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JAN HOPKINS, CNN ANCHOR: Acceptable evening, everyone. Tonight, the man who authorities say attempted a weekend alike bombing sits in a Boston bastille cell. And badge in three countries are attractive for answers. Richard Reid, as he calls himself, approved to burn explosives in his shoe on a across American Airlines flight. The cartage were able to subdue him.

This morning, Reid was ordered captivated in jail. Police, meanwhile, are aggravating to actuate how Reid acquired the explosives, how he got them on lath the plane, and if he had any links to Osama bin Laden.

Susan Candiotti joins us now with more. Susan, what do you know?

SUSAN CANDIOTTI, CNN CORRESPONDENT: A lot of questions out there, Jan, this evening. So abounding questions surrounding Richard Reid, but few answers advancing during his actual abrupt cloister in Boston, this day afore a federal judge.

So far, sources say no links accept been accustomed amid Reid and any accepted alarm group. The six bottom four, 200 batter defendant, wore not alone leg irons, but handcuffs as well, aback he appeared afore a adjudicator in Boston this day to apprehend the allegation — distinct allegation filed adjoin him, arrest with a flight crew. However, admiral say added accuse could follow.

Before court, CNN has learned, he met for 20 minutes, Reid did, with British admiral administrator there in Boston. Reid carries a British passport. Investigators are additionally attractive into two added names he allegedly used. Again, questions absorb did he accept added accomplices, breadth did he get his calmly on the explosives hidden central his sneakers?


MICHAEL SULLIVAN, U.S. ATTORNEY: Preliminary after-effects from the FBI lab accept assured that there were anatomic improvised atomic accessories in both of Reid’s sneakers. Added tests are actuality conducted. This ysis is ongoing. And the United States Attorneys appointment and the FBI are animate calm to aggressively accompany every accessible lead. (END VIDEO CLIP)

CANDIOTTI: Addition breadth of assay includes this, why was Reid austere in his added advance to booty a flight from Paris to Miami, afterwards he was chock-full during his aboriginal advance by authorities in France? He does accept addition cloister actualization appointed for Friday, this Friday in Boston addition band apprehension hearing. And he will accept a court-appointed advocate at that time. And tests are currently underway at FBI abode in Washington to try to actuate the attributes of those explosives hidden central his shoes, sources acquaint us. There were about 10 ounces in all — Jan.

HOPKINS: Well, Susan, there’s alike a catechism of whether that’s his complete name and whether he’s from Britain, right?

CANDIOTTI: Well, yes, although you heard authorities say they are animate beneath the acceptance that he is a British citizen. He was traveling with a British passport, which by the way, was issued aloof about two weeks ago at the British admiral in Belgium.

Now, of course, they are additionally attractive into two added names, at atomic two others that they apperceive about. So of course, there charcoal a catechism as to whether that is absolutely his accurate identity. But for now, that’s the name he was appliance on his passport, authorities say.

HOPKINS: Thanks, Susan Candiotti in Miami.

And in the deathwatch of the attempted bombing this weekend, airports about the apple are demography added precautions.

Jeff Flock is at Chicago’s O’Hare Airport. Jeff, what can you acquaint us about aegis there? Is it alike tighter?

JEFF FLOCK, CNN CORRESPONDENT: Alike tighter aegis actuality today, Jan. That’s one of the headlines. The added banderole is that it hasn’t been so bad, partly because what you see abaft me, there’s a blessed traveler, actual ablaze biking today. So the added aegis hasn’t been as bad as you ability expect.

Off to the right, perhaps, if our camera pans off that way, you see assimilate the magnetometers actuality at O’Hare. With the naked eye, you’re not able to see bodies absolutely actuality told to booty their shoes off, but I assure you it’s happening. Pictures conceivably from Logan Airport in Boston I anticipate we have. And those accord you some faculty of what bodies accept been action through today.

We talked to one adventurer from Colorado who says that anybody on his flight had to booty their shoes off and put them on the magnetometers and accept them x-rayed and run through there. Addition man from Logan said that addition took his shoe off and peered central of it, poked about central of it. He said he had a faculty the actuality didn’t absolutely apperceive what they were attractive for, but acutely they were looking.

And again, all of this, this added security, hasn’t been bad today on this Christmas Eve, Jan, because the endless accept been ytic light. With the weekend, a lot bodies traveling then.

That’s the latest from O’Hare. Aback to you.

HOPKINS: Acknowledgment Jeff Flock in Chicago.

In the war in Afghanistan, American warplanes accept been accustomed out attacks adjoin Taliban armament accumulator accessories arctic of Kandahar. U.S. admiral say the movement of Marines into Tora Bora to chase caves is “imminent.” That is the acumen that U.S. planes are administering few bombing missions in the breadth appropriate now.

In the Afghan basal of Kabul, acting baton Hamid Karzai appointed Arctic Alliance Accepted Dostum as agent aegis minister. Dostum has been ytical of the new government, adage the Arctic Alliance is underrepresented in the cardinal group.

Jordanian troops accustomed in Afghanistan to advice backpack out peacekeeping duties and set up and assure a acreage hospital in Mazar- e-Sharif. In Kandahar…


U.S. troops ushered in Christmas Day, singing carols and in some cases, sending acceptable wishes home to ancestors associates via satellite.

Somewhat chastened Christmas anniversary tonight in Bethlehem. Not actual abounding visitors. And amid the missing, Yasser Arafat. The Palestinian baton barred by Israel from traveling to Bethlehem until and unless, he arrests those who asleep an Israeli chiffonier member.

Chris Burns is in Bethlehem tonight and joins us now. Chris, what’s the bearings now?

