[NOTE ANCHOR TAG!!!!!]
WorldCom has filed for bankruptcy.
The move comes after the telecommunications giant admitted to falsely inflating profits by nearly four billion dollars.
Now investors wait to see how the already shaky stock market will react.
Steve Dunlop reports from New York.
(///// SOT /////)
[SUPER=01-Neil Weinberg/"Forbes Magazine" Senior Editor; :25]
[SUPER=03-New York, NY; :46]
[SUPER=01-Alexis Glick/Morgan Stanley; 1:23]
[SUPER=01-Steve Dunlop/Reporting; 1:30]
[OUT Q=Dunlop, CBS News, New York.]
IT'S THE LARGEST BANKRUPTCY IN U-S HISTORY.
ON SUNDAY WORLDCOM FILED FOR CHAPTER 11 PROTECTION JUST ONE MONTH AFTER AN ACCOUNTING SCANDAL ROCKED THE TELECOMMUNICATIONS COMPANY.
WORLDCOM SAYS IT HAS MORE THAN 107 BILLION DOLLARS IN ASSETS.... BUT IT'S ALSO 65 BILLION DOLLARS IN DEBT.
MAKING THIS BANKRUPTCY TWICE AS LARGE AS ENRON'S RECORD SETTING FILING.
reuters(SOT- Neil Weinberg/Senior Editor, Forbes Magazine)
"The names that just a few years ago were considered beyond reproach that were sort of the golden boys of our economy can fall very quickly"
THE COMPANY SAYS CUSTOMERS SHOULD NOT BE EFFECTED... INCLUDING THOSE WHO USE M-C-I FOR LONG DISTANCE.
AND EXECUTIVES HOPE THEY WILL EMERGE FROM THIS BANKRUPTCY IN A YEAR.
(NATS OF MARKET)
EVEN THOUGH WALL STREET EXPECTED THIS MOVE... THE NEWS COMES DURING A VERY SHAKY TIME.
THE DOW OPENS MONDAY DOWN 18 PERCENT FOR THE MONTH AND MORE THAN 13-HUNDRED POINTS IN THE PAST TWO WEEKS.
PLUS, THIS WEEK ABOUT ONE THIRD OF THE COMPANIES IN THE S AND P 500 WILL REPORT SECOND QUARTER EARNINGS.
INCLUDING AT&T, TYCO AND AOL TIME WARNER.
BUT, INVESTORS AREN'T EXPECTING MUCH.
LAST WEEK, COMPANIES LIKE MICROSOFT AND SUN MICROSYSTEMS FORECAST A LESS THAN ROSEY OUTLOOK.
AND JOHNSON AND JOHNSON DROPPED 15 PERCENT AFTER IT WAS REVEALED THE COMPANY IS NOW UNDER INVESTIGATION.
Friday (SOT- Alexis Glick/Morgan Stanley)
"We're starting to see the bubble that existed for so long has burst and we're back to pre-bubble territory."
ANALYSTS BELIEVE THE SELF-OFF ON WALL STREET IS BEING FUELED PARTLY BY EMOTION..... ESPECIALLY THE CONTINUOUS NEWS OF CORPORATE CORRUPTION.
TODAY WE'LL FIND OUT WHAT WORLDCOM'S BANKRUPTCY WILL DO TO INVESTOR'S NERVES.
Several big name companies are set to release their earnings reports this week.
Alexis Christophorous has a preview of what to expect coming up later in Marketwatch...
The district attorney in Orange County, California says he hasn't yet decided whether to seek the death penalty in the kidnapping and murder of Samantha Runnion.
[SUPER=03-Orange Co., CA;]
(ah-lay-HAHN-droh) Alejandro Avila will be arraigned today.
He faces charges of abducting, sexually assaulting, and strangling the five- year- old girl.
Samantha was playing just yards from her home when she was kidnapped.
Her body was discovered the next day.
Funeral services for Samantha are pending.
A Roanoke record is most likely going to be broken early this week-- in the form of a new low at Carvins Cove.
The level of the city's main reservoir is currently 29- point- one feet below the spillway. That's just one tenth of a foot from the historic low recorded in the summer of 1999.
(///// SOT /////)
[IN Q=Any time you set a new record]
((MIKE MCEVOY: ANY TIME YOU SET A NEW RECORD THERE'S ALWAYS SOME SIGNIFICANCE IN THAT. AND I THINK IN THE FUTURE YEARS, HOPEFULLY THAT WILL BE OUR NEW RECORD AND WE WON'T SEE ANYTHING LOWER THAN THAT.))
[SUPER=01-Mike McEvoy/Roanoke City Utilities Dir.;]
[OUT Q=won't see anything lower than that.]
