tv Nightly Business Report PBS April 12, 2016 7:00pm-7:31pm PDT
this is "nightly business report" with tyler mathisen and sue herera. >> price spike. oil surges to its highest level this year. a meeting this weekend could determine whether the climb continues. top rated. the one pickup truck that earned high marks in a tough crash test and the other one that didn't. tax survival good. still haven't filed? we have list minute tips to get your return in on time. all that and more on "nightly business report" for tuesday, april 12th. good evening, everybody. welcome. i'm sue herera. tyler mathisen is off tonight. a rumor and a rally. oil prices touch new 2016 highs on reports that saudi arabia and russia reached a deal to freeze
output. neither confirmed the story but if true, it would be the first step in curbing production that's resulted in a glut of oil worldwide, created chaos in certain stock markets, hurt commodity dependent economies. the hopes of a a deal sent rices up. the rise in oil lifted stocks. the dow jones gained 164 points to 17,721. the nasdaq added 38. the s&p 500 was up 19. jackie takes a closer look at the oil rally and whether the historic low prices may soon be a thing of the past. >> reporter: a spike in oil prices based on optimism, produces will come to some accord. a russian news agency out with headlines saying the saudis and russians agreed in principle head of a freeze. the data has been on the
calendar for skeptics point out won't freeze without them joining in. what happens next? difficult to say but the excitement was enough to push them to a key level to even further gains. >> the wild card is what will opec do and the producing nations. will there be collaboration to increase limit in supply or reduce supply. that can affect prices. you'll see speculation around that in the short run and ultimately in the meetings. ultimately, it's going to come down to supply and demand. >> reporter: one camp says there won't be a deal. the other camp says there's event risk head and we could see 50-dollar oil. low oil prices had been keeping inflation in check. they were one of the reasons why the central banks inflation targets were not being met.
a major factor when deciding whether to raise rates. today the president of the dallas fed says he doesn't expect to increase interest rates this month, but june is a very real possibility. >> the move in december, i think, was the right move but we'll have to be slow and patient. doesn't mean standing still. i think we'll make another move sometime in the not too distant future, if gdp recovers in the way i expect. >> rob caplan said he's not too concerned about the slow economic growth we saw in the first quarter. he expects the economy to grow just under 2% for the year. well, some experts expect the u.s. economy to chug right along, the international monetary fund paints a dimmer picture. the imf cut the growth forecast not only for the u.s. but also the world and highlighted the potential disruption to the economy in the uk votes to leave the european union.
>> a lot of countries not only in the eu and uk but also globally have built up their business models based on the assumption that britain is a member of the eu. this will be disruptive. >> the organization warned of slow growth and developing economies. boeing has open talks to sell airplanes to iran. if an agreement is reached it would be one of the highest profile deals between an american company and the country since the sanctions were lifted. michelle cruz has more on this untapped aviation market and the challenges that remain. >> reporter: iran's fleet of commercial jets is one of the world's oldest. after decades of economic sanctions, many are 25 years old. there is a population of 80 million and pent up for travel
after isolation. making iran one of the world's few untapped markets for jet makers. in january they announced a deal with boeing's top competitor, air bus. now boeing joining ge, which sends the head of oil and gas business to iran last month, boeing still faces two major hurdles. it's still difficult for companies to get loans for western banks and any deal needs final approval from the u.s. government and may not include the technology needed to make parts locally. that could touch nerves at home. what does one of the most famous financial whistle blowers think of the panama paperes lea? we spoke to him to find out.
>> reporter: you might think he would be cheering on the disclosures but today he's raising questions about the source of the information that is shaking political regimes around the world. a u.s. citizen, spent years working as a banker in switzerland and turned over an enormous volume of information to u.s. authorities. for his trouble he earned himself two years in the u.s. prison and 104 million dollar reward from the irs. in an exclusive interview today from germany, he called in to question the unknown source of the leak of the panama papers. >> the very fact that we see all these names surface that are the direct quote, unquote, enemies of the united states. russia, china, pakistan, argentina and we don't see one u.s. name. why is that? quite frankly, my feeling is that this is certainly an intelligence agency operation. the cia, i'm sure is behind
this, in my opinion. >> reporter: he has no proof and there are some american who is have been swept up in the controversy although know names as prominent as we have seen elsewhere around the world. david cameron has opinibeen embarrassed in all this. he says this is case of selective disclosure of offshore data. >> if you have cia spying on foreign governments, they can get into this. they selectively bring the information to the public domain that doesn't hurt the u.s. in any shape or form. that's wrong. there's something seriously sinister behind this. >> to read more and revisit the series that amon did for us last year, head to our website, nbr.com. tax reform is the talk of wall street and washington. it's a big issue on the campaign trail.
