tv Nightly Business Report PBS March 20, 2017 4:58pm-5:29pm PDT
. this is "nightly business report" with tyler mathisen and sue her herera. fund in the part by -- >> all it takes is a spark. 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. spring cleaning. how you can spruce up your investments even as the markets seem frozen will. >> free trade, fair trade. a drop against protectionism
while business executives express concern. >> and taking off. why you might have to pack a little extra patience when traveling this spring. those stories and more tonight on "nightly business report." march 20th. good evening. welcome. a new season is here. a new beginning. there are few signs of spring on wall street. stocks barely budged, continuing a trend over the past week or so. comments from federal reserve officials and developments from the weekend's meeting of the group of 20 industrialized nations in europe were not enough to move the market decisively if either direction today. the dow jones industrial average fell 8 points the 20,095. the nasdaq was up a half point. meanwhile the s&p 500 fell 4. despite the frozen markets, it is finally spring and it is also the time of year when many investors look for ways to get their financial house in order. our guests have some ideas that could help you with your
investment portfolios. nice to see you again. >> thank you. >> spring, you think about spring cleaning. so it is like opening up the laundry room door and saying, you know what? i have to rearrange the closet. you're rearranging your portfolio. >> absolutely. it is a good time to think about what you did last year. and i say that because it is tax time. when you wrap up your taxes pr 2016, you have a great idea of what did you well and not so well. so it is right in front of to you plan for 2017 now. >> let me ask you about 401(k)s. and other similar defined contribution plans that a lot of people have. a lot of people have multiple employers. they may have multiple past plans where they still have open accounts. is this a good time of year to take all of those stray 401(k)s
to which you're no longer contributing and roll them over into one consolidated snkt. >>, snkt. >> yes. you don't know how long your previous employer will be around. >> bring over your 401 k to your current employer. before you do that, make sure that you understand your existing 401(k) and the fees that you're consolidating as well. so consolidating makes it very easy to make sure you know where your money is, how it is being managed and having multiple accounts. sometimes it seems overwhelming. you make the point it is a good time to rebalance your retirement account. perhaps this year more than most. we've had such a huge run-up in the market since right after the election and the first of the year. do you take some money off the table and reallocate it? how would you go about looking at your portfolio?
>> had yes. the run-up has been going for quite some time. not just because of the the reason election. given that it has been at least eight, nine years now. take some of those gains and reinvest them. particularly for those approaching retirement. looking to turn some of that capital gain into income. so saving, yes, some of the capital gains will be something to consider. >> so a quick answer here. as i rebalance, if i want to sell stock or equity holdings, should i look, that have a profit in them, should i do it in a tax sheltered account where i won't be creating that? >> it's good to know. retirement accounts no, capital gains. absolutely. and that's a great thing, deferring those taxes. >> thank you so much. great to have you with us. >> well, a lack of inflation was
the reason why the head of the minneapolis fed was the loan voted against in interest rate likes in the meeting last week. in an interview today, inflation is still below the 2% target. >> if we're coming short on inzplags the job market shows more signs of slack yr, why do anything? >> he said inflation can rise above 2% without creating worries about an overheated economy. >> another relatively new voting member of the federal reserve said he is work inflation running a little above that 2% level. but as steve reports, his otherwise hard to pinpoint exactly where the philadelphia fed stands. >> it's been an 18-month fed
mystery. when the philadelphia fed took over in 2015, the question was whether he would ten in his read that assess o''s hawkish path. today in his first interview, he would not be so lies pigeon holed. he is voting for the first time today supports two more rate likes. >> coming into this year, i thought free rate encreases made since. i would like to pace them out. we're not in any rush. i think we have time over the course of the year. >> if donald trump promises still lurks he said more rate likes are possible but necessary no hurry to retookt policy that's haven't been passed yet. >> if we have corporate tax reform and we have trade barriers that might hurt some endisin the u.s., the devil is in the details. until we see the details of what that means, it is hard to factor
in. >> finally, if we a hard core hawk, he would see the 2% as a ceiling and wouldn't want to go any higher but he said he is okay if it goes over for a while. >> there will be a little bit of an overshoot. that's okay. >> he may end up following his predecessor's course. but he remains in the ten cal hawk/dove flight path. for "nightly business report." philadelphia. united kingdom will start process of leaving the european union next week. teresa may will invoke article 50, the mechanism for leaving the bloc. it will launch two years of complex negotiations to untangle britain from will the eu. >> had finance ministers from the world's largest economy dropped a pledge against protection i. a move pushed by had treasury
secretary mnuchin. and globalization was the topic of conversation in china. >> while g-20 policy makers, the government officials reiterated their hopes to promote globalization. many expressed disappointment in the talks. >> it's pretty disappointing. when you get finance ministers for the leading countries of the world who out of blue are unable to validate the commitment. >> germany has ported the negotiations on free trade agreements. be at this time ttp. and we see that it is getting
difficult to realize these trade agreements. >> the ceo of dow kept and a member of the council tried to allay the concerns. >> this is not a zero sum game. we know that. people who trade in the system, we know what has to happen here. to satisfy populations, the feeling of inequity. >> even though, they're selling us a meeting between president trump and china's president never mar-a-lago could put a better relationship. >> it is to meet the person and to shake hands. to touch the person. to know what the person is really about. rather than going over the various channels like tweet, like internet, like traditional media. >> for "nightly business
report." >> still ahead, what it could mean for buyers and sellers. he . >> customers are not opening new accounts at wells fargo, extending a friend started taf fake accounts scandal last summer. but there was some good news. wes fargo saw an increase in average consumer and small business deposit balances. >> medium pay for executives at some of the biggest companies rose nearly 7% to 11.5 million.