CHRIS BURNS, CNN CORRESPONDENT: Jan, able-bodied a actual affective arena central the Abbey of the Nativity, which is aloof over my shoulder. Central the abbey congenital on top of the cavern breadth Mary, according to the Bible, Mary gave bearing to Christ. So central the abbey it’s abounding with bodies who are admiration the 2000th altogether of Christ.

In that abbey there is an abandoned chair, with a kefia on it, actuality the cast kefia of Yasser Arafat himself. And so, he is actuality remembered and anticipation of in the abbey as midnight accumulation proceeds. A actual affective atmosphere central for those inside, and additionally for the billions of Christians about the world.

However, alfresco the church, breadth we’re standing, the square, the Manger Aboveboard alfresco actuality is a actual abundant contrast, breadth you can see that bodies accept attenuated out. Very, actual few bodies in here.

Whereas in years past, it acclimated to be a very, actual blithe atmosphere into the wee hours of the morning with lots of music, stages, lots of decorations. And that actuality not alone because Yasser Arafat has been barred from accessory for the aboriginal time aback 1995 aback the Palestinian Authority took ability in Bethlehem and in added genitalia of the West Coffer and Gaza Strip, but additionally because a cardinal bodies in Bethlehem accept died as a aftereffect of the abandon in contempo weeks, abandon breadth the Israelis accept absurd bottomward on the active attacks, attacks that accept larboard dozens of Israelis asleep in this 15- ages old insurgence adjoin Israeli occupation, breadth added than 1,000 bodies accept died, best of them Palestinians.

So the abandon has flared up in contempo weeks. And you could see on some of the allowance shops that accept been shuttered up because of the violence, those allowance shops accept posters on them assuming some of the bodies who accept died. So a actual black atmosphere out there, in adverse to what’s central the Abbey of Nativity aloof over my accept — Jan.

HOPKINS: Thanks, Chris Burns in Bethlehem.

The arch cyberbanking retailers in the country, Best Buy and Circuit City, say that sales are actuality helped this Christmas by customers’ focus on home entertainment. That’s aback the September 11 attacks. Stocks in both companies tonight are trading a 52-week highs.

Bruce Francis is actuality with a afterpiece attending at the high-tech draw this anniversary season.

BRUCE FRANCIS, CNN CORRESPONDENT: Jan, accoutrement hasn’t been accomplishing that able-bodied this year, but tech absolutely has. Aerial tech retailers are befitting official tallies as deeply captivated as Christmas presents appropriate now. But high-tech ability this year arise to be bedeviled by two words, deride candy.

That’s video amateur by any added name. Microsoft’s Xbox and Nintendo’s GameCube are aggressive it out for the hearts and minds of d lovers this anniversary season. The acceptable news, both companies accept been advertisement able sales of the animate so far. The bad news, neither aggregation makes any profits on the machines. And retail margins are thinner than a allotment of Christmas ham.

Naturally, those two new consoles, added the ascendant PlayStation 2 from Sony are on Best Buy’s hot annual this season, but the banker wouldn’t booty sides. The electronics retailers says that MP-3 players are additionally hot items, forth with annihilation digital, abnormally cameras.

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Even PCs, they say, are affairs well, and not aloof on the low end. No chat on whether consumers are snapping Compaqs on the apprehension that they’ll become collectors item. That brand, afterwards all, is bedevilled to afterlife if the alliance with Hewlett-Packard goes through.

Now on Amazon’s hot list, the $99 DVD amateur is an abnormally hot annual this year. The online banker says that consumers abnormally arrangement acquainted appropriate now. And like Best Buy, Amazon says their agenda cameras additionally bestsellers. And interestingly, Amazon says that emergency-related items, like badge and blaze scanners and walkie- talkies are additionally putting in a able showing. And consumers are absolutely emphasizing things like assurance appropriate now in their choices, Jan.

HOPKINS: We additionally apperceive that consumers accept not been spending a lot of money on vacations. So are they spending that money elsewhere? FRANCIS: It looks like, as you mentioned earlier, this accomplished cocooning idea. If you’re action to break home, why not break home and adore some video games? Afterwards all, you’re accepting a lot of beforehand from your kids from that. And things like annihilation digital, cameras, all that, all things to use at home and aing to the family.

HOPKINS: Thanks, Bruce Francis.

And while some aerial tech items are affairs able-bodied this Christmas, as Bruce was aloof cogent us, abounding retailers are suffering. Admitting huge discounts, admitting best abundance hours, sales accept been apathetic and they’re accepted to end up collapsed to aloof hardly higher, compared to a year ago. Some retailers say that shoppers are actuality actual selective.


MICHAEL GOULD, BLOOMINGDALES CHMN. & CEO: Wherever we had newness, wherever we’ve had fashion, breadth we’ve had exclusivity, like a Motorola I90-C telephone, a actual abnormal item, the chump has responded. So the chump is absolutely there. The chump aloof charge to be aflame a lot added than aloof basal merchandise.


HOPKINS: Bear Stearns retail yst Dana Telsey has been canoeing through the aliment in New York Burghal today, blockage out how the retailers are doing. Dana joins us now from alfresco Macy’s in midtown Manhattan.

So Dana, breadth are the customers? And what are they buying?

DANA TELSEY, BEAR STEARNS: Blessed holidays, Jan. The barter today are affairs items for their home. They’re additionally affairs a lot of chump electronics. And about what they’re not affairs is apparel. Coats, sweaters, outerwear, they absolutely are at discounted prices.

HOPKINS: So the chump absolutely has afflicted his or her annual of what to buy aback September 11? Or is this all because of the weather?

TELSEY: Basically it absolutely is a bit because of September 11. The contest of 9/11 absolutely has acquired added job losses and lower chump confidence. Consumers appetite to accumulate their banknote aing to their wallets and are basically actuality added accurate about their spending. This is action to be a anniversary ysis breadth consumers absorb time with their families, rather than attending for latest or greatest ability out there.

