tv Nightly Business Report PBS March 13, 2017 5:00pm-5:31pm PDT
this is "nightly business report" with tyler mathisen and sue herera. fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, disrupt, to move us all forward. to explore a different perspective. at nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive local economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. >> health care prognosis. official estimates are out. the republican backed bill would lower the federal deficit but boost the ranks of the uninsured and the cost of premiums.
>> intel makes a multi-billion dollar purchase to become a major player in the self-driving car industry. gasoline hasn't been in such supply in 30 years and that could be good news for drivers. those stories and more on "nightly business report" for monday, march 13th. >> good evening. welcome. the numbers are in. the house health care bill, a key part of the new administration's agenda, has been an lissed, and here is what the nonpartisan congressional budget office says. the bill would reduce federal deficit more than $330 billion over ten years. 14 million more americans would be uninsured over the new bill than under obamacare by the year 2018. 24 million by the year 2026. premiums would increase for individual insurance holders by 15 to 20%. john harwood is in washington
for more for us. those are the rough numbers. what else did the cbo report say? >> they say that insurance premiums will go up in the next two years, go down after that but only for some people. younger people's premiums go down. they'll be able to buy smaller policies. older people's policies will go up. and deductibles on average will rise under this plan. not fall. which is what president trump said he would do. >> within the past few minutes, secretary price and omb director mulvany have been out and been very critical of this cbo report. what was the reaction? >> well, they're saying that coverage can't fall that much. they disagree strenuously. cbo did not consider all the relevant factors but keep in mind, tom price himself as the house budget chair appointed the the current director of the
congressional budget office. that serves to undercut the idea that they are biased against the trump administration. these numbers could be very damaging to the republican effort to repeal and replace. >> this bill was in trouble to begin with because many feel it is obamacare like. and more moderate republicans think it takes away coverage from too many people. they have on figure out which way they want to move. which group to play indicate. it won't be very easy to decide, pick one direction and try to figure out a path to the majority of the house and senate. >> thank you. >> that cbo report on health care was just one big the event that investors will watch this week.
today the dow jones industrial average lost 21 points to finish at 21,881. the nasdaq however was up by 14 and the s&p 500 rose by 100. a look ahead. >> the uptrend in stocks is still intact. the market is split between winners and loser as opposed to february when they were all winners. so tech and bank stocks continue to do well. throws the largest sectors. that's a big reason they are up this month. a little more worrisome. the trend some small cap stocks. they got off to a rough start. recall bits 5% off its historic high of a few weeks ago. that's a modelest define. it holds many of the big tech stocks. this waffling is unlikely to continue. there's the plenty of market
moving events later this week including the fed's decision on interest rates. that will be wednesday. there is also the loeks wednesday since the release of the budget on thursday and word on raising rates in england and japan, the same day. one other small wild card for stocks. president trump meets with german chancellor angela merkel on friday in washington. it is called currency manipulator for keeping the euro low even though it is the european central bank that policy. i would love to be a fly on the wall for that one. so bob laid out some of the things are ahead for stocks. here to discuss how this week's events could shape the market, the president of money management firm. good to see you, michael. >> thank you. so nice to be here.
>> let me start with this report that we got about the health care initiative that the trump administration is putting forward. obviously there will be much debate. you point pout the market seems to be pricing in almost perfection. that the entire trump agenda will go through. given what we just heard, what do you think the reaction will be? >> you know, this has been my worry since november. right after the election. the market started to move a lot higher based on a lot of optimism and hope for this agenda and a lot of it is stlam i have the. but washington is slow and messy. the cbo has to step in and score a bill which we've seen the just happen pufbls have to get a bill through here. any kind of a boil the get a house senate conference where the next step of sausage making gets made but this looks like something that could get well into 2017 or even 2018. and this is what will happen
with the political agenda working through washington. we're going to see this again the tax cuts. we're going to see with it other immigration things. so we mope the markets can be patient while congress does what it does. >> so is it your surmise based on that that the up, up and away rise in stock prices we've seen for the last three months are level off a bit, maybe correct a little bit? that maybe now is not a particularliment on maltime to be putting fresh money in big sbis the equity markets is the. >> i wrote in my market commentary that we could be on the beginning of the next 3,000-point move. the up side or the downside. i can't tell you. we haven't had a correction in a long time. we've made a bunch of all time highs. the market could correct and the market should give some back. why? what will be the cause? what will be the spark? we really don't know.
