Marketplace: News Archives

Friday, November 3, 2000
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It's Friday, November 3rd. I'm David Brancaccio.

The last big government report on the economy prior to the election came out today and it finds the unemployment rate in October held steady at a very low 3.9 percent. That's from a survey of households. When they checked payrolls, 137,000 new names were added last month. That's a little less than expected. Labor Secretary Alexis Herman was upbeat, pointing out that among other things, the unemployment rate for Hispanics is just five percent.

Herman: "Lowest level ever and I'm very proud of the fact that we have a number that is this low for the Hispanic community this month."

Women in the workforce also had a strong showing.

Herman: "We hit a big low today-3.4 percent for women-did you know that is the lowest since 1953?"

An important inflation indicator, average hourly earnings, was up more than expected, the biggest gain in six months. This scared the bond market today, pushing the yield on the 10-year Treasury note down to 5.82 percent.

Viacom, the media giant which owns some of the best-known brand names in entertainment, is adding another one. Viacom is buying BET, Black Entertainment Television, and its affiliated holdings in a deal worth three billion dollars. From New York, Marketplace's Michele Brier has details.

Brier: "CBS, MTV, VH-1, Nickelodeon, Blockbuster Video, Paramount Pictures, Infinity Broadcasting, UPN, TNN, ShowTime, Simon and Schuster and now BET. Viacom, One of the largest entertainment companies in the world just got a little Bigger."

Robbins: "I think this is a terrific deal for Viacom."

Brier: "Max Robbins is a senior editor at TV Guide."

Robbins: "I think bet fits in perfectly with the other properties Viacom Controls."

Brier: "Not only does Viacom get bet, which reaches 62 million households, but the deal also includes a 24 hour cable jazz network and bet books, the leading publisher of African American romance novels. Robbins says he expects Viacom to continue the African American programming bet is best known for."

Robbins: "If they're smart, they wont water it down. They'll make it better. They'll do more original programming, they'll put more money into marketing. And don't forget, the prime appeal of bet may be to an African American Audience but there is a wider audience - black, white, Hispanic - that sees a richness in African American entertainment and wants to enjoy it."

Brier: "The deal could face tough scrutiny from regulators since Viacom now owns a Half dozen of the most popular TV and cable music channels. Record companies Dependent on broadcast exposure may raise anti-trust concerns. In New York I'm Michelle Brier for Marketplace."

Stopping kids from smoking was a major goal of the multi-billion dollar agreement between tobacco companies and several states. But across the Atlantic there's a new theory of how teenagers might be wooed from smoking, involving a change at the "cellular" level. Helen palmer from the marketplace health desk reports.

Palmer: "An article in the current issue of the British medical journal notes that since 1996, there's been a sharp fall in teen smoking, and a steep rise in teen cell phone use in Britain."

Bates: "Our theory is that these trends are related."

Palmer: "Clive bates, president of the UK pressure group action on smoking and health, is co-author of the theory that cell phones and cigarettes are kin in the teenage psyche."

Bates: "They're used for socializing, they're a little bit rebellious, they're badges of image and identity, they're a foothold on adult life."

Palmer: "If you have a cell phone in your hand, he says, you don't need a cigarette to look cool - indeed, if you've got to pay towards the phone, you probably can't afford cigarettes."

Bates: "We're suggesting almost a free market theory here - kids have a certain amount of spending power, and cigarettes, mobile phones compete to satisfy their wants and needs with the money that they have."

Palmer: "Now the free market operates well when it comes to kids - the single most effective way of preventing them from smoking - is increasing the cost of cigarettes. But the us campaign for tobacco-free kids declined to comment on this theory, so I put it to another 'expert' - my own 13 year old, Joanna."

Joanna: "Well, I probably wouldn't smoke anyway, but I've always wanted a cell phone. Could I have one, mom, please?"

Palmer: "Mind you, Clive Bates reckons giving kids cell phones is not the answer - trying to co-opt a teen fashion statement for an adult health goal is doomed to backfire.

Joanna: "I promise not to smoke if you get me a cell phone, really! Please, please? Mom?"

Palmer: "From the Health Desk at WGBH Boston, I'm Helen Palmer for Marketplace."

The European Central bank sold dollars and bought Euro's today in a renewed effort to boost the continent's beleaguered single currency. A Euro late today costs 86.6 U.S. cents.

And that's the top of our news for Friday. The Nasdaq Composite ends the week at 3,451 on a rise of 22 points or 0.66 percent. The Dow fell 62 points or 0.6 percent.