tv Nightly Business Report PBS January 11, 2017 1:00am-1:31am PST
this is "nightly business report" with tyler mathison and sue herera, funded in part by hhs. our valued principles are patient first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting patient at the center of the equation. the purpose of this organization is to help people get back to what they need and love to do. >> watching washington, a plan to overall corporate taxes is gaining traction. and one part of it designed to keep more businesses in the united states is both novel and increasingly controversial. new high, the nasdaq six for
six so far this year. closing at a fresh record. and the s&p 500 did something that hasn't done in nine years. drug and drug price crisis. as the opioid epidemic grows, so does the price of a life saving drug. the first part of our series on success, january 10th. >> welcome. the focus on wall street today was washington. on capitol hill the sfirs confirmation hearings took place and there was also a senate examination of russia's hack activities. future of health care was a big topic of conversation as was a controversial component of the revamping of a corporate tax code. he we begin with jeff sessions. while most of the questioning was focused on his civil rights record, his views on mergers,
antitrust and regulations could face the business environment. john harwood reports. >> reporter: 30 years ago, jeff session mad his first trial by fire. his second got off to a more promising start today. the alabama senator moved to limit his vulnerabilities at a senate judiciary hearing on his nomination to become donald trump's attorney general. he repeated his opposition to the roe v. wade decision legalizing abortion, but said he would uphold it up dir current law. he supported president-elect's plan to limits immigration from countries with high rates of trich terrorism, but he said accusations of racism that sanction his nomination for a if i recall judgeship was untrue. sglifs accused of failing to protect the voting rights of african-americans. the voter frauddemning civil ri
advocates and even harboring sympathies for the kkk. these are false charges. >> but most important to wall street are his views on corporate mergers. sessions noted the importance of using government's power carefully. now, even though there were scattered protests, fellow senators seemed mostly supportive. jeff sessions will face a new test when hearings resume with testimony in opposition from senator cory booker of new jersey, an african-american and potential democratic presidential candidate. for "nightly business report," i'm john harwood in washington. james comey testified for the first time since the election and he said russian hackers breached some republican groups but chose not to release much of the material it obtained. he also stated that his agency has no evidence that the trump campaign was successfully hacked
and declined to say if the fbi is investigating links betwe s associates of president-elect and russia. >> when it comes to obamacare, donald trump is urging republicans to repeal it immediately and he wants the replacement to follow a few weeks after. but mitch mcconnell said trump's remarks on the affordable care act are, quote, not consistent with lawmakers plans. separately the government today said that 11.5 million americans purchased health insurance plans on the can interest changes this enrollment season and that is the most since the law was enacted enacted. world bank warned that mr. trump's threats to use tariffs could wipe out the potential gains from his promised tax cuts if the threats result in a trade
war. house speaker ryan and members of the trump team met to discuss a plan to overall the tax code. the proposal focuses on a border tax adjustment. and some say it could encourage companies to keep more of their operations here in the u.s. michelle caruso-cabrera explains. aren't. >> reporter: currently u.s. corporations pay taxes at a rate of 35%. but what paul ryan and company would like to go is change to domestic revenues minus domestic cost and then a tax rate of only 20%. that would change the system from a worldwide system to what they call a territorial system. similar to what our trading partners to. that means only taxes what happens here in the united states. it also encourages production here in the united states because the more you produce here, the how you can lower your tax base. and that's why retailers don't
like it because they won't be able to recuse their tax base by anything that they import and they import nearly everything. here is what is crucial. the economists who support this policy say that it would strengthen the dollar a lot, maybe 20% or 25%. so ultimately companies like walmart and other retailers wouldn't face that much of a change and actually be able to buy a lot more stuff with their dollars and that would be an offset to the higher taxes that they're paying. but a lot of ceos are worried that the economists aren't right. for "nightly business report," michelle caruso-cabrera. so could a border fax like that one work? we have two guests with opposing views. we have director of federal projects at the fax foutax foun and he thinks it will. a public finance scholar says
that current proposal could create chaos. i can't imagine more opposing views. kyle, let me start with you. this is a very complicated system that is being talked here. on the surface it seems simple. but the devil is in the details. why do you think this would work and what would it do? >> yeah, so the border adjustment is actually just one piece of a broader tax reform that the gop is putting forth. they want to use tax reform to grow the economy and they proposed cutting the corporate rate. but in order to pay for this proposal, they want to broaden the tax base. as such they're putting forth this border adjustment which is going to tax imports, but exclude exports when goods are sold overseas. >> stan, you say this could cause chaos. i think you're referring to the movement in the dollar which michelle mentioned certainly. but how would it cause chaos
