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tv   Nightly Business Report  PBS  September 6, 2016 7:00pm-7:31pm PDT

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this is night business report with tyler mathis heating up, a flurry of deals helps lift the market and to a record close. cracks in the economy. investors t addst to the s be about pace of economic growth? and made in space. one company is bringing the digital future to the final those stories and much more tonight on "nightly business rep for tuesday, september 6th. good evening, everyone. i'm sue herera. tyler mathisen is off evening. call i ove tuesday. germany's bear is sweetening its over for monosanto and is
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pr cash trt company, creating a huge conglomerate that would include everything from form suit cals to pesticides. the ne ta offerover the year just got bigger. shares fell in trading today. big price tag, it wasn't the only science, health care and technology company sa firm for about $4 billion. this is the first major acquisition since spinning off a large portion of its business. shares soared 52%. and then the deal. in bridge, canada's largest pipeline company, is buying spectra ener for $28 million. the combination will create the largest north american energy infrastructure company. shares rose. jackie
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has the details. zpl a this deal speaks volumes to the kindn we're seeing and will continue to see as companies look to reduce costs, deverse fi and streamline their businesses. obviously, pipelines get oil from point a to brk to pint b. hat peo out ground. even with the fracking boom, crude can't be moved around, we'll still need to import foreign oil, which defeats the purpos pumping our own products. not only did they get a boost today, but other pipeline names popped, too. shares of kendra morning, j.p. energy and williams companies saw some of the most notable . . as pot >> the oil an gas industry in oklahoma coming under scrutiny
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blaming the hquak pros of fracking a >> the 5.6 magnitude earthquake t in the continental u.s. so far this career. it took place near pawnee, 55 miles northwest of tulsa. no one was seriously injured, but as firnls suspect, it could .e a link 37 waste water injections to be shut down. the concern, is wells which are used that toxic water could have triggered the quake. that's because the wells are driln a mile into the earth. where the increased pressure could cause fault lines to shift. the survey has linked a dramatic surge in seismic activity in oklahoma and other energy producing states like texas and kansas. to dispose of wells drilled too deep.
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in oklahoma, there w0 magnitude quakes last year. versus just on the wells are crucial to the fracking process. raising questions about the state's oil output. nearly 5% of the country's declined since less wells could mean less production. >> there could be a potential enviro catastrophe if the storage tanks, which fail or rupture as a result of an earthquake. you' barrels of crude oil, which much are exactly where they would go, monumental rivalling "exxon valdez" and other of the major spills we've had in the country. > a killkda says the include sandridge, chesapeake and range resources. another factor has experts concerned. .t struck 25 miles from curb
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other tank farm and pipeline operators report n $64 million barrels of cruel oil, the worry is an earthquake doing damage there would have f implicatio this not the first. it is one of many and the biggest in several years and people are getting shook up about it in a big way. for the first time, you've seen a response from the government there geps the industry. >> manmade seismic activity, the usgs say anchor anchor are not at much risk as california. >> exporter, saudi arabia and russia, said they would work together to stabilize the global energy market, but traders expressed skepticism. opec and non opec producers will
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hold talks at the end of the month. domestic crude settled higher to ore than $44 a b ba r market, but the nasdaq was the real winner today closing in an an all time high and closely watched economic data that came in weaker t ek pechted. by close, the dow jones gained to 18,538. nasdaq rose to 5,275. and the s&p 500 added six. more now on the weak economic data. and retail, grew at the slowest pace in siar institute for supply management says it's not manufacturing index was much weakn expeced and export order fell and hiring grew more
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the soft showing follows low the odds of an some, it was a bit more c. >> are the markets daring the rates? most feel the evidence has been too ambiguous to force a hike this month. the resilience several shots this year could em bolden officials to raise rates sooner compared to later. compared to last december, stock indexes are higher by 9%. corporate credit market looked hemtier. volatili down after the uk's vote in june to leave the european union. so strong because investors expect the fed to stay idle for a e longer. once janet yellen clearly signals a plan to type policy, it would weaken response, which could put the fed back on hold.
