Military

DATE=10/03/01

TYPE=CORRESPONDENT REPORT

TITLE=WALL STREET WRAP (L AND S)

NUMBER=2-281320

BYLINE=JOHANSON

DATELINE=NEW YORK

CONTENT=

VOICED AT

INTRO: U-S stock prices rallied Wednesday, as optimism soared about a

government stimulus package for the flagging U-S economy. The major

stock averages have substantially cut their losses in the wake of last

month's deadly terrorist attacks. V-O-A correspondent Elaine Johanson

reports from New York:

TEXT: The Dow Jones Industrial Average rose 173 points, almost two

percent, to nine-thousand-123. The broader Standard and Poor's 500

index gained 20 points, two percent. The tech-weighted Nasdaq composite

soared almost six percent higher.

Analysts say the promise of a multi-billion dollar economic stimulus

package from Washington revived sagging morale on Wall Street.

The latest news on the U-S economy also was positive. Data show

non-manufacturing activity climbed in September after hitting a

four-year low in August. Experts were expecting a further decline in

the services sector.

The U-S stock markets plunged more than 16 percent in the week following

the terrorist attacks. The Dow Industrials now are just five percent

lower. The Nasdaq is down about six and three-quarters percent.

///REST OPT///

The rally added to Tuesday's gains after the U-S central bank lowered

interest rates for the ninth time this year.

Jeremy Siegel, a professor at the Wharton Business School in

Pennsylvania, applauds the fiscal stimulus package being worked on in

Washington. But Professor Siegel believes the Federal Reserve, the

central bank, has a critical role as the United States copes with the

likelihood of recession, and the U-S government should encourage more

rate reductions:

///SIEGEL ACT///

I don't believe the "Fed" (Federal Reserve Bank) can prevent a recession if it's going to

happen. I think the "Fed" can make us feel a lot better going into one,

in other words, take off the edge, take off the real hard drop in

economic activity.

///END ACT///

Germany's largest bank, Deutsche Bank -- one of the leading

international financial services providers -- has given a vote of

confidence to the U-S financial world. Its shares started trading on

the New York Stock Exchange Wednesday. Deutsche Bank chairman Rolf

Breuer says he decided to go ahead with his debut in the U-S captial

markets, despite the events of September 11th:

///BREUER ACT///

I am convinced these dramatic events, these disasters on September 11th,

have been very bad indeed. But they have not hit the industry, the

markets, the economy to an extent which will be of a continuous

importance.

///END ACT///

Trading on the New York Stock Exchange gives Deutsche Bank access to the

largest capital market in the world. This puts it in position for

future acquisitions. The German bank says it plans to expand primarily

in Europe. (signed)

NEB/NYC/EJ/RH