but how about telecom services. that sector up more than 12%. tonight's "street critique" guest joins us from the bank of new york. it is jonathan chaplin at credit suisse. welcome to "nightly business report." >> thanks, tom. >> tom: what has been fueling this performance that we've seen over the last quarter or so in telecom? >> i think it is pretty straightforward. it is primarily one thing: it's yield. as investors get concerned about growth concerns for the economy, 6% dividend yield for at&t and verizon stocks looks in increasingly compelling. you've got a better prospect of getting a return from that yield than other sectors in the economy. >> tom: it sounds like quite a defensive play. but what about the growth expectations for this sector? are there any? >> it is not going to be a sector that grows the top line at g.d.p. or above for the foreseeable future. but this is a company that can -- an industry that can generate a fair amount of earnings growth in the low-growth economic environment. so with 1% revenue growth, telecom companies

there's just one more month left in the third quarter, and so far this quarter, telecom has been the winning sector. so far this quarter, the telecom services sector is up more than 10%, far out performing the s&p 500 index, which is up less than 2%. the sector has fared much more defense in this latest sell-off. since the quarter's high point on august 9, all ten of the s&p sectors are down, but less so for telecom, down 0.5%. the index has shed 7%. and that's tonight's "market focus." >> tonight's word on the street is retail. jeanine poggi reports for the street.com and joins us. welcome to nightly business report. >> >> thank you for having me. >> there are two broadly diversified retail exchange stocks. how diversified are they. >> two of them. they're pretty diversified. i would say the spider retail is more diversified stretching across the sector withholdings from tiffany and nordstrom to amazon and netflix. it's very equally weighed. >> the ticker simple is xrt. it has a broad basket of stocks, 65 in all. year to date up just under 1%. when we look at the stocks it holds the

now, its been a trend lately, when the broad market weakens, even slightly like today, telecom finds buyers. sprint-nextel doesn't fit the classic case of a telecom stock, because it doesn't pay a dividend, but shares rallied more than 3% on heavy volume. u.b.s. thinks it will report growing wireless revenue after quarters of disappointment. investors weren't shy about some gaming stocks, as another one of the global operators looks to its china business. m.g.m. wants to be the latest to carve out its macau operations for an initial public stock offering in hong kong. the timing or terms haven't been disclosed, but the move sent m.g.m. shares up more than 5%. las vegas sands and wynn already have spun off their macau businesses. las vegas sands hit a new high today, up 4%. wynn resorts, though, fell 3%. it hit a 52-week high last week. finally, some positive results for a medicine to treat hodgkin lymphoma sent shares of its maker, seattle genetics, jumping. the company plans to file for f.d.a. approval in the first half of next year. investors aren't waiting around, the stock popped

telecom service stocks were back in front. at&t put up a 1.5% gain to its highest price since january. frontier communications added almost 1.5% verizon gained more than 1% to its highest price since april. telecom stocks have been among the market leaders recently as investors have been attracted to dividends. healthcare stocks also found buyers, driven by a hospital, an insurance company, and a medical device maker. tenet healthcare jumped 5.5%. last week, that stock was at a 52-week low. concerns about patients paying their bills have hurt, but the company raised its earnings forecast this summer. wellpoint is at a one-month high with today's 3% rally. and boston scientific added almost 3%. b-s-x shares also hit a new low just last week. leading the s&p 500 today was software company adobe. it appears its chilly relationship with apple is thawing a bit. apple relaxed some of the restrictions it places on software developers who create apps for iphones and ipads. it now allows those developers to use abode's popular software

flock to mix having given up only against tech stocks and lending some support on the front seat telecoms and utilities are dragging unilever is the top performer on the foot to go to a cent this hour on news it's to acquire a u.s. company for three point seven opinion dollars. and here in russia markets are also mixed and recall is dragging on the my sex and it shows is down a little three and a half percent this hour plants was shutting us telecom is bucking the trend up one point from week setting. profits at the russian oil pipeline monopoly trans neck to plunge by forty eight percent in the second quarter despite strongest sales the net total came in at just under six hundred million dollars to say the bottom line was hit by rising costs and foreign exchange losses. russia's people of the sport almost five percent of it shares from conoco phillips but two point four billion dollars it's less than half the stake the american firm put up for sale under an option that expired on saturday courses the aim of the buyback is to end halt its attractiveness to investors and support the check

