tv Nightly Business Report PBS September 10, 2019 5:00pm-5:31pm PDT
♪ this isnightly business report" with bill griffith appear sue herera. >> ina. the spotlight, apple hos one of its biggest events of the year. but it's not the new iphone that's get all of thez. b it's apple's services business. new menu, mcdonald's making major changes but not with fast food. >> bigger targets. state attorneys genal are setting sights on one of america's richest families as they take aim at the opioid epidemic. those stories and more tonight onor "nightly business r for tuesday september 10th. >> we do bid you good evening, everybody. andwe ome. things definitely changing at apple. that was aparental at the company's annual showcase today. yes the iphone is still theip flagroduct and yes through
new versions of the smartphone got a lot of attention. but clearly apple is looking for new areas of growth now. as i transform the phone and music industries it's now betting it do the same with streamg. apple tod announced a start date f its apple plus service. it also i announced how muchs going to cost consumers. and that news sent sharesfet itors like netflix, disney and roku lower. julia boorstin looks at apple's night.ng strat sy for us ♪ hardware, software and services. that's what apple ceo tim cook says the tech giant is focused on. and cook revealed key details about the services they first announced in marni. apple tv plus costs $49.99 a month. their shows launching november 1st with more shows added monthly. the first year first for those purchasing aiphone, ipad, mac
book. >> our mission is to bring you the mosginal stories from the most creative minds in television and film. stories that help you find inspiration grounded in emotion. truly stories in believen. stories with purpose. >> that was feist dollars a month price tag half of what analysts predictpphe tv would cost. e service won't have the same library as otheric brse. but from a price point it will be less expen eve. compares to $13 a month for netflix's most popular service pan $7 a month for disney plus. >>he t ts is new tefor apple ying to move from being an equipment company into more recurring revenue business whether five dars a month or $10 a month this is part of the new story. >> apple announcing n details of the arcade streaming game service. $4.99 for unlimited access to 10exclusive games. law firming september 19th in 50
countries. people to services.ur more for "nightly bui'ness report" julia boorstin in cupertino, california. on wall street stocks finished mixed weighed down by decline in tech shares.ri oil as bit lower. the d d jones industrial average ropes 73 points to 26909. n theasdaq fell 3 and the s&p 500 up a fraction. >> as the tde war with chi drags on and more tariffs are introduced two n reports out econy may have a pricing prmg. eunice yuanua in beiging. >> beijing gotwo bits of bad news on prices. problem.na has a pork pork is seen as a staple in the diet and social stability issue. the government is highly sensitive to dramatic changes io prices. which it got today. prices for august b jumped 47%. beijing has announced mu measures to fight african swine fever devastating the pig
population. releasing emergency pork from the strategic reserve and just today a state paposd a headline that appears to be t attempting to convince chinese that they don't immediate their beloved meat saying eing less pork is good for you and on social media your walt and body will thank you. however,he worst news for policy makers is on the producer side. the i fell at the fastest pace in three years. manufacturers struggling because of the trade conflict with t u.s. and weak demand. most economists believe that even with the surge in pork pric that the authorities here are gng to want to prioritize battling the deflationary ricks and will press with stilus possible interest rates cuts is year. fortl "nibusiness report" eunice yuan in beijing. with china that investors are morpting but also with canada and mexico. and it's now crunch time for the administration to ge the renegotiated nafta deal, now known as usmca done.
ayla tausche is in washington. >> this woke the white house revved up t the pushget congress to pass usmca, a deal it says has bigger impact than ongoing talks with china. >> wectlly export close to five times more product to mexico and canada than we do to china. so usmca is the big deal. we're hoping to get this thing done within the next 30 to 60 days. >> theem deal needsrats onboard. house speaker nancy pelosi will determine if and when a voteme to the floor depending whether top trade officialsde me changes. in negotiations democrats have prioritized making sure mexico is implementin new labor reforms. enforcing environmental protections they say nafta overloloed and assuring that any changes for pharmaceutical companies won't raise drug prices. buness and farming groups are tredescending to kpal push for the passage.
pork producersay canada and mexico make up 40% of the export market. aun' makers wou certainty on supply chain. north dakota rancher developly vish would like cleer labeling on american beef but even without that it's better than no deal. to sell the cu product when there is nobody available to purchase it. when there is tariffs that raze the prices so high they can't afford it. >> more thanine months after the three countries sign the deal. epchanics kwoep is the only one to ratify it. elections in canada next month have hel passage there. in washington, the white house and republicans say they aeady have the votes. democrats say they they're not there yet. u.s. trade representativeobert lighthizer has yet to starthe official count downclock on the deal until he is surehey have the support. for "nightly business report," kayla tausche in washington. job openings fell for a second straight month in july. according to the labor department this morning openings topped 7.2 million.
