Nightly Business Report (PBS) - 2006-11-09

Channel: malgent

Transcript

Language: English (original, YouTube automatic captions)

[0:00] investors.

[0:04] >> It's a Cinderella story for the Walt

[0:06] Disney Company tonight. The media giant

[0:09] turns in an afterthe bell earnings

[0:10] report that paints a glowing picture as

[0:12] the company seems to be hitting home

[0:14] runs in just about all of its business

[0:16] lines.

[0:16] >> An investment group makes a run for the

[0:18] Borders. It [music] has bought a big

[0:20] stake in the book and music chain that

[0:22] sends Borders Group shares up [music]

[0:24] almost 10% on the day. It's beginning to

[0:27] look a lot like Christmas at Starbucks.

[0:30] The coffee company rolls out the red

[0:31] cups and other items to get ready for

[0:33] holiday sales. We talked with Starbucks

[0:35] CEO about what's ahead for the Coffee

[0:37] Kings.

[0:38] >> Also tonight, don't let this machine's

[0:40] small size mislead you. It does [music]

[0:42] a big job and it could save your life.

[0:45] We'll explain in tonight's Bill of

[0:47] Health segment.

[0:48] >> I'm Paul Candas. [music]

[0:49] >> And I'm Susie Gar. This is Nightly

[0:51] Business Report for Thursday, November

[0:53] 9th.

[0:54] Nightly Business Report is made possible

[0:57] by Franklin Templeton Investments.

[1:01] Providing a unique perspective through

[1:03] the specialized investment [music]

[1:04] expertise of Franklin Templeton Mutual

[1:06] Series and Fiduciary Trust. Franklin

[1:09] Templeton Investments. Gain from our

[1:11] perspective

[1:13] >> and by AG Edwards.

[1:17] This program was made possible by

[1:19] contributions [music] to your PBS

[1:21] station from viewers like you. Thank

[1:24] you.

[1:29] [music]

[1:32] Good evening everyone. A treasure island

[1:34] of earnings for the Walt Disney Company

[1:36] late today. After the closing bell, the

[1:38] media giant posted better than expected

[1:40] earnings and revenues. Disney made 36

[1:43] cents a share in its fiscal fourth

[1:45] quarter, 2 cents more than estimates. It

[1:48] also reported a 14% gain in revenues,

[1:50] $8.8 billion. The big drivers, theme

[1:54] parks, movies, and media, with stellar

[1:56] performances from the Pirates of the

[1:58] Caribbean films, ESPN's networks, and

[2:01] attendance at Disney World and

[2:02] Disneyland. Meanwhile, media giant

[2:05] Viacom reported better than expected

[2:06] earnings for its third quarter, 50 cents

[2:08] a share. Analysts were looking for 48

[2:11] cents. Still, that's down more than 10%

[2:13] from Viacom's year ago profits of 60

[2:16] cents a share. Disappointing box office

[2:18] results from its Paramount Films offset

[2:21] higher ad sales at the MTV network's

[2:23] cable service. The company also

[2:25] announced its CFO Michael Dolan is

[2:27] leaving at the end of the year and chief

[2:29] administrative officer Thomas Douly will

[2:32] take his place. Joining us now with more

[2:34] analysis on today's numbers from Disney

[2:36] and Viacom, Tuna Aobi, senior media and

[2:39] entertainment analyst at Standard and

[2:41] Pors. Hi, Tuna.

[2:42] >> Thanks for having me.

[2:44] >> Well, those are pretty strong numbers

[2:46] from uh Disney today. Do you think that

[2:48] the company can keep up the momentum

[2:50] throughout its first fiscal year?

[2:52] >> I think clearly this robust results sets

[2:54] them up for a very strong fiscal year.

[2:57] If you look at the underlying trends at

[2:59] the theme parks or the uh film

[3:01] entertainment uh or uh the media

[3:03] networks, I think the story is across

[3:05] the board strength. Clearly uh there's

[3:08] some underlying momentum going. I think

[3:10] uh uh the outlook that they have for

[3:12] doubledigit growth at least through the

[3:14] uh next fiscal year seems pretty much

[3:16] intact.

