tv Nightly Business Report PBS March 17, 2017 4:59pm-5:29pm PDT
mxt. this is "nightly business report." fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown to. disrupt. to innovate. 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. >> high stakes visit, president trump meets with angela merkel and resolve tensions over trade. >> a new drug.
it's raising a new debate about cost. >> lost and found. a few working moms had a simple idea to help keep track of things their kids kept losing. and they turned it into a multimillion-dollar business. those stories and more tonight "nightly business report" for st. patrick's day, friday, march 17. >> we begin in washington where the head of the largest economy met with the head of europe's largest. president donald trump hosted angela merkel at the white house in their first face to face meeting. they discussed jobs, business, security, and at an afternoon news conference, the focus was trade. >> i am a trader. i am a fair trader. i want to see good for everybody worldwide but i am not an isolationist by any stretch of the imagination. >> earlier both american and german, they held a round table
discussion on how companies can better train workers. why was this meeting important? because the economic relationship between two countries runs deep. germany is the usa's fifth largest trading partner imported from germany hit $114 billion. eamon javers reports from the white house. good evening. what did we learn about the future trade relationship between u.s. and germany? >> well, we learned that both sides want to continue to engage in this relationship and they're talking about baby steps here at the white house. remember, there was so much tension between these two nations because president trump, during the campaign, insulted lank merkel several times saying she was ruining germany and ruining their economy and he didn't know what she was doing in terms of bringing migrants into that country. so today was a day all about mending those fences and moving this relationship past that. i think on those terms you have to say that this was a success
today. both sides got the opportunity to deliver the message that they came here to deliver. >> one of the points of sort of question points has been about nato and the european union and how the two powers relate on that. the president was really directing his support of nato on the european union, not so much. >> yeah. that's right. he was also his request for a european nation to fund nato. one of the problems the united states has had over the years is they feel that european countries are not contributing enough in terms of defense spending to support nato. the president had the opportunity to deliver that message to angela merkel directly today. in fact we were told by a senior white house official before the press conference even began that that was what the president said behind closed doors. that gives you a sense of what the president said, to let us know that's the message that was made. and lank merkel had a chance to
tell president it is better that we talk to each other rather than about each other. perhaps a veiled comment. >> we mentioned the earlier meeting included ceos from ibm, satisfies force as well as those from german companies. what was accomplished? >> well, it is not clear what was accomplished specifically. but they got the opportunity to highlight something important to this white house. the idea of apprentice ship. in fact you heard the president during the press conference joke about the apprentice. his former reality tv show. this is something the white house thinks the united states can learn from germany. the training, vocational training in germany is done through apprenticeship and they think american companies can really learn something here about educating workers of the high-tech work force of the future. they want these american and german companies to be talking about this and they want to see what lessons can be learned for the united states. >> thank you so much.
always. >> wall street today, stocks limped into the weekend a mixed finish, dragged lower by financial ask health care shares. the dow industries fell 19 points to 20,914. nasdaq was up a fraction after hitting a new high mid session. and the s&p was off 3. for the week, the major averages eeked out small gains. manufacturing output expanded for the sixth straight month according to the federal reserve. the .5% gains matched the prior month's gains. the report underscores the rebound in the industry, even though overall industrial production in february was flat. >> a gauge of future activity in more than a decade. the conference boards leading economic index rose for the third straight month. both business and consumer confidence have risen since the presidential election on the prospect of less regulation and
lower taxes. >> one of the biggest stock losers was amgen. it was shown to cut the risk of heart attacks and strokes in patients with heart disease. that sounds good but wasn't enough for investors. and shares fell more than 6%. and it dragged down the stock of other companies that make similar cholesterol drugs. >> reporter: millions of americans have cholesterol levels high enough to put them at risk for heart disease. that's why drugs like lip tore have been billion-dollar blockbusters. but should patients aren't helped enough by those drugs caught statins. that's why another one was expected to bring in big business. made by amgen, the medicine sales disappointed in their first years on the market. despite price tags of more than $14,000, they brought in more than $100 million last year.
versus expectations of billions. >> sales of this drug should go from hundreds of millions of dollars to multiple billions of dollars over the long term of. >> results from a more than 27,000 patient clinical trial shows that a.m. jen drugs were past. that reducing risk of heart attacks and strokes by about 20%. the result? amgen stocks sank. expectations were for an even bigger benefit. >> all the data suggests 20 to 25%. >> it shows 15 to 20% benefit depending on the exact end points of the. >> proving a drug doesn't just lower cholesterol but actually cuts the risk of heart attack was expected to encourage insurers to cover it. but it hasn't been used as broadly as expected, amgen says the results are game changing. >> the patient who's are already fda approved for this drug on the market had received it last
year. if all of they will received it last year, in the united states alone, we would have reverted more than 140,000 cardiovascular events. >> and expect that insurers and benefit manage letters increase reimbursement. >> now we have the data. they're crystal clear. >> the drug maker even offered a unique deal. amgen said it will refund cost of the drug if patients have a heart attack or stroke. still ahead, our managers fund has outperformed the stock market this year.
