I'm not sure is by "fusion videos" you're looking for something specific.
But combining video, music, audio and photos is what video editing is all about. So, yes, Premiere Elements certainly does this.
I don't know what your specific needs are, what types if files you hope to output, etc. There may well be other programs which can do what you want to do more efficiently. But, depending on what types of video you hope to output, what your primary source video is and the level of editing you want to accomplish, Premiere Elements may be ideal.
Why not download the free trial and give it a test drive?
For creating Video from varied sources, PrE will do what you want. It handles Video, still, music, narration, SFX and similar very well.
One thing that you will likely want to do is prepare your Assets (those AV, still, music, etc. files), so that they edit best. I strongly recommend converting all Audio files to PCM/WAV 48KHz 16-bit Audio in a program like the free Audacity. Still images should be sized for the Project, prior to Import. The same might be true for varied Video source files. This will be true for all NLE (Non Linear Editor) programs, and is also the ideal workflow.
Many users get into trouble, when they try to mix and match all sorts of source files. Sometimes, they work, but often they cause issues. Some of these issues can be very mild, but some can crash the NLE.
On this forum, there are two sub-fora, Tips & Tricks and the FAQ's. There are many articles in each, that will help you get your Assets prepped perfectly.
You can edit, and then Export/Share to many different formats, including BD for HD material, and DVD-Video for play on a computer, or on a set-top player. The potential output is virtually limitless.
Good luck, and Steve's suggestion on the "trial" version is a good one. If you do use the trial, please read the FAQ entry on how to later remove the watermark, that will be imprinted, when using the trial.