that's down from y tll-time high of 7 p 6 million hit late st year. report showing a rise in the quit rate. a sign of worr confidence in the job market. house speaker nancy pelosi will reaortedly r an ambitious plan on drug pricing. a draft summary sws the proposal wouldpr allow the fedel government to negotiate drug prices on up to 2 medicare covered medicines with few competitors. it would also require manufacturers to offer the agreed upon priceso private insurers. reaction was mixedith merck filing and eli lyle and another rising. >> there is questions about perdue affirm an is going to do. it could semgts w shte attorneys general or file or bankruptcy. if it does that, the sackler family owning purdue will find itself in unwelcome spotlight. g tyrrell explains.
>> they are among the richest families the sackler aim adorns university from universitiet to museum, the blockbuster pain killer ox int coloradan. ey are in lawsuits with many cities, the family is a big are target. >> we have evidence that members involved in seems conversations, marketing, planheng, accompanied sales representatis on calls. they are part of the entire enterprise in a which that is it generally not normal just for j people who have owned a share of the company. ahead of the first federal trial in the opioid lawsuit scheduledor october purdue and the family have been in attorneys general and others.te pu wh but according to the state ags the sides aren't on the same pagess pro and the company has reportedly threatened to file for
bankruptcy if the settlement isn't reached. >> it's problematic for the ligation a for t attorne generals. >> the states want to see more money guaranteed from the sack manier family but in a i edition they say if purdue files for pharmacy their attention will turn to the individual familyer me we come to terms there is no need to sue the sacklers individually. if we fail and the company goes into bankruptcy but the sacklers do not then thapt i have no choice but to sue them individually. >> the sacklers a namedn several state institutes and wouldn't be the first time the family has been invold in litigation. just unsealed dep tigs video revealeduestions of richard sackler former chairman of yopurdue. >> dbelieve that any of purdue's conduct let ledpu to increase in people being addicted in the commo wealth of kentucky. >> no. >> purdue agreed in 2015 to h the state ase w of kentucky for $24 million
states are looking for more. >> they extractsed billions and ns and billions of dollars from the company over thehe las decade. >> aspokesman for the pharma company declined to comment pfrp the reprentatives for the family didn't immediately respd. it's time to look at some of theup ades and downgrades. neutral from buy ubs, the analyst citing the potential for lower interest rates to eat into net interest income. the price target $9s 49 the shares fell an.ract 3/4 general was downgraded to market perform from outperform at bernstein, the analyst cites less certainty on future sales and earnings gswth. the price target is $145.ck the sellth 2% to 157.09. atlrit was ground dwraud the piperafteror increasing regul skrout i of you will juul as
mg we s the potential m are phillip morris. the price farther is $49. despite the ground grade wasas fraction to 4.24. >> stale ahead holiday hiring companiesoreed but where will they find them? ♪ ♪ ♪ ♪ for years, the growth engine of the fast food industry has been its food. but now you can add artificial intelligence and voice technology, which is what mcdonald's is doing. today the burger cha made a new high-tech investment. but its.hares fell 3.5%. kait rogers has more. >> mcdonald's may be f at food giant. but it's leaning more into
technology. the company is acquiring a print y start upusinl artificial intelligence to understand drive through orders. eventsly it may be applied to the mobile appse appear -order kiosks. this is the third technology deal this year. after the acqui dtion ofynamic yiel for $300 million in march, the company's largest acquisitio in 20 years. dynamic yield's technology is being used in more than 8,000 drive throughs across the u.s. to personalize the eerience with food displays basedd on tie of day, weather traffic in the restaurant and more. mcdonald's also invested in a mobile app surrender to continue development of the global mobile app. the competition ramps one apps tlaefr deals and more and menu wars mcdonald's is relying on technology to improve the overall customer experience. >> the important thing here too is that mcdonald's could be building something down the road you see thetial for an experience of the future 2.0 with all the technology
initiatives navy madech with w could unlock new formats or business models for the company down the road. >> ceo steve easter brook said his initial focus was on around the which is restaurant upgrades. now he says the focus is on new opportunities to drive droegt. >> how can we elevate the customer experience? with this pace of change in the world and with diffechnt logy and you know different innovations around whether it's around food, technogy design,e are seeing opportunities that we think need to make the expernce more fun, enjoyable or smoother for commerce. at it. ind it we are going hard >> as it ramps up tech investment it's eanding the footprint in silicon valley. theb the founding member of a new part of global technology team mcd lab.im over they will add data scientisting and engineers face shaping aut fast foode very different from the past. for nightly business report, kait rogers.
