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tv   Nightly Business Report  PBS  August 31, 2016 7:00pm-7:31pm PDT

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this is "nightly business re with tyler mathisen and sue herera. >> sizzler. august ends on a down note as the s&p has its first negative month since february. so, what does september hold? new heights. how one of the largest real leg up on the competitio venture. the hot new area attracting silicon money. ll that and more on august 31th. good evening and welcome. tyler mathisen is off. august went out with a thud. stocks closed out the month lower as inves took a step back and locked their focus on
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friday's jobs number. many ploa the federal reserve's equation on when to raise rates. all in all, it wasn't too bad to 18,400, nasdaq dropped n the nine, s&p 50 for the month, the dow and the s&p were slightly lower. but it was the first but the nasdaq did m 1% gain. so, now that august is in the what can we expect? don chu gives us a history lesson. >> after what's be te brexit vo, some are anticipating what could k from their vacations an get back to work crisis go back to area, the last six years, stocks became have seen more volatility september, but it ends up
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being flat. in september, but it's only been a 50-50 split on whether the month was president oba o t duri of september through december, the trends have been more positive. s&p 500 has gained over 4% on of the time.g t health care stocks are among the better performers. meanwhile, energy is among the lagging. now, remember, we're talking average numbers here and time frames do matter. september though remember, filled with potential, market moving like jobs data in the u.s. a debate later in the month and opec so when it comes to september, the avere numbers could suggest it could be an uneventful month,
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but that cou >> as we mentioned earlier, friday is the august jobs report and many believe that is the number the fed is looking at. adp said private companies added 177,. that was in line with the 175,000 estimates. steve liesman takes a look at what might happen after friday. >> if the jobs numbe right, does the fed have to hike? that's the question on wall . the wall street looking for 180 jobs at a rate at 4.8%, a key indicator for the report, adp national report came in right on target, showing private sector jobs with 177,000 for august. mohammed says the odds are 60% and could go higher on saturday. >> what makes the probability go
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higher, if friday, we pull ahead, job creation in excess of 180,000. >> wage growth going up and no significant moves in the par missation rate that pushes the unemployment rate up. about%.et >> behind the increasing odds of a september hike, janet yellen in jackson hole said the case is strengthening and stan fish esh said the rate hish is possible and may mean more than one this year. >> y yellen said over the past two day, they are looking for incremental data points that would suggest stronger activity. the field where willing to consider the rate hike. >> citi is still betting on a december hike as is the market. positive september rate increases are up, but still under 30%. the de better than either rate.
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the fed doesn't want to act before the presidential elections, though fisher from the fed insists they would not s still considerable data before now and the next meeting between now and the next jobs report. saome said te the the septembe meeting a close call, baugh healthy jobs report. it will be the first step on the what will friday's jobs report mean for the fed and perhaps a september rate hike? and are there any investment moves you should make now that will put yf rising interest rates? jim swanson joins u chief investment strategist at msf management. welcome. >> thanks for having me. >> start first of all with what you are expecting on friday. are yohe the market? >> pretty much so. this whole year, we've seen 194,000 average number for nonfarm payroll and i said it's going to be clos edge. >> so, you're looking at
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december rather than september for a rate hike. >> that's my hunch, yep. i think people need to begin to look at their portfo, first, but i think we're in for a rate hike this year, but not this month. >> you said people need to look at their portfolios. sounds as though you feel this is a lack of opportunity for of that's right. i think people need to do two things. if the fed's willing to do this, that means they're p seei coming. they just don't want a one-time rate increase. fall.will be the sec that means investors need to look for those longer dated bonds and trim those positions really long duration, long maturery bond holds and pivot to shorter, high quality credit type corporate type bonds and also, to look for those bond substitutes in the stock market that have gotten very pricey. part of the stock market have
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been used as bond su such as? zpl take a look at u these are high divid s of the s&p and they've gotten pricey. d to justify that when ates start go instruments, that are a lot safer and i think this is going to be the competition and i think people need to trim those positions. you know, not radical move, but this is is time to ta understa financials. any particular sector of financials? >> yeah, i'm pretty much in favor of the banks here. they haven't been very expensive and now, we're looking at that part of the cycle tends to be mid are on their way up and banks start doing more commercial lending. and the combination of these two is very good for interest rate profitability for these banks, so i think this will be finally,
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a time for the banks to shine. zpl a lot f people are saying that regardless of whether we g to start to t rate hike in pick up. maybe it's around election. maybe it's just either you know, some issues with the fed if they doept hike or if they do hike. do you expect vola to pick up considerably? >> yes, here's an important reason. there are cross border flows, we're in a a global world, and we'll be hiking, raises rates when the rest of the world's still easing and that's going to differences in fx or currency exchange rates. it means capital flows will start moving nmore to the u. a lo time to sort of i think step back and realize that risky assets have been on the move for months and i think it's a time to pull back on riskier assets and trim those positions. >> thank you.
