tv Nightly Business Report PBS August 2, 2019 5:00pm-5:31pm PDT
♪>> this is "nightly business report" withbi sue herera an griffeth. ♪ a week to forget. the nasdaq and the s&p have their worst week ofhe year as trade war fears ding investor confidence. > new ingredients, and with those trade fears threateningno drag well into the future investors may have to start factoring in trade when making decisions, so what should you do? and wouldn't that be nice? an app for cutting down commute times. meet the entrepreneurs who think they're on to something.ha all of t and more tonight on "nightly business report" for friday, august 2nd. good eving, everyone,nd
welcome. everybody has a bad day now and again, and some more than others. the same is true for stocks, and this was quite a week. ongoing fears over a trade war with china sent stocks ler. the nasdaq and the s&p 500 were off more than 3% this week. the nasdaq, just about 4%. it w the worst week of the year for those indexes and the better than you marked the second worst for 2019. as for today, the dow lost p nts to 26,485. the nasdaq dropped 107eand s&p was off 21. actually, a trade dl was reached today, one that will help the nation's farmers. while it wasn't exactly the deal that wall street has been waiting for, kayla tausche tells us it is connected to the tensions with china. >> reporter: frularated with the of progress in china talks, president trump went roosevelt room to announce a deal with europe, boosting agr y
p of supporters. >> my administration is standing up for our farmers and rancher like never before. we are protecting our farmers. we are doing it in my ways, including with china. >> reporter: farmers have been the target of china's retaliation so far. the administration has repaid them $28 billion. today the chinese government said it would retaliate further if the u.s. goes through with the new tariffs. two executives who declined to ned for fear of retaliation said china could revoke licenses, launch cyberattacks or spring surpr audits on them. consumer trade groups say tariffs haven't worked and will lead to higher prices on erything from electronics to clothing. director larry kudlow dismissed the view,aying the impact would be small. >> people worry about the impact on consumers and so for. as i'vaid in the past, any consumer impact is very, very small, minuscule. >> reporter: a senior administration official tells me if china can deleer posit action between now and
september 1st, president trump may reconsider, though trump had that same outlook back in may when he announced the last tariff hike on china and he went through with it anyway when chinese officials didn't deliver. for "nightly business report", i'm kayla tausche at the white house. and late this afternoon the president did say that tariffs on eu autos are never off the table and also the uk's telegraph newspnger is repor that the white house is warning britain it will not get a free-t ude dealess a new tax affecting u.s.pa tech ces is droppe as kay mentioned, china said it would retaliate if the u.s. imposes new tariffs. as eunice yoon tells us the government did not mince words. she is in beijing for us. >> reporter: here in china popularre using a chinese saying to explain president trump's decision, that president trump chais mind faster than flipping pages on a book. chinese officials though haven't generous. the commerce ministry called the move a serious violation of a
consensus athe g-20. the country's top diplomat said it was neither constructive nor correct, and the foreign ministry said beijing would be ouforced to takeer measures. it is the last point that is really worrying american businesses in china. the u.s./china business council said its members are wored about increased regulatory scrutiny, delays in licen approval. retailers say american consumers will be hit hard, but chinese nufacturers are worried, too. we spoke to factories that sell to the u.s. and they said a 10% tariff would b a blow to a sector already under strain. one manufacturer who sells christmas gifts said he would like li likely have totop selling to e u.s. all together. as for the global communist paper said that beijing will hunker down for prolonged trade war. i spoke to a source familiar with the chinese side's thinking, and he said that he's worried that the chinese negotiating team won't take part in the trade talks that are set
for september in the united states because to the chinese the i trade truce off. for "nightly business report", i'm eunice yoon in beijing. and this latest round of proposed tariffs on chinese imports haveik items smartphones, apparel and toys caught in the crosshairs of the trade conflict. so what could it pottially an for consumer spending here in the u.s., which has, of course, been an engine of growth for our economy? joining us is brett ryan, senior u.s. economist at deutsche bank. thanks for joining us. >> thank you for having me on progra one trade group has been out saying consumers should look for higher prices at the back-to-school season and the important holiday shopping season. what kind of impact do you see happening? >> i would agree with the chairman of economic advisers, mr. kudlow, that the impact from thearfs themselves will be not very direct in terms ofco umer spending, but consumer spendingd shoow -- is expected to slow already over the back half of the year.