The next ten days will also bring some progress in the city's efforts to supplement its water supply. A temporary filter system at Crystal Spring, and a new well in southeast Roanoke should add about five million gallons a day by the end of the month.
Stage Four of the city's water conservation plan kicks in when the level of Carvins Cove hits thirty feet below the spillway.... but right now officials say they are NOT planning any tougher restrictions when the water falls below that level.
Mayor Ralph Smith says the city of Roanoke is doing everything it can to prevent the water crisis from happening again.
The Mayor plans to discuss the problem and possible solutions in his "state of the city address" this week.
Smith says it is important to look to the future and not point fingers as to what happened in the past.
(///// SOT /////)
[IN Q=You have to realize]
((RALPH SMITH/ROANOKE MAYOR: YOU HAVE TO REALIZE THEY DIDN'T SEE THE HISTORY, YOU CAN'T SEE AROUND THAT. IT'S THEIR BEST JUDGMENT. WAS IT FULLY THOUGHT OUT? WELL, YOU CAN DEBATE THAT BUT WITH THE FACTS THAT THEY HAD AT THOSE TIMES IT'S REALLY HARD TO ANALYZE THOSE NUMBERS TO CRITICIZE THOSE BEFORE ME.))
[OUT Q=those before me]
The mayor will deliver his state of the city address at a Chamber of Commerce breakfast Thursday morning.
South Boston Police are investigating a murder.
The body of 33- old Robert Franklin Bray of Halifax County was found in his car Saturday night around 6:45 on the 300 block of Easley Street.
Police say Bray died of multiple gunshot wounds.
So far no one has been arrested... and police are urging anyone with information on the crime to call the South Boston Police department .
The incident is still under investigation.
In business news, The Dow Jones industrial average shattered its post-September 11 attack lows on Friday. Stocks sank 390 points.
It was the average's seventh biggest point drop ever.
Alexis Christoforous has that story plus a preview of what to expect this week in today's Marketwatch.
[SUPER=01-Alexis Christoforous/Reporting; :00]
[OUT Q=your local stocks]
((WE'LL SEE IF THE BLOODLETTING SUBSIDES. INVESTORS WERE HEADING FOR THE
EXITS FRIDAY AS THE DOW SANK BELOW ITS SEPTEMBER 11TH LOW TO ITS LOWEST
LEVEL SINCE 1998. ACCOUNTING SCANDALS, REGULATORY PROBES AND DISAPPOINTING
PROFIT FORECASTS CONTINUE TO CHIP AWAY AT INVESTOR CONFIDENCE.
THE DOW PLUMMETED 390 POINTS, WELL BELOW ITS SEPTEMBER 11TH CLOSE OF 8235.
THE BROADER MARKET SITS NEAR A FIVE YEAR LOW.. THE SP 500 TUMBLED 33 POINTS
THE NASDAQ TANKED ABOUT 38.
HOW LOW CAN WE GO? ACCORDING TO A CBSMW.COM POLL
20 PERCENT OF THE RESPONDENTS THINK WE'LL HIT BOTTOM WHEN THE DOW REACHES
IT'S ANOTHER BUSY WEEK FOR CORPORATE EARNINGS:
THE DISCOUNT AIRLINER JET BLUE REPORTS TODAY FOR THE FIRST TIME SINCE GOING
OTHER COMPANIES TO REPORT THIS WEEK INCLUDE:AMERICAN EXPRESS, CHEVRON
TEXACO, EXXON MOBIL AND U-P-S.
THE HIGHLIGHTS ON THIS WEEK'S ECONOMIC CALENDAR:
DURABLE GOODS ORDERS, NEW AND EXISTING HOME SALES AND CONSUMER SENTIMENT.
TRACK ALL THE PRE-MARKET ACTION AT CBS.MW.COM ... AT THE NASDAQ
I'M ALEXIS CHRISTOFOROUS IN NY.))
(tape tosses to stocks)
Beginning this week, the Virginia Air National
Guard will begin de-mobilizing about 300 reservists.
Members of the 192nd Fighter Wing have been on active duty for the last 10 months.
They've been flying combat air patrols on the East Coast.
Officials say the de- mobilization process should be completed by late August.
Authorities have released the name and condition of the woman who fell nearly 70- feet from the top of a waterfall at the Cascades on Friday.
[SUPER=03-Giles Co./Friday; ]
31- year old Joyce Thompson of Peterstown, West Virginia is in extremely critical condition with head trauma and internal injuries.
Officials say Thompson was at the Cascades in Giles County with her two young daughters and cousin when she fell Friday afternoon.
Rescue crews and National Forest personnel had to use four-wheelers to carry Thompson two and a half miles to a waiting ambulance.
