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American Morning
Minding Your Business: Tapping Brakes on Economic Growth
Aired January 30, 2004 - 08:44 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: Andy Serwer is out today. Susan Lisovicz is working, "Minding Your Business."
Good morning to you.
SUSAN LISOVICZ, CNN FINANCIAL NEWS: Good morning, Bill.
HEMMER: With some key economic numbers out here.
LISOVICZ: To mesmerize you with.
HEMMER: Yes.
LISOVICZ: The GDP...
HEMMER: And?
LISOVICZ: ... gross domestic products, it's the broadest measure of the nation's economy, and the number is an increase of 4 percent. Now, that is growth, solid growth, but it's less than what the Street was expecting. Analysts were expecting growth of 4.8 percent. And, of course, it pales in comparison to the previous quarter when we saw that blistering 8.2 percent, which was the best growth we have seen in about two decades.
HEMMER: Yes. What do you think is going to happen at the open then?
LISOVICZ: Well, so far, futures not reacting much. It looks like a mixed open. And, of course, we're coming off weakness in the last few days, those jitters about interest rates.
HEMMER: Yes.
LISOVICZ: So, if you see too much growth, then you're sure that the Fed will increase rates sooner rather than later.
HEMMER: Martha Stewart, quickly here. We were supposed to get some key testimony yesterday. It may be delayed as much as a week, maybe beyond that. What do you make of this?
LISOVICZ: It just began this week, the star witness, and then we have a delay of about a week. Douglas Faneuil...
HEMMER: What happened?
LISOVICZ: Well, basically some key evidence was presented to the defense the night before. Defense attorneys for Peter Bacanovic asked for a mistrial. The judge said, no, but we will give you a delay.
The evidence basically involves testimony from Douglas Faneuil, the government's star witness, to his former attorney in which the former attorney said that it was either Peter Bacanovic or Sam Waksal who told Martha Stewart to sell. So, that would help Peter Bacanovic. We don't know, though, because we haven't heard the testimony. That will be next week.
HEMMER: Would it be bad news for Martha Stewart, or do we know that?
LISOVICZ: Well, probably. I was talking to Jeffrey Toobin about this.
HEMMER: Yes.
LISOVICZ: It probably won't affect her too much, but it could change it for Peter Bacanovic if, in fact, the testimony shows that it wasn't he who instructed Douglas Faneuil to tell Martha Stewart to sell. Got it?
HEMMER: We were warned this was going to be complicated, and I think we're proving it. Thanks, Susan.
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 January 30, 2004 - 08:44 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Andy Serwer is out today. Susan Lisovicz is working, "Minding Your Business."
Good morning to you.
SUSAN LISOVICZ, CNN FINANCIAL NEWS: Good morning, Bill.
HEMMER: With some key economic numbers out here.
LISOVICZ: To mesmerize you with.
HEMMER: Yes.
LISOVICZ: The GDP...
HEMMER: And?
LISOVICZ: ... gross domestic products, it's the broadest measure of the nation's economy, and the number is an increase of 4 percent. Now, that is growth, solid growth, but it's less than what the Street was expecting. Analysts were expecting growth of 4.8 percent. And, of course, it pales in comparison to the previous quarter when we saw that blistering 8.2 percent, which was the best growth we have seen in about two decades.
HEMMER: Yes. What do you think is going to happen at the open then?
LISOVICZ: Well, so far, futures not reacting much. It looks like a mixed open. And, of course, we're coming off weakness in the last few days, those jitters about interest rates.
HEMMER: Yes.
LISOVICZ: So, if you see too much growth, then you're sure that the Fed will increase rates sooner rather than later.
HEMMER: Martha Stewart, quickly here. We were supposed to get some key testimony yesterday. It may be delayed as much as a week, maybe beyond that. What do you make of this?
LISOVICZ: It just began this week, the star witness, and then we have a delay of about a week. Douglas Faneuil...
HEMMER: What happened?
LISOVICZ: Well, basically some key evidence was presented to the defense the night before. Defense attorneys for Peter Bacanovic asked for a mistrial. The judge said, no, but we will give you a delay.
The evidence basically involves testimony from Douglas Faneuil, the government's star witness, to his former attorney in which the former attorney said that it was either Peter Bacanovic or Sam Waksal who told Martha Stewart to sell. So, that would help Peter Bacanovic. We don't know, though, because we haven't heard the testimony. That will be next week.
HEMMER: Would it be bad news for Martha Stewart, or do we know that?
LISOVICZ: Well, probably. I was talking to Jeffrey Toobin about this.
HEMMER: Yes.
LISOVICZ: It probably won't affect her too much, but it could change it for Peter Bacanovic if, in fact, the testimony shows that it wasn't he who instructed Douglas Faneuil to tell Martha Stewart to sell. Got it?
HEMMER: We were warned this was going to be complicated, and I think we're proving it. Thanks, Susan.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
