captioning sponsored by wp >> this is game changer. itositions us in a completely dierent space. >> paul: xerox kicksff merger mond with a $6.5 billion deal. we talk with new c.e.o. urla burn >> susie: wall street, that deal and others pu stocks to their best levels of the yr. today's merger mania has the blue cps inching closer to an old friend... dow 10,000. >> paul: the head the world's largest oil company saysil pric need to be low enough to keep consumers snding, and high enough to keep company's

drilling coming up our clusive interview wi saudi aramco ceo khalid al-falih. >> susie: then, if you thoug yo doctors office was crowded, justait. heth care reform could have some0 to 50 million uninsured people joining the system. tonight, wget the physicians' pepective. >> paul: i'm paul kangas. >> sus: and i'm susie gharib. this i"nightly business report" for monday, septber 28th. "night business report" is madpossible by:

th program was made possible by contrutions to your pbs station from viewers like u. ank you. >> susie: good evening everyone. a flurry of meers and deals todafrom some of the nation's laest companies. xerox, abbott labsjohnson & johnn, and others announced transactions worth $13 billi. the most talked about ontoday: xerox. it's paying almost $6.5 llion in cash and stock for "affiliad computer services," a provider of mputer services fobusinesses. the acquistion is xerox' bigst

in its 103-yeahistory, and a bold move by the cpany's new c.e.o, ursula bus. when i talked her a short while ago, she explained w the merger is a "gamchanger" for xex. a.c.s. is the world'sargest diversified busiss products firm in the world. xerox captain largest documen firm ithe world. these two sets ofapabilities put togeer makes us a powerful match for anybody out there with a leing company for document and business-process managent in the world. >>s. burns, as you look out five, 10 years, wl xerox be more of a services companyand le of a copier company? howill xerox look? >> it's aeautiful question. i love it. it's great. xerox's strategy all along -- before we bout a.c.s-- was to become -- not even10 years

out, evenloser than that more of a servicescomny. we are growing -- docunt-services business is now about $3.5 billionf revenue. most o those serves are around print and copy infrastructure a.c.s. and xerox together allows that visionto become moref reality significantly sooner. >>our competitors are gettin into the services side, ll comper announcing acquisitn, hewlett-ckard -- whose market share are you going after? >> if yo look atellomputer an hewlett-packa and even i.b.m., they're at a space -- it's cald i.t.o. -- information-technology outsourcing. they're at the server,omputer ki of infrastructurspace. that's not where we play at all. weon't do that typeof service. we provide a seice right above that which is cled document services. all those services, i.t.o. services go to work people do.

we take the document -- unstructuredocumentsbut even structured documents - written pages or typed memos or even a bill, for exame, could be unstructur in a lot ofays -- photogphs and the like -- and we manage that. >> as compies become more vertally integrate from hardware to software to serves, does this cree new confcts and new issues for yourcustomers? how e you going t address that? >>ctually, our customer -- we don't actually think creates conflict at all. it actually hel them to go to one person -- call it sometimes one throat to che. they can come to one person a get a whole vertica slice of a business taken care of but most of the olutions' complexity comes inhen you tryto do a solution on a horizontabasis. >> ms. bur, you beme c.e.o. of xerox three months ago and today you're annncing the biggest acquisition in xerox story. what is ur overall strategy

for the mpany? >> tbe the leader in document -- in solving document-intensi information-based sues for our clients and our customersround the world, so weocused on documentntensive business processes. we startedwith managing this biggest procs was replicating or duplicating something so we start by inventing a technogy that did that. we mov that up and ved that up and now we'reoving a little bit aw from the equipmenside -- equipment is very impornt -- andxpanding it to t services sid >> do u think that you are going to have t do some more acquisitions to round out the stratec plan? >> this is aig acquisition so we have to make su we nage r excess cash carefully, pay down debt first -- that is the most important thing, butfter we do that, whic we think we wi be able to do in a reasonable amount of timethen 're back into acquisitions again, smalle ones that fit into the p.o. space and fit in distribution.