do the same kind of wire taps you could always do this is basically saying not this handful of big telecom companies with centralized architecture but any of these burgeoning little startups that might provide some kind of communication service not just have to build in certain equipment but have to architect their whole system a certain way they can't do a decentralized secure and and form of providing encryption they have to in some sense centralize it so that there's a central bank that everyone under the same blanket i mean to me out it seems just a little scary it's like the government always is trying to keep up with the latest technology the internet which is supposed to be the bastion of freedom is now getting away from them so they just have to try to clamp down but i think it's wrong like i said whatever happened to the fact that we're supposed to check the government and not the other way around julia thank you so much for being here thank you still to come tonight when or if they only live on earth they'll apparently want control of our nuclear weapons. and is the pentagon keep

finishing up of wine a half percent and the last six just over a percent across telecom was the biggest gainer all of my six up over five percent backing in energy shares were also high with bt beginning three percent on the r.t.s. shares of sperm bank of lukoil finished up two point four percent. gazprom will boost investment by thirteen percent in the final months of two thousand and ten it will take the total sum for the year to about thirty billion dollars the money will go on keep gas transport projects plants and russia's far east along with the north and south stream pipeline projects. now look out the rest of thursday's company news eldorado russia's electronics retailer says it will exceed its profits forecast this year helped by the opening of four more stores the group's vice president of marketing says the company wants to become a leader in europe. so my goal over the next three years is to become the best in europe in the next couple of years we're going to rebrand the whole chain we've managed to recover and regain the confidence of both consumers and banks were quite pro

. >> that is an online blog that covers telecom and technology issues all over the map. people can find it at our online website. >> next question. >> coup d'etat about -- could you talk about the children's privacy protection act? >> this is a statute that generally forbids and the knowing collection of informations on line of children 12 and under unless there is explicit permission given. we are worried that the online environment is developing so rapidly that the original statute and our rules and forcing it are out of date already. for example, it does not necessarily apply to certain applications on mobile phones. it does not apply to online gaming sites of the kind we see. we held a round table a few months ago. we brought in people to talked- about -- to talk about whether was important to revise our rules on this statute. we have not reached a final solution. there is concern about advertising to children online and about whether we needed to step in to see if there were protections that we could build an -- build into insulate kids. these are complicated issues

. >>> japan's communications ministry and private telecom firms are to propose joining hands with indiao create new business in the field of information communication technology. a japanese consortium will go over the proposal on wednesday. the plan is aimed at gaining market share in the growing indian economy, where 19 million new mobile phone subscriptions are made each month. the number of subscribers has topped 600 million. the second highest figure after china. ministry officials and the firms set up the project in march to discuss japan's communications strategy in asia. the project team will use technical assistance from ncc doak noe to build a next generation mobile phone system for the country. japanese electronics maker sharp will also help india to test digital textbooks to see if they can be put to practical use. >>> in the u.s. consumer confidence worsened in september, casting a shadow over the country's economic recovery. u.s. research firm the conference board released an index of consumer sentiment on tuesday based on a survey of 5,000 households nationwide. the firm s

markets were led by the economically sensitive industrial stocks, and flight to safety buying in telecom, due to the sector's dividends. last night's winner and loser were the big movers today, we're talking about oracle and biotech firm arena. the loser? arena pharmaceuticals saw huge volume. today's 47% stock drop takes it down to an all-time low. an f.d.a. advisory panel rejected its obesity medicine. oracle stock saw five times its normal volume, jumping 8%. that takes it to a new post- bubble high-- the bubble being the tech stock bubble from 2001. its earnings beat the street. also in tech, a couple of memory chip makers got hurt over worries about falling chip prices. micron fell 5%, with analysts cutting their estimates, blaming weak demand for personal computers and consumer electronics. sandisk dropped 3% over pricing worries. finally in tech, check out netsuite-- rallying to a new 52- week high. this business software firm will add 150 workers to meet demand for cloud computing services. education stocks have staged big rallies since the month began, including a big pop in stu

and in my eyes and also gaining with the major blue chips trading in the black leaving the games telecom top morgan five percent the stock followed by bt b. and spare bank energy shares are also trading well gasp on the new poor are up about eight percent. russia is credit ratings outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost are accelerating growth of stabilizing banking industry and a flexible exchange rate policy from the central bank which said it may further raise russia's credit rating if the government reduces the country's small rehabilitate swings in oil prices. plunging interest rates have led to a three fold rise in borrowing on the syndicated loans market by russian companies corporate loans have jumped by twenty billion dollars from just under seven billion dollars from the year before for example an unsecured loan this year at about one percent above to bank rate last year a similar but secured loan by the same company had an interest rate four times higher. than. the russian auto market could return to pre-crisis levels in thr

