turbulance in the airline industry continues with no relief from oil or the recession experts weigh in on how long airlines can survive. plus, the biggest doctor's group in the u-s says healthcare reform can't wait until there are enough doctors to take care of everyone. and...movie ticket sales have cooled... what's behind the drop as hollywood looks to new marketing muscle hoping for profits. it's all ahead on this ediition of first business. ahead of friday's market action glad you're along for the ride wall street logic in perspective coming into play here with the second quarter gross domestic product blue. good chance we may see the slowdown is slowing down in it may be good news. this week we have seen big moves in the oil market on wednesday it was down 6% on thursday it was up by almost the same

amount certainly this happening in the face of bigger than expected we'll inventory stocks that are multi year highs and in the face of lower demands so seen so many people are lost to explain what's happening with oil. the market has confusion and anticipation at this point. almost $33 billion in bank bonuses. that's how much nine big banks paid out in employee bonuses in 2008 according to the new york state attorney general. while these same banks were getting $175 billion in bailout cash, they were paying out $32-point-6 billion in bonuses. the group includes merrill lynch, citigroup, goldman sachs and j-p morgan. meantime, the top guy at bank of america says his industry deserves some...but not all of the blame for the meltdown. an economic bubble like the one we just experienced could not happen without some participation by many of the nation's banks. but, i believe the criticism has been overdone. in fact, much of the excess credit that drove the bubble did not originate with

commercial banks. instead, lewis says it came from shadow banks such as investment banks, hedge funds and others. bank of america did buy one of those "shadow bankers"...merrill lynch late last year. southwest airlines looks to expand its operation by outbidding a rival company to buy bankrupt frontier airlines. southwest says it would pay almost 114 million for frontier airlines - hoping to open the door for further discussions on a deal. it's the latest development in an industry that is hanging on by a thread as this recession drags on shares of many weaker airline companies - like us airways, united.. and american - are at 5 dollars or under... indicating the likelihood of bankruptcy is pretty high... and depending on how long the recession goes on some experts believe the bad environment could claim even more airline companies. i think some airlines are threatened by bankruptcy.. even liquidation chapter 7 rather than 11

for now though, most airlines do have strong cash positions that will give them enough cushion to keep operating... at the start of july continental had 2.8 billion in cash united: 2.5 billion us airways 1.7 billion and southwest about 1 billion in cash. so far this year, analysts say most of the major airlines have all had positive cash flow - so they are not burning through cash right now - but that could change - depending on oil prices and how quickly the economy recovers we know that if status quo continues next spring going to see difficult spot for airlines.. us airways.. united american.. tough time.. for them.. not saying can't raise cash.. but cushion runs out some time next year because so many airlines are struggling experts say we are likely to see even more merger

attempts and they are sure to still raise anti-trust concerns about how any merger will impact consumers. higher costs to fly higher prices.. less quality service.. less competition.. that means less development of industry. but for now - airlines are just focused on surviving and with oil prices still too expensive for airlines, experts say they will have to raise ticket prices or risk going out of business with air fares at these levels. i think there's no doubt - prices have to come up... prices as fuel at 40 - there are high fares.. but lot of bargains.. can't last as airlines keep pulling seats.. even southwest hurting.. going to see upward pressure.

coming up on monday's show, we'll talk with an airline industry insider about what airlines need to do to stop the boom and bust business cycle. a senate committee investigating the market meltdown reportedly has subpoenaed financial firms about what insiders knew about mortgage securities in 2008. one of those firms was where the securities and exchange commission's director of enforcement, robert khuzami, was top lawyer before taking his current position earlier this year. before news of the subpoenas, we spoke with him about what that experience at deutsche bank means in his new role. after the show, go to our website at first business-x-dot- com and search s-e-c to hear what khuzami thinks about new regulation efforts and new areas of inquiry, such as high frequency and trading and having hedge funds register with the feds.

still to come why movie ticket sales have cooled off in the month of july...and some very funny people hope to win the top spot at theaters this weekend. but first...why the president's plan for healthcare reform has won the support of the biggest group of doctors in u.s...we'll talk the former president of that association...next.

deal or no deal on healthcare reform, the effort to get more americans health insurance and to limit price increases has the support of the biggest doctor's group in the u-s. 16 years ago, during the last big push to change health care, the american medical association fought against it. dr. nancy nielsen is the immediate past president of the american medical association. dr. nelson welcome to the program. one of the bolsa de of the reform effort is to increase in short for the 47 million americans who currently are on the inshore or don't have insurance are there enough doctors to provide treatment? if there are but there are gonna be some shortages. there are areas where there's an area he was a shortage of primary-care and general surgery so we are going to have those issues. we will deal with it because it is really important if the all of

these millions of americans have access to health insurance coverage. we know if that coverage they'd delay treatment often until it's very late. some instances of shortages couldn't bear results in the late of treatment as well even on their in any reform plan? let's get people insurance and then do the split level best that we can to meet the access problem is there's no question that there are some shortages in medical schools are increasing their enrollment to try to meet that but it's very difficult to. you point out an interesting point but that doesn't mean that we train more physicians and nurses and pharmacists to first and then we give people access to health care does not or we ought to be doing this in. he won access first. the talk about cost savings because the debate is centering on limiting cost increase opposed to look squeezing savings within the health-care system is that the right strategy? does one of two strategies that have been taken. one is to ban the spending curve as it's been referred to and we've been an

