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tv   Nightly Business Report  PBS  August 2, 2016 1:00am-1:31am PDT

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this is nightly business report with tyler matheson and sue herera. >> wrestling with th fall more from their most cent highs, taking gas prices and oil stocks down witthem. s on a gps pree. tracking company. and investors want to know why. goiosru takeshake up the savings of millions of americans. those stories and more tonight on nightly business report for monday, aust. >> good evening and welcome. not for stock, but oil prices. domestic crude broke below $40 a barrel midday to settle down more than 20% from its most
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recent high in june. that technically qualifies as a bear market. the a number supply side, there are early signs that production is increasing in the u.s. just as output from opec and elsewhere is rising. and demand isn't increasing enough to mop up the excess. as a result, crude settled down nearly 4% today to about $40 a barrel. hello, mr. bear. an follow. jackie deaung drivers can expe they g. >> good news for consumers. gas prices are falling sharply. at a time that they're expect ied to, a gallon is $2.13. it was 2.66 last year and that's the average. some c -- which is unusual for the height of the
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summer. causing the decline, aap oil. that led to a refining boom and that created a gasoline glut. seasonally, summer is when americans hit the road, so it's one time of year that we can expect an uptick in demand. it was robust, but not enough to make a dent in inventory. >> we started o ut the driving season needness to s abe of cruel oil. it had to be used. refiners were running 92 to 95%, about four to five percentage points higher than previous years. >> what happens after the summer? when demand drops off, we see crude and gas prices decline every year. those drops will be even more pronounced. >> and price of crude oil slides, yo going to see a slide in gasoline prices. we switch to the october contract and lose ten cents a gallon just by switching it over there. first usually drops in the late
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qu every year. so i would ek pecht gas prices to touch maybe the 150 area by christma or even new year's. >> barclays out with a negative note this morning saying the drain is clogged. and also pointing to oversupply issues and demand issues internationally come this f compete with iran. so there's little relief in sight. the only sto from fundamentals d feels the fed her is won't hike, that means a weaker dollar and higher crude price, but for now, consumers are relishing in less pa. >> energy shares were among the biggest decliners today thanks to those falling oil prices. that off set gains in health care and technology stocks. and stocks continued to move within a very narrow trading range on this fi
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according to new search, the s&p 500 has spent the last two weeks in one of its narrowest trading hes. the dow jones industrial average fell to 18,404. nasdaq climbed 22. s&p 500 fell nearly three, but did hit a fresh high. zblfshlgts when yo of verizon, you probably think of a lines thrown in, so you may have been scratchin your head when you heard it was spending about $2.5 billion on a gps e tracking compant up more than 38%. meanwhile, verizon shares fell, but as morgan brennan explains, there's a strategic reason why verizon made >> verizon buying spree continues. the top u.s. wireless carrier buying fleet us, the company provides fleet management
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services, developing software that shows vehicle locations, fuel usage, mileage and driver hours. news of the deal comes on the heels of verizon's purchase ott for an undisclosed sum last friday. analysts say it's part of a plan to expand beyond smart phones. a market that's maturing amid fierce kompb tigs between carriers. >> verizon's primary interest is so their position in the internet of things arena. right now, verizon is in a transition phase and it's looking for new opportunities to grow its overall revenue pod as some of these new opportunities emerge. >> and theinternet of things does provide an opportunity. the division grew 25% last quarter to $205 million. a modest sum compared to 30 g segments.rall, but fleet will provide nor services catering to small business,
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enterprise and long haul trucking, but this is only the latest in a buying spree that's past 18 months, also included aol for $4.4 billion and just cently, yahoo! for $4.8 billion. >> over the longer term, think of verizon as o y its revenue by connecting more devices and then being a part of the different types of data that traverses its network. from tech to media to network, but the software to run on the it and the content to attract and keep users and advertiser >> in other deal news, tesla and solarcity had to combine at a deal valued at more than $2.5 billion. the merger will put electric vehicles, rooftop solar systems and energy storage batteries under the same roof. despite neither company tuning a profit, tesla's ceo says the time is ri
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>> in order for the right scenario to transpire in three years, we need to take the ha it instantly be the righ >> shares of both tesla and solarcity fell in today's trading. >> yet another deal to tell you about. this one is cross border. didi, the dominant ride hailing service in china will acquire uber in that country. the deal ends a fierce battle between the two companies in the market that was one of uber's largest total number of rides. we report tonigh >> didi is acquiring all of uber's inclusd the operation, brand as well as the data. investors in uber will get a 20% stake in the combined company
