Return to Transcripts main page
American Morning
Minding Your Business: Flirting with 10,000
Aired December 10, 2003 - 07:48 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.
BILL HEMMER, CNN ANCHOR: Business news now. The Dow, 10,000, comes and goes yesterday, and quickly, too.
Andy Serwer is "Minding Your Business." He checks in right now.
Good morning, Drew. What happened yesterday?
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning.
Well, we did hit 10,000, Bill...
HEMMER: Yes.
SERWER: ... as you know, in the first half hour of trading. Also, we got right near it around 2:00. And then at 2:15, boom! The Federal Reserve came out and gave their statement about what happened.
Heres what happened at the end of the day. No, we did not finish above 10,000. The Federal Reserve announcement came out. It was subtle, but the message was clear, and that message is: No. 1, the economy, yes, is improving. And, No. 2, the risk of inflation for the first time -- they said this -- the risk of inflation is equal to basically the risk of deflation, which is prices falling -- a very unwanted scenario. And the fact that inflation -- the Fed sees inflation as a possibility caused the bond market to tank -- in other words, for interest rates to go up a little bit. That's what hurt the stock market, and that's what happened yesterday.
HEMMER: And, you know, we talk about news almost everyday about the improving economy; yet, though, more layoffs again today. Who's giving up what?
SERWER: Yes, interesting. I mean, it is a paradoxical situation. There's also a story in the paper today, in "The New York Times" about restaurants hiring. But, as you said, Bill, other companies are still laying off.
Lets take a look, because there was just a slew of layoffs over the past 24 hours. SBC -- that's the old Southwestern Bell out of San Antonio way -- a lot of jobs being lost there. The telecom industry is obviously still in trouble. Washington Mutual, WaMu (ph) out of Seattle, the mortgage business, big for them, they're going to be eliminating a lot of jobs. AOL, some engineers out in California -- obviously part of our company, Time Warner. And Chevron-Texaco is also going to be laying some people off, apparently.
HEMMER: Not good news there. Quickly, advertising in the air. What's America West up to?
SERWER: I really like this. I think it's kind of amusing. Other people may not find it so amusing as I do. Basically, what they're going to be doing is putting advertising on those tray tables. So, when you put your tray table down to get your meal, bam, you're going to be staring at advertising. This will start around the 15th of December -- Visa, Mercedes, History Channel, Bank of America. As long as you don't spill any catsup or salad dressing on it, would you feel compelled to wipe that clean, Bill, yourself?
HEMMER: Probably not.
SERWER: No, I don't think I would. Three thousand, three hundred dollars per plane for eight weeks is what it will cost.
HEMMER: Rather amusing.
SERWER: I thought it kind of amusing, don't you?
HEMMER: Thank you. See you next hour.
SERWER: OK, see you later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired December 10, 2003 - 07:48 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Business news now. The Dow, 10,000, comes and goes yesterday, and quickly, too.
Andy Serwer is "Minding Your Business." He checks in right now.
Good morning, Drew. What happened yesterday?
ANDY SERWER, "FORTUNE" MAGAZINE: Good morning.
Well, we did hit 10,000, Bill...
HEMMER: Yes.
SERWER: ... as you know, in the first half hour of trading. Also, we got right near it around 2:00. And then at 2:15, boom! The Federal Reserve came out and gave their statement about what happened.
Heres what happened at the end of the day. No, we did not finish above 10,000. The Federal Reserve announcement came out. It was subtle, but the message was clear, and that message is: No. 1, the economy, yes, is improving. And, No. 2, the risk of inflation for the first time -- they said this -- the risk of inflation is equal to basically the risk of deflation, which is prices falling -- a very unwanted scenario. And the fact that inflation -- the Fed sees inflation as a possibility caused the bond market to tank -- in other words, for interest rates to go up a little bit. That's what hurt the stock market, and that's what happened yesterday.
HEMMER: And, you know, we talk about news almost everyday about the improving economy; yet, though, more layoffs again today. Who's giving up what?
SERWER: Yes, interesting. I mean, it is a paradoxical situation. There's also a story in the paper today, in "The New York Times" about restaurants hiring. But, as you said, Bill, other companies are still laying off.
Lets take a look, because there was just a slew of layoffs over the past 24 hours. SBC -- that's the old Southwestern Bell out of San Antonio way -- a lot of jobs being lost there. The telecom industry is obviously still in trouble. Washington Mutual, WaMu (ph) out of Seattle, the mortgage business, big for them, they're going to be eliminating a lot of jobs. AOL, some engineers out in California -- obviously part of our company, Time Warner. And Chevron-Texaco is also going to be laying some people off, apparently.
HEMMER: Not good news there. Quickly, advertising in the air. What's America West up to?
SERWER: I really like this. I think it's kind of amusing. Other people may not find it so amusing as I do. Basically, what they're going to be doing is putting advertising on those tray tables. So, when you put your tray table down to get your meal, bam, you're going to be staring at advertising. This will start around the 15th of December -- Visa, Mercedes, History Channel, Bank of America. As long as you don't spill any catsup or salad dressing on it, would you feel compelled to wipe that clean, Bill, yourself?
HEMMER: Probably not.
SERWER: No, I don't think I would. Three thousand, three hundred dollars per plane for eight weeks is what it will cost.
HEMMER: Rather amusing.
SERWER: I thought it kind of amusing, don't you?
HEMMER: Thank you. See you next hour.
SERWER: OK, see you later.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
