tv First Business FOX October 1, 2009 5:00am-5:30am EDT
america's fight against the h1n1 flu virus...how much will it cost and will the efforts actually slow the spread of the virus? plus...today marks a new fiscal year for the u-s government...will it be a fresh start or just another year mired in debt and bad financial decisions. and small business lender c-i-t group on the brink of bankruptcy...the impact the company's fall could have on thousands of businesses. .....it's ahead on this edition of first business. and we've been saying did all week long important week for the overall market not the and traditionally but this is partly been the worst month or stocks but not this year ending sept. a loss of economic data to find out what we saw in the summertime is able to continue to recover at least initially manufacture and seemed to step public a little bit. on thursday federal reserve
chairman dan becky his to capitol hill for her testimony on how of federal government's plan to overhaul the u.s. financial system and he's also expected to talk about giving the federal reserve more power as well. it could be under the gun because the reserve has been really at the center of the staff put critics also supporters say the federal reserve is the pull understanding if will be working of the rules of finance. a new report says the global financial system... is on the mend... but the road to recovery will be shaky and one paved with risks... the imf's latest estimate points to 3.4 trillion dollars in writedowns from bad assets... that's better than the 4 trillion previously expected. the report states that banks still face potentially huge losses the imf estimates that global commercial banks have already recognized 1.3 trillion in writedowns through the first
half of 2009 - and they face an additional 1.5 trillion more in writedowns ahead. the report also predicts banks will need to raise even more capital... because they currently face insufficient earnings... and that banks need to further repair their balance sheets in order to make loans that are needed to support the economic recovery. it was a familiar story with home foreclosures continuing to rise in the second quarter even as more struggling homeowners got help. even as the housing market did pick up a little, more homeowners fell behind on their payments or fell into foreclosure in the second quarter. but at the same time, the white house effort to get mortgage companies to change payment terms for struggling homeowners also showed an increase. almost a half million people were able to get their loans modified or payment plans changed. small business lender cit group faces an october first deadline.. to come up with a restructuring plan... or go into a pre-packaged bankruptcy.
since 2007, the company has struggled to meet its debt obligations.... and cannot refinance loans because of the inability to secure short term funding.. since the credit markets seized up. back in the summer... cit group warned of the potential fallout if it went bankrupt... saying its failure could hurt thousands of retailers.. and other small businesses...that depend on cit for loans.. but today.. analysts say the picture is much different.. and cit's failure is *not likely to have a big ripple effect. with a bankrutpcy.. it would be a smaller company, anyone dependent on cit for funding if it goes away.. would be hurt ... on the other hand, clients have seen the troubles and they've been looking for other sources already so it's been a long time to play out and has given clients time. cit has 30 billion dollars in
outstanding debt - and it's reportedly considering a plan that would offer bondholders an equity stake in the company... back in december, cit group received a loan of more than 2 billion dollars from the government's tarp program... and during the summer, it received an additional 3 billion emergency loan from its largest bond holders analysts say the government bailout money that cit group received is *not likely to be repaid. hands and or hands out dave ward played a news over at the cme group in little bit of traders pocketed lookit gains in market action planning is a classic example of what we have seen in this market since march. economic news a lot but in the polls come back in the bill and warned. praise be that we have volatility and range today. you were able to make a comeback if you were a trader. they like the number of the gdp number that can invest in morning and
final revision was a little better in the contract in as quick. i know the 9:00 no. you've got to chicago p m. i number a little worse than expected they hit him pretty hard to come to 1041 brought him back into the test of these unsettled a mountain 53 port where someone in that area. oil prices sparked a bit about 5% in a porous rock deal political risk when the united nations would be a pen and oil markets here " mark forget the fundamentals still look bearish today would you have is a marketing company in africa and what they are doing their plan wrestled the world of poke the mud with the resources that they possessed and they are trying to market their crude oil put the best price they can and. you have the chinese that are coming into africa and a big way trying to exploit the resources that are bear what the headline story at the end of the day is always less than what is officially reported. head at and between the first time has been
bullish were oil prices they've been portrayed in news over at the cme group. who have a great day. still to come america gears up for it's biggest immunization in a generation...the steps and the costs to fight the h1n1 flu virus. but first...it's a new fiscal year for uncle sam...will it be another full of debt and red ink...we'll find out next.
