tv Nightly Business Report PBS February 15, 2017 4:58pm-5:29pm PST
this is "nightly business report" with tyler mathisen and sue herera. >> all it takes is a spark. one idea to take flight. the courage to seek the unknown. to innovate. to move forward. to explore a different perspective. at nasdaq we connect the world, its ideas, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. >> unchart territory. the stock market is having its best win streak in a quarter century but it has some investors scratching their heads. >> around the table, retail ceos
sit with president trump with one big concern on their minds. >> distract driving. can a start-up keep drivers from picking up their phones? this is wednesday, february 15. >> the stock market did something it has not done in 25 years. all three major indexes closed at records now for five consecutive days. according to dow jones, that's the longest streak cynic 1992. investors today encouraged by new reports that show the economy has picked up a little momentum. they continue to be optimistic with the prospect of tax cuts which the president reiterated today and about regulatory reform. it in turn pushed the broader market higher. the dow jones industrial average added 20 points. the nasdaq gained 36. the s&p 500 advanced 11. >> as we've been reporting the.
at a cuts hoink a key proposal. a border fax could generate lot of revenue but large retailers are worried that it could raise prices for consumers. this morning a group of retail executives went to the white house where they met with president trump who said only that tax breaks would be lowered and simplified in a plan that would be outlined soon. when they left the white house, they made their way to capitol hill where negotiations on the border adjustment tax are taking place. >> retailers spent a long day here in washington meeting with lawmaker to fight against the border adjustment tax. this tax would raise the cost of imports and retailers say it could force them to raise their prices as well. they met with many lawmakers here in capitol hill including kevin brady who is chairman of the house, ways and means
committee. and one of the biggest supporters. he met with senator warren hatch of the senate finance committee. he caught one the ceos as they were leaving that meeting. here is bill rhodes, peg to reporters. >> a key message today, we really appreciate the openness of everyone from the white house to the house to the senate. we represent over 42 million american jobs and we're here to make sure that we're all looking for a pro growth agenda to move the economy forward. >> this issue is something that has divided the business community. the american made coalition, which is made up of many factors like ge and boeing are actually in support of the border adjustment tax. here's a statement they made. they said that opponents of tax reform are defending an outdated and broken system at the expense of american manufacturers and workers. there is so much debate on this issue here on capitol hill as
well. the representative mark meadows who is head of the freedom caucus is very skeptical of the border adjustment tax. meanwhile senator hatch said he still has questions about how this tax would work in reality. how it would impact consumers and impact businesses. so the republican employee is still not sure how would it move this issue forward. both in the house and the senate. and retailers are hoping to take advantage of that indecision to shift the ball in their favor. for the "nightly business report" in washington. >> the president has picked the labor department is withdrawing his name from consideration. andrew pusder which owns hardy's and carl's jr. has faced criticism about his business record and his failure to pay taxes. >> the president has to look for a new labor secretary and
national security adviser who resigned over his communications with russia. with so many questions about the president's tax agenda, why doesn't the market appear concerned? the spokesperson is here to tell us why the market isn't all that concerned. >> we mentioned the market has done something that it hand done in a quarter century. when you look at the aggressive agenda in washington and some of the difficulties that have come up in the last couple days, one would think the markets might have a less positive reaction to that. what you see going on in washington matters in the short term. >> you work with and for john templeton. what would he say? one is the level of stock prices and two, in a broad sense, how
an investor can says the political risks and opportunities out there. >> with regard to the stock market, he used to follow something called price to book. he was a value investor. they wanted to know what is the value of the company? what is the break-up value in and historically, the stocks have sold at twice break-up value. and they're not that high. they're about three times book value. and 2.5 is the norm. i don't think we're overvalued. >> what about the economics? we have the fed probably on the verge of raising interest rates at least one more time this year. we have a little inflation coming in which is good. do you longer term see this continuing to move higher? >> absolutely. these are all good things. we have to look at the stock
market. people say, the economy, the economy is long in the tooth. what you have to look at is not how many years, it is about 23%. we're only up 10.6%. so i think we have a lot of room to go. as far as the bear market, it is a 20%. we had a 19.9% correction in aufg 2011. why didn't that count? that should count. so i think we have a lot more room to go. >> a lot of people inside the beltway. they're wringing their hands over what has been going on in the administration. already this week he's lost his national security adviser to a resignation. now the labor secretary. there are ongoing investigations into contacts between campaign workers and potentially russian intelligence. but the market is playing past it and i think the rest country is focusing on something far more important.
