.
In the three years since Davis took office, California's general fund budget has soared 43 percent to $83 billion. It's clear those free-spending days are over. The vice chairman of the state's budget committee says the governor's proposed a cuts are too little, too late.
DICK ACKERMAN, CALIFORNIA STATE SENATOR: It's not even a drop in the budget. He's also excluded police and fire. And what he didn't say, which he will probably say, he's going to also exclude education. If you take those elements out of the budget, there is not much left.
WIAN: The State Department of Corrections says it may have to mothball an entire prison. Some public health programs are at risk, as are state-funded construction projects.
(on camera): Republicans want deep cuts or the elimination of entire programs. Some Democrats favor financing the deficit through bond issues. Either way, a tough fight is shaping up next year over both the budget and Davis' job.
Casey Wian, CNN Financial News, Los Angeles.
(END VIDEOTAPE) DOBBS: Coming up next here, the dramatic slowdown in the airline industry, forcing another aerospace giant to cut thousands of jobs. We'll have that story for you. Also, we'll be telling you about the effects of a recent spike in gas prices, but we'll also tell you why inflation isn't a threat.
Also, earnings continue to pound Wall Street. More than half a dozen Dow component stocks will be reporting quarterly results. We'll tell you what else to expect next week.
But first, the Nasdaq finishing the session higher, limiting the loss on the week to less than 2 percent.
Greg Clarkin is at the Nasdaq marketsite. You have some good news for us, Greg?
CLARKIN: Yes, Lou, I tell you , all in all, not really a bad week. A lot of folks were expecting to see a pullback in the markets, especially in the Nasdaq, which had run up 20 percent, the three weeks previous to this one.
So we saw this week was the Nasdaq giving about 1.8, 1.9 percent or so. It lost about 30 points on the week and again, comes out of it in fairly unscathed fashion.
There you can see the actives: eBay today down 11, 12 percent. That, after the company's earnings report came in better than expectations, but the stock is up 30, 35 percent before today over the last few weeks. So a big pullback was expected there.
Microsoft rose on the back of its earnings report.
PeopleSoft did the same. Sycamore Networks fell after saying their revenue would come in far short of expectations. So Lou, what we saw this week was really kind of quiet, cautious trading. Volume was much lower than the previous couple of weeks. And traders saying, you know, when you consider the anthrax scares, the earnings report, the markets came out of this week in pretty good shape.
DOBBS: Greg, thanks very much. Greg Clarkin from the Nasdaq marketsite.
Well, the cost of living rose slightly in September, as measured by the Consumer Price Index. Kathleen Hays is here to tell us precisely what it all means.
Kathleen?
KATHLEEN HAYS, CNN CORRESPONDENT: Absolutely. Inflation in the retail sector and a nice alternative to people who don't want to hear about anthrax, don't you think?
DOBBS: Absolutely.
HAYS: Soothing stuff. At any rate, the Consumer Price Index rose 0.4 percent in the month of September. Yes, gasoline prices spiked up almost 9 percent. Look at that. However, housing costs fell, 0.2 percent, first time that happened since 1986.
Now a number of reasons why people say inflation is not a threat. First of all, the economy's very weak. We might be in recession. Energy prices are falling. Just tonight, Venezuela's President said the OPEC ban could be lowered in terms of price. That's a plus.
Commodity prices are falling. The CRB index is near a three-year low. If it hits that, it's almost at a 25-year low. Clothing prices were up in September, but they had been down for the five previous months on a year-over-year, Lou. Those prices down 2.8 percent. It's just hard to see an inflation threat in any of this.
DOBBS: And if the driver there was higher gasoline prices, in particular, we know that those prices have fallen significantly, something like 20 cents a gallon since then.
HAYS: I know. These filter into a lot more things than you would think, because if a business pays higher energy costs, it's not just energy component, it's the services that it has to buy, where someone's using those higher gas prices.
DOBBS: And something that a lot of people don't remember, well, may not remember, may not know, point of fact. And that is, that anytime we have energy price spikes, that ripples through 55 percent of the economy almost immediately.
So Kathleen, as always, thank you. Appreciate it.
HAYS: Have a good weekend.
DOBBS: You, too. Kathleen Hays. And thanks for the relief from anthrax.
In corporate news tonight, Rolls Royce cutting 5,000 jobs. Airlines canceling and delaying orders. Rolls Royce, the world's second largest aircraft engine-maker, that behind Boeing. Boeing recently announcing plans to slash up to 30,000 commercial aircraft workers.
The average retired person will see a slight increase in their Social Security checks next year. Checks will be 2.6 percent higher, adjusting for inflation. That amounts to an extra $22 a month on average. Last year's increase, 3.5 percent.
Well, reversing a 25-year trend, fewer mothers are in the workplace. According to the latest census figures, this is the first decrease in working mothers, since 1976, when the government began tracking that data. The biggest decline comes from married women with children under a year old. Now 55 percent of those women are in the labor force. That's down 4 percent from two years ago.
Planet Hollywood in bankruptcy for the second time in two years. The restaurant chain citing a drop-off in business since the September 11 attacks.
"WOLF BLITZER REPORTS" begins in just a few minutes. Let's go now to Wolf in Washington. Wolf?
WOLF BLITZER, "WOLF BLITZER REPORTS": Thank you very much, Lou. We'll have extensive coverage of the latest developments in the war against terrorism, including the introduction of U.S. special operations forces on the ground in Afghanistan. I'll also talk with the former Israeli prime minister Benjamin Netanyahu, and the chief Palestinian negotiator Saeb Erekat. That and the latest on the Philadelphia explosives story. next.
Lou, have a great weekend.
DOBBS: You too, Wolf. Thank you very much.
Coming up next, we'll tell you what's ahead next week, next on MONEYLINE. Stay with us.
(COMMERCIAL BREAK)
DOBBS: Coming up next week, Dow components reporting their quarterly results include, ExxonMobil, AT&T, Honeywell, 3M, American Express, DuPont, Eastman Kodak, also reporting. Along with JDS Uniphase, Lucent, Ericsson, Xerox, DaimlerChrysler, Bristol Myers Squibb.
That is a lot of earnings report from the big names. And reports on the economy will include the Employment Cost Index, home sales, durable goods orders, the Fed's beige book and the University of Michigan sentiment report. A lot coming up next week.
And that is MONEYLINE for this Friday evening and this week. We thank you for being with us. I'm Lou Dobbs. Have a very pleasant weekend. Good night from New York.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