john harwood spoke to congressman kevin brady, the man in charge of the writing the nation's tax code who says reform needs to happen, but it won't be easy. >> do you agree that tax reform can only be down with buy in for both parties? >> i think the end of the day it will be biparty. at the end of the day the major changes in american government almost require buy in for both parties. >> can you envision a tax reform that you could go al man elemen not like that did not decrease the tax rate? >> that would be difficult to accept. i think that holds back investment looked by business, small businesses and by families. there's some conservatives who are arguing that in the environment that we're in now, that conservative tax reform
ought to focus on things other than the top rate. >> i'd have to disagree. they have three choices. they can spend it. they can save it. they can reinvest it. earners, not just high earners do that. i want to encourage families and individual ls to do more of that. on that side of the ledger, let's look at those pro-growth ideas. >> always good to see you. congressman said he wants tax reform but what kind of reform, specifically is he talking about? >> there's several layers of it. there's the international tax reform. what's needed to prevent those corporate aversions that both parties have criticized so much. that's a more limited goal they have been talking about doing something about this year but it looks difficult. there's corporate tax reform itself trying to get the 35%
rate down to where it's more competitive with countries around the world resolve our worldwide tax system compared to a territorial tax system. there's individual tax reform and brady says he wants to do all of those. it's very tough. the bigger your ambition, the tougher it is to achieve it. >> what does history tell us about perhaps his chances of succeeding? >> as kevin brady reminded me, we haven't had a tax reform for 30 years. it happened once in a generation. he's saying he will think big and look at things like consumption tax in addition to the income base system. we have seen pred seecessors li dave camp. they will be more receptive than john boehner. >> i know you'll keep us posted. thank you so much. from tax policy to filing
your tax return. the deadline is fast approaching, but the good news is this year you'll get a few extra days until april 18th because of a court and scheduling. if you haven't started yet, there's still hope. sharon epperson is here to hold our hand. if you're starting today, what should you do? >> or if you started yesterday like some people sitting across from you. this is what you should do. start gathering as much information as you can. all the documents you can. your w-2s, all the income that's come in. your 1099 forms and look at also the income statements that you're getting from brokerage firms and banks in terms of dividends income. don't forget those. very important to collect those for income adjustment. then find any receipts. a lot of us are doing stuff online. you can print out the credit card statement, year end summaries from your bank or credit card company to make sure you have the receipts.
if you have already paid taxes then you want to have documents that show that you've paid the taxes. >> if you are ready, do you file electronically or by snail mail? >> if you can. try to file electronically. the irs says it's the best way to make sure tho you don't have as many errors. if you're owed a refund, you'll get it faster if you file electronically and request direct deposit. there's many ways you can do it. you can do efile. there's free fillable forms on irs.gov website. then will are also efiling companies that have koorcoordin with the irs. they can transmit those returns for you electronically. >> say you're a little overwhelmed as many people are. it's very complicated. how do you file an extension? what do you have to send to the irs or what do you have to notify them about?
>> you have to file paper work. that's form 4868. you have to file that by the april 18th deadline. that will give you six extra months the file your return until october 18th. if you get it ready by may 15th, you can send it in then. your deadline will be october 15th . the key thing to remember, if you owe tax, you still have to pay the tax by the april 18th deadline. >> you don't want to incur penalties. >> they start to accrue every month. failing to pay will make you have to pay penalties. >> thanks for holding our hand. >> thank you. still ahead, the one pickup truck that aced a key crash test and the other one that didn't.
the slump in coal and overall freight volumes hurt ctx results. the third largest railroads reported earnings in line with estimates but net income dropped nearly 20% from last year. revenue fell 14%, slightly below expectations. the ceo says the decline this coal won't go away. >> we were down 31% in the quarter. we expect similar reduction as well in the second quarter of this year. if you're think about the strength of the dollar and the low commodity price is impacting a lot of our markets. >> the stock was volatile initially in afterhours trading.
susan lee has more on the quarter. >> reporter: this was always going to be a tough quarter for railroad operator given the tough comparison to last year. profit dropped to 18% which was in line with estimates. volumes were down 5%. expec pricing of what they can charge for carrying cargo declined twice as much in the first three months than what the market anticipated. they have also been hurt by falling coal demand as it gets more of its revenue from carrying coal than any other railroad. a strong dollar and weakening global trade impacting the bottom line. analysts have been encouraged when it comes to productivity with cost and expenses following 12% in the quarter. it's rebou off the three-year lows which was hit
back in january. for "nightly business report," i'm susan lee. >> from the rails to trucks, a new series of crash tests are raising questions about the safety of pickup trucks. in particular, the popular ram trucks. phil has more on the collisions being put under the spotlight. >> reporter: it's one of the most common and deadliest crashes. the insurance institute for highway safety checked to see which of america's popular pickups does the best or worst job at protecting passengers when the front corner of their truck hits another vehicle or poll while traveling at 40 miles an hour. just one truck. the ford f series earned good ratings as cross the board. by comparison, the ram pickups were rated as marginal with testers calling the truck's structure poor. >> we have more than we would like to see. that led to elevated injuries
measures on the dummy's lower extremities. >> reporter: a spokesperso v me standards. they say it's designed for real world performance and no single test determines overall real world vehicle safety. these tests also debunk the suggestion made by ford competitors that the new f series is not as safe as other pickups made with steel panels. >> what i would tell any consumer going out there looking for a new pickup truck is, i would clearly go out and look at that ford f-150. >> reporter: as revealing as the crash tests may be, they are unlikely to have a huge impact on which pickup truck people by. that's because pickup truck owners are among the most loyal in the auto industry. typically sticking with their struck through thick and thin. "nightly business report," chicago. marathon oil saw its shares surge and that's where we begin tonight's market focus.