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this has been the frustrating pattern for some time. enough progress has been made under employme goals to make each meeting a live one for possibly rate moves. it's unclear if conditions alone the much on frshry market is not priced for a hike and the fed prefers not to blind side investors. economic mixed. the election, too, offers one mo defer action. perhaps, the fed won't have all the ingredients in place for clear rate bump in decembe but who knows a whole three months from now. nearly nine months after the fed began to try to normalize rates, it remains unclear when yellen might . >> so, what is this recent string of weaker economic data telling us about the pace of growth for the u.s. economy?
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michael joins us. he's chief economist at j.p. let's start if i recall, we kind ism et the stage with some of report. but are you worried about the well, i think you know, this morning's repo want the overreact, but it comes on the heels of softer details and we have seen a string of manufacturing reports that look on the soft side, so we're not but perhaps we are seeing a little slowing as we get to the latter part of the third that we don't wants i think >> so, what more do we need to watch for? what are the data points that are going to be important or my
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sales. the consumer has been the strong part of the economy. i think we need to see that continue. we'd also like the see the -- not give up an inn that would ty disapp. just one of those things we want to keep an eye on. >> do you view the unemployment report as a lagging indicator as some do? others say it's accurately reflects the dprout of jobs in hi lagged a little bit. >> i think temporarily, it does lag and we want to these yknow, business surve you know, one of the details within the employment report is the length of the average workweek and that did move down. in august, so that sometimes, that cane leading edge of when business turns more cautionary. that's another thing we want to
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keep an eye on in terms of looking at the labor market. >> to these latest data points change your outlook for what gdp will look like? data regarding third quarter. to the first half. i think the question is does thaty on into the fourth quarter. that's a question some of the layest reports, again made that more of an interesting question. >> right. where does this put the fed? e going to make a move for higher interest rates in september does this weak data give them the opportunity to take a step back and say maybe we do it in december? >> our best guess is that they o anything in september.opt no in addition, some indications of growth weakening.
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we've got to keep in mind that the inflation data hasn't looked particularly hot in the past three to six months, so that may be another factor. to pass on the next meeting. >> thanks for joining us. ahead, the brand rga that's n
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the parent company pay gre $20 million to settle a sexual harassment lawsuit. 20th century fox also issued a sued roger ales alleging he made unwanted sexual advances. he denied, but resigned as chairman shortly there after. a for profit college is shutting down. itt educational services is closing all of its schools. the move will impact 35,000 on campuses and online. last week, the department of education borrow barm all to use federal loans. ub school then stop blaming th investigations for years over its recruitment tactics and its job placement figures. lawmakers are back in
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a few key items. the first thing is is funding for zika. last week, the head of the cdc warned his agency would run out of resources to fight the virus by the end of this month. the second, government funding. congress is expected to consider a short-term bill that would keep the government from shutting down october 1st and the third epipen pricing. there will also likely be hearings on the rising cost of that but washington will be dominated most likelily politics and the upcoming presidential election. to see you.ing th we're seeing some polls that appear to be kind of all over the map. which one should we trust? >> they really do. we saw this cnn poll, out just over t in which you see donald trump leading by two ove then we see this nbc news survey monkey in which hillary clinton is up by six points.
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so tns which one do you trust and i think ultimately, what you have to do is not look at any one poll. they're all just snapshots, but look at the overall trend and then itt says is th s been tightening a bit. how much is going to be the november. >> that begs the question, is tightening. the ques is t going to go and how tight is tight? you talk about the poll difference or 2 or 4% or 5%, but a different picture.ege, that take a look at these stats from 2008, which shows you the barack obama win that year in 2008. look at the spread between obama d mccain that year in popular vote. a couple of percentage points there. significant margin, but an
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a 32 pbt 2%.lege, t similar picture in 2012 if you put up those numbers. obama, romney, fairly close, just over three points separated them in the popular vote. a very, very big difference, so these tighter polls that we're seeing don't necessarily mean the election itself will be tight. that depends on the state by state breakdown. >> absolutely. now, as we go into the final stretch, you know, donald trump s his tone has changed his somewhat. hawe does the race tend to ti? >> it does. it feels like that's a natural default point. also see the candi the past day s role in e interest rates have been kept so low. trump saying those have been
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kept low in order to help barack obama in in office. hillary clinton today came out and said you know what, that shows, those comments show donald trump should never be president because presidents shouldn't be talking about the fed. we're seeing new issues every day. >> we sure are. thank you. eog resources inks a deal to buy yates petroleum. the energy company said it will acquire privately owns yates for nearly $2.5 billion. the merger will allow eog to expand its presence in the basin. shares surged more than 6.5% to 95.83. strong demand for storage and networking products helped marvel technology turn a profit. sales, which came in shy of estimates. the company also gave lower than expected guidance. shares finned at 1.94.
