Usually we do indeed explicitly require that the emptyset and the whole space be in the topology. However, his argument is right with one caveat.
The union of a family $\mathcal{F}$ is defined as $\bigcup \mathcal{F}=\{x: \exists A\in\mathcal{F}(x\in A)\}$. If $\mathcal{F}$ is empty, this is just $\emptyset$; so the union of the empty family is indeed the emptyset. (This is similar to how the product over an empty set of reals is $1$, and the sum over an empty set of reals is $0$.)
Similarly, the intersection of a family $\mathcal{F}$ is defined as $\bigcap\mathcal{F}=\{x: \forall A\in\mathcal{F}(x\in A)\}$. If $\mathcal{F}$ has no members, then every $x$ satisfies this; so $\bigcap \mathcal{F}$ is indeed the whole space.
What about that caveat I mentioned at the beginning? Well, it has to do with the intersection of the empty family. Strictly speaking, in order to make this work we need to restrict our attention to sets of points in the space $X$: so that $\bigcap\mathcal{F}=\{x\in X: \forall A\in\mathcal{F}(x\in A)\}$. Why? Well, otherwise the intersection of the empty family contains everything - all the points in $X$, all real numbers, all polynomials in seventeen variables, etc. In the language of set theory, the intersection of the empty family is not a set, but a proper class - the class of all sets!
So strictly speaking the line about intersections isn't quite right, in the context of set theory. However, usually all our quantifiers are implicitly bounded - e.g. here by $$\mbox{$\{x:$}$$ we really mean $$\mbox{$\{x\in X:$}$$ - so this isn't a huge deal.
Bottom line:
The union of the empty family is the emptyset, full stop.
The intersection of the empty family is the whole space, if we use the space as our "universal set", and otherwise isn't even a set; so this is a bit messy, set-theoretically.
It's probably a good idea to explicitly include the whole space and the emptyset in the definition of a topology, just for clarity.