one of the most powerful forces in the market is the expectation of deregulation. stocks have been moving on it. corporate executives have been talking about it. we've seen the president sign executive pores target some of the rules governing the financial ask energy industries as we've reported on the potential impact. tonight we look at how scaling back rules and regs could imfact broader market ask the economy. we begin with bob at the new york stock exchange. >> there are two components. tax cuts is that deregulation. there are many studies that indicate cutting corporate taxes could increase 8% or more but studies on deregulation are much more difficult to do because of the tens of thousands of different laws out there. let me shoe why you the street believes reducing regulation can help on earnings and its close counsel, margins. they are probably the single most important metric for those
looking at profitability. they said s&p 500 margins have been stuck in roughly the same range for the last several years. about 10%. now, why can't margins improve at all? it's a big issue for the street. one of the primary problems is that sales growth has been stagnant. for the cost of doing business, the cost of materials, for example, and the direct labor costs used to produce the goods has been rising. that is the problem. this is where excessive regulations show up the on income. so if you look at big industrial names, caterpillar, for example, fewer regulations help drive down cost of materials and labor. that goes right to the bottom line. and bank cosmetic see a dramatic savings from a reduction in the cost of employees. it will make a big difference in jpmorgan. the ceo has been railing for sbeer compliane the ceo has been rair
years. 18% are in compliance. think about this. one out of every five peel at jpmorgan are involved looking at what the other four are doing. the commerce department to reduce regulations. they're asking the public to reduce most burdensome regulations on manufacturers. you can submit comments regulations.gov. you will hear a lot more about this in the coming months. you can see why wall street is nuk a reduction in regulations is expected, crucial aspects of the trump agenda. most economists love deregulation but out if it will be a growth driver is not an easy task. >> to hear one side tell it, regulations are the difference between smock choeg city skyl e skylines and breathable air. to hear the other side tell it, regular slags depressed growth and kill jobs.
>> we've undertaken an historic effort to massively reduce job crushing regulations, creating a deregulation task force inside every government agency. >> president trump has promised to eliminate two regulations for every two one put this place. professors at duke and stampbl suggest regulation may have cost the u.s. economy $4 trillion. measuring from 1980 to 2012, they believe the economy could be 25% larger if regulation hadn't grown so much. >> increasingly, you have to hire people just to conform with the regulations. they are not producing the services or the goods where the profits come from. what our research shows is that there is now almost an acceptably high climb i have the cost of regulation. >> the study found a massive rise in the number of restrictive words in the federal code. words like shall, main and prohibited. these words now top a million.
from under 600,000 in 1977. but the professors acknowledge, they didn't look at the positive side of regulation. they degree health benefits of clear skies and regulation and food may not show up in most growth measures. >> you really can't find deregulation impacts this prices and growth. and it is really, really important not to forget benefit side of the equation. that's often missing in the research. >> the critics of deregulation is the best example of the cost of going too far and loosening up too much. $11 trillion of what was lost in part because financial derivatives and banks have been heavily deregulated. the bottom lien is economists think i can keep out competition, raise costs and reduce growth. but they say there are been fits that should be counted before regulations are written off. for "nightly business report."
>> the luxury jeweller tiffany's said strong sales in japan and china i know what higher prices helped offset weakness in the americas. tiffany's acknowledges. the shares up nearly 3% on the session to 92.42. meantime the enterprise company mule soft, yes, mule soft, went public on the new york stock exchange today opening at $17 a share. the company isn't profable yet but says it is confident in the future of its business. >> our biggest thing is that had all of our software subscriptions are annual or sometimes three-year contracts. and then we renew them with our customers and expand them dramatically over time. so it is the land and expand mod that he will helps us be more productive from sales and margareting standpoint. >> and shareser soared more than 45% in their market debut. they finished at $24.75.