the issue is if the weakness in business confidence begins to affect the m labket and hiring growth slows down, then that could spill over into consumer confidence later thi year causing a sharper slowdown in consumer spending than what we aredy alr expecting as the boost from tax cuts from last year continues tofade. >> there's also the psychological impact, is there not, on the consumer with the headline risk? we hear a lot about these trade tariffs and we're hearing whether or not it ends up to be true on a meaningful basis, we hear a lot about the trickle down to the consumer. at what point does the consumer pull back based on the expectation that they will get hit? >> that's a very good point, sue. thehiniversity of mn survey noted today that consumers are already feeling a litt bit anxious about thecy po uncertainty, and we could see confidence begin to tick lower over the next few months. that in turn could have anct
im on consumer spending towards the end of the summer nd into the back-to-school season. >> we have already been establishing we have essentially two economies right now, whe the consumer is strong but holding back on investment because of fears about the trade. so what you seem to be suggesting is that that lack of business investment or the slowdown will eventlly hurt the job market, which eventually hurts the consumer. is that what we're talking about here >> yes, that's correct. the business confidence tends to lead consumer confidence, anden e see business confidence falling as quickly as we are with the manufacturing ism and the chicago pmi, that does not bode well for consumehe confidence longer that this persists. >> brett ryan with deutsche nk. good to see you again. thanks for joining us. >> thank you for having me. >> yes. the ongoing trade conflict has been hapyning for nea a year now and it is creating uncertainty in the market, as wo saw y, and with investors. so what should you be doing now to factorra in the dispute
in your portfolio? steve masacka joins us, u.s. strategistith webb bush. welcome. >> good to be here. >> as i mentioned, this has been going oneaor about a now, and a number of analysts we have talked to have pointed out the fact that the chinese have a very long timine -- that' the way they tend to think. so there's no indication this is going to end any time soon. how as an individual investor do you start to factor thi int your portfolio management? >> well, i don't think you want to p a whole l of attention to it quite frankly. i don't think that we're goingt to see ag dramatic out of this administration prior to the 2020 election. so we'll see a lot of talk and a lot of chatter, but nothing that will really be allhat meaningful to the market. yes, we corrected this week because o the trade news, but, you know, stocks were extended. they were also disappointed that the fed indicated this may be the o r and onlye cut that we have this week. so there were other factors
volved in the decline. but our feeling is that trade policy will notlae partiy negative for the market until we get past the 2020 election cycle for the obvious reason. >> right. >> the administration is not going to want to damage their chances in the election. >> you know, if you are looking for investments that are maybe immune to the trade dispute, ere are those who say you look to small caps, for example, since they're more focusede on domestic economy and not so much, you know, affected by tariffs. is that an area to look at? if we are looking for places to try and avoid the problems of the trade conflict, is that an area to look at necessarily? absolutely. and small caps have underper fofr formed this year. they have not had the same kind have ns larger cap stocks had. it is also an area you might find cheaper stocks. of course, as you pointout, small cap companies tend to be
do kme doe mesically oriented. some companies do import and export even though they're small in hasize. >> about hedging? i knowes you believe in ing heavily in equities, but would lternative investments to perhaps hedge your bets in case trade really does have an >> we have looked at hedging very closely. we have used itn occasion, and we find hedging to be very expensive right now. we find it chews up a lot of your gain. so, quite frankly, we haven't beenedging and we can't really find what we think is an inexpensive way to do it. certainly if that opportunity presented itself, it is something tha you could look at. >> okay. >> but right now we don't find hedging to be effective. y >> steve, tha very much. appreciate it. steve masacka. >> you're very welcome. on to the labor market now where a record run in job growth was not enough to offset trade
concerns. we learned this morning that the economy added 1,000 jobs in july, essentially in line with the estimates of 165,000. unemployment remayined at 3.7% while wages rose. this is the 106th straight month of job gro that's the longest streak ever, with more than 163 million people working, also a record. h ylan mui more for us tonight. >> reporter: businesses are still hiring workers at a steady pace, but not as fast as they were before. job gwth in july w slower than in june and the labor department lowered its estimate for that month as well. mas number w revised down, too. wage growth also leveled off in july. average hourly earnings were up $0.08 to $27.98, on par with the gain in june. the white house said those are all positive indicators. it was a very good jobs report. people are flooding back into the job mark. that tells me not only is the
economy strong with the low unemplmentrate, but because of the increase in salaries and wages and compensation, people are coming back. >> reporter: but manufacturing appears to be cooling off. the labor department repted that growth in the industry has been markedly slower than last year. the sector added a solid 16,000 jobs in july, but the average for the year is half that.an theacturing workweek fell to 40.4 hours in july, the lowest level since 2011. meanwhile, the retail industry also continued to struggle. it shed 3,600 jobs in july, the sixth consecutive month of decline. but there was still plenty of bright spots. professional and technical serves, health care and social assistance, all of those industries added job, and the labor force participation edged up from 62.9 to 63%. all all of the increase in partckipation came from b teens and those with less than a high school degree, and that's