we might not even know it when we see it. >> bob in his piece laid out the other events global ly election in other countries in europe. how many of an effect do you think that will have? >> i think it could have a big influence. depending on what happens. this dutch candidate that we'll find out about wednesday is a nationalist candidate. they want to close the netherlands borders. they are anti-islam. they want to close mosques. they want to leave the euro and the earnu. that would close the door to what happens in france and the election. and if these series of events occur, then you see a break-up of the eu and that does affect what happens here and a trend toward nationalism and protection pitch ginl
>> thank you very much. >> as central bank policy makers prepare to meet tomorrow and wednesday in washington, the federal reserve bank of atlanta will soon have a new president. the economics professor was approved by the atlanta board and by the fed's board of governors. when he takes over in june, he will be the first black regional bank president in the 100-year history. he has done work on homeownership and housing finance. he succeeds from last month. stocks have been eyeing the oil market. today prices extended their losing streak to a sixth straight session. domestic crude settled above $48 a barrel as growth in the u.s. production threatens to offset the cuts from opec. not just oil that is concern but also a gasoline glut.
>> reporter: crude oil and gasoline storage like the type that you see behind me are at record levels, according to the energy had administration. >> it is why consumers have been able to enjoy relatively low gasoline prices for the better part of two years now. >> reporter: but oil companies are nervous. they've seen this before. too much supply. not enough demand to meet it. in fact february of last year when prices with near 26, it was same situation. analysts say it is possible again but this time it could be different of. >> given the extraordinarily high and record inventories on the east coast, we've seen two things happen. in december, the u.s. exported record amounts of gasoline. on the other hand, last week we saw gasoline imports into the u.s. reach the lowest level since november of 1999. and the combination of the two
will help us reduce all that winter grade gasoline inventory that has been laying around. >> this could all have an impact on stocks. lower prices could affect stock market. chevron and exxon are dow components but there are other parts of sector that could get hit. >> given there are very high gasoline inventories where we're seeing price come under pressure, good news for the consumer but bad news for refining margins. both independent refiners are seeing the stock prices come under pressure. >> the majority of people did not this coming so what happens next could surprise everybody again. new jersey. a surprise acquisition by intel. the world's largest computer chip maker will pay $15 billion to acquire mobile eye, technology for self-driving
cars. more on the deal that puts intel right in the middle of one of tech's hottest segments. >> reporter: 15 billion is a lot. even for a company the size of intel often one time it has paid more for a company and that was all-tear two years ago. this was the latest sign of a strategy shift tunneled ceo he took job nearly four years ago after the company missed the smartphone revolution. he missed the pc market and few clear paths to growth. i answer, hold back. invest instead in cutting edge technology like drones. >> they're more than the just cars. they'll be in highed end devices like the spotting cruise missiles the helicopters. they'll be in high end drones, high end robotics as well. so bits computer vision and how
computer vision will change the world. in order to have true artificial intelligence of a mobile device, you have to have computer vision. that system has to see the world to interpret the world and navigate or work within the world. >> intel is not the only company big on this. five months ago, qualcomm said it would pay $40 billion for semi conductors which special iceses in automotive and wireless technologies. of course, facebook bought oculus years ago and don't forget snap. it just went public earlier this month calling itself a camera company. still ahead, why the plug has been pulled on a billion-dollar deal.
a veteran of the food and drug administration has been tapped by president trump to plead agency. if approved, scott would be charged with cutting red tape and examining the approval process. who he is and his potential impact. >> reporter: the pharmaceutical response thaxt god it's gottlieb. i am came after months of speculation and rumors' names came with no medical training. so they are breathing a sigh of relief. >> some of the names that have been floated are very extreme on the deregulation side.