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which will be va in addition, didi will invest $1 billion in uber. the deal will end a fierce price war between the two companies in ch billions in subsidy di to attra uber has been losing $1 billion a year here. uber's ceo posted his reason for the decision on facebook, sayin son-in-law b possible with profitability. at the same time, it's been fighting an uphill battle. didi -- 7 billion apart from apple. it's also backed by china's sovereign fund and it is the only company with investors from china's three major tech titans. uber is also pointing to wider concern in the tech community. the business environment for foreign companies is just getting tougher. >> activity in china's
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manufacturing sector shrank in july. according to a survey,k and flooding in part of the country disrupted business. the report is adding to recent concerns that china's economy willw in the coming months. >> e u.s. grew at a modestly slower rate in july, but still expanding at ar the institute for supply management saw its index drop to just under a one-year high. the index has been positive for five months. u.s. construction spenit on no building dropping by the largest amoue officis sugge that the financial markets are too b kaplcap said a rate hike next month is ver meantime, the president of the
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new york fed sai the l bank raising interest rates before the election. both officials said economic data between now and the next meeting will be critical to any decision. . by asset sounded optimistic on the u.s. economy, saying it has the potential to grow a lot faster than it i comments during an interview today with wilfred frost in huntington beach, california. >> the chair, jam dimon, said h was not concerned about our prices falling below $40 today. in fact, he was upbeat about the outloo message to the main presidential candidate, outlined some of the actions he thinks t i worry about more is the next president, whoever it is, focusing on the right things, go to 4%. those right things are immigration reform. profit infrastructure spending. roads, bridges, schools.
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airports. we need corporate tax reform. i would also expand things like the earned income tax credit to help with lower pay. >> despite that, he did outline some concerns about bond market valuations. >> i'm not a buyer of ten-year bonds. i would be a little worried about drastic action in the ten-year bonds. the more important the fed talked about it, we have profit growth in the united states that will start to normalize interest rates, so think of t end. 25 basis points doesn't matterm thin. >> away from america following the kre cent brexit vote, when asked whether he could envision a future breakdown of the ur ozone, he said i outcos of brex. it may take more than five year, but it may very well happen. i'm wilfred frost from hu beach, california.
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the cent european banks stress tests are putting a renewed focus on the italian banks. stress test actually g bank in the best perfog today. why? with the 11th hour 5 bi annou ued. condition balance sheets and financed by issuing bonds to the government, here in italy and to d it raises a whole host of in l willing to invest in the bonds when we've seen over 80 billion euro
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also, the fund itself. is it close to cash on some of the biggest banks in italy and does it make sense to die lute some of the strength of the stronger banks to off set and help the weak er ones. th s relieved that something is being done in a private sector solut working the pass fail mark, but 7%, tier one capital, was really a benchmark. uni credit coming just above there. now analysts suggested that the bank could be at 4 and 9 billion euros. so off the two largest banks, italy. and just to blur the picture a bit more, remember, uni credit is one of those sitting cash to e goi to continue to watch
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this, but fo stronger performance among capacity in trading today and a bit of a sigh of relief i think that something is being done to tackle issues in the banking sen the constitutional referendum here in italy that the prime minister has signed his future on. we'll see. back to you. >> still ahead, disrupting retirement. millions of americans don't have access to a 401(k), but now, some start ups. the cofounder of autism speaks died on friday after a
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battle with pancreatic cancer. she d her husband started the organization more than ten years ago. after their grandson was diag the disorder. autism speaks has committed more than $570 million to research the caus autism. she was 69. to politics now and the powerful and deep pocketed kok brothers who over the weekend, rejected pressure to back donald trump. the republican presidential candidate. the rejection deprives truch of a major source of funding. john harwood joins us from washington. was this a surprise that they decided not to back trump and what are the implications? >> i don donald trump does not share their free market views on trade, for example. on limited government. reforming entitlement programs, so they had signalled some distance from trump before. but it is a rebuff that stings at this point in the campaign because donald trump and the
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republican party are trying very rapidly to raise money behind. they're working it. they've made some progress, but they need more and because donald trump is not indicated resourc into his to put the campaign, you need to compete with what hillary clinton's got. >> from one billionaire to is is that really impactful to her campaign? >> i think it is a marginal development. warren buffett is famous among certain circles of people. certainly investors and business community. not a household name to the that lends credibility to hillary clinton's argument that donald trump is too risky to entrust with control of the military and the economy, helps her reach out to independent voters and some moderate republicans.
