tv Nightly Business Report PBS June 21, 2017 5:00pm-5:31pm PDT
this is nig"nightly busines with tyler mathisen and sue herera. >> raise the roof. homes in america now cost more than ever before and it's widening the divide between housing haves and have notes. >> saudi shake up. new leadershiph oil prices tumbling, the time iing not a coincidence. >> top d to keep us safe may be frustrating drivering. those stores and much more tonight on "nightly business report" for this wednesday, june the 21st. good evening, happy first day of summer. i'm bill griffith in tr tyler mathisen. >> we begin with the housing
market where prices rose a lot last month. in fact, the median price of a home is now the highest it's been, putting home ownership even further out of reach for some. low inventory has helped propel prices and homes are going quick. the number of days houses are on the market hit a new low. diana oleic reports the divide between homeowners and renters is widening. >> home sales have been seesawing a few months now. the headline here is really in home prices. the median price of a home sold cheaper, half more 00. expensive. it says more higher priced home rs sele $100,000 dropped 7% from a year
ago. even those between -- sells of homes priced half a million were up over 20% and million dollar home sales were up nearly 30%. >> if you run up the home price, it make it more difficult for renters. we are essentially stuck at a 50 or lower home ownership rate and this is the current of a time where overall. >> howard: ing equity has doubled. wealth.hose who can the problem is largely the weak supply, especially of affordable homes for sale. the price of homes developed over 8% from a year ago to the lowest record. these dynamics in today's market are making the divide between the housing haves and have notes even wider. and keeping younf the best longm investments. for "nightly business report", i'm diana oleic in washington. >> here to talk about the supply
crunch, rall ch chief economist at real estate site. thank for joining us tonight. >> sure thing, bill. >> how much longer dupg we continue to see this crunch? >> i think it's going to be several years in making. we a lot of existingers of homes are boomers. the ones that have been b in their homes for a while. they're a large part of the home ownership population and eventually think we're going to age out of this. another you know, three, four, five, evten year, they'll likel want to move, to downsize then we think inventory will free up. new construction is is helping. and also, as prices rise, that should entice existing owners to sell their home.
it's probably still to come. >> but you're expecting boomers to start wanting to downsize. meaning more affordable, smaller homes. we know tl there's a shortage of now.er, more affordable h how is that going to free up the market in any way, shape or form? >> well, it's a bit of a catch 22. essentially, what we need to see is millennials who represent the largest p home buying population, swap with their parents. with the boomers because you know, thossarting to become suitsuitable, but becaus inventory is so low, it's creating gridlock. no one so there is space to be freed up. again i think we'll age out of this. another two, three, four, five years down the road. new construction we have, especially as a starter and middle segment, the better, but u again, there are no signs this crunch is going to be
easing up. >> why haven't we seen more new construction the homebuilders tr coming to market with more homes at a t is as strong as it is right now? >> well, you know, it's difficult to build in some markets. there are a lot of structural challenges associated with building homes. one, builders finding skilleded labor is difficult. i don't think it's hard to argue against that, but also, two, you know, if it's difficult to build in some of the places where we need the most housing. here in san francisco, we need inventory, new home, and it's difficult to build. there's lots of fault lines. there are environment preks that make the process slo in many ot of the country. on the other hand, there are many areas in the country that are still very affordable that have quite a bit of supply. texas, ohio, illinois. there is this spatial mismatch problem where jobs are, we tony have a lot of housing and where
cheap f jobs. >> thanks for joining us. appreciate it. >> thank you, both. >> and read more about the haves to our website at nbr.com. >> oil prices resumed their slide, pulling energy shares lower along with with the blue chip dow index and s&p 500. energy stocks are among the worst performing group this year and the concern for the broader e a more severe pullback in commodity prices. points, just 21,14 ri 410. nasdaq rose about 46 points and 500 fell fractionally. as for oil price, they fell further bear market territory. domestic crude falling to a ten-month low after u.s. government data pointed to a rise in production. >> that oil report exacerbated concerns that more oil on the market is out th now and comes
world's biggest oil producer itself saudi arabia names a new crown prince. that could mean some changes for the energy market. jackie has more for us tonight. >> one o the world's largest oil producers. the deputy crown prince being named crown pr or successor to the current king. nbs as he's called is seen as a visionary in the kingdom. just 31 years old, he's replacing his 37-year-old cousin on the job, representing a generational change. as the driving force behind the vision for 2030, an economic diversity that would help get them away from oil, he's seen as more modern and in touch than his predecessor. >> this is a big generational shift. you talk about 70 being young for a crown prince in saudi arabia. they have a 31-year-old crown prince is a break with past