>> wendy' ss it's making a different investment. that company is vechg $20mi ion into expanding its breakfast offerings nationwide by next year. as part of that expansion it workers.o hire about 20,000 investment caused wendy's to revise the outlook lower and the stolipped 10% in trading today. >> so mcdonald's is betting on new technology. wendy's is betting on new menu items. food will pvide the fas industry with the fastest growth in the future? joining us to talk about it gail lurie is director of research at dach . good to see you welcome back. >> thanks for having me. etting on f s technolo ordering for payment, delivery when wendy's bet bets on food. who has it right at this point. >> mcdonald's realleeds this technology in order to be successful. they can ency gains get by dplemting the technology properly will bese imm every five seconds they shave of
oh the drive through linehey t more customers through theou door and drive growth that wa on the other hand wendy as has tried to introduce breakfa in the past with little success that was a negative reaction to the share price was that people are concerned that there will again not be successful. >> >>well, they're also up agait mcdonald's, which is juggernaut in breakfast. but there is a big difference il is there not between a mcdonald's and a wends? >> that's rht. mcdonald's is considerably bigger which is why they can invest so much in technology. when they get the incremental gains in through put it creates immense growth in value for donald. where the smaller chains have a harder time investing in technology and getting knows gains. >> s sw in your view, who are some of the winners and losers g going forward depending onst tegies right now. >> whoev r gets technology right will be a winner. the best examps of that are
starbucks, which has leveraged its mobile app and loyalty program to direct significant grow. even companies like dominos whose product wouldn't stand out on its merits,ve because they the best app they've been able to outgrow competitors. techlogy is going to be very important going forward for all the fast food and dy t te restaurants. >> okay. knows are the winners. who is behind in this game? >> the -- the ones that don't catch up, the subscale fast food restaurants will continue to lose share to quick service and fast casual restaurants. it's a crowded field. we mentioned wendy's breakfast. there is a lot of other fast food breakfast options out there. it's very competitive and theom ermpetition comes from o sources. a lot of the conversation this week has been about chicken sandwiches. chick filet chicken sandwiches' th where the competition
comes. >> and of course fake meat pch gail lurie process da. davidson. thank you for joining us. >> bogey delivers fewer planes in august. that's where we begin the market focus. the company delivered 18 delraft last month,m down f 64 during the same period last year. as the grounding of the 737 max sberps the seventh month, bogey says it expectso receive krert attention from the f.a.a. by next month to put the planes back in their. shares rose about 3% to 369.49. new york city is suing chipotle for alleged labor law violations. the lawsuit claims chipotle failed to provide estimates of work schedules as well as not paying premiums for last minute scheduled changings. the city seeking at least $1 million in compensation. shares fell more than%o 787.98. after the bell the home furnishes company r.h. topped expectations and raised ful year outlook. r.h. said it does not expect the
current china tariffs to impact its business goals. shares weree volatile in after hours trading and closed the regular session up about 3.5% to 158.88. mooeddowngr ford's debt rating to junk status after concluding that the auto maker faces a lengthy and costly restructure with weaker cash flow. separately ford says it's going to be i eroducing eightctric vehicles in europe this year. the plan there is for the majority of ford sales in europe to eventuallyomerom electric vehicles by the end of 2022.es shell more than 1% today to 9.9 o i42. >> ub laying off more than 400 technical worker or o 8% theroduct engineering staff only weeks after laying off a similar numberrom its mechanicing division. the company's has been under e intense pressince the ipo in may. it lost more than $5 billion in the i recent quarter. ruber aires rose to 33.51.
en a target gearing up for the holiday shopping season planninn to highemore than 1 oh oh thousand seasonal workers, 10 northern last year and saying it's paying the worker a starting wage selfie 13 an hour. target shares rose a fraction today it to 108.83. what does the increase in temporaryorkers for the holiday season mean f the economy? senior enomic analyst at bank rate joins us and will tell us that. welcome, mark nice to ha you here. >> good to be wh you, sue. >> this comes atec ad tight labo market. so the retailers and the shippers may want to add all the seasonal workers. but with where do they get them and how much do they have to pay them? >> you referencing reference at the top they may have to pay more money. and that's part of the equation here. it's interesting, sue, and bell bill, tugh withe got the job openings numbers you referenced earlier today.