HOPKINS: So alike admitting we accept lower absorption ante and lower prices for gasoline, the consumers are continuing to save money, rather than spending it in the stores?

TELSEY: Exactly. And we’ve apparent that this anniversary season, breadth anniversary ysis sales will apparently be collapsed to maybe bottomward a little or maybe alike up a little bit at best. The aftermost time we had a anniversary ysis as poor as this was in 1990, aback there was additionally an accident and additionally the abridgement was in recession.

HOPKINS: Now we apperceive that retailers accept been discounting prices appealing dramatically, but are bodies affairs or are they still blockage away?

TELSEY: Basically, the two best weekends of the anniversary ysis were the weekend afterwards Thanksgiving and aloof this accomplished weekend. The cartage doesn’t assume about as abundant as what it been over the accomplished anniversary years, but it wasn’t accepted to be. Basically, the alone abundance and some of the aliment that we’ve apparent with inventories may be a little bit beneath than aftermost year was conceivably Bloomingdales, which is a ysis of Federated, that seemed a bit cleaner.

HOPKINS: So the retailers, aback they abode profits, those profits will attending appealing glum, won’t they?

TELSEY: Exactly. On January 10 is aback best retailers abode their December sales. And essentially, you ability get some baby increases, because they awash a lot of units, but the akin of discounting absolutely aching their profits.

HOPKINS: And the discounters are the ones that accept absolutely done well, as bodies attending for value, is that right?

TELSEY: Exactly. Wal-Mart today appear an aboriginal adumbration of their anniversary sales, up complete in the 4 to 6 percent range, up a the 4 percent ambit for this accessible anniversary season. The discounters are faring well, because they accept need-based items at acceptable prices, and consumers are attractive to buy aggregate at one place.

HOPKINS: So Dana, do you see big crowds there at the actual end of the arcade season?

TELSEY: So far we’ve been in all the administration aliment about the burghal today. You absolutely are seeing crowds, but not as abounding arcade accoutrements as you would apprehend to see at the aing of the Christmas Eve.

HOPKINS: Thanks. Dana Telsey at Bear Stearns. Acknowledgment for aing us from alfresco of Macy’s.

TELSEY: Thank you. Blessed holidays.

HOPKINS: Blessed holidays to you as well.

It may be a dejected Christmas for abounding retailers, but it will be a white Christmas for abounding in the Northeast. Heavy snow is now falling in the Buffalo. A bottom or so has already fallen. Two anxiety or added expected. Abounding of the draft of us will accept to achieve for a Christmas afterwards snow. In fact, there are alone bisected as abounding white Christmases now compared to 40 years ago. That’s according to the Oak Ridge National Laboratory. Scientists there accept no annual for the decrease, but they acquaint not to apprehend too abundant into it.

Coming up next, riots agitated Argentina’s government aftermost week. Now the new government is aggravating to argue its bodies and the world, that it will survive. We’ll arch to Buenos Aries for the latest.

And then, we’ll acquaint you how Brooks Brothers is axis to technology to advice addition sales and animate the business clothing business. And from Carlos Santana to Dave Matthews, these are the guitars of choice. Tonight, a appropriate abode on a actual baby aggregation that’s accomplishing well, admitting the apathetic economy.



UNIDENTIFIED MALE: I’d like to acquaint my wife and my kids amusing Christmas, I adulation them. I absence them. And my parents, my brothers, all the family, hi, I’m accomplishing OK. I adulation you guys.


HOPKINS: Argentina’s new admiral Adolfo Rodriguez Saa is affective bound to try to clean his country’s crumbling economy. Afterwards suspending debt repayments, the government today drafted affairs to inject money into the abridgement by artlessly press it. The new bill is advised to affluence Argentina’s astringent clamminess crunch, and will be acclimated alongside the country’s peso. Economists say the move is alike to devaluing the peso, which has been alleged to the dollar at a aggregate of one-to-one. And that’s been for the aftermost 10 years.

Jonathan Mann joins us now from Buenos Aires with the latest accomplishment to jump-start the added bigger abridgement in South America — Jonathan.

JONATHAN MANN, CNN CORRESPONDENT: Jan, let me acquaint you aboriginal about Buenos Aires today, because it absolutely is a actual afflicted city. Maybe it’s the quiet brace of canicule abaft them or the anniversary that’s aloof ahead, but the bodies of Argentina, abnormally the bodies actuality in Buenos Aires went from crisis to Christmas in aloof the amplitude of a weekend.

Today, they were out in the streets adequate a balmy day in the southern hemisphere. Some are strolling, accomplishing some window shopping. No one has any money to buy anything, really, but it doesn’t aggregate annihilation if you don’t absolutely go home with the goods.

While they were out adequate themselves, the new president, as you mentioned, and his aggregation were at work. And we had some added annual from them, afterwards the astronomic absence that Argentina has declared, there was additionally plan for a new currency, that helped actualize jobs in this country breadth about 1 in 5 workers is unemployed.

That new currency, we abstruse today, is to be alleged the argentino. And it will booty its abode alongside the peso and the U.S. dollar, which is additionally broadly acclimated here. Oddly enough, the announcement, the chat that it is to be alleged afterwards the country itself, came to us via the abbot of sport. I say that’s odd because in a country with this affectionate of bread-and-er trouble, it is of beforehand no game.

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MARTIN REDRADO, CHIEF ECONOMIST, FUNDICION CAPITAL: The admiral is aggravating to put some order, some amusing accord in a country that has riots and that’s apparent actual sad belief in the streets. So basically, he’s a concise president. He’s aggravating to air-conditioned bottomward things and he’s aggravating to put things in order.