specifically? >> so there are two options here. even if the dollar doesn't move and then we impose a massive tariff or the dollar does move and u.s. owners of foreign assets will suddenly see 20% of the value of their assets dissipate, emerging economies that borrow in dollars will see the value of their liabilities go up by 25%. those massive wealth shifts i don't being have been thought through at all. >> let's talk a bit about how this would work in certain situations. i guess if walmart imports a shirt from china at $10, and sells it at $15, they would not be able to deduct that $10 cost of goods sold against the $15s of revenue. have i got that right? >> yeah, that's correct. of revenue. have i got that right? >> yeah, that's correct. when you purchase a good or service from overseas, under
current law, you can tcan deduct cost, but under this proposal, it's brought into the tax base. >> so my taxable profit would be $15, not $15 minus $10. if the shirt were made in north caroli carolina, i would be able to tee duct that $10 and pay tax on $5, right? >> correct. so it's clear that importers will have to remit more tax, but going back to one of the big issues here, as economists expect the dollar to appreciate great, this mea meesh great, it means the burden will fall on owners of foreign capital us a was discussed earlier. >> and stan, we focus most loi industry.us a was discussed earlier. >> and stan, we focus most loi .s was discussed a. a was earlier. >> and stan, we focus most loi
indu. but what about financial services firm or has dollar expose sue exposusuu think it could hurt s funds. that's right, they would be hammered. there are also industries that are like hospitality or education or real estate that sell goods to foreigners when they're in the u.s., and so they would face a much higher dollar and they would not benefit from the export subsidies that border adjustments. >> so kyle, how does this work in the case of a bmw that is made in spartanburg, south carolina by american workers at an american factory of a company owned in bavaria and uses in-puts from all over the world?
there may be some american components, there may be an entertainment from korea you can an engine from germany. >> so supply chains are clearly complicated and i think a lot of companies will have to look at how it will impact them and what the change in their tax remittances will be. about but generally if the dollar sg appreciate, you expect that to go across evenly whether your ib about put is from one country or not quhim twhile the is strengthened. >> what makes an american product, right? >> sure. and the prisoblem is once you dlank that defini
change that definite nilgt you h the mas effects. >> i think we will be talking about this a lat lot more. we'll have you back. to read more, head to our website nbr.com. the number of job openings road to a near record. there were more than 5.5 million openers in november up slightly from october. the rate of people quitting also increased, usually an indication that they can find another job quickly. >> and s&p 500 closed right where it began, flat. the dow jones average last 31, back down below 19,900. nasdaq rose 20. that is its sixth for six for the year. and the s&p 500 was unchanged,
zero. last time that happened, nine years ago. still ahead, the challenges startups face as they try to disrupt one of the most tradition at industries around. . . . . . despite being in the cross heirs, general motors issued a bullish profit forecast. and they increased its share buy back program and scissors they continue to cut costs. shares rose more than 3.5%. and volkswagen has negotiated a more than $4 billion draft settlement, it will resolve the diesel
emissions scandal. they plan to plead guilty to criminal misconduct. total costs now exceed the roughly $19 billion. half of all global companies could be it is ruptstdisrupted decade. within industry that some startups think is ripe for changes is the financial services business. but as kayla tausche reports, turning an industry inside out isn't easy. >> reporter: at the inaugural idea festival, more than 200 companies from wall street to silicon valley convene in san francisco, a hot bed of innovation to discuss the rapid change coming to the way we bank. >> it's about voice and biometrics. authenticity case, safety, security. we either continue to move away from password so is that your
body becomes your password. >> reporter: the way global payments are made -- >> so profound, it will do for trusted transactions what the internet did for information. >> reporter: and even the way we spend our time. >> average american i believe spends about 70 minutes per day in a car and typically you're focused on driving and staring at the road and not being productive. so if we can give that time back to you it has large implications on humanity. >> reporter: while optimistic about future technology, these leading minds say the year ahead is wrought with its own challenges. >> there is a lot of geopolitical unrest and a lot of cyber activity. so that could combine to create instability. >> we have to get a better handle on the terrorism issue and cybersecurity. they are threatening the very fiber of our standard of living. >> wherever time go, money
follows. so those folks that hack during the day train do it, very good at a it, may choose to have alternative lifestyles at night. >> reporter: cybersecurity emerging as the leading concern both for the future and the present. for "nightly business report," kayla tausche in san francisco. yearly outlook after disappointing sales and this is where we begin the market focus. owner of ann tan taylor and dress ban lowers it expectations. shares almost down 10%.taylor as ban lowers it expectations. shares almost down 10% walmart will rim natuelimin jobs at its headquarters and reduce regional personnel. walmart shares off 48 cents.