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jim swanson. the treasury secretary about, the mu making apple pay more than $14 million in back taxes and he wasn't a fan. >> our concern with european commission action is it is using state aid theory to make tax law. it is doing it in a way that is retroactive and that overrides national tax law aut and we think that it creates s the environme be good for the u european economy. >> he also said it undermines the spirit of economic with established tax law principles. brazil's president w voted out laws.ice af
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the vote brings to a paralyzed most powerful economy in latin america. ahead of his immigratio speech mexico. donal >> it was an extremely subdued donald trump that we speaking in speaking from a prepared script, which he doesn't always do a of voice that was almost a whisper at point, but trump really making his sales pitch to the mexican people saying his policies on immigration and trade are actually good for them as well on immigration saying ultimately, that having my grants coming up north through mexico into the united states is not good for mexico or for the that we have to keep the phrase he used, citing competition with china. in contrast to some of this language we saw on the campaign
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of way the two countries would relate going fo here's what he had to say. >> improving pay standards. and working conditions wi and all workers in pla there's a lot of value that can be created for both countries by working be >> working beautifully together. that's a phrase we may or may not see in his speech tonight on immigration. he's going to be in arizona. f his oing policy and particula in a e soft ek wher ping his immigration policy. we'll see if that holds up tonight or not. really, nobody's toeltly shaur immigration tonight. it's a fascinating moment. >> it is. any word whether secretary clinton will be visiting mexico or speaking with the mexican president? >> well, we know that the mexicans have invited both
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candidates, donald accepted, hillary clinton's team says there are no plans right now for her to go to mexico as well. but of cou you've seen in the past candidates for president have seen a little bit of foreign travel is good for the resume, the image as presidential. we'll see if hillary clinton decides she need to foreign trip as well. between now and eleco trump's speech will play with republicans who are not in favor oo trump and acy? if i'm his campaign, i tell my supporters we're g dpoeshuating with the mexican people. he was asked at the press conference there whether or not they discussed whether or not mexico would pay for the wall he plans to build for united states and mexico. that's one of his key promises on the trail. ultimately, we didn't discuss that yet, later date, g to the mexican people.'s >> thank you so much. up next, how one research
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company is using big data to soar above t. more signs the housing sector is holds its own. penning sale rose 1.3% last month and applications for new mortgages rose nearly 3% last year. competitio many real estate industry fear and information is king. one of the largest property mining to new heights. spying from the sky on construction below. diana oleic went for a ride to
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see the real estate recon. >> in the skies above southern maryland. >> telling me this is -- >> former marine is mapping construction sites below. using the same techn gathers intelligence over iraq afghanistan. so you can point to something, say, okay, i see a building under construction or a site that hasn't been started yet, but may have been listed as permanent. it's watching, it's a publicly traded informat which invested millions in day that mining and is seeing big rurps. >> we collect twice as much under construction activity as any of our competitors. and that can be as much as hundreds of thousands of construction, of apartment units about.e know >> just gathering construction
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da used to take costar a year on the ground. no days. the data is invaluable to developers and landlords who need to know where tn is in the. it also helps banks who might be lending to the developers to know if the property will be able to sustain occupancy an rent. from participants to offices, even to farmland, the system with can track prokts in a way old fashioned offices cannot. not only is costar mining day to to sale to its clients, it's the website, apartments.com. it's a million dollar -- >> it worth it? >> absolutely. we identifn annuity clients eac year by doing this and we create a lot of value for information clients. >> the next frontier for costar, single family housing. as homebuilders ramp demand, this kind of information can mean the difference between
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a bumpy housing boom and a smooth landing. for "nightly business report", i'm diana oleic over southern maryland. u.s. regulators aim to block deers field with monsanto. the justic filed a lawsuit against deere to prevent the giant's takeover of the precision equipment business. the government said the tie up would raise costs for farmers and remove com technolo. deere shares fell 1% to 84.55. bob evans farms saw profit earnings guidance.t the company did report a worse than expected drop in sales as fewer re less, shares rose nearly 6% to $41. paloed a rise in revenues.