>> xerox stock soldn today's news. what do u think you need to do to get investors on board with wh you are doing? >> communication, communication, commication. it's aut clarity and havg them underand the message -- by the way, i have been doing it all day, my team has been doi it as well we didn't pect a reaction on the stock -- most deals ha a downrd pressure on the stock. thiseal in size -- 's kind of largend it actually lls out a p.o. kind of instant, something that h been strategic for us but no clear in the psent day. this is communicating with invests to make sure thathey e clear --become mor clear out how this fits in the strategy and i think thaas you go forward and start to -- as my c.o. says all the time, "put numbers othe board" we'll get me and more investor buyin. >> a pleasure talking you today and i hope too a follow-up with yousoon. >> i would love to dot with yo suzie. >> paul: xerox andoday's other dealgot the blue chips fired

up. the dow jones dustrial average finished up 124 poin today, or more than 1%, snappi a three day losing streak. with just two trading dayseft in the quarte the dow is closing in on the magic ,000 mark. as scott gurvey explns, it wasn't suosed to be this y. >> rorter: traders were apparently out of the ro at the beginng of the month when the pundits declared a maj sell-o was likely in september. strategist steve wood sa he's not rprised the prognosticators got it wro. >> i'm not surprisedy anything in the marketsn the last two years. i think you had market that was pric to absolute perfecon two years ago. yohad a market that was priced to the end of the world in mch of this year. and now what youe seeing is a loof rather brisk, but consistent growth. d we're beginning to see a global rovery. >> reporter: t change in market psychology now ha foresters anticipating a test of the 10,000 mark on e dow indurial average. strategistick colas says that doesn't mean mucto the pros, but it mns a lot to individual

instors. >> i think it is an imrtant pat on the back for investor whhave been you know obviously slmed by the market over the past eighteen mohs, who've seen tir investments whipsaw around. tting back to 10,000 would be one of those sig of things gettinback to normal. >>eporter: but normal will not mean all shares wi rise. steve woodays investors need to sft their focus from earnings to revenue and lo for companies which can grow tir top line. >> you're gointo need to look for strong balance sets, strong cash position, low bt positions and ere you have competitivadvantage, where you can actually dve sales and maybe take out se competition angain market share. >> reporter: but watch outor that suckepunch. the marks are vulnerable to bad ecomic news. the key september repo on employment is t for release fray. scott gurvey, nightly siness report, neyork. >> paul: wall stre came out inging today after logging i stpest setback in months last week burs were encouraged by the vival of merger activity and the recent pickup in sucssful i.o.'s. in steady advance, the dow rose46 points by mid-day with

the nasdaq up 46 pnts. the comeback convinced me investors to ce off the sidenes and helped stocks hold most of their gains io the final bell >> susie: l prices rose today to $66.84 a bael. new york trading, november crude futures jumped 82 ces.

a lot of tt oil comes from saudi arab. specifically "aramco," the biggest oil company the world. recently i m with aramco c.e.o., khal al-falih, in sai arabia. and began by asking him whher world-wi demand for oil these days iup or down. >> oil demand continues to be ry sluggish ithe west, north america an europ we see an uptick in china, but not significant tooffset demand loss that we saw with economic and financial crisis the last year or so. it will take time to makup for miions of barrels of demand that we experien, but timately will come. >> susie: one of the biggest worriefor american consumers and erican businesses is th the world isoing to r out of oil. wh is your responseo that?

the world has 9-10 triion barrels of oi conventional and unconventional, that need tbe --hat are available for science and technolog and industry and global society to exploit in a responsible way ov a long period of time. >> susie: the fear is discoveries are not gog to keep up with production. it's just a matter of time tt the supplies are just going to -- >> if we only look at history. if we look at history, the indust has been able to replace all of the oil produced, andmore. recoveble oil as oilof the world has bee growing. we recently at aramco, altugh we are the largest producer,e have been more than replacing our prucon, and our expectationsrom technology, both in discoverynd recovery oil are very, ver bullh.

>> susie: asou know, president obama is pushing really hard for the u.s. to become ss dependent on oil and comep th alternativenergy solutions. if tt happens, what ds it mean for saudiarabia? i think realistically it's ing to take decades for the united states or any develope country, for that matter, to shiftnergy mix in a meaningful way, but the timeto start is certainlnow. i don' dispe the need to start respoibly putting resources especially science and technology to find thnical solutis, but ielieve political pronouncements abt shifting oil from oil are counterproductiv >> susie: ameran consumers are lining up touy electric cars, they're becong more -- there cuttg back on their energy use. wh does that mean for sau arabia? >> wre is the electricity coming from?

if the objective is -- ectricity is increingly coming frocoal. coal is the hhest polluter in terms ofarbonemissions and i wod advise people general to look at the totalpicture of the energy ix, where it's coming fro what are the costs to society bothnvironmentally as well as economically. >> susie: any econost would tell you thathe best way to make people fuel efficient is raise prices, so arehigh oil prices good or bad for saudi arabia? >> i think it's noa question of what's good for sdi arabia ornot. we have the hiest -- the largest resource ba, the highest production capacity. we certainly can surve on mh lower pris than others. t we look at it from a long-term responble standpoi. the prices need to be high enough for longerm growth and supply base,or invtors to invest notn saudi arabia b

in t deep seas of the gulf of mexico, also brazil and other places, so we believe pris -- there is a hpy mediu above the fact that we have seen but certainly below e fevish prices we saw last year where consumers willnot be ht but producers and invesrs will invest for theapital instment that will be ruired to bng energy supplies up and sustain the exiing supplies as well. >> susiemr. fah, thank you so much for your time. upon >> susie: u can watch the entire interview on our website, "nightly busess report" on s.org.