[3:17] >> Does Disney have any u movies or from

[3:20] whether it's it's uh Disney line or

[3:22] Pixar that are in the pipeline that

[3:23] could turn out to be real blockbusters

[3:25] for the new year? Sure. Well, if you

[3:28] look at the slate, I think there's a

[3:29] number of uh you know, very key titles

[3:31] coming up. Uh f for uh first of all,

[3:33] Pirates of the Caribbean DVD sales I

[3:35] think should ship very strong for the

[3:37] holiday season. Um if you look ahead to

[3:40] next uh summer, there's a number of key

[3:42] titles um coming up on the Pixar as well

[3:45] as the uh uh the Walt Disney Picture

[3:47] side. Um overall I think uh the film

[3:50] division should continue to uh ride u

[3:54] you know the solid uh results that is

[3:56] generated uh which should enable uh the

[3:59] company to not only reap the benefits in

[4:01] film but also the crossplatform uh uh

[4:04] synergy. So whether it's Ratatouille

[4:06] from Pixar or Day with the Robinsons as

[4:10] well as other titles that we really have

[4:12] high hopes for. Taking a look at uh

[4:14] Viacom, Viacom's chairman and uh uh

[4:17] Sumar Redstone said today that the

[4:19] company's on track to deliver good

[4:21] results uh for the rest of this year and

[4:23] that's despite problems at the Paramount

[4:25] Studios and this big management overhaul

[4:27] that they've had. Do you buy into that?

[4:30] >> Well, I think Viacom we still have

[4:32] concerns with the pace of the

[4:33] restructuring at the Parmon studio. Um

[4:36] we also have some concerns with the

[4:38] advertising growth at MTV networks. Um

[4:41] but overall I think uh the new

[4:42] management team it seems like they're

[4:44] staying the course. Um I would venture

[4:46] to guess that their honeymoon period

[4:48] with the street is almost over. So I

[4:51] think the pressure is going to be on

[4:52] them to uh deliver consistent results. I

[4:54] think no one is is more obsessed than

[4:56] stock price than and some of the

[4:58] redstone and and perhaps rightly so. So

[5:00] investors will keep a you know keen

[5:01] focus on that.

[5:02] >> Well speaking of the stock Disney stock

[5:04] has been on the rise. Viacoms has been

[5:06] struggling. What's your view on Disney

[5:08] and Viacom?

[5:09] Well, I think uh Disney clearly um you

[5:12] know has demonstrated that there's the

[5:14] underlying momentum in in the core

[5:16] businesses which is why we're

[5:17] recommending the stock um you know over

[5:20] the next 12 months. We believe there are

[5:22] core catalyst that's going to drive the

[5:23] stock perhaps you know higher than than

[5:26] 35 which I think could present some

[5:28] resistance. If you look at Viacom you

[5:30] know the story is somewhat mixed there.

[5:32] Um you know ad sales are somewhat

[5:34] tentative uh in the US and

[5:36] internationally. um affiliate fees seem

[5:38] to have somewhat maxed out. I think MTV

[5:40] is yet to demonstrate that it can be a

[5:42] very significant player and uh in this

[5:45] digital space particularly with the kind

[5:46] of young demographics that he has. So

[5:48] overall I would uh I would maintain a

[5:51] neutral stance on on um okay

[5:53] >> on Viacom.

[5:55] >> Uh just in in terms of disclosure, do

[5:57] you own either one of these stocks?

[5:59] >> I neither own nor do I have any

[6:01] affiliation with Disney nor Viacom.

[6:03] >> All right. Thanks a lot, Tuna.

[6:05] >> Thanks for having me. We've been

[6:06] speaking with Tuna Amobi, senior media

[6:08] and entertainment analyst at Standard

[6:09] Impors.

[6:10] >> Wall Street's blue chips moved lower

[6:12] this morning as oil prices rose and the

[6:14] University of Michigan's November

[6:16] consumer sentiment index fell, but the

[6:19] Nasdaq headed higher on yesterday's good

[6:21] earnings we told you about from Cisco.