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the food and trug drug ad given sage's company says there are currently no approved treatments nor that condition. it sent shares soaring to 40.92. investors had a chance to react today to a financial times report published over the weekend saying liberty media may take a large position in the car racing series a i corying to the repo entered talks with the parent ca one to t shares rose to 17.56. video game maker activisi, high. the stock rose more than 1% to finish at more than $43 a share. some are rise to its call of duty franchise,
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which has become more than just video game. ju boorstin has more. >> call duhty has sold $15 billion worth of games and the prand is getting bigger as it contin just a xwam that hits stores once a year into a year round phenomenon. tuesday, they launched more -- gamers paying between 15 and $50 for bonus content for last 10,000 fans paid between 50 and $200 for access to call of o duty x prk. watching teams compete in the call of duty world league championships for $2 million prize. along with performances by snoop dogg and whiz khali pha. they also got to preview warfare, w. reviews are so positive that
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neil doshi just raised his price on the stock saying new features of theuc >> they're now adding something calls micro transaction, so, you can buy small things within the game for $2, $5, $10. and so, it's not only are you paying $60 for the actual game, but now, if you or a costume o to advance to a higher level, you can pay a little bit of money. >> now, analysts are bullish that new consoles from play station as well as x-box, will help bol activision's dpam sale, as well as ea. shares are up 38% over the past six months. >> we think that the new cost tools will be a nee more peoplee their consol as a result, they'll start to buy games. >> doshi and other analysts are
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also bullish on the types of competitive gami event called ec sport ss, say it could not only generate millions, but it would roo have the add ed benefit of for"nightly business report," i'm julia boorstin zplnch coming up, how a new and here's a look at what t watch tomorrow. the federal reserve releases its beige book, a look at the economy across the country.
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some federal reserve officials are scheduled to testify in front of congress on the central bank's governance and how it relates to monetary policy. apple is expected to unveil its next iphone and that's what to watch for on wednesday. geo cases for an undisclose is unt. considered bellwether cases, which means they would set r .5 million were recalled because of faulty i vo as in addition switches. minority steak in navistar. it expands the global truck market. they plan to invest about 250 mi right to appoint two directors to the board. the stakes sent shares soaring,
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40% on the trading session. more buyers with excellent credit are buying preowned cars, not new ones. ac expeer yan, 43% of superfined customers financed a used vehicle. a 10% increase from the previous year. the move may be due to the rise in car prices. consumers are looking for ways to control costs and as a result, are buying used vehicles. general electric is making a bik push into 3-d printing. they are buying ar cam and slm solutions, valued at nearly it will thep become the premier xhaen. the aviation industry was one of the earliest doctors of 3-d printing, which could help cut waste. as the printing is also playing a key role in the new, more modern and increasingly digital
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tells us about one company going where . >> 3-d printing isn't new, but it's used in space. two years ago, made in space launched its first ever 3-d printing to the international space station. it let astronauts print a tool they needed instead of waiting for a shuttle to bring one in earth. the process takes just a few hours and makes living and g in space cheaper and more efficient. >> if ept to colinize space, we want to go permanently live in orbit, moon or mar, need to take the ability to manufacture. just like the settlers and took tools to build i >> thinking bigger, with plans to manufacture goods in space and thship them bar newt p partn
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printing high qualitl made on earth andenvironment. shigtly more expensive, which means a huge opportunities for communication, health care and manufacturing companies, where high speed can immediate high mile-an-hour margins. >> fiber, that's going to dramatically increase the band i. that's available. >> they plan to launch a 3-d printer that will be used to up in space. >> the bea kr so you don't necessarily need a considerable amount of human involvement. that means you could have these things built beforehand and then people can use these facilities at later time. >> made in space says these
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technologies aren't that far off. the first round of fiber is set to launch in late 2017. the company recently signed a contract with nasa to start working on it over the next two years. >> that is "nightly business re i'm sue herera. a great evening. we'll see yo is brought to you by...
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