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tv   Nightly Business Report  PBS  August 14, 2017 5:00pm-5:31pm PDT

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this is "nightly business report with tyler mathisen and sue herera. sizzler, stocks bounce back and have their best day of the summer. as last week's worries morph into a reheated hopefulness. ceo turns on trump. the head of merck resigns from the president's manufacturing council. creating a potential crack in the white house relation and wellness watch. will aetna give an apple watch to its millions of members? and if they do, would you set aside privacy concerns and wear those stories and more tonight on "nightly business report" for monday august 14th. good evening, everyone, and welcome. a hot august day turned into a hot august rally. stocks recorded their best
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performance since april, reversing the losses that besieged the market last week. the mood on wall street improved on easing tensions with north korea thanks to an op-ped written by the secretaries of state and defense who said the administration would continue to pursue diplomatic resolutions with pyongyang. now, add to that a solid quarter of corporate earnings, and stronger than expected growth in japan, and stocks took off. the dow jones industrial average rose 135 points to 21,993. the nasdaq gained 83. and the s&p 500 advanced 24. dominic chu watched the rally from the floor of the new york stock exchange. >> reporter: it didn't last very long. what was shaping up to be a bigger scaled downturn in the stock market ended up fizzling out like it's done consistently over the past year. on a bigger picture basis, major indices posted declines of around a couple percent only to bounce back today with gains in tech stocks and bank stocks. the general consensus among many traders is that geopolitical
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risks aren't as big a risk yet. >> i think as we continue to get headlines out of north korea, investors have seen that the situation there might have calmed down a little bit for now and using this as an opportunity, but time will tell how it really plays out. >> reporter: the lack of new developments related to north korean intentions may help lift e horizon that aren't related to potential armed conflict. >> there are two things the markets care about. one is on a day-to-day basis, earnings per share and revenues, how the corporations are faring against competitors within their own sectors. secondly, you want to go out two, three weeks, central banking becomes a big issue once again. mario drahgi will speak at jackson hall. this will impact treasury yields. >> reporter: later on this week, big earnings reports from retailers like home depot, target and walmart. the kansas city federal reserve bank's annual meeting in wyoming takes place next week. it has produced market-moving statements in the past and could
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this time around as well. all in the context of what could happen down the line with the u.s. and global interest rate picture. for "nightly business report," m dominic chu at the new york stock exchange. here to talk more about today's snapback in the market, what he sees ahead for stocks and more, michael barr, president of barr, miller & washington in washington, d.c. michael, welcome. >> thank you. >> there's been a tussle in recent weeks, on one hand, fear, on the other hand, fuchndamenta. last week it seemed as though fear had the upper hand, today it looked like fundamentals did. i got that right? >> well, it seems that way, tyler. that's a good way to describe it. fear last week, certainly as the rhetoric in north korea built, but fear led to a 1% pullback. i think we recovered president % in the first 20 minutes of trade today. markets can't be kept down right
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now. psychology is bullish. bad news is getting dismissed and discounted. whether it was the mother of all bombs in afghanistan, missiles launched at syria or acts of terrorism or now really markets are in the up mode, they tend to stay that way and earnings are actually coming in to support this market increase. >> now in the past, michael, you've been a little bit nervous, perhaps, about some of the valuations. still finding opportunities, essentiall ly new share that with our viewers. how do you think of valuations now? >> i think they're full. the market is trading near 20 times earnings is still an expensive market. i think a market that's making new all-time highs, fractions off of 22,000 today, so this is a high market and if the rule is to buy low and sell high, this is not low by any measure. so we've been running on expectations of change policy. of all of these other good things, but earnings are
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improving and if earnings in the forecasts are right and the interest rates stay where they are and the dollar stays where it is and everything else doesn't really move around we're at 17 times 2018 earnings, it wouldn't be awful. so i find myself holding my breath a lot in a very worried way because i manage other people's money. >> give me about 30 seconds on your view about energy. that is an area that you think may be ready for a little bit of a rebound. >> reporter: >> well, i think it may be. certainly saw energy fall today. we saw oil fall back. energy really has been dictated a lot by controlling of supply out of should ra. china's weaker economic data today may indicate the demand is not quite there, so we might see a little bit of a bounceback in here, could be more of a technical bounceback, but there seems to be plenty of oil overall. >> all right. michael, thank you very much. michael farr, farr, miller & washington.