[6:23] So, at noon, the Dow is down 32 points,

[6:25] but the Nasdaq was up 12. Persistent

[6:28] weakness in the drug, defense, and

[6:30] healthc care stocks dragged the market

[6:31] in general down this afternoon,

[6:33] resulting in a broadly lower close. The

[6:35] Dow industrial average lost 73.24,

[6:39] ending at 12,103.

[6:41] The Nasdaq Composite off 8.93, ending at

[6:44] 2376.01.

[6:46] Standard and Ford's 500 index dropped

[6:48] 7.39 to 1378.8

[6:51] 33. In the bond market, the 10-year note

[6:54] gained 432 to 99 and 3132, putting the

[6:58] yield at 4.63%.

[7:10] [music]

[7:16] It's official tonight. The Democrats now

[7:18] have control of both houses of the 110th

[7:21] Congress. It came as Virginia Republican

[7:23] Senator George Allen conceded this

[7:25] afternoon to Democrat Jim Webb. Now that

[7:28] the dust is settled on just who's in

[7:30] charge, the next order of business will

[7:32] be significant for business. Stephanie

[7:35] Dub takes a look at the key committee

[7:36] chairmanships.

[7:40] >> The changeover in Congress from

[7:42] Republicans to Democrats is most

[7:45] dramatic in committee. In the tax

[7:47] writing ways and means committee, for

[7:48] example, Charlie Wrangle, one of the

[7:51] most liberal members of Congress, is

[7:52] taking the place of Bill Thomas, one of

[7:54] the most conservative. Former

[7:56] Congressman Charlie Stenhome expects

[7:58] Chairman Wrangle to be more open to new

[8:01] ideas.

[8:02] >> I would be very surprised if he doesn't

[8:04] open with serious hearings on tax reform

[8:08] instead of just talking about it every

[8:09] two years about these new ideas and flat

[8:12] tax and all of these things and and

[8:14] value added tax. actually hold hearings

[8:18] and actually get some discussion going.

[8:20] >> There may be a discussion of runaway CEO

[8:22] pay as Barney Frank takes over from

[8:24] Michael Oxley on the House Financial

[8:26] Services Committee. The government

[8:28] reform committee under Henry Waxman

[8:31] could increase scrutiny on Hallebertton

[8:33] pharmaceutical companies and big

[8:34] tobacco. But the conversation on climate

[8:37] change may not be much different at the

[8:39] Energy and Commerce Committee under John

[8:41] Dingle as it was under Joe Barton.

[8:43] >> Mr. Dingle is very close to Mr. Barton

[8:46] when it comes to the internal combustion

[8:48] engine uh because he has United Auto

[8:50] Workers, Ford, GM, others that uh he

[8:53] represents. So, he's been very careful

[8:56] about regulating uh the Clean Air Act,

[8:59] which has significant impact on

[9:01] business. So, you have to look at the

[9:03] personalities where they're from very

[9:04] carefully.

[9:05] >> Business groups which largely supported

[9:07] Republicans expect the new Congress as a

[9:10] whole to be more moderate than the

[9:12] committee chairman. While we look

[9:14] skeptically at some of the leadership,

[9:16] we understand that there is a

[9:18] possibility that they will also want to

[9:20] to work with us and we're open to that

[9:24] and I think they're going to have some

[9:25] assistance because I think that the

[9:27] conservative Democrats in both the House

[9:29] and Senate have just expanded their

[9:30] ranks.

[9:31] >> The talk in Washington the last two days

[9:33] has been all about bipartisanship and

[9:35] cooperation. Experts say Democrats have

[9:38] a vested interest in proving they can

[9:40] work with Republicans to get things

[9:42] done. If Democrats succeed, they have a

[9:44] better shot at keeping control beyond

[9:46] the next two years. Stephanie D, Nightly

[9:48] Business Report, Washington.