MANN: Some economists, as you say, anticipate that this is action to be helpful. It’s action to inject liquidity, because bodies actuality absolutely are active out of cash. Added bodies say that it is a abasement by addition name.

Argentina could booty that footfall directly. And it’s been beneath some accountability to do so, but the government doesn’t appetite to. And here’s why. Bodies acquire their livings. They run their businesses in pesos, but they buy their cars and they buy their homes with loans that are denominated in dollars. They booty business loans in dollars.

If the peso aback loses its value, they’ll be earning a lot beneath and still advantageous those old loans. And that would be a crushing accountability that this government aloof doesn’t appetite to administer its bodies with.


HOPKINS: But Jonathan, I assumption the acceptable annual is that the accompaniment of crisis, aliment riots, etcetera are at atomic chock-full for the moment?

MANN: That is the acceptable news. And you’re appropriate to admiration — bodies are appropriate to admiration if they’re chock-full for good. Unemployment actuality is 18.3 percent. The recession is in its fourth year. And afterwards this default, this abridgement is set to compress and compress dramatically, painfully. The agitation is not broadly accepted to occur, but I anticipate a lot of bodies are assured actuality there is still action to be a lot of anger.


HOPKINS: Acknowledgment actual much, Jonathan Mann in Buenos Aires.

The latest moves by Argentina to put its budgetary abode in adjustment are not action to assignment and could absolutely abuse the economy. That’s the appearance of our aing guest, Joyce Chan, of J.P. Morgan.

Welcome, Joyce. So it’s not action to work?

JOYCE CHAN, J.P. MORGAN: I don’t anticipate it’s action to work. I anticipate de facto, there will be a devaluation. The key abhorrence is that an admission in the money accumulation could accident addition bender of hyperinflation or actual aerial aggrandizement for Argentina. And absolutely the country will abide in recession.

Also, this government alone has two months. So we will accept elections advancing up and still absolutely a lot of political ambiguity for the advancing weeks.

HOPKINS: And so, basically, the government has not paid aback its debts. I mean, it aloof says we’re not action to pay. And what’s it action to do with that money? Or is there money?

CHAN: Well, there absolutely isn’t money. The banknote breeze bearings had gotten actual ambiguous in Argentina. And they’re basically press bill to be able to pay Christmas bonuses, government salaries and alike acid government salaries. So I mean, they artlessly had run out of cash. Reserves had gone bottomward abundantly over the aftermost few months.

HOPKINS: And bodies are not able to booty actual abundant money out of banks, because there were runs on banks, right?

CHAN: Yes, and coffer brake will absolutely accept to continue. If they reopen the banks some day afterwards this week, which it’s not assertive absolutely what date that will occur, they will absolutely accept to accumulate restrictions to anticipate basal outflows.

HOPKINS: You know, it’s absorbing aback Mexico had problems with the economy, the U.S. bailed out Mexico. This was a cardinal of years ago. And it had a acceptable result. Mexico paid aback loans and the abridgement is accomplishing better. This time, the U.S. has not been complex with absolutely any advice to Argentina. Is that the appropriate approach?

CHAN: Well, the U.S. and the IMF has had a cardinal of programs with Argentina, which they accept not been able to accede with. So the accommodation was fabricated that until there was added accuracy in the bearings and a added abiding government in abode to absolutely footfall aback from the situation. I anticipate this has abundantly been advancing by the marketplace. You do see added calls from European governments and additionally Latin American governments to advice Argentina. But I anticipate deliberately, the U.S. is blockage on the sidelines for this one.

HOPKINS: The bodies that are aching by this are banks in the U.S. and in Spain mostly. Is that right? With the government adage we’re not action to pay aback these loans.

CHAN: Well, the U.S. coffer acknowledgment is not so large. The European banks are added apparent than the U.S. in this situation, which is altered from the Mexico crisis. I anticipate admitting that best banks had advancing the crisis able-bodied in advance. The country’s in its fourth year of recession. There had been political calls for restructuring debts aback June. And I anticipate that by the time this happened, best bodies had advancing it, which is why the bane to added countries has been absolutely baby so far.

HOPKINS: So that’s the acceptable news. This has not advance to alike Brazil and countries that are adjoining to Chile.

CHAN: It absolutely has had actual little appulse on added countries. I anticipate it will accept added appulse on Brazil, because it will aching the barter flows. You’re already audition letters out of abutment leaders in Brazil that they anticipate they could lose, you know, abounding jobs because of this. But I anticipate that the appulse has been basal because this was a crisis that has absolutely played out in apathetic motion, for not aloof cardinal of months, but about years.

HOPKINS: One of the things that a new government says that it wants to do is to actualize added jobs. And acutely with the country in recession, and bodies not accepting jobs, that’s an important affair to do, isn’t it?

CHAN: Well, the government has vowed to actualize a actor jobs. I don’t apperceive if they’ve appear up with a action or an articulate plan about that. But the abhorrence is that, you know, they will book money, that they will, you know, absolutely admission the accident of actual aerial aggrandizement already again, which is the accomplished acumen why had they alleged the bill to activate with, to get rid of the hyperinflation, which is in the thousands.

HOPKINS: This is a complete mess?

CHAN: This is a actual precarious, brittle situation. And I anticipate it will abide so for some time to come. I anticipate it’s action to be absolutely altered than some of the added recoveries we’ve apparent in arising markets. Bodies are acclimated to aciculate bead and a fast comeback. And I anticipate in Argentina’s case, it’s action to be added difficult aloof accustomed that they’re ambidextrous with a currency, a debt crisis and a political crisis simultaneously.

HOPKINS: Joyce Chan, acknowledgment actual much.

CHAN: Thank you.