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>> thank you. at the white house the president denounced white supremacists and racist violence two days after bloody demonstrations and bloody car attack in charlottesville, virginia. >> racism those who cause violence in its name are criminals and thugs including the kkk, neonazis, white supremacists and other hate groups that are repugnant to everything we hold dear as american we are a nation founded on the truth that all of us are created equal. >> his remarks follow criticism that his initial statement over the weekend stopped short of condemning racist groups specifically. that prompted the ceo of merck, ken frazier, to resign from the president's american manufacturing council early this morning. in a statement, he said, "as ceo of merck and as a matter of personal conscience, i feel a responsibility to take a stand against intolerance and
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extremism." the president responded in a tweet saying, "ken frazier of merck pharma has resigned from president's manufacturing council. he will have more time to lower rip-off drug prices." well, the ceo of merck was the only executive to resign from that council. other executives publicly denounced hate, racism and bigotry along with members of the president's party. john harwood is following the story from washington. john, you know, the president kind of took a mulligan today i would call it. what's been the broader reaction in business and politics to his handling of the charlottesville violence? >> reporter: well, ceos like ken frazier, tyler, decided that they weren't going to need a mulligan, they were going to act more quickly so you saw in addition to his resignation, you saw people like lloyd blankfein of goldman sachs putting out statements saying they were going to denounce the intolerant groups, white supremacists and the kkk that the president had
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been reluctant to. they have their eyes on a broader constituency than the presidents seem to this weekend, though he did step in today under pressure and make that t. >> you know, he was around -- the president was roundly criticized by both parties over the weekend. what does that tell us about the state of the republican party in particular? >> reporter: sue, donald trump executed a hostile takeover of the republican party last year. he beat a bunch of republican figures. he won the nomination. he got elected. members have been tolerating him, republican elected officials, because they share many os policy goals. but the longer we get into the year, the more trouble with the special counsel investigation, the more difficulty with the agenda on things like health care, the more people are deciding not to submerge their personal feelings so you saw over the weekend some republican senators criticizing president trump more pointedly than they have so far. that is a potentially dangerous situation for president trump because he needs political
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protection as he moves on in his presidency and bob mueller moves on in his investigation. >> what could that restiveness in the gop, particularly maybe in the senate and the house, among officeholders, what could it mean for the president's broader policy agenda? >> reporter: to do a big reform agenda, like, say, of the tax code, you need a united party, strong presidential leadership. anything that drives a wedge between the president and his party or anything that creates turmoil within the administration, and there's some talk of a new staff shakeup, all that makes the agenda much more difficult to enact. >> all right, john. john harwood in washington. and at the center of all of this is charlottesville, virginia, a city that's long been a destination for top-tier college students and more recently retirees, but this quiet enclave 100 miles south of washington was targeted over the weekend by white supremacists. they were enflamed by the city's plan to remove a civil war monument from a city square.
