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Marketplace: Tuesday, July 27, 2004

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A look at today's markets (closing numbers)
DOW 123.22 (1.24%) ; NASDAQ 30.08 (1.64%) ; S&P 500 10.76 (.99%)

Newscast

  • In the 1770's, the economist Adam Smith wrote about a principle he called "The Invisible Hand". In the 1970's, Joshua Reynolds - an heir to the R.J. Reynolds fortune - invented the mood ring. According to a much-watched measure of consumer sentiment, if you took that invisible hand and slipped on a mood ring, it would show increasing confidence. On this July 27th, the Conference Board reported consumers are becoming more encouraged about the economy as companies show a greater willingness to hire.
  • But let's keep in mind that mood rings are not the most reliable of indicators. On the one hand - official statistics do show thousands of jobs added to payrolls since the start of the year. On the other hand, critics say the gains are largely low-wage jobs.
  • The mood is decidedly gloomy for the so-called 'legacy carriers' - that's industry jargon for those big-name airlines that seem to have been around forever. United's on the brink. As is Delta. And U.S. Airways has been trying to avoid another trip through bankruptcy.

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  • Features
    Using economic sanctions to end genocide
    We've seen how sanctions work: the U.S. and the EU seem to prefer this method to force one another to yield on disagreements over trade policy. But can sanctions stop a genocide? That's the question before the United Nations this week. Arab militias in Sudan are accused of an ethnic cleansing campaign targeting black Sudanese. At least 30,000 are dead and a million and a half displaced. A U.S.-drafted Security Council resolution would place an immediate arms embargo on the Arab militias. Marketplace looks at whether economic incentives - or disincentives - can end the massacres.
    Reporter: Jeff Tyler
    Related Story: Sudan intervention 'premature'
    Airplane - Rusted Root
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    A Medicare mess .... and who pays for it?
    Today the Bush Administration proposed cutting Medicare reimbursements it makes to doctors for some drugs to treat cancer and lung illnesses. The government projects saving half a billion dollars. In fact, doctors admit the set prices Medicare now pays for the drugs have often been too high. But many doctors say they use that money to subsidize other services Medicare won't pay for.
    Reporter: Hillary Wicai
    Related Story: Medicare Proposes Cuts in Cancer Drug Payments
    Mad About You - Sting
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    Putting the lid on prescription drugs
    One school of thought says moves like this one, to cut Medicare reimbursements, put pressure on drug companies to lower their prices--to be more competitive. Another school of thought argues 'other countries cap drug prices--why don't we?' In the debate over health care policy, some day the differences between these two 'schools' are no longer academic.
    Commentator: Jonathan Weiner
    Related Story: Health Care Fails to Register in Campaigns
    Dying Inside - The Cranberries
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    But what about the economy?
    In Boston, delegates at the Democrats' convention worked furiously to dot the i's and cross the t's on a campaign platform. Front pages tomorrow will report that the platform calls for a nation that is "strong at home, respected in the world." But what about the economy? Bill Emmott is editor at The Economist magazine, reporting from Boston this week, and he's seen the party platform document.
    Q + A: Host David Brown, with Bill Emmott
    Related Story: Democratic Party's platform is giving Kerry room to run
    Mass Pike - The Get-Up Kids
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    Terrorism funding still a large question and challenge ....
    Today a major American Muslim charity group and seven of its officers were indicted on charges of conspiracy and providing material support to a foreign terrorist organization. The indictment alleges that the Holy Land Foundation for Relief and Development provided almost $12.5 million to individuals and groups linked to Hamas - a Palestinian terrorist group blamed for scores of killings. Since 9/11, the U.S. has ramped up efforts to shut off the money that flows to terrorist groups. But after three years, investigators still haven't nailed down how the attacks on the Twin Towers and the Pentagon were funded.
    Reporter: Stephen Beard
    Related Story: U.S. Charity Charged With Funding Hamas
    Tarana - Ustad Sultan Khan w/ Thievery Corporation
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    ... While legitimate charity donors get nervous
    The effort to close the money spigot has other, perhaps unintended, consequences. With federal investigations centering on groups that characterize themselves as Muslim charities, many potential donors are thinking twice. The thought goes along these lines: if I make a donation to a charity I believe is 100 percent legit, how likely is it my name's going down on some government list...or worse?
    Reporter: Judith Smelser
    Related Story: FBI Interrogating Muslim, Arab Americans Across U.S.
    Persistence of Memory - Afro Celt Sound System
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    Coming up on Marketplace...
    Unconventional wisdom?

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