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the results came in ahead of technology company its loss widened and weaker guidance for the current quarter despite raising its full year outlook. shares fell 7% to 133.17. ups pilots have signed a five-year agreement that will include a pay hike of nearly 15% and a 3% annual wage increase over the next five years. ups shares fell 16 cents to 1 . 109.22. will pay $5.5 million to the u.s. government to set claims that its divisions in china and russia violated u.s. antibribery laws. fell to $32.81 and brown foreman said profit and revenue fell as weakness in foreign markets hurt results. the maker of jack daniels whisky said the divestiture of two of its brands contributed to the
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decline. shares f 3.5% to 48.52. florida governor rick scott has declared a state of emergency in preparation for the tropical storm. and it's expected to move towards the west coast of the state. >> we have 6,000 members of our national guard ready to be mobilized. just think, we've got a storm surge. we're going to have rain. we have the risk of tornado. and this is going to go across the state. trz it's going to start sometime tomorrow. and it is going to hit most o rain. especially east, the southeast si. >> and hawaii is bracing for a doub and as susan lee tells us, the storms arrive amid for tourism in the state. >> not one, but two hurricanes and back-to-back. madeleine has weak ped to a category 1 storm, but it's still packing winds of 90 miles per
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hour and it is expected to pass dangerously close to the big island of hawaii o roughly following fast as lester a more powerful category 4 storm is is forecast to hit o weekend. hawaii's governor has declared a state of emergency. with school closure, residents stocking up on food and water, p their windows, meantime, visitors are being told to take all necessary safety precautions with hawaiian airlawaiving flight chang fees to and from the big island. tourism is the biggest business in hawaii, accounting for over 16% of the state's e. and making up over 35% of hawaii jobs in 2016. and was five straight record years of visitor numbers and spending, it's boom time for the aloe ha shores. >> hawaii has a lot going for it right now that other p
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namely, it hasn't been in the news for negative reasons like terrorism and zika, which has destinations. >> more diree helping g in the visitors with a report number forecast this year. hawaii's government predicts nearly 9 million will make their way to the state. americans represent the largest number of tourists to hawaii. followed by japan, canada, australia, south korea and china. canadian visitors have fallen over 11% in 2016 thanks to the stronger dollar and weaker canadian currency. that decli more than made up t influx of cory r really too early to tell if the twin hurricanes will have any impact on visitor numbers. >> this threat of storms will maybe make people nervous if their planning to fly to hawaii
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in the next week or whatever the timeline of the storms are, but if there's a near miss or just imagine honestly if it does much of anything. the waii may be bra if forecast for tourism remains rosy with another record year expected. i'm susan lee. coming up, why silicon valley venture capitalists are the first commercial flight vi een th landed in santa clara. the jet blue flight took off
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from ft. lauderdale. eight u.s. airlines were granted permission to begin scheduled flights to havana this fall and finally tonight in s valley, it's not all about just ride hailing services and food delivery start ups. venture capitalists are now explrn >> so far this year, venture capitalists have already committed more tha$200 million across 20 space related deals. that's on top of the more than $2 bil investeded in 2015. money include elon ave r musk's prooit company, one web, blue orgin, the start up founded by amazon founder, planet and a company backed by bill gates that sells small satellite
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antennas. the ride to small spacecraft, cloud compute uing as well as the incr drop in components have all contributed to the growth of the sfas related start ups and the state interest is only increasing in this market. >> blooe it or not, silicon valley has been known to inspire herd like behavior and right now, we're kind of at the nexus at one of those areas where ther a week that goes by where i don't get outreach from some other institutional investor saying there are challenges though. it would be ha flourish until commercial rocket launches are more frequent and reliable. also, vc say there's a shornl of smart soft wear engineers. >> it's all b abou we need al it's the recruiting partially
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was the peop co companies. electric car, facebook, anything. example, he says we are on the cusp of space tourism to the given advances and the amount of money now supporting these space start ups, the stars and moon might indeed be aligned to make those projections become a reality. for "nightly business report", i'm josh lipton, san francisco. le. and that's "nighne
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