tv Nightly Business Report PBS September 6, 2019 5:00pm-5:31pm PDT
♪ this is "nightly business report" with bill griffeth and sue herera. ♪ gettiti to work. the pace of hiring slowed last month and job gains in june and july were revised lower, but a closer look shows there's a lot going right for the american worker. finding opportunity. our market monitor hasis a l of names she says could do well in this rimarket. t idea. meet the entrepreneurs who are on a mission to make your home renovation project easier and cheaper. those stoes and more tonight on "nightly business report"t"or triday, september 6 and we do bid you a good evening, everybody, and welcomen that s jobs market has been a driving force behind our economy for several years now. more americans working means more americans are spending.
but this yea the labor market growth has been gradually slowing, and we getev more ence of that this morning. the economy did not creatat as many jobs as expected last now, w that may seem disappointing, remember that the unemployment ratetill remains near a 50-year low and wages are still rising.at r this report does is complicate economic and federal reserve policy decisions. here is steliesman. >> reporter: the u.s. job market continued its gradual weakening trend witht 130,000 jobs created in august, and a lot of them wereke census worrs hired by the government. job growth has slowed from an average monly rate of 220,000 created last year to an average of 158,000 this year. >> this is an oka t report, buti do think it shows theab market softening here and this economy is definitely shifting down a gear g to 2% gro gh rath than 3% growth we saw in 2018. >> but there was good news in the report. the unemployment rate rained
unchanged at an historically low 3.7%, and average hourly wag y were up for the third straightn moh. construction, leisure, hospitality and retail, but health was weak. speaking inn switzerland, he wa upbeat on the economy. >> moderate growth, a strong labor market and inflation moving bok up close our 2% goal. all of that said, tre are significant risks and we've been monitoring those including, as growth, uncertainty around trade policy and also persistently low inflation. >> the fed will announce a new ra decision oneptember 188th, and is expected to cut interest rates by a quarter point. what is unclear is what comes after that. if the risk factors powell is worried about end up dragging down the economy, the job market could weaken further bringing about more interest rate cuts
from the fed. y business report", i'm steve liesman. let's turn now to beth ann bovino for more on the jobs report and what it could mean for the fed and economy.e hief u.s. economist at standard and poors global ratings. nice to have you back with us. >> great >> give me your take on the jobs report. street wanted but wages were goodgo >> well, a couple of things to faor in. on l it wastle sofr, about augubut august is a tricky month for a couple ofns rea one, the kids with summer jobs go to school and jobs go away for thatreason. second thing, a lot of the forms weren't filled out, a lot of business owners were alson vacation so they didn'tar get nd to filling out tha form to send to the bureau of labor statistics. what we'll see is probably in september those forms will be ent a little lnd we probably will see the numbers change, and most likely to the upside. >> i mean we have to keep pointing it is still a very
strong labor market, a tight m labor market at this point. is this slowing though enough to convince the fed to want to cut month?his >> we look at this report s, sure, y know, the headline numbers, those scary headline numbers, we finally don't see that 200,000 job gns we have gottensed to, are a little scary, but we see the underp underpinnings of the report is rather good. we talked about wages. we talked about something that wasn't mentioned is workweek now has gone back up to a higher level. that's positive. sthat means busin he don't need to -- basically aren't putting people on furlough and probably will keep people on theirthooks. means in our min means that the fed could wai because e job market is good,ut we don't think they will, largely because of what is happening with the trade war and o er reasons, the fed likely will
move in september. >> does this report kind of take away thehe fears of recession w were talking about not justwo weeks ago? horizon?ee recession on the >> we see -- unfortately, wee do see receion, the risk has increased. now, it is not at that point where all -- you know, batten down the hatches, but w see the risk increasing. we have raised the risk of recession going out 12 months to close to 35%. to put it in perspective, a year ago it was 10% to 15%, so it has increasese pretty sharply change, and the fed indeed in terms of them moving on basically adding more liquidity into the market, lowering rates, maki it more attractive to borrow and torrbuy, and the domestic side of the equation is holding up relatively well. that could give us a little bit more cushion as we go through the uncharted teteitory. >> beth anno bovi with standard & poor's. thank you so much.