HOPKINS: And still to come, the troops in Afghanistan took time out to bless Christmas, but there was no time out in the war adjoin terrorism. We’ll accept the latest developments. Former Aegis Secretary William Cohen lends his angle on the war and the breakable relations amid India and Pakistan. And balloon the pins and the book marks, Brooks brothers is axis to technology to addition clothing sales. Those belief and added aback MONEYLINE continues.


HOPKINS: This Christmas ysis has been a arduous one for retailers. Consumers are apperception on necessities. And abounding bodies are blockage afterpiece to home. But the ysis has been abnormally boxy on companies that advertise clothes. Now Brooks Brothers, one of the oldest names in the business, is axis to aerial technology for help.

Susan Lisovicz has the story.


SUSAN LISOVICZ, CNN CORRESPONDENT (voice-over): Abraham Lincoln was cutting its characterization on the night he was assassinated. Bill Clinton was cutting it the day afterwards he was elected. Clients over the years accept additionally included J.P. Morgan, Clark Gable, and Jack Kerouac.

But 183-year-old Brooks Brothers is action its age. Marks and Spencer awash Brooks Brothers in November to the ancestor aggregation of women’s company, Accidental Corner for about a third of the aggregate it paid 12 years ago. So Brooks Brothers has gone high-tech in haberdashery.

UNIDENTIFIED FEMALE VOICE: Your browse has been completed. Amuse angle by while the computer processes your data.

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LISOVICZ: In 12 seconds, a three dimensional map that captures over 20,000 abstracts credibility can be created through agenda scanning. A custom clothing that commonly takes six to eight weeks can now be completed aural 15 business canicule for alone about $100 added than an off the arbor version.

JOE GROMEK, CEO, BROOKS BROTHERS: This is for a abiding acceptable chump who maybe wants article altered or has a adversity with the fit. It’s for a adolescent avant-garde guy who wants a new way of shopping. And it’s for bodies who aloof adore custom. So we get a ample alternative here.

LISOVICZ: Addition attraction, the economics of apparel fabricated to order.

JOHN DIXON, EXEC. VICE PRESIDENT, BROOKS BROTHERS: No markdowns, no inventory, no accustomed cost. It’s retail nirvana.

LISOVICZ: But it has been annihilation but nirvana for Brooks Brothers this year. November sales were bottomward 6 percent. December is accepted to be alone slight better.

(on camera): Accoutrement is one of the toughest sells in this economy. And the American abode has gone added casual. Brooks Brothers is walking a tightrope, aggravating to allure adolescent customers, afterwards alienating its aggregate clientele.

(voice-over): Veteran retail yst Kurt Barnard says it’s too little, too late.

KURT BARNARD, BARNARDS RETAIL TREND REPORT: Brooks Brothers has two challenges. Aboriginal of all, the tailored clothing is about not actual abundant in appeal these days. And the added one is, to actuate men to appear aback to Brooks Brothers.

LISOVICZ: Brooks Brothers says agenda dressmaking will annual for 10 percent of business at its flagship New York store. But alike the agenda fit isn’t perfect. Barter about try to blot in their gut during the scan. This archetypal didn’t like what he saw.

UNIDENTIFIED MALE: Well, abundance said that I bare to do added sit- ups. So.

LISOVICZ: Agenda dressmaking doesn’t do any cone-shaped on the animal form.

Susan Lisovicz, CNN Financial News, New York.


HOPKINS: In Afghanistan, some Marines are already adulatory Christmas. (SINGING)

They’ve abounding a midnight accumulation beneath a covering at the Kandahar Airport.

The 28-year-old man accused of aggravating to ablaze his shoes on blaze aboard an American Airlines flight appeared afore a federal adjudicator in Boston today. The adjudicator ordered Richard Reid to abide in aegis until an evidentiary audition this Friday. Reid’s shoes are believed to accept independent an atomic substance.

After the incident, the FAA ordered airlines to booty added aegis accomplish at airports, including accidental shoe checks.

The world’s two newest nuclear admiral are affective added troops forth the acknowledged bound of Kashmir. Gun battles and battery accept added forth the border. India’s government additionally expelled a Pakistani admiral agent for allegedly aggravating to admission Indian aegis secrets.

U.S. Marines are advancing to chase cavern and adit complexes in the Tora Bora region. For added on this, and on the added astriction amid India and Pakistan, we’re aing now by MONEYLINE regular, Former Aegis Secretary William Cohen. Welcome.


HOPKINS: Now the chase for Osama bin Laden acutely continues, but we apprehend letters that he apparently has able or he may accept escaped. What do you think?

COHEN: I don’t anticipate we know. Anybody is now guessing. It’s aloof a 50/50 proposition, breadth Admiral Musharraf of Pakistan said the likelihood is apparently that he died. But, I anticipate that’s aloof a assumption on his allotment as well.

What’s demography abode appropriate now on the ground, is our armament are appliance thermobaric bombs basically to blot the air out of those caves, and afterwards antibacterial the caves per se, so that if he is in actuality killed, they’ll be able to balance the body. But no one can acquaint you at this point with any authoritativeness if he’s animate or dead, or if he’s in Pakistan or Afghanistan.

HOPKINS: Aback you were aegis secretary, you had advice that he had admission to helicopters and maybe a abysm beck jet. So, if he’s alive, what are the affairs he’s still in Afghanistan?

COHEN: Well, I anticipate the affairs are still absolutely acceptable that he’s in Afghanistan. Any country that accepts him is agreeable disaster. And I think, added accepting a $25 actor dollar aggregate tag on his head, eventually someone’s action to about-face him in asleep or alive. So I would say his affairs of action to addition country and active for any continued aeon of time are absolutely small. But, we’ll accept to delay and see how this continues, we will abide to accompany him with as abundant assailment as we can. I apperceive this is a aerial antecedence for Admiral Bush and his complete aggregation and absolutely for our country. So, I anticipate that if he’s on the run, he’s action to be — continuing to be on the run until we t him.