it may not seem like new year's day but it is for uncle sam. thursday is the beginning of the 20-10 fiscal year for the federal government. and the year begins record high deficits and cumulative debt. roger nelson is a certified public accountant, retired deputy chairman at ernst and young and chairman of the advocacy group truth in accounting. welcome to the program. hal by but then has been our focus in institute for some time. i think what is making comparisons and what it looks like two to three years out worse is where we have been all last few years. probably the benchmark spending. since is really the federal deficit. which continues to grow in some cases by leaps and bounds. let's take a look
at some numbers here to stay dead upon the treasury is of poetry in dollars a double- digit increase in the past couple of points along this has sped up has slowed down. and will continue. the increase is about 1.7 trillion this year and if we'll look at its pretty comparable to the spending deficit which is our panel deficit which is 1.8 pork 09 compare with 400 billion the previous year so would support x. this is the year over year difference coming and washington. is overspending this year by almost one trillion and a half dollars. exactly. and look at the next three years particularly a stake in nextel years we have the deficit and sarah and essentially about 9.3 and 0108 trillion and 11. all's it portrayed in dollar addition to total that. as we can relate all this extra red
ink over the next several years. it exactly. a hard question posing as the easy question was fuelling this what are we overspending it everywhere? it's going to the worst of portfolio which i had better new spirit part of it is that we are paying the price of millie net funding many of our entitlement programs on an ongoing basis every year. and a perfect world we do we put money aside and people are working for their return retirement. essentially what we have uncovered after all of these entitlement programs particularly medicare and medicaid is pay as you go. i hate to make the comparison to the white skins' we've heard about lately but essentially the pay and in somebody else's
pain out for someone else. testimony is going to pay the old investors that was pressed and. at the institute of truth and accounting he talk about the total debt the real debt and you take a look here is a huge number. as all 72 trillion dollars and these are the of splendid entitlements the sofa security payments that will be billed medicare and medicaid have to pay all those kinds of things. exactly. the increase in unreported liability to come up with the total debt has been significantly increase over the past five years. but these big numbers we have to end on and good news out there? let me help people understand put muscle and one trillion dollars maybe three-person in the united states essentially that liability is equal to $230,000 per person. can you write a check now and i deal with in
the future. what is the good news? the two factors the federal deficit in the trade deficit report persists export and the third is the savings rate. which has been increasing lately. and the savings rate has almost been cut (to 3 to 5% second the trade deficit has been in half there's good news bad news story about the trade deficit we're exporting less but we are importing a lot less. this means to hopefully it we are saving grace continues we can finance more which are owned earnings. americans buy american that is the case. we appreciated think for the insight both the bad news as well as a little bit of good news chairman of but of the advocacy group to plan and accounting. online items is water the new oil?...on our website...the global fight over clean water and the cost of america's aging water systems. plus...smoother skies could be
ahead for the airline industry thanks to recent financing deals. and...the grave state of social security...changes that could be ahead in the new year...you can find it all on our website...first businessx.com. and straight ahead on the show.... the cost of protecting yourself from the h1n1 virus... a look at what you can expect as immunizations begin showing up in doctor's offices and pharmacies across the country...that's coming up next.
designed to help fight the h1n1 flu virus are expected to begin showing up at doctor offices, pharmacies and public health departments across the country, with the biggest immunization goal in a generation. dr. julie morita is one of those on the front lines. she's medical director of the immunization program at the chicago department of public health. dr. welcome to the program. is your approach ready per the vaccines? you were fortunate that we actually had we had a little portion of what to expect this ball and since the spring we have been actively planning and preparing put this fall. of of the biggest deficits and that you do have a vexing happy quarterbacks and supposed to be coming next week? the cdc does gave us our allocations a local as state departments will impose an offer as orders this morning. was the difference between this is a physician program coming this fall compared typically positions doctor offices retail pharmacy hospitals can order their barks and a printer manufacturers are
protective orders. this year because dependent the vaccine is coming and to the public health up there we are responsible where did stock dividend of vaccine is city of chicago. 26 states have a wide osprey it was kind of stress is putting on the public health system or public health department and may not be designed to produce larger organization programs as opposed to giving those to the private sector. because we had this warning this spring since then we've been establishing a system for surveillance for disease to have a permit activity areas to develop vacation plans and also community legation plans m we've been playing since the spring to get the vaccine l and
so our plan for a chicago department of public health is to prompt a plan to distribute back soon student private sector but in addition to that we will have health department of the clinics. with the distribution method which is different prom and then influenza seasonal immunizations is this plan and from and to stress on the department prepared are you having to look for money and other areas to pay for these the federal government has provided us a fair amount of meant to supplement what we have an infrastructure to enhance and so we are able to deliver becks and more effectively than we would have without the support. as a band of money to pay for which you like to do question mark we have been able to establish can't tracks what has been thus far. what about the stresses of personnel the poke held apart his historic we get in the distribution business has been put a bigger pool guest where perhaps hiring freeze has nurses or medical professionals to distribute as well last deal
with these vaccines and immunizations? the federal plan to allow for the flexibility or other contract to agencies to be worked and can't do on our own because our hiring practices make loan growth and hurt people we need. if to under 50 million age 1 and won a vexing doses 5 billion global where rolling this out as opposed to releasing at one time i hang types or did the purchase is expected to dent in edition. ? we are really sure what to expect we've been told by cdc but we will be daily reports regarding hatchbacks things are available for us to submit request work on a daily basis will repute where boxing is available and after reading it. but does the price remained the same for public health department to get these patents? wrote a room has a purpose of the backs and so there's no cost to the health department or provided because the vaccine
itself. but boston ranges and tears to go along with disturbing in addition to purchasing their backs and they have also purchased to ranges of alcohol swabs pull those materials will be distributed in addition to the health care of pfizer's can build and trust companies or individuals with a cost of m errors count of boxing. finally from chicago public health approach and vexing are they free to receive request that our public health department will be there will be no cost association. requirement from the cdc with cars that the public health franklin and can't charge were the look and season doctor do we aligned with us with a chicago public departments of public health. datda from the manufacturing sector will be in focus on thursday... coming up we take
coming up on thursday investors are going to be plants close attention to the kind of focusing on a matter of fact and the i s m #that affect trade index which measures economic activity involving orders and production. even the manufacturers continue to be a smaller slice of all u.s. economy is still such a test ban on such a cornerstone psychologically speaking americans will think of their
economy is making tangible things here. industrial sector is strong traded bonds once tried to crawl out of the sector but has there began the losses that we saw from when you go. x l i in your today it is up a little more than 12% since terreri still underperforming the s&p 500 but is up 17% and it is only made up about half wrong lost since september of 2008 when i see this tells me this is going to follow the basic overall economy and the second quarter of becoming a is vlasto% which is generally seen as the bend but nasa and the pick of the we saw an instant cash for clunkers continue and the manufacturers of oil is a big piece of an affected item at the september that calls into question a little bit about the saw. this going to be released as a tilt to the i s l #before
august addison number can above 50 which indicates expansion the question is is going to stay above 50 and supported a ban on thursday. the e-mail comments at first business x. c o m pick up the phone and dialed 3126608397 see you online or back here next time. (announcer) let's say it's guy's weekend,
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