practice. to move aside mohammed, the counterterrorism czar, the figure of the establishment, this is really ground breaking a the question will be can he deliver on his big reform plans. >> the time iing is not a coincidence. h iran and qatar are high. plans for an aram ko ipo need to be executed flawlessly and oil prices have sunk under 50. it's very important for the k g kingdom to give the world anet. >> saudi arabia, i think is committed to piloting this o p peck cut through. now, the question is what sau saudi's time horizon. it's a 2018 event. so i think they have some deal prices as long as they can get prices on a better path in 2018. so, i think they can sit tight, let the cuts nigh oufly out. i don't think they're worried about the next couple of weeks. i think they're playing for
2018. >> that means planning now. a different s landscape in saudi arabia. and potentially for op. saudis have so much influence there. for "nightly business report," i'm jackie deangeles. >> it's not often that the founer of a company steps away. that's what happened at uber. the founder and ceo suddenly resigned. adidi has those details. >> uber employees walk ed into work this morning to a ceo travis kalanick is stepping down. in a statement to the "new york times," kalanick said i love uber more than anything in the world and at this difficult moment in my personal life, i have accepted the investor's request to step aside. bill gurley was the first uber investor and reportedly wanted
kalanick to step down, tweeting very few entrepreneurs have had such a lasting impact on the world. some riders were quick to react. >> i'm glad to see they're taking action amid allegations of sexual harassment. the it's very concerning to me. >> it's been a rough year for the company vowing that nearly $70 billion with a reported 40 million riders a month in 80 countries. one study says uber's u.s. market share has dropped from 84 p% at the beginning of the year to 77% at the epd of may. in ebb thfe, it was hit with a scorching blog post by susan fowler, who alleged sexual harassment and a culture of gender discrimination at the company, sparking a flood of complaint and an independent internal investigation by eric holder. then a nasty legal fight over whether anthony, a head of
google's self-driving car unit stole trade secrets when he left for uber. then two weeks ago, the company fire 20 employees amid the holder investigation. and last week, kalanick took a leave of absence. since the company's problems started, there has been a mass compa currently has no ceo, cfo or cmo. we talked to some uber employees who were split on whether kalanick's departure is the right move for the company. some ridery the cha is much needed. >> i think he should be held accountable. the guy just leads a culture of just really making it a real difficult workplace for women to work in. >> uber's board is also chime ng, saying in a statement, quote, travis has always put uber first and that the move will allow the company the quote
fully embrace this new chapter. ur filling that vie cant position at the top. there are reports that ar asiana huffington is leading that search. in the meantime, the company is being run by its top ten executives. for "nightly business report", i'm adidi roy, san francisco. still ahead, china needs more products that are made here in america and the ceo of a chinese e commerce power house is trying to make the u.s. and china are calling on north korea to s pro ballistic missile test. rex tillerson says the u.s. reiterates to china, they have a di responsibility to
exert economic and diplomatic pressure on the regime. they want to prevent further escalation there. >> and then plans to reduce the number of individual plan offerings in wisconsin and indiana next year. the largest u.s. health insurer has been saying that the uncertainty over the subsidy paymen cause it to exit some of those markets. those are used to make insurance more b afford bable and whether thrl anthem said it would exit most of the ohio market next year. >> health care w drivi in the special election in georgia yesterday. in the end, a republican candidate won the most expensive house congressional election ever. john harwood is in atlanta with what the victory means for the white house economic agenda. >> four major take aways from the republican victory yesterday. first of all, the republican
political machinery is is operate iing at a high level. they faced challen in six, rose to that challenge. second of all, democrats can look forward to a good environment in the 2018 midterm, not a bad one. even though they've lost the specials in 2017, they all took place in republican leaning districts and democrats closed the gap in those districts. third, though democrats will gain seats in 2018, they have not shown they can break there is in the kind of republican leaning districts they need in house. this is one of those districts. finally, this cooutcome is positive firefighter repht are o move on health care as well as tax reform. and republican leaders know this will calm their member, make it easier for them to keep it .ogether, so president trump a for "nightly business report," i'm john harwood in atlanta.