he is a verier round individual. >> gottlieb, a venture capitalist served under george w. bush. if confirmed, it is at a time of intense scrutiny. the fda isn't authorized to address pricing directly but he has a long track record. particularly in areas like complex generics such as the epi pen, a device and a drug in one. >> complex drugs have become hard to get on the market. any time you talk to the agency it demonstrates between one drug and another, the agency has a hard time. we were talking about this very issue ten years ago when i was at fda. >> many expect him to focus flexibility within the agency to speed drugs and new medicines to market. but it is drawing criticism. the consumer advocate he said it
is an unprecedented web, citing more than $400 he was paid in fees between 2013 and 2015. gottlieb declined to comment. some see his involve wmt the industry as an attribute. >> it is very hard to find qualified people who don't have some conflict. if you're going on get things done, you have to have perspective over angle and you have to be willing to work agencies and physicians, insurers. you have to keep all stake holders' interests on the table. and in an unfamiliar display of bipartisan support, he said of gottlieb on twitter, a very good choice. gottlieb still needs to be confirmed by the senate. for now. we begin tonight's market
focus. a report from bloomberg says the $13 billion business software company is working wi with gold sachs. that sent shares up more than 6%. shares of valeant pharmaceuticals fell following a cnbc report that bill ackman sold his entire position. he is said to have sold more than 27 million shares at $11 each. he is also expected to step down from valeant's board of directors. it initially fell after trading and that was after the drop in the regular day session where they closed at $12.11. according to a regulatory filing out friday, billionaire investor icahn. he had owned about a 16% stake in the company. now up more than 1% in price action today, it finished at
26.the 46. the company hutchison china meditech, said small commercial sales helped drive its quarterly numbers. it said revenue up 21% while profit also rose. the shares jumped nearly 13% to 15.97. a billion-dollar cross border deal falls apart. china's richest man who is also the head will no longer buy dick clark productions. the company behind the golden globes and the american music awards. i would have marked the first move into hollywood. but that deal is now dead. they aren't commenting on the decision but dick clark representatives say they couldn't neat contractual obligation singled traditionally they haven't had trouble raising
financing in this country, people believe it means they couldn't make a payment because it doesn't have the same level of government support as did it before to get its money out of country. beijing has had an overarching national policy to ensure had companies to go overseas and spread their wings. however, that has been running into conflict with another important priority of beijing, to stabilize the currency and clamp down on capital outflows. over the past 12 days we've heard some sharp criticism from high level officials. they saw some of the investments blind and irrational and also the chinese central bank governor said investors fwlnlt line with industrial policies such as sports and entertainment. now they want to become a powerhouse in the entertainment industry. it is already a known quantity after buying amc, a cinema chain, as well as the film
producing company, legendary entertainment. now with investment in takeover of dick clark productions, the company hoped to make foray into the american tv market. however, those plans, as well as the global ambitions, are now on hold. coming up, we'll take out a trip over austin, texas. >> i'm julia boorstin in texas. going up in a helicopter, why lockheed martin. that's coming up on "nightly business report." want to know what's trending in technology, media and
investing? look no further than the south by southwest conference in austin. it started as a music festival but now it is a place where gadgets are put on display. and this year, companies are going big. south by southwest gathered nearly 1,000 attendees, big brands trying get attention of the early adopters who are here. and it has become a key battle ground for media giants new, ask old, to market the originals. amazon created this restanls radio headquarters to promote original theories. man in the high castle. a film festival oasis. netflix is premiering five shows and he showing 13 reasons why. these lockers are spread around austin. meanwhile, the throne from "game
of thrones," and turner is here he promoting a range of new content. saying this audience reaching this audience directly is more important than ever. >> we deal with the earliest audience in plurals or generation d, as a lot are calling them. they've grown one a lot of choice and they want control of that choice. utser experience is the third leg of experience with brand and distribution. >> it is not the just media brands trying stand out here. lockheed martin, up here in a helicopter 1,000 feet above austin looking to make strategic investment that's will benefit the aerospace company. and there's a range of start-ups here pint rest is here putting
up cameras. some vent you are capitalists we talked to say after snap, they're pushing companies to strike while the iron is hot. >> the market seems lying it is at all type will highs. the jobs report and everything else. we're encouraging every company. >> there hasn't been a real outbreak but there is been a lot of buzz about virtual and augmented reality saying this could be the year those technologies go main stream. >> that was pretty cool. that does it for us on "nightly business report." we want to remind you, this is the time of year your public television station seeks your support. >> we'll see you right back here tomorrow night. "nightly business report"
has been fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown. to innovate, disrupt, to move us all 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.
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