really important because it means we are pulling in people who were formally not reengaged in this economy. >> reporter: analysts say a slowdown in job growth should be expected. the unemployment rate is hovering around historic lows, which means there are simplyor fewerrs for high. fo nrk"nightly business report" i'mlan mui inwashington. up next, women taking flight. >> reporter: i'm wayjane wells anchorage alaska. en is the last time you heard a female voice say, this isnour capt speaking? not much. the world where are the females? we come to one of the top flight schools in the country, owned and operated by a woman. that's coming up. ♪ ♪
>> over the next two decades it is estimated hundreds of thousands of pilots will be needed worlide, and many of the major airlines are makingei thr pitch to have women be the leaders in the cockpit. jane wells has more from anchorage, alaska. ♪ >> reporter: on an airstrip in anchorage, alaska -- is one of the top flight schools in the country. owned and operated by a woman who started a flight school after the one she was working at didn't like her style. >> i sold my car for$8,000 and i renovated this ndbuilding, i had people knocking on my door from day one. >> 734. >> reporter: jamie matter son sims of sky track alaska has beend recogni as an faa gold seal flight instructor, yet womenn the cockpit remain an oddity. only about 6% of the pilot force
at the tophree airlines are female, and that surprises beverly bass, hired by american es in 1976 and its first female captain. you know, we talked about that all the time and i think for the most part women are just still not aware that that is a jo opportunity that is available to them. >> reporter: boeing estimates the global aviation industry will need 800,000 new pilots over the next 20 years. menike jesse and women like madison, both taking lessons in anchorage with a female instructor l >> she doesn me get away with anything, which i appreciate. >> my mom runs a huge corporation up he so i'm super used to women telling me what to do. >> reporter: all three major u.s. airlines have stepped up pilot rruiting, targeting women specifically with financial aid for flight school. this is an industry with no gend pay is based purely on things like the type of aircraft flown. but surveys by embry riddle
suggest passengers still are not as comfortable with women in the cockpit as men. beverly bass who has seen it all says women pilot are no better or worse than men, but they can multi task. >> i know that i cld cook dinner, feed a baby and talk on the telephone all at mee same >> reporter: she hopes a new generation of women will love flying as much as she has, each with her own favorite part of the experience. >> probably when the wheels lift off. when you first rotate the plane and you just kind of hover forca , it is just the coolest feeling ever. >> reporter: for "nightly business report", i'mll jane in anchorage, alaska. exxonmobil gets a lift from north of the border, and that's where we begin toght's market focus with the energy giant topping expectations as strength in its exploration and production division offset weak result from its refining operation. the company also benefited from a tax rate changea.n can shares were down a fraction today to 71.75. and toxxmobil's rival
chevron which reported mixed reports, bea earnings expectations but fell short on revenue, the company saw an increase in oil pron and a termination fee that it received after it lost the bidding war for anna darko added $720 million to its bottom line. stock was down a fraction to 120.73. meanwhile, ibm is lering its earnings forecast for the year now that its deal to buy a software company red hat as closed that $34 million acquisition was largest in the company's history and ibm said an accounting adjustment reled to it will re-dee reduce earnings by about a dollar this year. icahn says he plans to meet with cloud era's magement to increase shareholder value.
regulato regulatory filings say he may be lookg for seatsn the company's board. net app is warning its current quarter result will come well below expectations, partly due to a decline in enterprise software license renewals and what it calls weak macro economic environment. the datapa storage c said it remains confident in i.t. long-term strategy but c its fiscal 2020 outlook. shares plummeted more than 20% to 46.04. campbell's soup has sold its cookie business and other international assets to the private eity firm kkr for more than $2 billion. campbell's was up a fraction t 32.34. cbs and viacom havech reportedly r a working agreement on who will lead the combined company if a merger is approved. the "wall street journal" says cbs's actingou executive over see cbs's branded assets while the head of viacom wouldk he ceo role of the
proposedombined company. viacom shares were also off a fraction at 29.78. to this week's market monitor who has the names of three well-known global companies that he believes have good prospects for growth in the future. alan bond is back with us. he is comanager of theerjenson quality growth fund. welcome back. >> hi. >> we start with johnson & johns johnson. we know about the lc-related lawsuits it faces. a junior in kentucky found in favor of johnson & johnson but it is only one of tens of thousands of lawsuits it still faces. i assume youis don't feel i a big overhang on this compa? >> yes, so johnson & johnson, obviously a well-known health care business with wide range of global businesses. we think all poised to grow due to an aging population globally and developments in pharmaceutical research, and the stock has been a bit weak this year due in part to t