that is more than offset the pay cut that they took previous year. the increase is attributed to the rising stock market along with dividends and buybacks because stock market is becoming a bigger part. >> as we've been reporting on deregulation, it has been a powerful force in the stock market. and we look at what it could mean. lenders and builders are excited about it. rule changes could have a big impact on buyers, sellers and the price of housing overall. >> it is the topic a lot of you know. the pick go have beens are slim and the home builders aren't added to it. >> local state and federal
regulation compliance costs now make up about 25% of the cost of a new home, according to the national association of home builders. that's up over 30% in the last six years. builders are looking to president trump to lower their cost. >> some of the regulations are starting to be talked about being rolled back. a couple have actually happened but i think that is going to be a big positive impact for our industry. we're pretty excited about it. >> so excited that a monthly reading of home builders sentiment in march jumped to the high level level in 12 years. that divide between sentiment and sales is wider than ever. and that confidence could come right back down. home builders are still facing a shorngage. but lenders say that's another area deregulation can help.
>> we are hoping it will soften. liquidity to come back in. that would be good. it would provide greater credit availability to consumers. >> mortgage rates still historically low, down considerably in the past decade. the difference today though is that most of the mortgage market is government backed very strict government requirements. deregulation could change that. >> fannie and freddie do not serve the consumer and you come up with new programs that will ultimately spatisfy that experience. not everybody fits into that bofl. which is why today so many can't buy a house. caterpillar sees retail sales improve and that's where we begin. the industrial equipment maker said machine sales fell but.
and sales were positive for the first anaheim almost three years so shaerss rose 2 1/2%. the cholesterol treatment could be approved base the on the study. shares took off. they soared 74% to $41.22 on the trading session. international drilling contractor said it signed a letter of intent with rival transtoegs aqueer 15 oil rigs. there are five under construction. >> dominion diamonds said it has turned down the offer from february from private washington
companies. the canadian miner said they didn't interrogatory full value of the company about that it was prepared to engage in further discussions. washington companies owns industrial business. dominion diamond shares popped to $12.20. the watch maker had a quarterly profit while forecasting the year ahead. they said that move along with cost saving nerve i have th. and sprouts farmers market has been involved in preliminary talks with supermarket operator albertson's regarding a potential merge per would take sprouts private. albertsons is owns by capital management. shares of sprouts fell a
fraction. a key executive is leaving uber after just six months on the job. jeff jones who was president of the fast hailing company said that his approach to leadership is inconsistent with what he saw at uber. this is just the latest in the string of other controversies for the company. in january, uber was the subject of a consumer boycott which saw an estimated 200,000 users remove the app. there was a report observe sexual harassment at the company is that the self-driving arm filed a lawsuit alleging the technology was modeled after stolen intellectual company. and a "new york times" reports that they used a secret tool. >> so if you run a company like
uber, is it better to remain public or go public? eric gordon is at the ross school of business. proce professor, welcome and congratulations on the tournament. go blue. >> young companies go public. and they want the founders and investors to cash out. beyond that, i don't see why anyone would do it. you have to deal with wall street and pesky shareholders. >> and a lot of founders are agreeing with you. we're seeing fewer and fewer epos. the law change and made it easier. a lot of them said may be we'll do it never or not until we have to.