. >>> walmart has jumped into the telecom game. the world's largest retailer has launched a contract-optional family cell plan carried on the t-mobile network. it costs $45 for a month of unlimited calling and texting, and another $25 for an additional line. while walmart has other mobile service plans, this is the first one that is not prepaid. >>> more students are having trouble paying off their college loans. the department of education says in 2008, 7% of borrowers defaulted on their student loans. that's up from 6.7% the previous year. the biggest offenders are those who attend for-profit schools, whose default rate is more than 11.5%. >>> and if you're a gamer you probably have today circled on your calendar. microsoft's halo reach goes on sale today. it's the fourth so far in a series that has already generated some $2 billion in revenue. stores opened at midnight for those customers that just couldn't wait. terrell, i'm sure there were some long lines for that. >> i bet. ashley, would you wait in line for anything? >> shoe

from last nearly half a percent bucking the trend for the first telecom point seven percent dent to be close point three percent on the mice it's. now off to a relatively dull week for markets investors expect this want to be action packed equities sales director i think sun that is the heart of says that's because there are investment bargains to be had in russia the market is probably going to hole pop in the next this coming week or maybe the next week we we do see substantial interest in that russia doesn't look cheap price earnings ratios other valuation of the russian market substantial lugging not only developed countries but also developing markets so the patient is one of the clients there is still sort of a little bit of apathy in the way last week we've seen a number of holidays in european countries so people have been quite an active because of several taking place last week this coming week for all the all the major players are going to go back and we will see the volume speaking of russia's largest private commercial bank as reporting record three hundred million dollars

is up over one half percent this hour the my six is up just over a percent in the games as ross telecom up more than five percent and energy shares are also performing gas from a new coil are up about eight percent. well just credit rating outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost accelerating growth stabilizing banking industry and a flexible exchange rate policy from the central bank fitch said it may further raise russia's credit rating if the government reduces the country's vulnerability to swings in oil prices plunging interest rates have led to a three fold rise in borrowings on the syndicated loans market by russian companies corporate loans have jumped by twenty billion dollars from just under seven billion dollars from the year before for example local took on an unsecured loan this year at about one percent above into bank rate last year a similar but secured loan by the same company had an interest rate four times higher. russian kamarck it could return to pre-crisis levels in three years' time that's according to a new rese

been driving russia stocks this week for quite a few names and i'm sure there's after hours for us telecom preferred just based on local news primarily the size that we're seeing sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise and i saw the weeks because there is a new money coming into the fall so. global. energy market funds are getting some in follows as our stories this week by you can always find more on our website that's our to dot com slash business. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are on the day the the be .

been driving the russian stocks this week and quite a few names to mention or so after was the us telecom preferred just one based on local news primarily besides that we've seen sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise and i stopped the weeks because there is a remarkably new money coming into the funds for global europe global fund some of the emerging market funds are getting some inflows as well stories this week but you can always find more on our website that's already dot com slash business. close up game has been to the our hangal speak. for the first russian fleet was more. goals to the area which holds top position in oil and gas resources. where the biggest russian salmon cammy are processing factories no cooper and where unique species of foreign pharma can be found. come to the sun clean region. should close up on r t. more news today violence is once again flared up the film these are the images the world has been seeing from the streets of canada.

hasn't been driving russia stocks this week and quite human aims to mention those so after us or us telecom preferred just one based on local news primarily besides that we're seeing sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise on next couple weeks because there is a primary really new money coming into the fall so global europe global. emerging market funds are getting some inflows as our stories this week but you can always find more on our website that's already dot com slash business. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are on the day. welcome back to where we bring you full coverage of the city's millennium celebrations and also the global policy forum which is just to hold it for is more on that just ahead but first let's get a recap of our main headlines the u.s. for members of victims of the vote eleven attacks those who gave emergency aid over the tr

and ross telecom continue to twenty three from monday to. three percent. russia second largest oil producer has announced net income for the second quarter fell sixteen percent to two billion dollars that's despite a strong rise in revenues the company says it was hit by taxes and costs which rise faster than the price of crude oil separately the company says it does not intend to buy back the entire six percent of it shuts from current philips speaking exclusively to. vice president biden explained why. we think that the purchase of almost eight percent of shares is enough to reduce the tension on the market and to assure that. if the company is interested in increasing its free flow. on the market. we are also looking at listing on one of the asian markets in the future i think it's enough to ensure future stable and reliable company before. foreign carmakers at the moscow international like to show have checked to russia to drive the sales out of the economic downturn but experts warn success will come at the expense of domestic brands reports. joined j

what's been driving north american telecom. >> i think we have strengthened our position qi dramatically in north america. all the latest technology and the customers and the carriers in the country. also we have... we were running the network for sprint. all in all we have 14,000 employees in north america. we're more than one provider in north america. this is an important market for us. >> tom: you're talking about the roll out of the 4-g network. what's the global outlook our seeing. >> as we saw yesterday, the report from the commission i think we're seeing very big need for broadband all around the world. the main will be broadband. and the main part will be mobile. we see that from any type of country, the productivity and the importance of having broadband. so that's a general theme across the globe when it comes to broadband. >> tom: clearly anticipating monster growth in the years ahead. just last quarter you blamed component shortages and supply chain bottle necks for slower growth for erickson. are those continue something. >> i think there are a couple different things that