they closed the 68.23ed. and shares of illunina says they may be able to decoat code in the future. and they are up 16%. 165.04. and chipotle couldn't beat analyst earnings expectations. the chain said results were are hit by higher avocado prices and increases spending on promotions. but investors were pleased and shares up almost 4%. yahoo! will remain itself. it will be the company's 15% stake in the chinese e-commerce
giant ali baba. yahoo! said once the sale closes marissa mayer will be stepping down. yahoo! shares rose about 2% to $42.30. and after the bell, ford declared a first quarter special dividend of five cents a share. the company also said that it expects strength in its core business will lead to improved profitability in 2018. ford shares rose fractionally in after hour, but ended regular season up more than 1.5% to 12.# 5. on tptimism saw its biggest monthly increase since 1985.8 # 5. optimism saw its biggest monthly increase since 112.8# 58 12.85. optimism saw its biggest monthly increase since 1985.
small business openers are upbeat. >> and that confidence extends to corporate america. sara eisen is at the retail conference in orlando, florida. >> reporter: xis frkrooess are optimistic and hopeful that the jump in consumer confidence will translate into higher consumer spending after what has been a rough patch for the industry. they're you will excited by the prospects of lower corporate taxes. america's corporate tax rate, 35%. president-elect trump has talked about lowering it to 15%. >> it helps consumers because they have more money in their pocket. and if you have an extra $25 in your pocket this week, you're
more likely to go out to a restaurant. j ju >> just the challenge of being a multistate business is a challenge. so i love to have savings, but simplification would help. >> we're 56% franchise, so the more money you put in their pockets, the more you can invest in growth. >> and while executives are welcoming the prospects of lower cooperate taxes, they are worried about one other tax reform plan, and that is the border adjustment or border tax. that would impose a tariff on import and would affect most american retailers that get their products sourced from overseas. can cou it could drive prices higher. lieu lemon ceo says they can looking at it. >> you have to look at the
sourcing strategy and it will likely have ramification to the current country. so we will cross that bridge. >> beyond the policy changes, executives are still trying to figure out ways that consume are habits are changing and how to respond. millennials doing more buying online and executives are trying to figures out how that affects their purchasing decision. and today ordering takeout through amazon's alexa. i and why the rising price of medicine is under scrutiny. the first part of our series is next.
johnson & johnson will release a report for all of its medicines. about two-thirds of its sales growth comes from more drugs. one of the biggest health issues is the opioid epidemic. candida the price of the drug that can reverse an overdose is on the rise and that increase squeezing our first responders. meg turrell has the first part of our series. >> reporter: firefighters in new mexico carry four essential life saving medicines. . >> these are the most important and only medications that we carry here. >> these are the most important and only medications that we
>> reporter: medicines that can mean the difference between life and death and for some their cost has been a problem. farmi e.rmington's fire is planning to but the costs are still on the rise. >> up to $60 a dose. in years past, it was 20s, $3, a dose. >> reporter: sha some gentlemom medicines are risen and they cite increase in costs. and they have company insighted with the explosion in opioid overdose. last year they killed more than 33,000 people in this country. deaths there heroin overdose alone with now surpassed those
from guns. originally overdosed in 1971, narcan reversed more thandoses . and more in hospitals. like san juan regional. this doctor confronts the issue daily. >> it's a vital medication for us, vital to our ems personnel. rfrt increasingly public health want it in the hands of many as possible especially first responder. >> it would provide our officers that first response to those situations where we might have an opportunity to save a life. plain and simple. >> reporter: there are multiple forms of the drug and each have its open cost story. those stories are playing out across america from communities
to big cities. >> it's tripled in price for us. we're experiencing not only in price, but also in volume. so we're using more narcan. >> reporter: so it means hard choices. >> that is less money for us to upgrade bag or to upgrade difference things that we may choose to or want to. >> reporter: or sometimes not being able to carry it at all. >> this is no way for any of the agencies to afford it right now. no way for us to put it in every vehicle wasted on cost. >> reporter: a strug emthat puts budgets and lives in the balance. i'm meg turrell. and to read more, head to our website for an in-depth report. and that does it for nightly business report. >> have a great evening and we will see you right back here tomorrow night.
>> pépin: your food processor makes that very easy. you take a little can of anchovies filet here, some almond, a clove of garlic, one mushroom cut in four pieces, some bread--leftover bread from the day before--a little bit of extra virgin olive oil. you turn that into your food processor; this is for the people who like assertive food. it is really strong. you make a beautiful puree out of it that i have here, and you cut provolone cheese or swiss cheese like this little, uh, little, uh, toast of it, and this is quite strong. and you can even decorate the top with maybe a sliced almond that we have in there, and this is it: spicy anchovy bread. you can make this dish even if you don't know how to cook. i am jacques pepin. this is fast food my way. [upbeat jazzy music] ♪