biotech company astro zen today said the food and drug administration rejected the medication intended to treat high levels of potassium in the blood following the inspection of the manufacturing facilities. this is the second time fda has turned down the drug due to manufacturing issues. separately, it said it was partnering with a british pharmaceutical doim develop and sell respiratory drugs. shares were up a fraction. the private equity firm kkr and the canadian pension fund will jointly acquire usi insurance services for about $2 billion. that deal values the insurance brokerage at nearly $4.5 billion. the shares fell 1% to $18.60. >> our market monitor is a stock picker's stock picker. he thinks investors are moving out on and misunderstood by the margaret. up more than 8% this year,
beating the market and his peer group. welcome back. >> you have some international choices here. do i infer from that that is because you like these companies? or because you think nonu.s. markets are better priced than the u.s. market? >> the fact is that the u.s. market has been hitting all time highs, day after day after day. but that's not the case outside the u.s. especially in europe. you can get global players at value prices by buying ones based in other markets. >> and you are a long term investor. you look for cheap companies. some of the soft picks you're giving us have decent decides. >> we're not traders. we are investors we. we take a long term perspective. we take a long term view. it takes time. >> so let's get to your start
picks. starting with a company that's a medium company. nbc used to have a relationship with them. how long would you expect to own a company like that? >> so it is a big media conglomerate. it is base in the france. i tones largest music coil in the world which is a u.s. business. so they have assets all over the world. we've seened about it four years. >> and you still love it. >> yes. it was very undermanaged for many years and new managers came in. they've really been restructuring and refocusing. and that's what we love. change that is taking mediocre managed and bringing in higher quantity managers. >> your next stock marine harvest. a play on change. but dietary change. >> yes. so this is largest s esst salmo company in the world. the consumption of salmon is
growing exponentially so there's not enough fresh sal mob so people get it from the large farms. you have a ten times earnings. this is biggest one and it swallows up the smaller ones of. >> where is it? >> in norway. >> i'm not stunned to hear that of. >> i even went to the fish market to check it out. >> okay. nothing fishy about that one. is the next is scorpio. >> they're moving dry goods, not oil, between basically u.s. and china and back and forth. and the fact is when china started to slow down, it was decimated. scorpio is really a play on on one of the best players. but also, as global growth starts on materialize. >> very quickly, i just saw that
stock has tripled. it still has room to grow? >> it does. it is our biggest holding. >> money where your mouth is. thanks. assal. with ever more global advisers. >> and coming up, what started as a small basement business turned into a multimillion-dollar venture. the story of how a few hard working women made their millions. a group of hard moms tapped into a niche business and tapped into the label market. which is expected to reach, get this, more than $43 billion by the year 2020. their unconvention a start-up
from start on brand name. tonight how i made my billions. >> rise and shine. time get ready for school. >> to keep track of her kids' stuff -- >> let's go. >> julie cole puts their names on almost everything. >> give me your water bottles. >> a formidable task for all six of them. i helps that she is a co-founder of the multi-billion dollar company mabel's labels base in the ontario, canada. a business idea born in the early 2000s when she and another mom frustrated that their toddlers kept losing things couldn't find durable labels. >> we saw masking tape, we saw permanent marker. we thought there's got to be a better solution. >> so they reached out to a trend who worked in printing. >> i thought this is ridiculous. tell your kids not to lose their stuff. until you're in a parent go situation, you don't realize it
is a problem. >> even before becoming a mom herself, she agreed to help shelf spent with two years research how to make sticky labels. and they did it while working full time and raising families my partners were persist the ten about it. they twoonltd try something on their own. >> all they really needed was a workspace, some printing machines and money. but they decided against outside investors. >> we were 100% cool with being like, hey, you have to help us out. we're doing a start-up. >> we did a lot of bartering. it was traded for a foos ball table. >> it was out of my sister's basement of. >> in 2003 mabel's labels started online selling packs of 45 durableses, personalized labels. they received tens to final orders a day and then out of
blue, hundreds at one time. and i called and said we have a virus. what's going on? and he looked at many he and said it is not a virus. those are orders it was featured in an e-mail news letter and things started to stick. >> i remember making myself count to five and then refresh. and we had to go days and days to make them of. >> within four years, the part time business became a full-time job for all of them. they moved out of basement into these 14,000 square foot facility. by 2016, mabel's label hs 40 employees and sales of about $9.5 million canadian neefrlly $7.25 million u.s. it caught the attention of one of the largest specialty labeling companies in the world, cc industries which made they will an offer. >> they really understood our brand. they've been watching us for a long time. so we sold the company.
>> they continued to run it while they became general manager. the two co-founders cashed out. now the business pumps out hundreds to thousands of label packs a day depending on the season and it runs almost 24/7. >> there is something really special about starting this and building and it selling it and knowing you did it all without a single loan. >> i really do love to make labels. >> mabel's labels can be used on practically anything from sports gear and luggage to shoes and phone skins and some even include bar code technology. in case you lose it and it needs to be tracked. >> cool. i could use that. that's "nightly business report." we want to remind that you this is the time of year your public television station seeks your support. >> and i'm tyler mathisen. happy st. patrick's day. >> yep.
>> "nightly business report" has been fund 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 a spark. nasdaq.
steves: it's no surprise that sevilla is also famous for letting loose in vibrant festivals. and we're here for the biggest of all, the april fair. for seven days each april, it seems much of sevilla is packed into its vast fairgrounds. the fair feels friendly, spontaneous, very real. the andalusian passion for horses,
flamenco... [ castanets clacking ] ...and sherry is clear. riders are ramrod straight. colorfully clad señoritas ride side-saddle, and everyone's drinking sherry spritzers. women sport outlandish dresses that would look clownish all alone, but somehow brilliant here en masse. over a thousand private party tents, or casetas, line the lanes. each striped tent is a private party zone of a family, club, or association. to get in, you need to know someone in the group, or make friends quickly. concepción's well connected, and, as a friend of a friend, we're in. concepcion: my caseta. steves: this is your caseta? concepcion: this is my caseta. okay? steves: because of this exclusivity, it has a real family-affair feeling. everyone seems to know everyone in what seems like a thousand wedding parties being celebrated all at the same time.