the number of job openings in retail in in latest month is down some 15% from a year ago and even more dramatic decline in the wholesale trade. that number is down almost 30%. so i think that o irall we'll probably see you know flattic numbers in seasonal hiring while consumer spending is up more than 5% yeefr year over year we have been running hot in the i retail trade. among other things some of the retailers will be able to find displaced workers. but also find people who may be drawn into the workforce as we saw in the august employment report. >> flattish comparedo last tt year. but when you think about it just in the last few days,k the b of the envelope numbers tell us there ares 280,000 job openi when you talk about ups hiring, target hiring, amazo hiring, now wendy's hiring anotherer 20,000 wo that sounds like a strong labor market right now clearly.
>> well, i think, bill over the last previous four years we've been seeing the seasonal number declea in 'lretail. see whether this year marks a o an uptick there. t's remember also in thehe context of the broader labor market there are millions ofwo ers who are working part time that would like to have full-time work. we do thinkav we can increased rab market participation. we know that somis enterg have been changing what they're willing to quote unquote accept with respect tworkers doing things like allowing people to be employed who might hav some criminal past or even unable to pass a drug test, not necessarily optimal. but they're having to shake things up a >> right. >> a you mentioned they may have to pay people more. if that is the case, even though may be a seasonal or transitional period, what's the economic impact of that in. >> obviouslyt weighs on profit margins. in a way you have to feel for re ilers right now because they are hit by virtual tsunami.
mobviously they have toage through the tariffs and trade disputes impact. theis uncertainty tha beginning to weigh on consumers somewhat and then higher costs are reflected in both labor costs as well as the goods they are importing right now. >> markham erick with bank rate.c thank you so much. >> thank you. coming up, going off the grid. >> when it com t energy efficiency solar power gets a lot of attention. but increasingti uti and home owners are turning to energy storage units. i'm fiphil rebow thatht story o "n business report." ♪ ♪ ♪ ♪
here is what we are watching tomorrow. should be a busy day. we find out i inflati pressures are building in the economy. the producer price index will bd rele bogey ceo is scheduled to speak assuming we get a update on the 737 max.. and canter fish jarmd hosts anniversary day on the 18th niversary of 9/11 attacks. that what we are watching wednesday. the number of insured american is hher for the first time in a decade. according the census bureau the uninsured rose o rate rose from 7 ff to 7.9 the year translating into 7.5 million who didn't have health insurance in 2018. the census bureau reports that median household income showed no growth last year at y rghly $63,000. and the poverty rate dpped further to nearly 12%.
>> finally tonight a reminder that tesla is more than just electric cars. elon musk's company has quietly beenp charging the t energy storage business. but will that be enough to overcome qstions abo the solar power operations in phil lebeau takes us to beautiful rmont. >> the cappy house looks like any other charm home in rural vermont. but ellen cappy is about energy efficient from plugging in the teslas model threeo the solar panels providing more than enough power for her home and business. >> wen,ike we prepared for whatever. and prepared for the future, and also to be a part of the future. >> even generating their owng power, the cappy's are tide to the local utility. so theveee installed two atlas power walls to store energy and keemm t powered up even when there is a ackout. >> we got the power wall on
february 7th. on february 8th we lost power. it was seamless.otice. absolutely seamless. you don't see't the lights even flker in the hoe, the chgeover is that good. >> tesla's energy storage business charged up this spring. jumping 81%. meanwhile, vermont's largest utility is planning to expand power wall installations and offer energy storage units to all customers. >> it's s a costing device for the grid. it's cost saving for the planet in terms of carbon. and it's cost saving for the e use it during peak times. >> despite some of the glowing reviews much the tesla power wall critics say there are only a limited number of people in the u.s. whoruly need energy storage to dweel a blaout or drop in electrica>>service. ll other tngs being equal in the average rural area in the united state at this point, it's pretty hard to make residential storage work.
there h to be some special incentives and economics to mako it make sense. >> but for the. kay'she storing t energy has empowered them to feel like they can ride out the next blackout in the area. phil lebeau, "nightly business report" vermont. >> that's the nightly business report thanks for joining us. i'm bill griffith. have a great evening. we'll see you tomoow. noe ♪ ♪
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