HOPKINS: There is an added agitation blackmail as we’ve apparent this weekend, with a actuality answerable with aggravating — it looks like aggravating to draft up a alike advancing to the United States. What does that acquaint us about airport security? What we accept had so far and maybe what we charge to have?

COHEN: It tells us that it’s still bare and adequately decidedly bare in this respect. We don’t accept agnate checks in some of our European capitals as we do actuality in the United States, and we’re still absolutely able actuality in the United States. I anticipate appropriate now we’re action to see a greater acuteness as far as demography shoes off. And, of course, I anticipate best bodies would say bigger hawkeye or at atomic shoeless in Seattle rather than asleep in Sri Lanka.

But that doesn’t absolutely spell the agitation for the airline industry that we can apprehend to see if these techniques abide to account continued delays, that’s action to abate airline cartage in greater numbers. I anticipate what we accept to do is accept abundant greater advance in aerial technology that makes this affectionate of aggravation absolutely bargain to a abundant lower level. And afresh the airline industry, I think, can accompany aback the numbers they charge to be a applicable industry again.

And so the industry has survived so far, with an beverage absolutely from the federal government. But, we accept to accept added technology, added aegis and bigger aegis cadre with bigger techniques. That’s action to be appropriate if we’re action to abide to allure the traveling public.

HOPKINS: One of the things that’s absolutely altered from September 11, is that acutely cartage appear to the aid of the agents on lath a alike to subdue a passenger.

COHEN: Well, that’s true. I anticipate there’s additionally a question, not alone in agreement of the abridgement of aegis checks for this accurate individual, but we were told that there will be air marshals aboard planes. Now certainly, that doesn’t administer necessarily to planes appearing or basic from overseas. But we accept to accept abundant added security, and, yes, we appetite to accept the cartage participate, as they did here, actual heroically.

But that should be the albatross of the airlines in accouterment that affectionate of aegis and the federal government. We shouldn’t be delegating all the albatross to cartage on board, although they’ll abide to comedy a key role in calling absorption to any affectionate of disproportionate or amazing action in the allotment of added passengers.

HOPKINS: Pakistan and India, how carefully do we accept to watch this situation? How airy is it?

COHEN: It’s actual volatile. We accept a bearings breadth Pakistan on the one duke is actuality actual accessible to the United States, deploying some three brigades on the bound of Afghanistan to accomplish abiding that the Taliban and the al Qaeda armament don’t through and advice chase for bin Laden and others, if they accept already appear into Pakistan.

At the aforementioned time, they’ve additionally activated all of their forces. They’ve canceled all leave for their aggressive and placed them in the bound with India. India, in turn, is responding in kind. The bad annual is that both countries accept nuclear weapons, there is no acceptable annual to this story, but we could say, the bigger annual is that because they accept nuclear weapons, afresh conceivably anniversary country will exercise far greater abstemiousness in the present and the future, accustomed the after-effects that could appear about if they anytime resort to barter of nuclear weapons.

HOPKINS: Thanks. William Cohen of The Cohen Group.

COHEN: My pleasure.

HOPKINS: Still to appear tonight, Santa came to Wall Street today, but he didn’t leave abundant in anyone’s stocking. We’ll accept that story. We’ll additionally acquaint you what’s accident in the apartment market. Sales are rising, but the aggregate of those homes is not. And, does “Lindows” complete too abundant like Windows? We’ll acquaint you why Microsoft thinks so. And what Bill Gates intends to do about it.


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HOPKINS: Seems everyone’s accepting into the Christmas spirit, except on Wall Street perhaps. Santa was on Wall Street, but there was no Santa Claus rally. Saint Nick rang the closing bell, but his attendance did little to addition b prices. Concerns about airlines afterwards this weekend’s attempted bombing of American Airlines Flight 63 larboard the Dow unchanged. The Nasdaq and the S&P 500 were bottomward hardly on the day.

In accumulated annual tonight, Polaroid is allurement the courts for $3- 1/3 million. That money would be acclimated for severance payments to its workers. Polaroid, which filed for defalcation in October, is abashed that afterwards the payments, the workers will leave the aggregation too soon.

Adolph Coors is affairs the Carling characterization for $1.75 billion. Belgian brewer Interbrew is affairs Carling as allotment of its accretion of Bass Brewers. And Lucent Technologies has begin a client for its announcement and chump affliction assets. CSG Systems will pay Lucent about a third of a billion dollars in banknote for those assets.

Mortgage ante accept been ascent afresh as continued appellation absorption ante edge higher. But alike admitting the aggregate of owning a home goes up and down, one affair has remained constant. In contempo years, best Americans accept been demography abundance in the actuality that their homes accept been steadily accretion in value.

That may not be the case abundant longer, as Kitty Pilgrim explains.

(BEGIN VIDEOTAPE) UNIDENTIFIED MALE: This is a nice fireplace.

KITTY PILGRIM, CNN FINANCIAL CORRESPONDENT (voice-over): The American dream, owning your own home. 75 percent of Americans do, and booty abundance in the actuality that their home is at atomic one advance that won’t lose value. Not accurate according to top economists.

MAUREEN ALLYN, ZURICH SCUDDER INVESTMENTS: Safe as houses we consistently say. Well, you know, we absolutely care to apprentice bigger than that. Abode prices accept fluctuated from time immemorial.

PILGRIM: Across the country, the boilerplate home aggregate has biconcave in September and October. Economists are watching carefully to see what happens in the aing few months. The boilerplate auction aggregate went bottomward 4.3 percent in September and about 2 percent in October. That affectionate of aggregate abrasion is significant.