indices are higher leading session with all the major blue chips in the black leading the games is ross telecom up more than four percent banking and energy shares are also gaining with spare bank and look oil trading up over two of two point four percent of the r.t.s. admittedly up over three percent on the license. russia's credit rating outlook has been upgraded to positive from stable by fitch ratings the reason for the boost accelerating growth stabilizing banking industry and a flexible exchange rate policy from the central bank which said it may further raise russia's credit rating if the government we do says the country's vulnerability to swings in oil prices. and russia's economy has a long way to go before the ruble becomes an international reserve currency that's the dominant view from a conference focused on the prospects for the russian currency he steps according to analysts should be to boost the couple and bond. markets stabilize and supply the russian economy and lower the inflation rate however the president of the mars x. exchange says russia is making progress. using ruble

hasn't been driving a russian stocks this week and quite a few names to mention those off of us or us telecom preferred just based on local news primarily besides that we're seeing sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise in next couple weeks because there's a new money coming into the fall so global europe global fund some of the emerging market funds are getting some information as our stories this week but you can always find more on our website that's already dot com slash business. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations are on the day. every month we give you the future the best in science and technology from across russia and around the world. join us. on our jeep. with. data generated from an electrical grid. you can do to do it in california. in terms of energy sources present black and. let's go to sort of. our own welcome back to where we're bringing

are making games they're loved by ross next up one and three quarters percent this hour but ross telecom is still on the slide it down more than one point two percent. fitch ratings agency has placed the bank of moscow russia's fifth largest bank on negative watch it follows this week's dismissal of moscow's mare yury luzhkov by president medvedev the agency says the appointment of a new met could cause a deterioration in the relationship between the bank and the city of moscow how to close ties to the outgoing administration. i'm not sure update for now but of course you can always find more stories on our website that's r t dot com slash business. for the full. face to face with. today. these are the images. from the streets of canada. here in the russian capital you headline. but. says the decline in supply is due to a disease affecting the country's. blocks nato. supply routes. in response to the killing of its soldiers. to talk to empty seats. raising questions over its ability to global issues the us has been criticized for being. considered to be the most important. while in recen

trading with all the major blue chips in the black leading the gains on both the board says israel's telecom that's up more than four percent banking and energy shares are also gaining woods where bank and local both trading over two point four percent of the r.t.s. and up over three percent of my six. russian oil companies are increasingly looking east several producers want to expand or establish operations in china within several years after representatives told the conference they could build new refineries with the chinese. more oil products in china vice president said priority is to expand to asia as the fastest growing region. and russia's credit rating outlook has been upgraded to positive from stable by fitch ratings the reasons for the boost accelerating growth stabilizing banking industry and a flexible exchange rate policy from the central back pitch said it may further raise russia's credit rating if the government reduces countries vulnerability to swings and or prices. plunging interest rates have led to a threefold rise in borrowing on the syndicated loans market by russian

driving russia stocks this week and quite a few names and i'm sure there is so after hours for us telecom preferred just based on local news primarily besides that we're seeing sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise on last couple weeks because there is a primary really new money coming into the fall so global europe global. emerging market funds are getting something follows as our stories this week by you can always find more on our website that's our to dot com slash business. for the full story we've gone to. the biggest issues get a human voice face to face with the news makers. subgame has been to their hangal speak. for the first russian fleet was going. to r.t. goes to the area which holds top position in oil and gas resources. where the biggest russian salmon can be our processing factories located. where unique species of former can be found. the struggling region. sure close up. of a very welcome back to. full coverage of the city's millennium celebr

been driving a russian stocks this week and quite a few names to mention those after hours for us telecom preferred just one based on local news primarily besides that we've seen sort of the market a little bit sideways again although to be honest with you there is a potential momentum gaining place we probably going to see some substantial rise and i stop the weeks because there's a new money coming into the fall so global europe global fund some of the emerging market funds are getting some inflows as our stories this week but you can always find more on our website that's already dot com slash business. more news today violence is once again flared up. these are the images the world has been seeing from the streets of canada. trying to corporations rule the day. in some petersburg she's available in hotels a story a. speech we kowtow to troops on the soto the true story toto. you still. see how this. visit. welcome back to where we're bringing you full coverage of the city's millennium celebrations and also the global policy forum which has just been held to ransom over the top of the