litigation issues that you mentioned and also due to concerns about drug price reform. but we think johnson & jfnson is one the most financially strong businesses in the world and really naturally resilient business that can manage its way through. we think it is a good un oppoy, this pullback, to add to the position for long-term investors. >> your next pic is 3m. not only is it a global pick, but you like the dividend. >> yes. so 3m,lobal industrial conglomerate, a wide range of businesses supported by competitive advantages in terms of manufacturing expertise andg technol developments. it is a business that is a bit sensitive to changes in the economy, and s we'ven the slowdown in china hit both the business and the shares so far th year. we thi for the long-term this is a company with a good dividend. ea has a good track record of managing throughinds and we have taken the pullback in the shares as an opportunity to add to oio pos in the fund. >> and your third pick is omni erm, the global asing and marketing firm. when you think about it, social
media, advertisingif is the blood of many of those companies, right? >> yes. i com, global o media, an advertising firm, really supported by and long-sg reputation for creative excellence. and we have seen increasing competition enter omni com's business that's resulted in some uncertainty about p-line growth, but we think the company has been doing a very good job of executing through these headwinds. they're taken share from traditional competitors. they manage profitability very well and things like social media are a good growth driver for a company like omni com. we think again a high quality stock trading at an attractive price. > thank you for joining us tonigh good to see you again. >> thank you. coming up, the high-tech way a pr of entrepreneurs hopes to help you streamline your commute. ♪ ♪
♪ reducing travel times,rt ularly for rail and bus users, could be a $60 billion obal economic bonus each year. but what's the best way to do that? well, one way, empower rideror with the ition they need to get where they're going more efficiently. that's why pair of washington, d.c. entrepreneurs got the bright idea to make your mobility their business. >> reporter: in 2008 and 2009 matt kaywood spent nights in a lab researching ai and neuronc scie but getting home meant guesswork. which of several buses might first? that type of information was not
yet widely available. >> when they first produced-t ree live information, i realized that that could, you know, solve my problem. i would never have to wait in the fog again. but the problem was there wasn't a single place toet it all. >> reporter: in his free time kaywood began developing a platform to get it all, buses, rail, car services like uber and lyft, bikes and scooters too. in 2013 he was working in washington, d.c. when he took a prototype to a mentoring group for entrepreneurs, and that's where he met ryan croft, a tour company owner whose travels had taken him to 50 countries and 100 cities. >> they all had poor traffic. information is king. ifiv you ge people information at the time that they need it, they can make an informed decision. >> reporter: they began bootstrapping a business, transit screen. >> if i press this, will it give me a location? reporter: along the way the former u.s. president took notice at a startup incubator, and in 2015 transit screen went
live, sharing information at first from san francisco andhe d.c. area. >> we're driving them customers and giving them a better experience.he in return, don't charge us and we don't charge them. >> reporter: now transit screen d digests more than 2,000 fees from 60 cities around the world 24 hours a day. how often are these trains coming? are there a lot of ubers and bike shares and scooters nearby in the proximity of the building? >> if it is coming in four minutes, maybe i walk straight there. if it is inger, maybel decide i want to stop and grab a coffee. >> reporter: who pays for their service? >> everybody seems to use them. >> reporter: real estate developers and leasinggents ke tristan fray. of course, because it is all about location, location, location. transit seen won't say exactly what they charge, only that it is usually a few hundred dollars a month per screen, and they're in roughly 1,500 buildings across the country. >> it is definitely a major lling point as i am taking people to look at the building.
they're always like, oh, wow, that's super, super useful. >> reporter: now there's an app for that called city motion, and this year a new revenue stream. many big companies provide employee shuttle services and some are payinghe to help t employees choose a route that's route for them. >> it is an amenity for employees, but it is actually a necessity for companies. >> we kept hearing the story over and over again, about the pain of turnover. >> we are rign top of a metro station ourselves here. why? becausee want to be closeo our employees. >> reporter: lots of those big companies are multi nationals, so transit screen alrea on track to bring in between 4 and $8 million in sales in 2019, is anning to expand into 14 european cities beginning later this year. for kaywood and croft, time really is ney. >>t is a very scaleable business and it is an endless ocean of companies out anere, we're just now sort of in the first inning or two of this long game.
>> reporter: and as transportation becomes more data driven, transit screen is also working on the open mobility data initiative, aiming to get transit systems on the samage when it comes to data formats so their information c get to the rest of us more smoothly. >> truly a bright idea. >> uh-huh. >> before we go, a final look at the day on wall street. the dow lost just8 points. it was down much more than that earlier. nasdaq dropped by 107. the s&p was off by 21. yes, it was the worst week of the year for the nasdaq and the s&p as the month of august gets under way. that is the "nightly business ig report" for t. i'm bill griffeth. thanks for watching. >> the good thing, it is friday. >> yes. >> i'm sue herera. have a great weekend and we will see you right back here on monday. ♪