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kayla tausche reports on how local businesses there are responding >> reporter: for companies like mobile app developer willow tree, the events of this past weekend don't shake its resolve to grow its business in this college town. >> we are a community about diversity, we're about inclusion, we're about respect, and if anything, we're going to double down on those things. not just as a community, but as a business. >> reporter: charlottesville's economy is healthy. employment and income above the national average. and it consistently tops lists for the best place to live. local leaders were stunned after saturday's rally turned fatal. the state of emergency shutting down businesses for the day. >> things are getting tumultuous over here, too. >> reporter: kayla olson moved here from turkey in search of stability. she runs an accessories vendor downtown and has watched the political climate boil over in recent months. >> just thinking about it makes me really, really sad, to say the least. >> reporter: rachel manages a
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popular restaurant on charlottesville's outdoor mall and hopes for the best going forward. >> think that we've really been in touch with our neighbors here on the mall and been able to communicate and to mobilize in a way that we haven't needed to in the past but in a way that's proven, like, pretty remarkable. >> reporter: statements from univ and the town's mayor have described the white nationalist movement as one that's converged on, but didn't originate here in charlottesville, but yet the racial tensions here have resulted in a debate over whether to remove statues of confederate generals like this one, now draped in signs bearing the name heather heyer who was killed during saturday's protests. >> the statues issue has been a galvanizing issue. >> reporter: tim, president of the regional chamber of commerce, says recent rallies don't define the town. >> nothing has changed other than the fact that we were captured for about 24 hours by folks that would do us harm. they did us harm in the national
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images, but we'll get over that. >> reporter: the lifeblood of the town is the university of virginia whose school year begins in a week. uva's president says there will be healthy opportunities to discuss the issues driving this conversation. for "nightly b i'm kayla tausche, charlottesville, virginia. still ahead, tracking your health. why aetna may want millions of americans to wear one of these. president trump signed a memorandum that could lead to a trade investigation of alleged chinese theft of intellectual property. while the measure does not take
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any specific action against china at this point, it does direct the u.s. trade representative to look into options to protect american intellectual pro >> today i'm directing the united states' trade representative to examine china's policies, practices and actions with regard to the forced transfers of american technology and the theft of american intellectual property we will stand up to any country that unlouawfully forces americ companies to transfer their valuable technology as a condition of market access. >> and the president suggested that more steps could be taken. and that is not going over terribly well with china which has, to put it mildly, a very complex relationship with the u.s. eunice yun has more on the reaction from beijing. >> reporter: the chinese government and the state media have been indicating that an
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investigation could set back u.s. relations. officially, trump administration officials have said that the trade directive is unrelated to what the president perceives to be china's lack of action reining north korea. however, based on the president's previous tweets and comments, chinese officials i've spoken to believe he's connecting the two issues and it really bothers them. today, the foreign ministry weighed in saying the korean peninsula issue and the trade issue are two different categories. it is clearly inappropriate to use one issue as a tool to press the other issue. the chinese state media had been threatening retaliation. the "china daily" said the u.s. action could trigger a trade war and the "global times"s, the communist party paper, said we should make washington realize that china is not the one to be messed around with. if you take the chinese threats at face value, the concern now is this could descent into a tit for tat trade war that the
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global business community has been worried about. for "nightly business report," will begin the task of rewriting nafta. the president has repeatly said he wants to bring jobs back to the u.s. but what happens to those workers who lose their jobs to trade? kate rogers takes a look at a federal retraining program. >> hi, pat, hi, vicki. >> reporter: in 2011, after 22 years of the job at americanairlines as a shop mechanic, single father, hugo nieves, found himself out of work. the company filed for bankruptcy and closed down a maintenance base in ft. worth, texas, as part of its restructuring. nieves' role was shipped off to china. >> you get comfortable in a career that you've been doing for many years and you're at a good place in life, you're making money, you're saving, everything's comfortable. you get taken out of that environment and it's a whole new world. >> reporter: but today, he's bounced back in a very different career as a surgical technologist at cook children's