[9:56] [music]

[10:03] [music]

[10:16] Starbucks decked the halls today, all

[10:18] 9,000 of them. It wrapped all of its US

[10:21] coffee shops in red, and rolled out a

[10:23] slew of holiday offerings, Christmas

[10:25] coffee blends, gift items, and gift

[10:28] cards. Starbucks CEO was making the

[10:30] rounds in New York today, starting at

[10:32] the NASDAQ, where he rang the opening

[10:33] bell. When I talked with James Donald

[10:35] this morning, I asked him how important

[10:37] the holiday season is for Starbucks.

[10:41] >> The holiday season for Starbucks is very

[10:43] important for a lot of reasons. For

[10:45] financial reasons, it's our biggest

[10:47] quarter in terms of total revenue, but

[10:49] it's also the opportunity to connect

[10:52] more with partners as our transaction

[10:55] growth grows as well and we're able to

[10:57] provide the environment that we do every

[10:59] day to even more customers over the

[11:01] holiday season.

[11:02] >> Mr. Donald, you announced recently that

[11:04] Starbucks is going to open 2400 stores

[11:07] worldwide with the goal ultimately of

[11:09] 40,000 stores. What is the goal? What is

[11:12] the strategy here?

[11:13] >> Our goal is one store at a time, one

[11:15] customer at a time, one partner at a

[11:16] time, meeting the needs for our

[11:19] customers and our partners alike. And if

[11:21] it gets to 40,000 stores in a certain

[11:23] amount of time, that's great. But there

[11:24] could be some upside to that as well.

[11:27] >> It seems like everywhere you look,

[11:28] there's a Starbucks store. Uh where do

[11:31] you see this opportunity to grow

[11:33] >> as the uh the urban environments and the

[11:37] suburban environments change as they

[11:39] spread out or they as they contract we

[11:41] find that we might not have had a store

[11:43] in a location uh that we might have

[11:45] missed or it wasn't u uh then wasn't

[11:49] populated enough to put one there. And

[11:50] so we find those sites as well. And uh

[11:53] there's opportunities for us in malls

[11:55] across uh the world as well as remote

[11:57] locations which are are smaller areas or

[11:59] off highway areas.

[12:01] >> You were telling me that this expansion

[12:03] works out to six new stores a day. How

[12:06] do you manage that growth and still

[12:08] maintain and grow your current store

[12:10] base?

[12:11] >> Our business is all about people and our

[12:13] partners are are our biggest asset. And

[12:15] so from a onetore neighborhood to a

[12:18] 12,500 store company, we look at it that

[12:21] way. and the training that they that we

[12:23] put in place and and how that we we

[12:25] connect with our partners enables them

[12:27] to execute on a daily basis in every

[12:29] store across the world.

[12:31] >> We know that people who regularly get

[12:34] their coffee from Starbucks are very

[12:36] sensitive to any price increases. What

[12:38] kind of pricing flexibility do you have?

[12:40] >> We like to think that we notify our

[12:44] customers of these increases usually a

[12:47] week ahead of time. We help explain to

[12:49] them where and our partners know where

[12:51] these price increase why these price

[12:52] increases are being put in place and

[12:54] what they're going to do and the

[12:55] customers understand that and as we've

[12:57] seen in the past in '04 and in ' 06 you

[13:00] know our transaction growth continues to

[13:02] be robust and has not changed in terms

[13:04] of the normal growth patterns.

[13:05] >> How do you feel about the big push from

[13:08] uh Dunkin Donuts? We're seeing that it's

[13:09] opening many more coffee shops all over

[13:12] the place and their coffee is cheaper.

[13:14] Are you concerned that they are going to

[13:15] eat into Starbucks market share?

[13:17] >> Our competitors and the and the and and

[13:20] the other coffee companies that are

[13:21] getting into super premium coffee are

[13:24] actually helping us educate the overall

[13:27] customers about the super premium

[13:29] quality coffee and what a great cup of

[13:30] coffee tastes like. So what we're

[13:32] finding is that there's room for all

[13:35] kinds of uh individual companies and

[13:37] independents to get into the super

[13:39] premium coffee and it helps us at the

[13:41] end of the day. I see that Starbucks is

[13:43] also moving into entertainment, uh,

[13:45] music, uh, movies, books. Uh, how much

[13:48] does this add to the bottom line?