DAVID HORNER, MERRILL LYNCH: If they would abide to abatement for several added months, afresh that would be somewhat problematic, because, accustomed the apathetic bottomward or the recession in the economy, the fed would like to see asset prices authority up here, so it doesn’t aggravate the apathetic down.

PILGRIM: In recessions, apartment prices about do fall. This bread-and-er apathetic bottomward has not been typical. Up until this best contempo data, prices accept captivated up. The anguish is that aggregate abrasion on best Americans’ arch asset would added attenuate chump confidence.

LARA RHAME, BROWN BROTHERS HARRIMAN: So abundant was fabricated of the abundance aftereffect aback the b bazaar was falling. The actuality is, the abundance aftereffect from your apartment aggregate is a lot added important. The actuality that this has absolutely been the foundation that consumers accept based their spending on, if this goes away, that poses a abundant greater accident to the abridgement and chump spending.

PILGRIM (on camera): Bodies are acquainted of the apartment bazaar in their own neighborhood, it makes for circadian conversation. That’s one actuality they don’t charge to get from an economist or alike a advertisement like this one. That’s one accomplishment they can get calmly on their own.

Kitty Pilgrim, CNN Financial News, New York.


HOPKINS: A startup software aggregation calls its operating arrangement “Lindows.” but addition added accustomed software company, Microsoft, is not amused. Microsoft is allurement a federal cloister to block “Lindows” which it calls a Windows copycat, and says violates its trademark.

Steve Adolescent has that story.


STEVE YOUNG, CNN CORRESPONDENT (voice-over): Microsoft says it isn’t aggravating to stop a product, it’s aggravating to nip a name knockoff in the bud. claims its operating system, “Lindows” runs Microsoft Windows appliance as able-bodied as those for Linux, the chargeless operating arrangement from the Accessible Source Movement. Lindows OS was declared to be accessible for online download by the end of the year at $99 bucks, abundant cheaper than articles one letter away.

But Microsoft has gone to federal cloister gluttonous an injunction, necessary, it says, to anticipate chump confusion, and to assure the cast it’s spent $1.2 architecture and announcement aback 1983.

Running to cloister may complete hypocritical to those who bethink Microsoft adage companies should stop whining and let the best articles attempt in the marketplace.

JOHN MCPEAKE, PRUDENTIAL SECURITIES: Microsoft has championed the Darwinian approach of antagonism in technology and I anticipate that’s the best one. But that does not beggarly that they cannot admission the courts if article arrant comes up like this.

YOUNG: In abutment of its case adjoin copycats, Microsoft credibility to antecedence from complete estate. Century 21 adjoin Century 31. No. From the software business, Apple adjoin Pineapple. Uh-huh. And from diapers, Huggies adjoin Dougies. No way. Microsoft says it’s not aggravating to bandy its weight around, a agent told MONEYLINE, “we’d adopt to assignment with Lindows to dness this botheration afterwards the charge for acknowledged action.”

Translation, “Lindows, change the name, lest consumers anticipate it’s some array of accordingly developed product.” Through a spokeswoman, Lindows CEO Michael Robertson, architect of, several times beneath our appeal for an interview.


(on camera): Microsoft addendum barter belief that eventually the software behemothic ability accomplish a Linux adaptation of Windows, so there ability yet be a “Lindows” for Microsoft — Jan.

HOPKINS: But Microsoft wants to accept the name for itself. Not to accept addition abroad accept the name.

YOUNG: That is the central betting.

HOPKINS: And what do the experts say? Is it a cast violation?

YOUNG: This actuality Christmas Eve, we didn’t ability any lawyers, but one of the best adeptness guys in the business, John Vorat, that is, journalist, says he doesn’t anticipate that it’s absorb violation, but he’s not a lawyer, he’s aloof a abject announcer like ourselves.

HOPKINS: And so what do you think, as a journalist?

YOUNG: Alone time will tell.

HOPKINS: Thanks, Steve Young. Advancing up next, they are the guitarist musician’s adulation and their acceptance has meant abundance for one baby Maryland company. We’ll accept that story. And we’ll apprehend from one eyewitness on stepped-up airline aegis and what absolutely that means.



HOPKINS: Midnight accumulation at the Vatican.

In the war adjoin terrorism, a man who allegedly banned explosives central his shoes on lath an American Airlines jetliner appeared afore a adjudicator in Boston today. Cartage and aggregation say the 28-year-old man, appliance the name Richard Reid, approved to set his shoes on fire. If convicted, he faces up to 20 years in prison.

Afghanistan’s new acting baton Hamid Karzai has best a Arctic Alliance accepted as agent aegis minister. Accepted Dostum helped accommodate the abandonment of Konduz and led troops in the abduction of the arctic burghal of Mazar-e Sharif.

A affiliate of Afghanistan’s acting government backs U.S. claims that a accompany addled by American planes independent al Qaeda members. The Afghan baton additionally says Stinger missiles were accursed at U.S. war jets. 50 to 60 bodies were asleep in the advance by U.S. forces. Addition bounded official says the accompany was fabricated up of Afghan affiliated leaders, and not al Qaeda.

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“WOLF BLITZER REPORTS” begins in a few minutes, and for a preview, let’s go now to Wolf in Washington. Wolf?

WOLF BLITZER, CNN ANCHOR: Thank you actual much, Jan. We’ll accept latest on that abstruse American Airlines commuter who allegedly approved to burn explosives in his shoes. Also, I’ll accept a appropriate Christmas Eve account with Lynne Cheney, the wife of the carnality president. She speaks candidly about the appulse of the September 11 attacks on her life. She’ll additionally booty us on attenuate bout on the carnality presidential residence. You won’t appetite to absence it. Jan? Amusing Christmas.

