captioning sponsored by bt >> this a game changer. positions us in a completel fferent space. >> paul: xerox kic off merger moay with a $6.5 billion deal. we talk with new c.e.o. sula bus. >> susieon wall street, that deal and others sh stocks to their best levels of theear. today's merger mania has the blue chips inching closer to an old friend... dow0,000. >> paul: t head of the world's largest oil compy says oil prices need to be low enou to keep conmers spending, and high enough toeep company's

drilli. coming up ouexclusive interview th saudi aramco ceo khalid al-falih. >> susie: then, if you thoht ur doctors office was crowde ju wait. alth care reform could have so 30 to 50 million uninsured people joining the system. tonight,e get the physicians' rspective. >> paul: i'm paul kangas. >> sie: and i'm susie gharib. thiss "nightly business report" for monday, seember 28th. "nigly business report" is me possible by:

this pgram was made possible by contributns to your pbs ation from viewers like you. thanyou. >> susie: good evening, everyone. a flurry of mergerand deals today fr some of the nation's largescompanies. xerox, abbott labs, joson & johnson,nd others announced trsactions worth $13 billion. the most talked about one toy: xerox. it's paying almost $6.5 billn in cash and stock for "affiliated mputer services," a provider of comper services for bunesses. thacquistion is xerox' biggest

in its 103-year hiory, and a bold move by the compa's new c.e.o, ursula burns. when i talked to h a short while ago, she explainedhy the merger is a "ge changer" for rox. >> a.c.s. is the world' largest diversified buness products firm in the world. xerox captain largest documt firmn the world. these two sets of capabilities put tother makes us a powerful match for anybody out there wit a ading company for document and business-process manement in the world. ms. burns, a you look out five, 10 years,ill xerox be more of services company and ss of a copie company? w will xerox look? >> it's a beautiful question. i love it. it's grea xerox's strategy all along -- before we bght a.c. -- was to become -- no even 10 years

out, even closer than that more of a servic cpany. we are growing -- a documentervices business is now about $3.5 billion of renue. most of those seices are around pri and copy infrastructu. a.c.s. and xer together allows that vision to become more of a reality significantly sooner. your competitors are gettg into the services side,dell couter announcing acquision, hewletpackard -- whose market share are you going after? >> if u look at dell computer d hewlett-pacrd and even i.b.m., they're at a space -- it's cled i.t.o. -- information-technology outsourcing. they're at the server, computer nd of infrastructe space. that's not where we play at all. don't do that type of service. we provide a rvice right above that which ialled document services. alof those services, i.t.o. services go to work people do.

we take the document unstructur documents but even structured documents- written pages or typed memos or even a bill, for example,ould be unstructed in a lot of ways -- photraphs and the like -- an we managthat. >> as coanies become mor veically integrad from hardware to software t seices, does this cate new colicts and new issues for yo customers? hoare you goingo address that? >> actually, our customs -- we don't actually thinkit creates conflict at all. actually hps them to go to one person -- we call it sometimes onehroat to choke. theyan come to one personnd get a whole vertil slice of a business taken care of but most of the solutions' complexi comes when you try to do a solution on a horizonl basis. >> ms.bns, you came c.e.o. of xerox three months ag and today you're aouncing the biggest acquisition xerox history.

what iyour overall strategy for the company? >>o be the leader in document -- in solvingdocument-intenve information-baseissues for our clients and our customers around the world, so we focused on docume-intensive business processes. we started with managing this biggest press was replicatin or duplicating something s we start by inventing a tecology that did that. we med that up and move that up andow we're movg a little bit away from the equipment si equipment is very important -- and expding it to the services side. >> do you ink that you are going to have to do someore acquisitions to round out the strategic an? >> this is a big acquisition, so have to me sure we mana our cess cash carefully, pay down debt first that is the most important thing, but aft do that, whiche think we will bable to do i a reonable amount of time th we'rback into acquisitions again, smaller ones that fit into the b.p. space and fit into distribution.

