Your example has:
       open (INNEWSFILE, $inFile);
...
       $newsFile = <INNEWSFILE>;
       $newsFile =~ s/<B>//g;

That second line only reads the first line of the infile.  That's why the 
rest of it never gets written to the outfile.

You may find it more helpful to slurp the whole file into a scalar variable 
there:
       $newsFile = join "\n", (<INNEWSFILE>);

Or you could loop on the filehandle with
       while ($_ = <INNEWSFILE>) {
           #substitute
           #print to outfile
       }

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