[13:50] >> Well, we don't look at entertainment as

[13:53] a driver of the top and bottom line. It

[13:55] is a piece of that for sure, but what it

[13:57] adds to the experience can be measured.

[14:00] It's just a big uh it's a it's a big

[14:02] surprise and delight for our customers

[14:04] and it adds texture to that experience

[14:06] and texture to what Starbucks stands

[14:08] for. So, what's the next big surprise

[14:10] that we're going to hear from Starbucks?

[14:12] >> The next big surprise that Starbucks

[14:15] will be I can't tell you that.

[14:19] >> Well, we're here at the NASDAQ and uh

[14:21] Starbucks stock has been moving up. What

[14:24] do you think it's going to take to keep

[14:25] the momentum going?

[14:26] >> We're very excited about our

[14:27] international business. We're very

[14:29] excited about the return still of our

[14:31] stores in the US. And there's so much uh

[14:34] territory yet for us to expand. And if

[14:36] you look at our track record, it it it

[14:38] has been consistent as any company that

[14:40] I have ever known or worked for, but we

[14:42] are still in the very early days of

[14:44] opportunities at Starbucks.

[14:46] >> Mr. Donald, thank you very much.

[14:48] >> Thanks, Susan.

[14:49] >> Now, let's take a look at some stocks in

[14:51] the news tonight.

[14:55] >> For the second day running, big board

[14:57] volume leader Fizer today on 37 million

[14:59] shares down 78 cents. Then Texas

[15:01] Instruments at 69 loss. Lucen dropped a

[15:04] penny. AT&T losing 95 cents to fifth in

[15:07] volume. Motorola a 27 cent drop there.

[15:11] CB Richard Ellis bucked that trend with

[15:13] a gain of a$130. The big real estate

[15:16] services company got an upgrade from JP

[15:18] Morgan and also JP Morgan boosted 2007

[15:21] earnings estimates from $169 to $1.92.

[15:24] Boosted its price target for Ellis stock

[15:26] from 31 to $38 a share. And after the

[15:29] close, Ellis stock was added to the

[15:31] standard and forge 500 index. A lot of

[15:33] news there on that stock today. EMC up

[15:36] 34 cents. CVS down a dollar one. Sprint

[15:38] Nextel rose 25 cents. And then Exxon

[15:41] Mobile on the higher oil prices up 80

[15:43] cents today. American International

[15:45] Group, the big insurance firm and a Dow

[15:47] stock reported earnings right after the

[15:49] close today. Third quarter earnings

[15:50] jumped to $161 from only 66 cents a year

[15:54] ago. And after hours trading, the stock

[15:56] was up about 40 cents from this price.

[15:58] Then we see Huelet Packard up 68 cents.

[16:01] Uh Goldman Sachs boosted its 12-month

[16:03] price target for the stock from 4250 up

[16:06] to $46 a share. JC Penney up a $135

[16:11] second quarter earnings or I should say

[16:12] third quarter earnings 22% higher than

[16:14] last year at $1.26 versus 94 cents there

[16:18] and that was 3 cents above the street

[16:19] estimate. Same store sales rose 5.2%.