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medical center in ft. worth, assisting doctors and patients thanks to a federal entitlement program known as trade adjustment assistance, or taa. to become eligible, a person has to be lost his or her job as a result of foreign trade. taa is administered at the state level and a company, union or group of workers can petition the department of labor for benefits. in 2016, the labor department estimates some 126,000 workers national ly became eligible for taa benefits. while president trump has emphasized america-first policies and renegotiation of trade deals to prevent more jobs from being lost to foreign trade, the department did request an increase in funding for the retraining pro in 2018. nieves' home state of texas, 3,500 workers are helped each year and nearly three quarters entered employment once retraining is complete. some 90% retain their jobs thereafter. >> it's really an opportunity for a displaced worker to have a
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second career, have a second chance. >> reporter: after being notified by americanairlines that he may be eligible for benefits, nieves went back to school at age 45 and retrained to become a surgical technologist. even taking prerequisite courses in science and going up against younger candidates for his new position. >> my main motivation isy daughter. i've been a single father, ie raised my daughter from birth. it's just been me and her. i have to provide a good home for i knew i had to find a career that was beneficial for both her and i, one i could survive on and make a decent living. >> reporter: while he's thankful for the new career the program afforded him, nieves is hopeful others won't have to rely on taa the way he did. kate rogers. us fiat chrysler reportedly puts the brakes on a takeover offer. that's where we begin tonight's market focus. according to a report from automotive news, fiat chrysler recently rejected the bid from an unnamed chin niece aese auto
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saying the is too low. shares of fiat chrysler rose more than 8.5% on the session to finish at $12.60. the food distributor, cisco, said strength in its international operations helped the company's results beat estimates. shares still fell, though, down almost 1%, to 51.09. vf corporation which owns brands, the north face and timberland, said it would buy work apparel maker williamson dickey. vf corp said it would strengthen their work wear business and add to this year's earnings and revenue. shares of vf corp rose 3%. vm wear expects profits and sales for the current quarter to come in ahead of street targets. the provider of cloud computing software said it's seeing strength across its product p t portfolio and expects the trend
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to continue. as a result, the company lifted. shares were higher by 6%. the chinese e-commerce shop said marketing costs led to a wider loss in the latest quarter. still the results were better than expected. sales rose and topped analyst expectations. shares fell more than 3% to $44.25. apple and aetna reportedly held a series of secret discussions last week to bring apple's health tracker smartwatch to millions more peop connected to aetna. as first reported by cnbc, aetna is negotiating with apple on a plan to offer a free or discounted apple watch as a perk to aetna's 23 million members. shares of both aetna and apple rose during the trading session today.'s health and technology reporter christina farr first reported the story. and she joins us now from san welcome, christina, food good t
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you as always. for apple a deal like this would mean obviously higher sales of the watch but why does aetna want to do that? and is there evidence that they could use that these wellness programs reduce costs for insurance companies? >> reporter: yeah, that's a great question, sue. yeah, it is obvious why apple would want to move in this direction. for them, it represents a potential boom in sales for the apple watch if it could partner with an insurer like aetna and that could just be the begin. on aetna's side, companies are still exploring ways to reduce health care costs by keeping their members healthier. rather than treating them when they're sick. and there's some evidence, although it's still limited, that a wearable tracker that can look at everything from steps to blood pressure and heart rate, like the apple watch, might be useful for that. so only time will tell and this will be the first potentially many experiments like this with the apple watch. >> what do i -- what do i think about the privacy concerns here? should i be worried at aetna and
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apple are going to collect data that could be used ultimately against me in pricing of health insurance coverage? >> there's certainly hia creep factor here, tyler. if i'm wearing my fitbit or apple watch, my insurance company or my employer, maybe it's a self-insured employer, could see that data, it's really fair to wonder what they would do with it. is there a way in which we would be penalized for not keeping to a certain schedule in the long run? and this especially applies to, sa energy that they did before. so there are groups you could see being mortgage i think privacy is a really, really important question for a company hike apple and one they're going to have to address. >> do you get the feeling, this is yar aryour area of expertise there's more of this to become?