>> thank you. to the market now. the major averages finished today mixed, despite the potential for another rateth cu month investors are still cautious about the slowi the trade war uncertainties.d the dowoday added 69 p'rnts. at 26,797. nasdaq fell though. the s&p was up just two. for the week, all of the major averages were higher fhe seco straight week. state attorneys general are launching separate antitru in astigations into faceboo google's parental pta bet. be facebook investigation is being led the new york attorney general who pointed to issues related to the handling of user data and the price of advertisin facebook said p quote,ple have multiplee choices for ever one of the services w provide. we understanddhat if we stop innovating people can easily leave our platform. this underscores the competition that we face, end quote. next week as many s 30 states are reportedly planning to launch an unrelated antitrust
investigation into google. a formal announcement is expect on monday in front of the supreme court. elsewhere, the department of justice has launched and antrust probe into four automakers. officials walt to see i ford, hon dah, bmw and volkswagen l violated feder by agreeing to tail pipe emission standards beyond those proposed by the white house. as we' been reporting, the deal in question was between the automakers and the state of california ahead of a landmark opioid trial that is set to bin next month, the drugmaker ftmalanc reached a 30 million dollar deal to resolve cases in ohio, and there are new reports tonight purdue pharma is in talks with the justice dartment to resolve criminal and civil cases against that company. meg tirrell takes aook at the compans at the center ohe is. reporter: the opioid crisis has caused about 400,000 deaths in the last two decades in the united states. now it is taking a corpote
toll as well, in the form of a sea series of bankruptcies or potential bankruptcies for makers of opioids. they face lawsuits from citi, counties, states and othersek seg to hold them accountable for the epidemic. it was just days that it filed for bankruptcy day after it settled with the department of justice for $225 million. next purdue pharma was considing banknkptcy. it is reportedly planning to file for bankruptcy before the end of this month if it can't reach a settlement first. then this week a report that malan claft- option to -- opioid cases. including according to the report possible bankruptcy filing cases. itey took issue the report calling it speculation at a conference ts week. >> obviously us and a number of
other companies are embroiled in one of the biggest sets sf uncertaiies any o a us have seen. ieo thinke are confusing the uncertainty with some of the actions that we' taking leading to some of the speculation. >> the stockank to historic lows. >> are we starting to see a dono effect here where one has already fallen and now maybe the others will eveua y fall as well. i think to a certain extent stock price movement of at the melancroft over the last week as it was trading down last week and earlier this week, there were concerns they could be the next domino to fall. i think for our part what we said is thatt is possible. it is not 100% certain. re >> wall is watching other companies involved in opioid o their stocks also declined on themelancrott news. they also carry billions of
dollars in debt and their business selling generic drugs has been under pressure for years. >> if we just had kind of the opioid litigation piece that may be manageable. when you combine the leverage with the various litigation and the fact that this litigation is sort of synergistic in a bad way, it is combining to put them all in a eally bspot. insettlements of fines thousands of the cases they face could amount to billion purdue has offered a settlement of 10 billion though plaintiffs n't think it is enough. the cost of the opioid epidemic are undeniable. the cdc estimates the total burden of opioid mise at almost $80 billion a year. for "nightly business report", i'm meeting terrell. still ahead, paging more doctors. >> reporter: i'm kat rogers in mesa, arizona. this stays is one of many facing a physici shortage. that problem is growing in america. being done to solve the issue is
ss ight on "nightly busi report".♪ ♪ inhe newsonht, hurricane dorian. the storm made landfallln the u.s., hit north carolina's n cape hatteras on the outer banks and trapping potentially hundreds of people on okracoke island. th island sustained significant flooding and powerful wind,ugven tvet was much weaker than when it slammed into the bahamas. with the r joblesse at a 50- year low, the market remains tight making it harder for se companies to find workers and now for some hospitals to find doctors. as you say, kate rogs is in
mesa, arizona tonight. reporter: christopher lu was drawn to medicine as a missionary. >> i was here inhe u.s. seeing a lot of elderly members of our congregations, and so a lot of them had multiple medical . oblems and would talk to us about th >> reporter: he was a chemistry major but decided to use his science background to help people, changing baths to attend medical school. today chy29-year-old lu is traig to fill an important and growing physician shortage in america, which could bes many as 122,000 doctors short by 32 in both primary and specialty care according to the association of american medical colleges. america's aging populationup d with doctor retirements and a lack of available residency slots for those graduating medical school are pressuring the system. experts say team-based care, arter technology deploent and a increase in feral funding for residency programs would help to easehe shortage. >> the challenge of having