[16:23] Gold Corp rising $222. who the company's

[16:26] CEO forecast gold prices will hit $850

[16:29] an ounce in the next two years. The New

[16:32] York December gold track contract today

[16:34] was up $18.50 ending at $636.80

[16:38] the ounce. Borders Group rising $211

[16:42] reportedly William Aman the head of

[16:44] Persing Square Capital Management has

[16:46] purchased an 11% stake in Borders. BMC

[16:49] software up $287 second quarter earnings

[16:52] 37 up from 27 a year ago. Revenues up

[16:54] nearly 7%. Company also boosted 2007

[16:57] earnings estimates. Big loser of the

[16:59] day, Westwind 1. This provides radio and

[17:02] television stations with programming and

[17:04] third quarter earnings dropped to 12

[17:05] cents from 22 cents a year ago. Revenues

[17:07] fell 15%. The company's board will

[17:10] evaluate alternatives to enhance enhance

[17:12] shareholder value. Two public offerings

[17:15] today. KBW. This is the former Kee

[17:18] bruette and Woods, the investment bank

[17:20] boutique. 6.8 8 million shares offered

[17:22] at 21, high 26. The the high was 2738

[17:26] and then it backed off just a little

[17:27] bit. One beacon insurance was offered to

[17:29] the public at 25 and 24 million share

[17:32] offering. Cisco topped the active list

[17:34] up $161 the high today 27.44 on those

[17:38] earnings that we told you about after

[17:39] the close yesterday. Apple computer 89

[17:42] gain. Microsoft up 28 cents. Google fell

[17:45] $2.37. Research in motion a 12cent loss,

[17:48] fifth in volume. Then Qualcomm dropping

[17:50] a$145. Japan's trade commission warned

[17:53] the company it may have to investigate

[17:55] the business practices that the

[17:57] company's using in Japan. Intel 29 cent

[17:59] loss. Dell moved up 80 cents. Broadcom

[18:02] 3cent gain 10th in volume. Yahoo up 55.

[18:05] Hansen Natural, the beverage company

[18:07] down $414. Remember this is the four for

[18:10] one split stock, but the company is

[18:12] delaying its quarterly financial report

[18:14] due to an ongoing review of its stock

[18:16] option grants. And those are the stocks

[18:18] in the news tonight. Susie,

[18:20] >> thanks, Paul. If you've been a patient

[18:22] in a doctor's office recently, chances

[18:24] are you may have seen an ultrasound

[18:26] machine. Now, thanks to technology

[18:28] originally developed for the US

[18:29] military, new portable ultrasound

[18:32] devices are there are making their way

[18:34] into all kinds of new medical settings.

[18:36] As Jeff Yin reports in our Bill of

[18:38] Health segment, the small handheld

[18:40] machines are turning up in emergency

[18:42] rooms, surgical suites, and other

[18:44] places.

[18:46] It looks like someone's laptop computer.

[18:48] >> Uncip and release the unit,

[18:51] >> but it's a complete ultrasound imaging

[18:54] system in a package weighing less than 8

[18:56] lb.

[18:57] >> Those are actually the nerve bundles.

[18:59] >> Because of that, ultrasound use is

[19:01] making its way from the obstitrician's

[19:03] office to the operating room.

[19:05] Anesthesiologist Dr. Howard Paly started

[19:08] using handcarried ultrasound devices in

[19:11] the past several years. With the

[19:13] ultrasound machine, we're actually able

[19:15] in real time to see the nerves, see our

[19:19] needle approach the nerve, and at the

[19:21] same time, we can assess where our local

[19:24] anesthetic solution is distributed

[19:26] around the nerve when we inject, which

[19:28] we couldn't do previously.

[19:29] >> These handcarried ultrasound devices

[19:31] also are finding their way into

[19:33] emergency rooms where doctors use them

[19:35] to quickly and easily examine tissues

[19:37] and organs for damage. The makers of

[19:40] these ultra portable ultrasounds say the

[19:42] devices continue to get lighter and more

[19:44] sophisticated compared to traditional

[19:47] ultrasound machines which typically cost

[19:49] more than $100,000.

[19:51] >> A hand carried system weighs 7.7 down to

[19:54] three lb. They are roughly $50,000 in

[19:58] cost and they're very simple and easy to

[20:01] operate and they will work virtually

[20:03] anywhere in the hospital where you

[20:05] cannot get a cartbased system to the

[20:07] patient. You can always bring a hand

[20:09] carried system right to the patient,

[20:10] even to the extent that you can lie it

[20:12] right on the patient's bed.

[20:14] >> Just seven years ago, the market for

[20:16] hand carried ultrasound devices was

[20:18] tiny. Sonicites revenues were just $5

[20:20] million, but have expanded rapidly since

[20:23] then. And that number continues to grow

[20:25] industrywide, especially as

[20:27] cardiologists and other physicians use

[20:29] the systems as lowcost screening devices

[20:32] for hard to diagnose conditions like

[20:34] aneurysms. Right now the physician has

[20:37] to basically use his manual exam skills

[20:40] to detect an aneurysm. So the ability to

[20:42] provide a physician with a tool in their

[20:45] office where they can easily and quickly

[20:48] diagnose a potential aneurysm I think is

[20:50] going to have major impact on

[20:52] healthcare.