the oil producer sold $950 million worth of its non-core assets. the ceo said since august of 2015, the company has seen sales reach about $1.3 billion. that exceeded marathon's initial target. that sent shares 12% higher to $13.12. a class action lawsuit against pfizer has been revised. the lawsuit says they caused share makers to lose tens of billions of dollars about the safety of pain drugs. the judge said the case never should have been dismissed. shares finished the day to 31.96. shares of chesapeake energy saw their biggest one-day gain. the stock was ungraded at an investment bank following approval yesterday of a $4 billion credit line. shares soared more than 34% to $6.05. after a five-year
investigation, the justice department, the u.s. justice department, specifically, is asking the hedge fund firm to plead guilty to bribing libyan government officials. u.s. regulators are seeking up to $400 million in fines. it was reported that a settlement could be reached within the next three months. shares are down over 12% to $3.32. it seems consumers are shunning personal computers. global shipments of pcs fell for the sixth consecutive level since 2007. shipments fell below 65 million units and that's world wide. well, more than one billion people worldwide are active on facebook and the messenger app, which you can use to send messages to people is growing. the company says it doesn't want
you to leave messenger. it's creating a new tool to make it a one stop shop for just about everything you do on your phone. julia takes a look at the rise of the so-called box. >> reporter: mark took the stage to talk to the 2600 developers about his five and ten year vision for facebook's family of apps. the vision for connecting billions more people to the internet and he also unveiled new tools available right now, including the ability for more people to watch and share live video. >> we're opening up our live api. now you can build the ability to build facebook video right into any device. like for example, this drone the back of the room. come here. >> reporter: also in focus here is facebook's messaging power. between the two messaging app, people are sending about 60
billion messages each day. that's about three times what people are sending via sms. messenger was the fastest growing app in the u.s. last year. david marcus unveil tools for partners to develop chat bot. artificial intelligence software that can provide automated subscription content like weather to customized notificatio allow companies to engage with them without asking people to downtownloload new apps to t already crowded smart phones. >> the future will be an amazing future where you'll have much simplifi interaction. >> reporter: facebook announcing range of partners.
facebook is already showing how it will make money from messenger showcasing how partners can buy facebook news feed ads that will take users directly to company's chat bot. coming up, the immigrant turned eed entrepreneur who sometimes has longer lines at his shop than chipotle. here's a look at tomorrow. jpmorgan chase is the first of big banks to report earnings. retail sales for march will be released. the federal reserve releases its beige book. a look at economic conditions across the country. that's what to watch for for wednesday. farmers are in line to get more government aids than at any
time in the past decade. according to the department of agriculture federal pay outs will total $14 billion. farmer are earning less than half what they did just three years ago. corn and soybean prices have fallen so low that farmers are expecting to lose money on every acre they plant this season. north carolina is seeing further economic fall out from its controversial law that curbs lgbt protections. the bank decided hold its plans to add 250 jobs outside of raleigh. it follows a decision by paypal to scrap a new operation center in the state. this afternoon the government of north carolina signed an executive order amending the measure slightly. the order adds anti-discrimination protections based on sexual orientation for state employees. the confidence of small business owners has fallen to a two-year low. the national federation of independent businesses cited concerns about sales and profit.
the soft reading fits in with recent economic data on customer and business spending. that decline in confidence isn't stopping one entrepreneur from achieving his dreams that started with his mother's recipes. kate rogers has the story of one man's personal story and triumph from virginia. >> reporter: some 15 years ago he came to colorado working through restaurant kitchens and into construction. he got married and started his family relocating to virginia. he was making it until 2008 when the housing bubble burst. >> i was never going to forget that day. i begged for my job. i said you can pay me minimum wage. i can sweep. >> reporter: he tried to get work. he looked to construction jobs and even jobs back in the kitchen but nothing panned out. >> i couldn't find anything. >> reporter: to keep up his spirits, on the weekend he would invite friends and neighbors
over for traditional mexican food. the kind he learned growing up with his mother. >> if i bring a toe mmato that looks bad, i would get one that looked good. >> reporter: he cooked what he enjoyed eating taking for granted how delicious those were to other. a neighbor and tech entrepreneur blown away by the food saw something he didn't. >> i eat my food and i love it. i never thought it can be something big someday. >> reporter: wallace encouraged him to look into a food truck that turn eed out to be too priy so they settled on a cart. they got investors to pool $30,000. in 2010 they opened their first physical location. now they have seven around the d.c. metro and even with a chipotle down the street, district taco is jam packed.
he says sometimes he can't believe it. >> dreams do come true. the more you see it and more focused you stay, you'll be able to make your dream come true. >> reporter: for "nightly business report," virginia. >> that does it for "nightly business report." i'm sue herera. have a great evening. we'll see you tomorrow.
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