>> xerox stock sold on today's ws. what do you ink you need to do to get investors onoard with what y are doing? >> commication, communition, communication. it's about clari and having them understand the ssage -- by theway, i have be doing it all day, my team has been doing it awell. we dn't expect a rction on the stk -- mostdeals have a downward presse on the stock. this deal in se -- it'sind of large and it actually bills out a b.p.o.ind of instantly, something that has been sttegic for us but notlear inhe present y. is is communicating with investors to mak sure that they are clear become more clear about how this fits in th stragy and i think that as you go forward and we start to -- as my c.f.o. says all the time, ut numbers on the board" we'll get more and me investor buyin. >> a pleasure talkinto you today and i hope to do a follow-up with y soon. >> i would love to do it with u, suzie. >> paul: xerox a today's other des got the blue chips fired

up. the dow joneindustrial average finished up 124 pots today, or more than 1%, snapng a three day losing streak. with just two trading da left in the quarr, the dow is closing in on the magi10,000 mark. as scott gurvey explains it wasn't suppos to be this way. >> reporr: traders were apparently out of the room a the beginning the month when e pundits declared a major sell-off w likely in september. strategist steve wood says hs not surpsed the ognosticators got it wrong. >> i'm not surprised by ything in the markets in e last two yes. i think you had a maet that was priced tabsolute perfectionwo years ago. you haa market that was priced tohe end of the world in march of this year. and now what you're eing is a lot ofather brisk, but nsistent growth. and we're beginning to see a globalecovery. >> reporter: the cnge in market psychology now has forecasts anticipating a test of the 10,000 mark on the w industri average. strategist niccolas says that doesn't mean much tohe pros,

but it means lot to individual invests. >> i think it is an importt paon the back for investors who ha been you know obviously slammeby the market over the past eighteen nths, who've seenheir investments whipsaw around. gettg back to 10,000 would be one of those sns of things gettg back to normal. reporter: but normal will n mean all shares ll rise. steve wo says investors need tohift their focus from earnings to revenue and ok for companies which can growheir top line. >> you're gog to need to look for strong balanceheets, strong cash position, lodebt positions anwhere you have competite advantage, where you can actuallyrive sales and maybe take outome competition d gain market share. >> reporter: but watch o for that sucr punch. the maets are vulnerable to bad onomic news. the key september rert on employment iset for release iday. scott gurvey, nightlbusiness report, w york. >> paul: wall stet came out swinging today after loggingts eepest setback in months las we. yers were encouraged by the revival of merger activity a the recent pickup in scessful p.o.'s. a steady advance, the dow

ro 146 points by mid-day with the nasdaq up 46oints. the comeback convincedore investors toome off the silines and helped stocks hold most of their gainsnto the final be. >> susieoil prices rose today to $66.84 a rrel. in new york trading, novembe crude futures jumped 82 nts.

a lot ofhat oil comes from saudi aria. specifically "aramco," the biggest oil companin the world. recently iet with aramco c.e.o., khid al-falih, in udi arabia. and began by asking him ether world-de demand for oil these dayss up or down. >> oil demand continues to very sluggishn the west, north america d eure. we see an uptick in china, but not significant to offset demand loss that we saw with economic and financia crisis the last year or so. it will take time t me up for llions of barrels of demand that we experice, but ultimatelyit will come. >> susie: one of the biggest worries foamerican consumers and ameran businesses is that the world is goi to run out of oil. what i your response to that?

>> t world h9-10 trillio barrels of oil, nventional and conventional, that need to be -- tha are available for sciencend technology and industry and glob society to exploit in a responsible way er a long period of time. >> susie: the fear is discoveries are not going to keep up with oduction. it's just a matterf time that the splies are just going to -- >> if we only look at history. if we lk at istory, the industry h been able to place all of the oil produced, and more. recoverabloil as oil of the world has been growing. we recently at aramco, althoug were the largest pducer, we have been more than replacing our prtion, and our expectatio from technology, both in discovery and recovery oil arvery, vy buish.

>> susie: as you know, president obama is pushing really hard for the u.s. to become less dependent on oil and toome up with alternative eney sotions. if that ppens, what does it mean for saudi arabia? >> ihink realistically it's gointo take decades for the united states or any developed country, for tt matter, to shift eney mix in a meaningful way,ut t time to start is certainly now. i don't dispute eeed to start responsib putting resources -- especially science antechnology to findechnical soluons, but i believe political pronouncements out shifti oil from oil are counterproductive. >> susie: americanonsumers are lining up to buy electric cars, they're becomingore -- they're cutting ck on their energy e. what ds that meanor saudi abia? >> wheres the electricity coming from?

if the objective is -- electricity is incasingly coming fm coal. coal is theighest polluter in terms of carbon emissions and i uld advise peoplein general to look at the total picture of the energy mix, where it's coming fm, what are the costs to society both environmentally as well as economically. >> susie: any ecomist would tell you tt the best way to make people fuel efficient isto raiseprices, so are high oil prices good or bad for saudi arabia >> i think it's t a question of what's go foraudi arabia or not. we have the ghest -- the largest resource se, the highest producti capacity. we certain can svive onuch lower pces tha others. but we look at it from a long-term respsible standpnt. the prices need to be high enough for lo-term growth and supply base, for iestors to invest not in saudi arabia but

in the dp seas of the gulf of xico, also brazil and other places, so we believe prices -- there is a happy medium ove the fact that we have seen but certainly below the feveris prices we saw last year where consumers will no be hurt but producers and investorsill invest for the capital vestment that will beequired toring energ supplies up a stain the existin supplies as well. >> susie: mrfalih, thank you so much for your ime. up >> susie: you n watch the tire interview on our website, "nightly businesreport" o pbs.g.