enough residency positions enough resources t support training at teaching hospitals across the country in communities, big and small. >> reporter: lu is a first-year residence at the abrazo health hospital system in greater phoenix which added two new residency programs to attract physicians to train in t state. arizona currently has a shortage of about 600 primary care physicians, a number that will grow to nearly 2,000 over the next decade. the hope is that doctors will stay in the state to helpill e gap once their training is complete. training them well, by providing a very good educational environment as well as by teaching tm for future deavors in life we will be able to retain them in this community to sve our growing population. >> perfect. thank you. >> reporr: arizona is doi more than just adding residency slots to tackle the issue. governor doug duceyecently
signed a univeal licensing recognition law to help those with out of state licensing gain similar licensing in arizona. >> we have more jobs available in arizona today than we have people to fill them. we think in terms of theoctor shortage it is a too in the tool box. part of this phase of training is gting to help patients, including the older population that first inspid him. >> the most rewarding parts talking to patients and just seeing them progress. most of our patients, you knpa, get better and are able to leave here, you know, better than when they came in. >> reporter: for "nightly business report", i'm kate roger in mesa, arizona. a setback for pg that's where we begin tonight's market focus. legislation that would have lped the utility pay off billionsf dollars in wildfire liabilities was shelved. the california lawmar who introduced that bill says it
needs more debate and time for discussion. the measure's failure though kplikts pg complicates pe. fannie mae and freddiedd mac introducing more competition. they both dropped more than8%. >> alibaba isg buy chinese business from t gaming company net ease for about $2 billion. th sell imported products in china including clothing, consumer electronics and luxury goods. they slipped more than 1% to 176.69. symantec has repordly ceived a buyout offer from two private equity firms. quoted inhe "wall street journal", they would take
control of the security business while preserving broadcom previously announced acqcqsition of symantec's enterprise security assets. the deal could be valued at about $16 billion. shares rose to 24.52. which brings us to our weekly market monitor with a list of companies she says will nefit from the services sector investment in the cloud and network security. joinin us onc again is nancy pengler chief investment officer of the tangl management group. welcome back. nice to see you as always. >> you too. thanks for having me. hello, bill. >> bill just talked about. broadc it is one of your picks. >> yes. >> why do you like it? for a couple of reaso. the ceo has consistently underestimated but he has beens troning the company to a pure chip play to a software and security play. so y just said that they purchased a portion of symantec's entererise security solutions. they also purchased computer sociates about a year ago, and
that's where all of the growthr he second half is going to come from this year. they have a3. yield and they've been raising the dividend about 50% a year. so in terms of total returns 30% a yea for the last five t years, but is still very cheap. when you think the t. trtrsformati of this company and wha the clo has meant to them, how much more growth is ro there for mft from the cloud do you think? >> well, the cloud isve growing quicy, bill, and they are growing at 60-plus percent year over year. that's down from 90%. now they have started to take share from amazon's aws. so i like that portion of the business. the margins areti excal. they pay e a dividend about in line with the ten-year treasury d they'y' been growing it about 10.5% per year. even though it is upic dramly, it is still attractive on our valuation, one of our largest holdings. >> and nt is palo alto
networks. no dividend paid here, but you're taking a three-to-five-year time horizon on the stock and you're bullish on it. >> yes, it is a bit mor volatile. it is a smaller company, growing very quickly, about 22% per a year they're transitioning from an enterprise solutions coany to moref a cloud security company. right now think firewall. they'r trying to transion the security to the cloud to that their clients can have one vendnstead of nine or ten. this is a company that's very well managed. still attractive on our valuation and we think it is great -- you know, sometimes you need to take more risks than you think even when stocks are modestly expensive. >> on that note, nancy, thanks so much. >> tnk you, sue. >> nancy tangler with tgler well it management rnlt you probably have heard the recent reports about hackers ting over the twitter accounts of high-profilesers includi ceo jack dorsey and various celebrities.