>>aul: now let's take a look at se stocks in the news tonight...

>> susie: one of the goa of heth care reform is bringing the 30 t50 million americans without health insurance io the syem. it's a move that will certaiy increase demand for seices. massachusetts has already required health coverageor all residents with mixed results for one thing, patients are spending a lot more timen doctors' waiting roo. as the health care debate continues, doctors are alrea warning abousupply andemand. stephanie dhue repts. >> reporter: it's busy now at the offices of faiax family practice

e 16 doctors, 16 residents a two nurse prtitioners here see about 250 patients a day. health carreform would surely add more. drwinston liau says, while it will be a stretc the practice will adjust. >>e have different scheduling techniques we can use,nd we try d extend our hours so we're open nigs and on weekends, so that people c be se when they need to be seen. it wouldefinitely strain our sources, but there are definitely ways toope with the increased demand. >> reporter: evewithout adding the uninsured, aredicted shortagef doctors will likely stress the heah care system in the cong years. that already has doctors perimenting with new, more efficient business model some areooking at medical homes, which use a teams of doctors, nurses, other healt ofessionals, and new technologies to treapatients with chronic disea. but for that coordinatedare to ppen, dr. sam jones says form needs to change the way

doctors are paid. >> they are talking abt care nagement fees, and that woul be a hugstep in the right direction, to hire either th nurses, nutritiosts or other members of the healtteam that can he manage these patients in ways other than thaone-to- one doctor/patient relionship. >> rorter: lawmakers are also considerinboosting reimbursementso primary care doctors by 10%. but to pay forhat, imbursemen to specialists would be cut. orthopaedic surgeon dr. rc rankin worries that could reduce patient access to spialty care at a time when demandor procedures like joint replacents is increasing. he says eas like medical homes to tat chronic disease may come with uninnded consequences. >> being able toanage patients to keethem out of difficulty and keep them healthier a great goalo shoot for, the

question iwill that happen, and will the..we would certainly hope tt the managed care would noteplace the old gatekeep of the early '90s of e h.m.o.s, where it was sotimes, in fact often an impediment to achieve speciay care. >> reporter: how much mo crowd the system becomes will depend othe prescription for reform, includinjust how many of theninsured get coverage and how providers wi be compensated to meet the ne demand. stephae dhue, nightly business report, washington. >> paul: tomorrow, when comes to mutual funds is new better? our "of mutual interest" commentator has so answers. >> susie: a finaial adviser in chigan is facing fraud charg for allegedltargeting seniors in a250 million ponzi scheme. the securities andxchange commission ss frank bluestein was the heart of an vestment scam operated by hi firm "e.m. management. court documents accuseluestein encouraging retirees to

reinance their mortgages to nd their investments. bluestein's lawyer has not commented. >> pl: another former enron execive is headed to prison. joph hirko used to run enron's broaand division. day, he was sentenced in hoton to 16 months in jail. he also agreed to y $8.7 million inestitution. prosecutors say rko promoted enron's broadband vision to analys, while knowing the system couldn'do what was being promised.

susie: here's a look at what's hpening tomorrow. the s&p caseshiller home price index for july, iseleased. also tomorrow, quarterly rests from darden restauras, nike and walgreen. >> paul: recping today's maet action, day of deals brings buyers off the delines. to learn re about the stori intonight's broadcast or wah our streamg video and to take partn our dai blog to "nigly business report" on pbs.org, you can email us at r@pbs.org. >> sie: a new assignnt -- captain suy

you'll recall that sullys the pilot who neuvered u.s. aiays flight 1549 to a picture-perfect landing onhe frigidaters of the hudson back in january. everyone on board surved. toy the airline announced that sully is returning to works what's kno as a management pilot. that means hll be back in the cockpit, and working as wh he calls a "safety vocate. and paul, that's somhing he knows about first hand. >> susie: he was amazing. let's hope he can teh that skill a lot o other people. >> paul: that's for sure >> susie: that's nightly business report foonday, ptember 28. gonight, paul. >> paul: i'maul kangas wishing all of youhe best of gd buys. "night business report" is made possible by:

this progr was made possible by contributions to yo pbs station from viewers like yo thank you. caioning sponsored by wpbt ptioned by mea access group at wgbh access.wgbh.org