that is a better business plan. >> absolutely. if you look at what is potentially coming down the pipe. stocks go up because earnings improve. tax reform, maybe even dodd frank. that will improve corporate balance sheets and that makes things look so much better going forward. >> all right. we'll leave it there. thank you for spending time with us. >> now to those economic reports. it picked up sharply despite the car sales. hiring and a modest wage growth, consumer spending. also helping, the haste breeze on inflation. which shows the strongest gain in four years. it was more than expect. but through january, it was the
biggest year over year gabe since march of 2012. >> janet yellen returned to capitol hill. she talked about the prospect for fiscal stimulus. >> i think market likely are anticipating shifts in fiscal policy. this will stimulate growth and may be tax cuts that will boost earnings. we've seen longer term interest rates. and it is consistent with expectations with an expansionary fiscal policy. >> her testimony i know what strong economic nudged higher an interest rate hike. >> benjamin netanyahu held a join news conference at the white house. the two heads of state sought to
bolster their ties. >> the partnership between our two countries built on our shared values has advanced the cause of human freedom, dignity and peace. these are the building blocks of democracy. >> since the seige of the u.s. free trade agreement 30 years ago, trade between the two nations has grown. and there could be more opportunity ahead for business. netanyahu joined trump in emphasizing the important relationship between the two countries. not only combatting terrorism but business as well. >> i look forward to working with you. in security and technology and cyber and trade and so many
others. >> the rekindled relationship between two nations could unearth opportunity. but some asset managers say now is the time to invest. northern trust which oversees $300 billion says they are poised to benefit from trump's vote of confidence. israel has already made the u.s. a key market for its businesses with 94 companies currently trading on the nasdaq. so they were each soaring 200% in the last year. silicon valley, also dependent on israel. they have been busy acquiring start-ups. this could egypt be the beginning. still ahead, fixing the
infrastructure. >> carrying bags of rocks to shore up the emergency spillway. i'll have that story coming up. the trump administration started making change to the affordable care act. the proposed rule would tighten provisions to apply for coverage outside of open enrollment. it would require consumers to pay back premiums due before signing up again. and it cuts the open enrollment period in half. that would give insurers more time to have their 2018 plan reviewed and finalized.
the growth of health care spending expected to increase nearly 5.5% in 2017 from a year ago. >> health care and infrastructure are both priority. today a new report shows almost 56,000 u.s. bridges are structurally deficient which means they are in need of attention. but current attention is on the oroville dam in california that we report on this week. crews have been working on shore up the emergency spillway in an effort to fortify the structure. even though mandatory evacuation has been lifted, the concerns have not gone away. >> reporter: it is a race against time in oroville, california as choppers buzz in the air. carrying bags filled with gravel to shore up the emergency spillway of the oroville dam. trying to beat the next round of storms.
while homeowners brace for them a second time if the threat becomes real. >> they said to be ready to put the stuff back in. get ready with fresh clothes and if something happens, get back on the road. >> the stillaway with crumbling conditions after back to back winter storms prompted fears of a 30-foot waffle water gushing down stream. and sparked the evacuation of 200,000 residents living down stream. now officials say they've lowered the water level to ease the threat and have down graded the evacuation order to an evacuation warning. the situation even got the white house's attention. >> it is a textbook example of why we need pursue this in congress. dams, bridges, roads all around the country have fallen into disrepair. >> the american society of civil engineers which comes out with an infrastructure report card
every four years gave manager's dams a d. and its most recent report in 2013. the report says by 2020, 70% of the total dams in the u.s. will be 50 plus years old. the association of dam safety said the high number of dams could cost a loss of lives. the organization says it will cost $21 billion to repair the country's aging dams. experts say dam owners are responsible for those repairs. and since most of the country's dams are privately owned, analysts say funding repairs is a challenge. >> a lot of them don't have the private revenue stream and it can be difficult for a dam owner to find financing necessary on make upgrades. >> as policy makers debate the state of the nation's infrastructure, residents in oroville watch and wait. >> i can see from here.