once they had access they twted out expletives and other messages. how did it happen? as andrea day reports now, it is likely coming fro someone tricking cellphone providers. >> these attacks shod serve as a wake-up call. >> reporter: a message from ibm's charles henderson. hes talking about recent attacks targetingigprofile twitter accounts like twitter ceo jack dorsey andctress chloe moretz. . >> i think iff the industry doe not away from mobile phone numbers as as factor of authentication you will see this abused more and more. >> reporter: about a week ago hackers took over dorsey's account,sing it to tweet out offensive messages. theackingroup, chuckli sq d, claimed to be behind it and experts believe they used an old school attack called sim swapping. >> y go into a store, lie, reset somebody's account. it doesn't require the best
hacker. >> reporter: here is how it works. he she hacker tricks the mobile carrier into reassigning the victim'soell number a new phone that they own. the phone pthen use tolish tweets via text. twitter has now turned off its tweet by text service in most locations. the companyirecting cnbc to this twe in part. we're taking this step because of vulnerabilities that need to be addressed by mobile carriers, and our reliance on havg a linked phoneumber for two factor authentication. twitter responding to the attacks with this in part. the phone number associated witt the accas compromised due to a security oversight by the mobile provider. according to henderson, similar atsecks can be to target bank accounts as many companies rely on texts to authenticate users. >> it is mostly high-profile individuals, executives, people that are seen to have big bank accounts because when you are doing this kinf very manual
attack, you want to have a high return on investment as a criminal. >> reporter: he says one of the reasonshy this all works is that people at the cellphone stores are there, they're wanting to help customers, they're wanpng to h them buy fairlyevice, so it is a easy attack to pull off. for "nightly business report", i'm andrea day cing up, renovation tion. making over a bathroom can be chaotic and costly, but one e renovatiert is on a mission to change all of that. ♪ ♪ ♪
finally tonight, the story of a company that does want to ation a little less painful. two new york city entrepreneurs got the bright idea to give both homeowners and builders incentives to use tir one-stop shop for materials, designs and >> reporter: the thought of home renovation makes most of us wince. the order of the day is usually >> the joke is neither of us would renovate even if we could affo to. >> this is a new bathtub. renovation process might sound even more insane, butuke sherwin and coda wong are trying. their digital platform, block, aims to improve confidence for both owners builders when it cos to quality, cost and convenience. >> these are before and afters. >> focusing on bathrooms since launching in december of 2018,
block has completed almost 100 and singlertments family homes in new york city and in new jersey. they say block's average cost is slightly below remodelling magazine's midrange average, about $28,000 in the new york area for an existing five-by-seven room. the national average, about $20,e0. ut>> we hound a lot of people are sort of paralysed by how many thousand of combinations are out there. >> it is alo nice >> by limiting its ranan of products, block kno what it needs a it can negotiate prices for tubs andts fau vanities and the like. >> we create a 3d model. >> it slsotreamlines the design process. >> a completely custom design t ane probably around five to six hours, versus doing it using the products in the catalogue, takes about an hour. >> it basically is an efficiency on every single step of the
renovation process. >> sherwin and wong say efficiencies areained inhe construction phase, too. block vets andires i own builders. >> their guys are showing up and everhing is rea for i them to install. because block acquires the customer, you are eliminating the dance renovators have to do. >> instead of the nce, the dreadful bidding process, block gets builders to accepto lower fees by making theobs easier. >> they don like to do marketing on i itagram. they don't like to do o all the little billing and administrative work. they don't like to be sending out 20 proposals and hoping to win one. >> they do like to build thoug sherwin and wong believe dangling a carrot, a pipeline of future projects eliminates a builder's greatest fear, finding theextob. >> you don't have to go to the customer. you don't have to call them and y, "what about this, what about that, sizes, specs, finishes."
it is so streamlined. so i could potentially set up a crew and do multiple jobs at once. >> this soup-to-nuts bathroom renault inew york city took less than a month, a third of the national average, and it cost about $30,000, just above e new york average f a midrange project, including some custom plumbing d detailing. sherwin and wong are already testing the block model on kitchen projects and they're working to expand beyond the new york area. >> if this works and it works at scale,hen both the homeowner and the contractor should benefit. >> by the way, we should point out that neitherhein nor wang has actually renovated anything themselves, ahough sherwin's father renovated brownstones in brooklyn for both, however, have had a hand in prior digital stories, sherwin at the mattress company casper and wong in fashion at rent the brunway. >>ore we go, here is another day's look at the
numbers on wl street. the dow managed to add 69 points to 26,797. the nasdaq fell 13. the s&p00 was. up all of the major averages were higher for the second straight week. >> awas only a four-day week, too. >> i know, exactly. >> pretty good gains. >> a good way to go out into the >> to a strong start for ffweekend. september. >> that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'm bill griffeth. have a great week end. see you monday. ♪ ♪
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