oracle's cloud business helps results. the software giant saw profit and pref re knew climb higher analyst's targets.results shares initial ly rose in u 1% to $46.33.ng after the meantime, nike and amazon have reportedly entered swoo a partnership to sell the shoes on through a brand registry program. bloomberg says the move is to help third parties f selling counterfeit nike products on the site. shares of nike rose more than 2% to $52.59, the news of the deal sent shares of rival companies like foot locker and finish line tumbling in today's session. during can company's investor day, sigona's ceo said that health insurer has up to $14 billion in capital that it could use this year for mergers
and acquisitions. >> i walk through five key areas where we're interested from an m and a standpoint. further and global portfolio, our u.s. senior's capability, our pharmacy and physician capabilities and our government risk cape bableties. if you look back, we spent our capital in essence 50-50. 50 unshared buyback and 50 on m and ark. that may be a good indication of the future. we dend to be disciplined and balanced. >> the company says it plans to purchase at least $2 billion worth of its own stock here in 2017. shares were up a fraction today to $170.18. win bay go said strong growth in its total model caused earnings and revenue to grow with both results topping o a recent acquisition is helping it
diver diversify itself psh14%. office fu officeture furniture maker also company gave weak earnings and revenue guidance for the current quarte plunged adding to a 1% loss in the regular session and shares of lazy boy rallie furni retailers stronger than expected earnings after the bell yesterday. the company also posted e sales. lazy boy shares surged 22% to $32 even. alibaba's ceo has promised to create 1 million jobs here in the u.s. and to do that, the e xhaecommerce company which is o in detroit to showbiz owners how to market and ship their made in america products to chinese
consumers. diedra has our story for us tonigh >> from pickles to baby clothes, to hand crafted treats. these products are made in america. but their owners want them shipped to china. about 3,000 attendees from across the country are in detroit to learn how to sell their products to china's growing midd and who better to learn from than alibaba, the country's biggest e commerce company, the founer telling them china needs more american products. >> china markets need a lot of americans, lot of products and leading america, the products, the quality, the service. you guys have the booth. beautiful products. we chinese consumers are crazy about that. we need that. >> last year, ma told president trump he'd help create a million jobs in america. it's part of him making good on
that pledge. this wants to be the foot locker of china. they've been selling their products on the platform for about nine months an say they've seen incredible growth and have hired five or six people here in the united states to keep up with demand. other businesses here at gateway have similar stories. like a family owned ginsing manufacturer and even big brands like gerber baby food. >> i believe that we can create at least four to five jobs a year and if if the business stumble, we need 20, 30, even 40 a year. >> we see as the wave of the future for the business. and because of the growth, we've been able to create tons of new jobs up to about 20 this year. >> ger significant expansion international markets. this is really requiring us to build new capabilities. >> the entrepreneurs here are excited about the prf selling their prukd prukds in
china, but alibaba still has a long way to go and it will have to prove to american businesses that it can crack down on counterfeit goods. last december, it laned back on the u.s. government's notorious markets list for fakes. a designation ha hurt its image among american businesses. that is especially important for start ups that sell original creati for "nightly business report," detroit. >> coming up, the biggest complaint drivers have when they senate republicans are expected to release the draft of thei to tonight, "the washington
post" is getting some details o that bill. the draft we are learning would gradually than the house passed be bill. it would link insurance , not ad it would repeal all obamacare taxes except those on high cost health plans. >> tesla has replaced its chief of self-driving software after just six months on b job. that is a critical part of the carmaker's future. elon musk said he wants to demonstrate that a tesla vehicle can drive itself by year's end. >> there are also reports that demand for tesla vehicles in china is growing and that they're close to make iing a bi push into that country, as dem grow, so does the competition. >> this is ep 9 super car. the it's the brain child of chinese start up neo.