>> what about staying private? >> what are the advantages and disadvantages? you never have to worry about an ve vest. you can plan for the long material. do you know some stuff that equity analysts would think is crazy. thing that peel like jeff bezos has been able to do. he has a set-up. you can build the long term value of your company and you have a lot more privacy. when you go public, your next door neighbor can look up your salary. and not everybody is interested in that. >> let's talk a little about the capital side of the business. if you own a private company, and let's say you can't raise capital any other way to expand or build a factory, i can see
the issue of shares will be very helpful. >> so that's what pushes you to go public even if you don't want to. it had something to do with capital. you need new capital to grow because you've outgrown your present sources of capital. or you want to acquire a big company and you don't want to use all cash. or the people who put capital in want their capital back. people like vent you are capital funds don't stay with you forever. they need the cash back. sometimes they're pushing you. sometime you're getting push asked doing it even though this is not what you want to do. it is like your friends pushing you into the swimming pool. >> that doesn't sound good. i would assume venture capital lists have a set amount of time. that's pressure, is it not? >> exactly. most last only ten years.
after seven years, they want their moan back. and you get kind of a conflict of interest. >> thank you very much. with the university of michigan ross school of business. sad news on the passing of a legend. david rockefeller was the last living grand son of the oil tycoon john d. rockefeller. his father built during the great depression. david rockefeller was for many years the chairman and ceo of chase manhattan bank. he reportedly gave away $2 billion in his life time of david rockefeller was 101. and coming up, why a lot of high profile sporting goods steamed vanish without a trace.
after weeks of mystery, investigators seem to have found tom brady's missing super bowl jersey. it was allegedly in the possession of a mexican numb editor who had a media credential for the event. other game day gear from brady and another player also recovered. lots of valuable sporting equipment, tradeable jerseys, helmets, and the like seemed to go missing and stay that way. >> this is literally the shirt off his back. the it mat football prizeful? the ultimate prize. valued at half a million finally back. it was six weeks ago when it was swiped right out of patriots'
locker room. he put it in my bag and twlaunlt nil. >> it was found in the possession of a credentialed member of the international media. they also recovered the jersey brady wore in the super bowl. >> videos are part of the investigation. the suspect had access to the event and i'm not going to say any more specifics other, than he had legitimate access to the event. and wasn't as a ticket holder. >> but ken golden, the owner of golden auctions, thinks it could be part of a small red wing of criminals for hire. >> they are being given a list and told, go take this and here's your prize. so they know going in, professional criminals theflg in and take specific sximts they have it sold prior to ever doing it. >> and he said it is getting
huge. >> it's been an epidemic in the past 16 months. you've had the tom brady jersey stolen. the roger maris building being broken into. >> those items almost impossible to sell in the open market. most likely they stay hidden private collectors. >> they probably have a safe room in their house. they have a vault. they go in and watch their sports games and it is their personal enjoyment. >> and he said the market is so hospital. he henlts about someone new who wants to get in on it. >> i'm andrea day for neatly business ro, "nightly business report." >> are you planning on flying this spring is this 145 million travellers are expected to take a flight in march or april.
why so many are taking off and what they should expect when they board that flight. >> if you're traveling this spring, pack little extra patience. there will be more people than ever flying. nearly 90,000 more every day. the crowded planes ask airports. this tens the friend has pushed the number of people flying on u.s. airlines to an all time high topping $800 million last year. why are so many taking to the skies? well, consumer confidence is at an all time high. special when i the economy gaining strength while unemployment remains low. and right now, airfares remain relatively cheap. but had domestic tickets will rise between now ask june when the average ticket will go for $256. that's a slight increase compared to last year. airlines have been adding planes and flights to prepare for the
growing number of people flying this spring. in addition on carrying more passengers, the airlines are looking forward to the spring because many are expected to show positive growth when it comes to passenger revenue per available seat miles. that i know what the expectation of fewer regulations under the trump administration explain why airline stocks have been outperforming the rest of the market for most of the last year. "nightly business report," chicago. and finally, there are more than 2,000 billionaires on the planet for the first time ever. according to forbes, bill gates is the world's richest person for the fourth year in a row. warren buffett second spot. moving in to the third spot for the first time, amazon's jeff bezos. >> that's "nightly business report." thank you for watching and have a great evening, everybody. we'll see you 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 envait, disrupt, to sploor a different perspective. we detect 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 he a spark. nasdaq.