active part of that by trying to make sure we get to performance measurements and to make sure we are using the best evidence for the decisions we encounter with our patients and are exam rooms. as one way the other way that's been talked about is to try to get better value for the health-care dollar the we are spending now. so there are two tanks patrolled cost in the cost to doctors are a constraint on the tiered that we can get they're not the goal. is the country and we have to be responsible citizens like everyone else. we are worried about those costs because it affects businesses in terms of their global competitiveness and it affects small businesses and their ability to offer health insurance to their employees. you per from their members but one of the big contributors to the escalation in costs is defensive medicine practices to protect against malpractice. are you satisfied that that's been addressed at all and some of the reform efforts that we

are seeing of the house and senate? not yet. we are working there will be an amendment we are told that we will address this and we need to have lawmakers on both sides of the aisle understand how big of a problem this is for doctors. how big the problem is for the country. it drives up costs which are unnecessary tests that do not contribute to patient care. what did they care about what doctors care about the need to care about the cost is really important. at the same time doctors know that if patients are injured they should be compensated but not and the job pot justice system that we have now. there are better ways to approach this. basically when some of those damages? sure we would we know that there are some experiments that have worked in california for example we also know that things like the minister of course that deal in a more thoughtful way

with a patient who may have been harmed by the medical system could possibly bring down cost. we really need to try those things right now is very difficult. there are only a few states that have had good reforms that have kept those costs down in every doctor in the country is worried about it. dr. nelson real quick and a year at the immediate past president but 60 years ago that a m eight was not on the form of effort any ideas what kind of lobbying budget they have to get its ideas included in legislation? we've worked hard for several years we start with our boys for the uninsured campaign we spend millions on that. we are in this for a long haul. could think that we are very close to getting a solution that is better for the country. we are here we are prepared to work with whatever it takes. with both sides of the out to get to a good solution for our patient. misspent and millions more to be spent. nancy nielsen along with us. thank you dr.. thank you.

still ahead what's behind the recent drop in movie ticket sales....can new marketing tools help bring back movie goers...we'll find out after the break.

maybe the movie industry has met its match. after a red hot start to the summer, revenues have dropped over the past three weeks compared to a year ago even as the industry looks to new marketing to generate profits. david sikich is back with us. watching the movie industry and drop-off compared to a year ago for really what has been a heck of a 2009 year. any real concern? i don't see much change from but this fluctuation because some weeks just don't match up to movies the open a year ago a last two weeks including last week as a 19% drop-off could contribute to the one film at the dark knight would cast a large shadow over the industry. even hit the old harry potter has grossed over $20 million its second weekend was only 30 million dark knight with 75 million best the difference. we've seen bigger

drop of this year compared to a year ago three of the last four weekends we have been down the average drop in the double digits here but still hundred 45 million. and you'll the giving of some of the annual gains but as of 7 percent when compared to another industry that always is considered recession-proof is doing very solid because video-game sales dropped 29% in june and they're off 12% for the year. compare that. the movie business is door pretty good. universal which talk about general electric in retain the property before taking another shot this week little different track for this when a movie called funny people and it shall live up to his name. there's always a studio and on which both white and universal general electric the parent company really delivered a stern message to universal high shows you are risks team and is not paying off. there is costing too much get straightened out the

problem we're running a studio is that there is no quick fixes. it does come out for your have indicia land of the loft was about public enemy up to $80 million but since it costed hundred million in a break-even. bruno has befallen barack. if many people he's been solid. for your old version support that kept him locked up they can catch a break because he's going serious which this film to try to work in some serious themes like illness and death and mortality even with adam sandler will they fall down and that's going to see what happens because they need this movie to be as big as the not dups. and suppose the back the pain is not the big budget is a much smaller budget. but adam sandler is 7 million instead of 30. and the marketing mix it has been tried to get with it by twittering and when these social marketing messages is a working with mark put a ring is catching the

studios attention because word- of-mouth travels faster and it is a nullity because testing and sell phones and social network services have been out there. it's instantaneous reaction it is speeding up right now court of law office of the that the studios have never been able to control. they used to be able to buy an entire weekend gross on a bad movie with great marketing now comes down to one delegate what happened with bruno. it opened to $14.5 million by saturday it fell off 39% to 8.8 million this instantaneous reaction. the movie fell off 7% to 60 percent is a dead issue right now but it also can work for an awesome opposite way where people love movies like the hangover put a ring can help put the movie is in its eighth week its growth to under $47 million deal the wing solid business the highest grossing are ready, the of all time and what one brother's 30 to $35 million budget the single most profitable movie a year by far. the stock of the tv

business were short on time so let's take a look at the next week and how the tv business has been and will be lower than in the next week with david sikich. coming up in chart talk we're gonna take a closer look at the utility sector which has been hit by recession. will take a look at what is underperforming the broader markets. that's in chart talk after this in the know message. the distance from the field to your table just got shorter.

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taking a closer look at the utility sector is something we have a busy day in a very long time utility well on the performing the overall market e t 81 e t f is down 1% and overall market is up 9% even during this nine march rally seemed banking stocks double the market will buy 35% this exchange traded fund utility stocks and number of which reported earnings fell by only 20% not a bad return obviously investors are not looking for defensive message light utility stocks. utilities have struggled because of music overall is down dramatically especially among large companies with a story earlier indicating large companies and factories cut usage by almost 13 percent can never of a cousin to rebel. confined and video on our web site is all for free does go to first business x. c o m we want to hear from you if voice mail phone number on a website that video instruction and e-mail address comments at first

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