but before you dismiss it as just another chinese company hoping to rival tesla, consider this. it's supporters are some of the biggest names in chinese tech. the founder of ten cent, jd and show me and it just got a round of investment from buy do. i spoke with the chairman of the company who told me why he believes his cars would pose a serious threat to tesla in china. >> for tesla, i always say that cars are designed in california for california. but in china, they might not fit demands. for example, the very cool falcon wing doors mig not be suitable in rainy chinese cities. we on the other hand understand what our users need designed this car from the very beginning for chinese families with child you can see a lot of features that reflect that in the exterior, the interior, the space inside. so i believe we have a better
chance to offer the market a better product. >> to compete with tesla neo plans to have its es 8 suv out on the market at the end of the year. the ep 9 super car though is a limited edition. he said it's the faese ever $1.5 million it takes only 7. seconds for the car to accelerate from zero to 200 kilometers an hour. the top speed is 313 kilometers per hour. and in the autonomous driving mode, the car can go as fast as 257 kilometers per hour. most importantly, it has four electric motors that can produce 360 horsepower. when it comes to performance, it's an unprecedented supercar. >> for now, tesla has a -- with chinese drivers. it tripled its revenue to $1
last year and is thinking of producing cars here this china to meet all the demapds in world's largest auto market. >> well, there's good news an bad news for people buying a new kai or truck. is at a record, but qu the latest features to keep us safe behind the wheel may be frustrating drivers. phil lebeau has more. >> new car buyers have plenty of reason. the quality of what's in the showroom has never been better. j.d. powers surveyed more than 80,000 people three months after they bought a new model and found a drop in complaints for the majority of the brand with the top three being kia, genesis and porsche. by comparison, j.d. powers says the worst initial reviews came from those who bought a volvo, a jaguar or fiat, but there's one complaint that sticks out among
new car buyers. driver assist features like adaptive cruise control and collision avoidance systems are not working the way many people expected. >> this question of educating the consumers to how these som are fairly complicated and not something you'd want to be using when driving at 70 miles down the freeway. >> with tesla and tech firms like waymo developing self-driving cars, there's an all out race to have vehicles make more decisions for drivers. sometimes, the technology is is intu utive. sometimes, it's not.an sometime annoying. >> we are saying with some of these systems like lane departure warnings, avoidance system, some are complaining they're too narrowing and trying to stop them from driving the way they want to. >> it will take many years before we see autonomous drive vehicles where we make virtually
no stigss behind the wheel. until then, the gradual edition of technology designed to keep unintended effect of frustrating those very same drivers. phil lebeau, "nightly business report", chicago. >> yes, more machines. bossing us around. phil wrote a piece about new vehicle reliability. you can find it on our website. and that's "nightly business report" for tonight. i'm contessa brewer. >> good night, contessa. have a great evening, everybody. we'll see you tomorrow.
>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and sony pictures classics. >> i think i should just go straight to paris. >> i'll take care of it. >> that's very generous. you sure it's ok with you? >> driving is the only way to see a country. >> oh, it's incredible! >> how's paris? >> i'm actually not there yet. >> the rhone river is nearby. >> are we ever going to get to paris?