>> the trump administration has approved federal funds to pay for those repair costs at the oroville dam. for "nightly business report." >> rebuilding america will not be chief. the president has talked about investing as much as $1 trillion. today on capitol hill a number of transportation executives told lawmakers which types of projects they think are needed most. >> an industrial shipper, they all testified. senators mentioned the roads and bridges, tracks and ports signaling just how willing this new congress is to finally find a way to update america. >> remember, we've got an inheritance from our grand parents. the best infrastructure on the globe. we've now trash that had
inheritance. it is time to step up and do the right thing. make the investments so our children and grandchildren can be the number one on the planet earth. not just the infrastructure but that we will continue to be the dominant economy. >> they said it will take $28 billion over 20 years to make the investments needed to modernize. much of it along the most valuable route. >> we have the infrastructure and it suffers from reliability today. they're only going to get worse. and something has to be done. in fact you've seen recently the states of new york and new jersey come together. and we're got go start replacing a bridge up this. the first step in the long process that's well over 100 years old. >> the $12 billion gateway program which includes new york
city and new jersey. a cheryl of berkshire hathaway with a focus on regulatory and tax reform as well as infrastructure improvement could be carried out to ensure freight and rail roads remain competitive against truckers using public roadways. >> commerce must find a way with the infrastructure they use to increase fuel taxes, a distance fee or similar proxy. this isn't something that must happen eventually. it is time to look at it now. it also recognizes this. >> they focused on new technology from electronic devices to even cyber security. as a connected network becomes the trucking business model of the future. it was the latest fact finding mission as lawmakers try on find what it will take on modernize american infrastructure and do so without breaking the bank.
for "nightly business report." >> verizon reportedly gets a better price for yahoo! and that's where we again. t >> there is a deal with yahoo! for up to 300 million less than the original offer. last year they offered to buy it for nearly $5 billion but that cause on the merger. it suffered two big hackings. verizon shares were off a fraction. yahoo! rose nearly 1.5% to 45.65. the maker of gatorade and hummus reported better than expected profit but gave full year guidance that was shy of estimates. shares down 19 cents.
mime soda stream saw its profits triple. the maker carbonation systems had demands. the shares rose better than 4%. 4.5% to 49.54. >> late yesterday, they said they would be bought for more than $3 billion. that merger is set to transform soft bank. >> despite the enrollment, molina posted up expected revenue that was worse than expected. t they gave weak earnings guidance for the year. shares initially fell more than 10% after hours but ended up a
fraction. and time warner, they're now one step closer to their deal which still needs approval from u.s. officials. shares of at&t were up about a percent to 41.12. time warner was off 7 cents. >> demand for kissco he had a security proth. that was a penny we are than estimate. observely shares volatile after hours. fa shares falling. >> 3.3 billion. that was one big number in cisco's results. first cord switching business. that was down to 5% year over year. and rbc says that was a bit better than his expected.
he is moving into the right part of the business. they became a tech titan. the company now moves to the cloud and buys less hardware. cisco understands the trends which is why chuck robbins is focused on distributing software. for "nightly business report." i'm josh lipton in san francisco. >> coming up, can new technologies keep us safe when we get behind the wheel?
here is a jolting statistic. the number of people who died in a car accident in the u.s. has hit its highest level since 2007. blame it on factors such as high speed limits as well as texting and driving. a look at the numbers and whether some new technologies may keep us safer behind the wheel. >> driving in america has become deadlier. the national safety council estimates 40,000 people died in car accidents last year. the most since 2007. it cams the steepest two-year rise sense 1964. some of is it because drivers are going faster, as states raise speed limits. while distracted driving remains a huge problems. ironically, highway deaths are
rising. the national safety council says some of these new systems are being ignored by drivers. >> there are oral warnings, verb you'll warnings. some of these are concerning to drivers and some of them are, the functionality is really not there so drivers are turning them off. >> he thinks he can help people. he sold a device that pre convenience text messages, e-mails and navigation on to a small screen in front of the driver. he believes drivers will not stop texting or calling so the display is a safer display to handling the issue. >> people will make phone calls. they are got go use turn by turn navigation. they are got go listen to music. this is a far safer way. >> deborah disagrees. >> doing these things doesn't
make drivers safer. they make they will more distracted and split attention between the roadways. >> in fact many drivers remain their own worst enemies. >> that's why auto makers and tech firms are investing more than ever into systems designed to keep us from crashing into cars or people. as the latest numbers show, we are a long ways from seeing a big redmuks highway fatalities. nightly business report. chicago. >> to read more, head to to our webb. before we go, here's another look at wall street. the nasdaq gained 36. the s&p 500 advanced 11 points. we'll see what happens tomorrow, right? >> yes. >> that does it tonight.
>> "nightly business report" has been fund in the part by -- >> all it takes is a spark. the courage to seek the unknown. to innovate, december rum, to move us all forward. at nasdaq we connect the world, its ideas, its capital, its businesses, the people who drive global economy. the future isn't tomorrow. it is right now. all it takes is a spark. nasdaq.
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