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>> talking about how unreliable polls are during the convention, but now there are new polls out. the latest two have hkd leading slightly. >> as you said, sue, we take them with a grain of salt. it's a piece of data, you look at it and see if it holds up over time. cnn came o with a poll today which shows hillary clinton now nine points ahead of donald trump. she was behind by three going into her convention. there was a cbs news poll that showed a 7-p edge for hillary clinton. i' b waiting for others layer in the week including the nbc "wall street journal" poll which before both conventions, showed that hillary clinton was ahead points. gl thank you so much. onharwood in washington. new hope for a childhood spin discorder sent shares of two bitechs hire. biogen and ionis said their drug intended to treat infant spinal
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muscular atrophy, met its main goal during testing. they'll now exercise its option to commercialize the drug. it will halt the trial, begin treating patients in a subseq study. biogen plans to seek regulatory approval for the drug by the end of the year. shares up to 30i 1.83, but look at the shares of ionis up 30%. pfizer has inked a deal to buy the reste petics. they'll pay $150 million to acquire 78% of the gene therapy. t to 37.31 and glaxosmithkline and alphabet will form a new company to develop new medicines which use devices to manage electrical
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impulses in the nervous system. the company said they'll cricket more than $700 million to the prokt. shares up to 45.25. alphabet up to 800.94. cost cuts helped diamond offshore big profit and revenue expectations in its latest quarter, but despite the earnings, share of the drilling contractor fell after the company said there were quote next to zero contracts in place for rigs. diamond offshore fell more than 7.5% to 20.98. the company said strong growth in global division and latin am helped to lift results. shares surged 5% to $13.02. analysts at citigroup are bullish on etsy. a target price of $14.
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ton g con ssensus revenue company's sellers services business. shares rose nearly 18% to 11.86. if you work for a small company, there's a good chance you don't have a 401(k) or if you do, you may pay a lot for it. now, a bunch of start ups are looking to change that by using technology to lower the cost. can these firms deliver on their big promise? sharon, why ar seeing a rise the in 401(k) plans fo tha havee to offer them? >> this is a hug companies with 100 or about 42 million people employed by these compa these small busi actually sponsor a retirement plan, so there's a great market out there for companies that want to offer retirm plans and so many workers that don't have access to plans that need it.
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who's entering the industry? >> there a honest dollar. a lot of silicon valley start ups and then there are some that have been around for several year, but in that small business space or some of the ot then the fund companies that have been around f, like vanguan the small business mar disrupt. gl there's a phrase called robo advisers. >> that's basically what they are. they're offering online services and able to offer investments at a lower cost because they're doing so much of this online and so, they're basically gd up for with your regular retirement. it certainly is lowering the prices overall. for these 401(k) plans for small
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that.esse and it's gone down significantly in the last several years. >> that's some of their promises, that they are living up to their promise. >> it appears they are, but you have and we talk about this. you need to look at what types of investments they're offering. many are yus index funs, someen. what else are they providing? is there financial education? usually not that much, unless it has a good communications arm, but you're not talking to someone and many people say that's what they want. they want to be able to talk to a real person and is the person calling in the is that really someone who's licensed to give you the information you need. >> sharon, thank you very much. interesting with development thou. making it available to more people. >> so important, sure. and still ahead, sequel slump. why familiar hollywood brands are failing to find audiences. the second, third and some case, four.
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zblnchs tomorrow, automakers report their sales for july. one of the busiest months of the year. f.i.r. pri minister is expected to detail his government's latest tuss pack angel. that's what to watch for tauz. the big winner at the box office thie jason bourne series, but it didn't n as much as the last release and that plays into an emergings sequels are slumping having a hard time finding
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audiences. julia boorstin has our story. >> jason bourne had the biggest global debut in the franchise. $110 million worldwide. this $60 million u.s. debut was 2007 film.rinciple not including inflation. including bourne, is summer has had two more wide released sequel year's prorms is far wor. the u.s. summer box office is 26 >> there are a lot of sequels a quality problem. if the movie doesn't resognate, if it's not it may be a, that people are biased against sequels, they may be biased against bad movies. >> last quarter, sequels were particularly rough. barton crockett writing that the quarter will be remembered as a time when sequels, especially those not featuring
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he's referring in part to ninja turtles, who's opening was 54% of the reboot. viacom warning its results would be impacked films underperformance. just this morning, amc intertaintment reports an 11% decline in u.s. revenues, blamin lackluster film slate. neighbors 2 and alice through the looking glass and ice age collision course had the worst opening among the five films in the series. but sequels have also been the year's top two performi in film. finding dory and captain america. the bar is higher than ever to pull people away from their d netflix. >> audiences have a lot of options today. you've got to keep going back to
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the movie theatre to get in that moviegoing habit. the way to keep them there is with t mige the draw this weekend isn't a sequel. warner brother, su . and that does it for nightl. thanks for watching. >> thanks and we'
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