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>> absolutely. i believe aetna is the first of many insurance companies that would want to partner with apple on something like this. we saw fitbit take the same direction. they've been working for years with insurance companies and self-insured employers. naturally, it makes sense that apple watch as it looks to overtake its rivals, especially fitbits, would move in this direction also. >> so i ca the fitbit can help me. i know how many steps i've taken. i can see my blood pressure. my heartrate. so on and so forth. would it necessarily then. sharing that information with apple then on to the sponsor of this proposed initiative, aetna? >> we've seen apple stress again and again it's a company that makes money by selling devices and not through data and the company really stressed with something like health information which is a lot more sensitive, we really do not want our steps and heart rate ending up in the wrong hands. they've said that they will not share this device with third parties, this kind of data will
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stay on the watch and not beyond that. so, you know, only time will tell whether apple will stick with its policy, but that is what the company has said thus far. >> all right, christina, thank you so much. christina farr in san francisco for us. and coming up, eclipse economics. prices are spiking as people ch. here's a look at what to watch tomorrow. the dow component home depot reports its results. we'll find out if spending on home improvement is still strong. a few companies in the struggling retail sector also release their financial results including coach, tjx and urban outfitters. and a big day for economic reports. retail sales for july along with
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import prices and home builder sentiment due out and that is what to watch tuesday. netflix has signed an e deal with the woman behind hits like "grey's anatomy" and "scandal" delivering a blow to disney. disney owns the abc television network which is home to the series. shonda rhimes' multiproduction deal ends a 15-year relationship that it had with abc studios. some say the move is another example of big talent moving away from advertising-funded tv. last week, disney said it's taking all disney and pixar content off of netflix within the next few years as it launches its own streaming video service. well, the first solar eclipse, total one, in 99 years, is coming to north america, and people and businesses are preparing for this once in a lifetime event. jane wells has our story. >> reporter: this weekend, it will be a migration across america, the likes we haven't seen since the gold rush.
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people invading a swath of the country from oregon to south carolina to see the full solar eclipse on monday. colorado is warning of traffic nightmares. the population of wyoming could double. yours truly will be in madris, fwon g oreg. a million tourists could hit the state. hotel rooms near madris going for eight times normal prices. airbnb for thousands and kyar companies are trying to ♪ krispy kreme's glazed doughnut will go dark next monday. it's going crazy. there's a special amtrak train which is going to carbondale, illinois, for the eclipse. it sold out immediately. alaska airlis chartered a specific flight to chase the eclipse. hertz overbooked cars in portland and is now calling to apologize to customers. and then you have the sales of solar glasses. okay? these do not count. regular sunglasses do not look at the sun with them next week during the eclipse. sales of real solar glasses have
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eclipsed expectations, in fact, you can buy them on amazon. amazon is trying to reach out to people who may have bought counterfeit fake glasses. don't do it. ironically, finally, states which depend on solar energy from california to north carolina next monday are trying to figure out how to keep the lights on when the world goes dark. for "nightly business report," jane wells, in los >> going to be fascinating to see or not see. >> going to be fascinating. or not see. exactly. >> i hope it's not cloudy. >> oh, gosh. that will do it for us tonight. i'm sue herera. thanks for joining us. >> i'm tyler mathisen. thanks f have a great evening, everybody. see you back here tomorrow. >> or what if it rains
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steves: the dramatic rock of cashel is one of ireland's most evocative sites. this was the seat of ancient irish kings for seven centuries. st. patrick baptized king aengus here in about 450 a.d. in around 1100, an irish king gave cashel to the church, and it grew to become the ecclesiastical capital of all ireland. 800 years ago, this monastic community was just a chapel and a round tower standing high on this bluff. it looked out then, as it does today, over the plain of tipperary, called the golden vale because its rich soil makes it ireland's best farmland. on this historic rock, you stroll among these ruins in the footsteps of st. patrick, and wandering through my favorite celtic cross graveyard, i feel the soul of ireland.
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this is a bbc america. funding of this presentation is made possible by. the freemen foundation. and coal fuller foundation pursuing solutions for america's neglected me. planning a vacation escape that's relaxing inviting. and exciting. is a lot easier than you think. you can find it here in aruba. families couples and friends can all find their escape on the isl


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