>> pau now let's take a look at some ocks in the news tonight...

>> susie: one of the gls of alth care reform is bringing the 30o 50 million americans without health insurancento the stem. it's a move that will certnly increase demand for rvices. massachusetts has alread required health covera for all residents with mixed resul. for one thing, patients ar spending a lot more ti in doctors' waiting rms. as the health care debat continues, doctors are alrdy warning about supply a demand. stephanie dhue rorts >> reporter: it's sy now at the offices of frfax family

practi. the 16 doctors, 16 residentsnd two nurse practioners here see abt 250 patients a day. health ce reform would surely add more. . winston liau says, while i will be a streh, the practice will adjust. we have different schedulin techniques we can us and we trand extend our hours so we're open nhts and on weekends, so that peoplean be en when they need to be seen it wou definitely strain our resoces, but there are definitely ways cope with the increased demand. >> reporter: even wiout adding the uninsured, predicted shorta of doctors will likely stress the health re system in the ming years. that already has docto experimenting with new, more efficient business mods. some a looking at medical hos, which use a teams of doors, nurses, other health professionals, and new technologies to trt patients with chronic disse. but for that coordinat care to happen, dr. sam jones says reform needs to change the w

doctors are paid. >> they are talking out care management fees, and that wod be a he step in the right direction, to hire either e nurses, nutritnists or other members of the heah team that can lp manage these patients in ways other than that onto- one doctor/patient relatiohip. >> reporr: lawmakers are also considering boting reimbursements to imary care doors by 10%. but to pay for tha reimbursemts to specialists would be cut. orthopaedic surgeon dr. marc rankin worries that cou reduce patient access to ecialty care at a time when dema for procedures like joint replements is increasing. he sayideas like medical homes toreat chronic disease may come with untended consequences. >> being able manage patients to kp them out of difficulty and keep them healthieis a great go to shoot for, the

questions will that happen, and will the. we would certainly hopehat the managed care would n replace the old gatekeer of the early '90s of the h.m.o.s, where it was metimes, in fact often an impediment to achieve speclty care. >> reporter: how much re crded the system becomes will dependn the prescription for reform, includg just how many of t uninsured get coverage and how providers ll be compensated to meet the w demand. stepnie dhue, nightly business report, washington. >> paul: tomorrow, wheit comes to mutual funds is ner better? our "of mutual interes commentator has me answers. >> susie: a fincial adviser in michigan is facing fraud chaes for allegey targeting seniors in $250 million ponzi scheme. the securities a exchange commissionays frank bluestein waat the heart of an investment scam operated by s firm "e.m. managemen" court documents accuse blutein

of eouraging retirees to re-fince their mortgages to fundheir investments. uestein's lawyer has not commented. >> paul:nother former enron executivis headed to prison. josephirko used to run enron's broadbandivision. toda he was sentenced in houstoto 16 months in jail. he also agreed to pay .7 million in restution. prosecutors say hirkpromoted enron's broadband divion to analysts, ile knowing the system couldn't dohat was being promised.

>> sie: here's a look at what's happeng tomorrow. the s&p case, shler home price index for july, is relsed. al tomorrow, quarterly results from darden restaurants,ike and walgreen. >> paul: recapping today's marketaction, a d of deals brings buyers off the sidenes. to learn more about the stories in onight's broadcast or tch our streing video and to take pa in our dly blogo to "nhtly business report" on pbs.org, you ca email us a nbr@pbs.org. >>usie: a new assiment -- captain lly

you'll recall that sul is the pilot whmaneuvered u.s. rways flight 1549 to a picture-perfect landing the frig waters of the hudson back in january. everyone on board suived. day the airline announced th sully is returning to wo as what's kwn as a management pilot. that meanse'll be back in the cockpit, and working as at he calls a "safetadvocate. and paul, that's sething he knows about first hand. >> susie: he was amazing. let's hope he can ach that skilto a lotf other people. >> paul: that's for su. >> susie: that's nightly business report r monday, september 28. odnight,paul. >> paul: i paul kangas wishin all you the best ofood buys. "nigly business report" is made possible by:

this proam was made possible by contributions to ur pbs station from viewers like u. thank you. ptioning sponsored by wpbt captioned by dia access group at wgbh access.wgbh.org