HOPKINS: Thanks, Wolf. Amusing Christmas to you.

The country is animate its way through a recession. But that hasn’t chock-full a baby Maryland aggregation from abstraction out a alcove for itself, and a big bazaar for its products. Electric guitars.

Tim O’Brien has the adventure of a aggregation that seems to be hitting all the appropriate notes.



TIM O’BRIEN, CNN CORRESPONDENT (voice-over): Paul Reed Smith loves to comedy the guitar, but he abstruse aboriginal on his music would never set the apple on fire. So he approved article else. To accomplish the guitars that others ability use to set the apple on fire, and as the abridgement sinks into the aboriginal recession in a decade, Reed’s PRS Guitars is accepting the best year in its 16-year history.

PAUL REED SMITH, PRS GUITARS: In our complete best year we grew 50 percent.

O’BRIEN (on camera): Up 50 percent?

SMITH: 50 percent. Went from 14 actor to 21 actor in one year.

O’BRIEN (voice-over): Smith attributes the company’s advance to acceptable luck and acceptable work, starting with the copse he selects from all over the world.

SMITH: Yeah, I mean, that’s the angelic beaker of wood, attending how abysmal the coil is, and that’s the way the timberline grew.

O’BRIEN: And by sound.

SMITH: We’ve additionally got a allotment of 30-year-old Brazilian rosewood here. Listen to the accent of it. And if I about-face it, it’s got a altered note. Isn’t that great? It’s a agreeable apparatus aloof in a raw allotment of wood.

O’BRIEN: The barge is aboriginal duke cut, afresh machine-shaped, sanded, stained, and hand-buffed over and over again.

UNIDENTIFIED MALE: A absolutely acceptable accomplishment will attending like a mirror aback it’s done.

O’BRIEN (on camera): The PRS Guitar is aerial end. Boilerplate price, $2,000. Some, like this one, go for ten times that amount.

(voice-over): Smith says he’s begin it enough to allotment with some of his creations. He lent one $20,000 archetypal to his acquaintance Carlos, and never got it back.

SMITH: Well, the aing buzz alarm I got was, “Can I accept it?” And I went, “uh yeah.” So I no best accept it. Now Carlos has it.

O’BRIEN: Carlos is Carlos Santana, one of the world’s premiere musicians who swears by the PRS guitar.

CARLOS SANTANA, MUSICIAN: Aback article cooks for Thanksgiving, like, you know, you could feel the sauce. You know, the abstruse of action is the sauce. You apperceive if you’re cooking. The abstruse of action is the tone. So aback you put personal, concrete affection and accomplishment into a guitar, you’re action to feel it.

O’BRIEN: It may be that affairs a agleam new guitar is artlessly a feel-good advance in not-so-feel-good times. An befalling that PRS Guitars is quick to capitalize on.

SMITH: We’re aggravating to get you to accessible a case and go “Huh!” Accept aesthetic arrest. Which is, if you accessible the case, and you accomplish that sound, you’re action to buy it.

O’BRIEN: And they do. Tim O’Brien, CNN Financial News, Stevensville, Maryland.




UNIDENTIFIED MARINE: It’s absolutely acceptable to get mail, abnormally out here, appropriate a Christmas. Aloof feels acceptable to get some stuff. Acceptable to see everybody abroad accepting a lot of being too.

UNIDENTIFIED MARINE: It feels nice aloof to get mail anytime, but about here, you know, you anticipate about everybody aback home and what happened, and it’s like absolutely hits home.

UNIDENTIFIED MARINE: It’s appealing motivating, and it absolutely lifts up the alcohol of the Marines out actuality as able-bodied as the sailors that we accept out actuality with us, it’s a — it’s a recharge of batteries, appealing much.


HOPKINS: The markets are bankrupt tomorrow for Christmas day. The aggregate of bread-and-er letters this anniversary are due on Friday. Chump aplomb accepted to accept risen in December. Apprehend new home sales and abiding appurtenances orders to acceleration as well. And we’ll accept an central attending at the allowance industry, with the administrator and CEO of Aflac, that’s on Thursday.

Now for a attending at your thoughts.

After the latest blackmail to the assurance of air travelers, Susan in Oregon writes: “I acquisition it amazing the FAA is ‘stepping up security.’ I anticipation aegis was already ‘stepped up’.”

Deepak writes with a affair about the auto industry, he wants to know: “What’s the angle for the auto industry for aing year, alive that approaching sales accept been appointed this year” because of that aught percent financing. This year looks like it’s action to be the added best on record. About 17 actor cartage sold. Aing year is accepted to be able as well, but a lot depends on the abridgement of course. And there’s affair in the auto industry that the contempo sales bonanza will appulse aing year. Automakers additionally accept that the aught percent absorption aggregate promotions can’t abide and most, in fact, will expire in January.

From old accustomed businesses to new ones. Brian Norgard in Rhode Island writes: “Will advance and adventure basal action admission any time soon? I’m sitting actuality in my abode allowance at Brown University acquisitive so. I accept an idea!” Well, Brian, it depends on the idea. Adventure basal action in Internet and telecom start-up continues to decline. Biotech advance is bigger than most. Admitting the bead this year, Price-Waterhouse-Coopers estimates that VC spending will absolute about $30 billion, about a third of aftermost year’s level, though, and alike so, that’s still a almanac highs. So don’t worry, if you appetite to get a acceptable abstraction off the ground, there is still money out there.

E-mail us: [email protected] And amuse accommodate your name and address.

That’s MONEYLINE for this Christmas Eve. Acknowledgment for aing us. I’m Jan Hopkins, in for Lou Dobbs. Acceptable night from New York. “WOLF BLITZER REPORTS” begins appropriate now.

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