Thompson is being treated at Roanoke Memorial Hospital.
The Roanoke Steam wrapped up its last game of the season, and possibly the last one ever.
A lack of ownership caused numerous problems for the team this season leading some to speculate the team will not be back next year.
Justin McLeod has more on the team's future.
(///// SOT /////)
[IN Q=Nat sound of fans walking through the gate]
[SUPER=01-Marc Pr'Out/Steam Fan; :11]
[SUPER=01-Ed Jenkins/Team General Manager; :23 (QUICK)]
[SUPER=01-Matt Eres/Arenafootball2 League Official; :43]
[SUPER=01-Richie Ingram/Steam Fan; 1:24]
[OUT Q=JM, News 7, Roanoke]
((((NAT SOUND OF FANS WALKING THROUGH THE GATE; TAPE 1 21:32))
As the fans walked through the gate (QUICK NAT SOUND OF THE GAME) and the team took the field, many wondered if the game is over for the Roanoke Steam.
[IN Q=What would it be like]
((MARC PR'OUT/STEAM FAN: WHAT WOULD IT BE LIKE NOT TO HAVE THEM AROUND? I THINK IT WOULD GET PRETTY DULL REALLY.))
[OUT Q=dull, really]
And that is a real possibility according to team officials.
[IN Q=What are the chances]
((ED JENKINS/TEAM GENERAL MANAGER: WHAT ARE THE CHANCES THE STEAM WILL BE BACK NEXT YEAR? I THINK THEY ARE BETTER THAN 50/50. RIGHT NOW WE'RE TALKING TO A LOCAL INVESTOR WHO IS VERY SERIOUS ABOUT KEEPING THE TEAM IN ROANOKE.))
[OUT Q=team in Roanoke]
((NAT SOUND OF THE GAME))
The Roanoke Steam has been around for three seasons.
It was run by a local group until May when the owners filed for bankruptcy.
The arena football-2 league then came in and took over the team.
[IN Q=I think the biggest]
((MATT ERES/ARENAFOOTBALL2 LEAGUE: I THINK THE BIGGEST THING IS THAT IT NEEDS TO BE A LOCAL GROUP THAT COMES IN HERE TO RUN THE TEAM. THE COMMUNITY NEEDS TO KNOW THAT THE TEAM IS HERE TO STAY.))
[OUT Q=here to stay]
The league would like to have those new owners in place by the end of the summer.
[IN Q=Part of the problem]
((JUSTIN McLEOD/REPORTING: PART OF THE PROBLEM IS ALSO A LACK OF FANS. THE STEAM RANKS NEXT TO LAST IN THE LEAGUE FOR HOME ATTENDANCE, AVERAGING JUST UNDER TWO THOUSAND PEOPLE PER GAME.))
[OUT Q=people per game]
((QUICK NAT SOUND OF FANS CHEERING))
That is down from a high of just more than three thousand fans per game two years ago.
This season, overall attendance is up nearly twenty five percent but down significantly since the teams ownership problems came to light.
((NAT SOUND OF DRUM PLAYING; TAPE 1 24:26))
Loyal fans hope to drum up support by word of mouth.
[IN Q=I'm trying to get people]
((RICHIE INGRAM/STEAM FAN: I'M TRYING TO GET PEOPLE TO COME HERE FROM THE ROANOKE ATHLETIC CLUB. A LOT OF PEOPLE I'VE WORK WITH AT PITT OHIO, TRYING TO GET PEOPLE DOWN HERE. I DON'T THINK THEY REALIZE WHAT THEY'RE MISSING.))
[OUT Q=they're missing]
And unless an owner is found quickly, they may be missing it for good.
Justin McLeod, News 7, Roanoke.))
(Kimberly tosses to bump)
A baby seal made a rare appearance in Virginia Beach this weekend.
Scientists say it's unusual for a seal to surface this time of year.
They're usually spotted in the later months of the year as the weather gets cooler.
(///// SOT /////)
[IN Q=Well the first thing]
[SUPER=01-Susan Barco/Research Scientist;]
((WELL THE FIRST THING WE THOUGHT, WAS ITS JULY, ITS HOT, ITS VIRGINIA, A SEAL SHOULDN'T BE HERE PERIOD. JUST KNOWING THE SEAL WAS IN THE AREA WAS CAUSE FOR ALARM. ))
[SUPER=01-Susan Barco/Research Scientist; ]
[OUT Q=cause for alarm.]
The baby seal, named Jordan, is anywhere from six to ten weeks old.
After being examined, scientists discovered that he was underweight, had a high temperature and was more congested than normal.
Jordan is resting up and receiving antibiotics to help him return to full health.
He will soon be headed to a stranding rehabilitation center in New Jersey.