[20:52] >> As computing power grows, costs come

[20:55] down. Some physicians say you shouldn't

[20:57] be surprised if handcarried ultrasound

[20:59] devices become as ubiquitous as

[21:01] stethoscopes in physicians offices of

[21:03] the future. Jeff Yastine, nightly

[21:05] business report, bill of health.

[21:08] >> Tomorrow, our Friday market monitor

[21:10] guest is Dr. Hans Black, chairman of

[21:12] Inter Invest.

[21:23] [music]

[21:39] >> [music]

[21:46] >> by

[21:50] [music]

[21:59] [music]

[22:13] Heat. Heat.

[22:21] [music]

[22:33] >> [music]

[22:41] [music]

[22:47] [music]

[22:53] >> Tonight's commentator says it's easy to

[22:55] get good work out of your employees and

[22:58] he has some suggestions on just how to

[23:00] do that. Here's Richard Loveven,

[23:01] syndicated columnist and author of

[23:03] Shared Purposes. You've probably seen or

[23:06] even written a performance review that

[23:08] says something like, "This employee

[23:10] should go far." And the sooner he

[23:13] starts, the better. Even the strongest

[23:15] managers quake in their boots when they

[23:17] hear the phrase performance review. But

[23:20] evaluating someone's performance doesn't

[23:22] have to be the drudgery people make it

[23:24] out to be. Quite simply, a performance

[23:27] review is a way to measure whether

[23:29] people are doing what they're supposed

[23:30] to do. Of course, they have to know what

[23:33] they're supposed to do. And since most

[23:35] employees don't have X-ray vision, the

[23:37] manager's job is to clearly communicate

[23:40] the goal and identify the expectations

[23:42] for reaching that goal. This isn't

[23:45] rocket science. If you want your

[23:47] employees to perform, you have to tell

[23:49] them what you expect. The specifics of

[23:52] how they reach or hopefully exceed that

[23:54] expectation is often best left to them.

[23:57] Because what's important is not

[23:58] necessarily how they reach the goal.

[24:00] It's about the results.

[24:03] It used to be, and in some companies,

[24:04] it's still the case, that if your

[24:06] manager saw you at your desk for long

[24:08] hours, you'd be regarded as a dedicated

[24:10] employee, even if you weren't doing

[24:12] anything. Today, it doesn't always

[24:14] matter how many hours you work, but

[24:17] whether you get the job done. When it

[24:20] comes to excellent performance, it's

[24:21] about crystalclear communication, clear

[24:24] standards, clear expectations, and clear

[24:28] measures of accountability.

[24:30] Fundamentally, it's all about the

[24:32] results. I'm Richard Leven. Recapping

[24:36] today's market action, a wave of profit

[24:38] taking hits Wall Street. The Dow falls

[24:40] 73 points while the Nasdaq loses almost

[24:42] nine points. To learn more about the

[24:45] stories in tonight's broadcast, go to

[24:47] nightly business report on pbs.org.

[24:51] >> And that's Nightly Business Report for

[24:52] Thursday, November 9th. I'm Susie Garup.

[24:54] [music] Good night, everyone. Good night

[24:56] to you, Paul.

[24:57] >> Good night, Susie. I'm Paul Kangas,

[24:58] wishing all of you the best of goodbye.

[25:02] >> Nightly Business Report is made possible

[25:05] by

[25:09] [music]

[25:25] Is your nest egg in [music] shape for

[25:27] retirement? Objective financial advice

[25:30] can help. AG Edwards. For more than 118

[25:33] years, fully invested [music] in our

[25:35] clients.

[25:36] >> Franklin Templeton Investments. After 50

[25:39] years of worldwide investing, we see

[25:42] market opportunities [music] through the

[25:43] eyes of experience.

[25:46] Franklin Templeton Investments.

[25:49] Gain from our perspective.

[25:52] This program [music] was