tv Nightly Business Report PBS September 24, 2019 5:00pm-5:30pm PDT
. ♪ >> annncer: this is "nightly business report" with sueerera d bill griffeth. dramac. political turmoil in washington whipwh saws stocks and democrat launch a formal impeachment inquiry into the prident. >>iousp do nic easy's acquire better than expected and for thank strongales in china despite the trade tensions. missions. lockheed martin awarded billions of dollars to mour the lunar landing. >> that for nightly business port on tuesday september 24th. >> good evening andveryone. bill has the evening off. investors have largely ignored all ohe impeachment talk in washington. that is until today. calls for president trump's
impeachment gained steam and stocks hung on every headline during the trading n.sess and then late today house speaker nancys pelosi announced a formal inquiry. >> i'm directing our six committees to proceed with their investigations under that umbrella. ofea iment inquiry. the president must be held accountable.bo no one is the law. >> an increase in uncertainty is never good for stocks. whether its political or economic. and todayo investors a grappled with week weaker than expected economic reports and concerns over trade with china. as a result the dow jones industrialduverage fell 142 points to 26807. the nasdaq was down 118. the and the s&p dropped 25. bob pisani walks us through today's return o volatility. >> a toxic group of economi data. trade and politics brought volatility back to the markets. stocks started positive but began weakeni after the open
on weaker consumer confidence numbers. remember the u.s. consumer is propping up the world economy procs shortly after 10:00 a.m. eastern time the president emphasized nchgts about china on his u.n. speh and citing micron has an example of theft ofel igentle property. a then impeachment talk got lewd louders nancy pelosi said they would she would would make an announce mtdegarding impeachment. market came off the lows when the president announced a release of the transcript of the conversation with the ukraine president but stocksrifted wer into the close. the first day by the way the s&p moved more than 1range in the last three weeks. for "nightly business report" bob missfy at the new york stock exchange. >> so why does "wana street jo suddenly care about politics in washington? we're joined by jeff busch,bu strategist at the washington update welcome back, nice to see
u again. >> nice to see you too, sue. >> let me start with the issue of trade. tough words in his u.n. general assembly addressed to tod t china. but secondly as these proceedings these impeachment proceedings continue, might it put the chine at an advantage? do they wait out the whole process? >> well, i think that was the chinese leading into that discussion as well. i think t president was using the speech at the u.n. to level set that negotiation once again. to begin that process and building that relationship back up. by but i think the chinese were playing slow ball to begin with. >> what about fiscal policy does anybody anything get done as hrshington movesgh the process. >> we're already seeing the movement towards a kinningso tion. i think that's very possible that wend up operating throughout fiscalear 2020 on a continuing resolution which is disappnting meaning that spending stays the same and can't begin new projects and new
programs which is not good for the country. we should be able to move forward with the programs. >> tre is headlin risk when any situation like this comes up. how vulnerablea -- i we saw certainly a lot of volatility and reaction to every headline that came out today. >> right. >> but as in process continues, how vnerable to do you think the market is for headline risk. >> i think the market is pricing inn volatility we've b taking about it about a year and a half building in the areas ofai uncey within the economy and markets. this is one more to the list s toda announcement of the impeachment inquiry doesn't were bhaore we had the re we understanding of the ukrainian situation. jerry nadler was pursuing that with other committee heads as ll. >> but interestingly enough we didn't see a lot of volatility perhaps it was simply the -- you know, the speaker putting forward the inquiry that made d thference to wall street.
>> that's correct. >> but the odds though of the esident being removed from office are extremely low. low. ry >> could thihi be a move perhapt by democrats to get the senate back? which would change the dynamici erms of legislation, fiscal policy, et cetera. >> i actually would put forward opinion.ite what i mean by that is that it's hard for the incumbent presidencypy to motivate the base in the second electlen. if the democrats pure impeachment that's firing up the publican base. i would say l that wouldk in the senate for the republicans just based onefhat rt. >> so how do you see this progressing what mightll the t be for the economy and for the markets? >> well, not dissimilar laroue to the impeachment inquiries and impeachment process with bill clinn, i think the market will initially react. we saw a little bit of that tomorrow probabl more in the near term as new headlines hi there is a lot of things hair
going to unfold with the transcript coming out tomorrow. the testifying on thursday, all ose things represent that headline risk. with you bottom line i don't think there is fundamental difference the market needs to react to. >> on that note, jeusch with the washington update thank you. >> thank you, sue. >> as bobentioned earlier in the program, the president's tough talk onhina during the address to the united nations eneral assembly also at mooduted to the down on wall street. eamon javers at the u.n. in new york. line on china at the speech at the u.n. laying out the trade war as bra brought part of a broader campaign to a end to process of globalization that he says too many leaders engaged in over the past seral decades. the president very specific about what he says china has been doing wro in the global economy. >> not only has china declined to adopt promised reforms, it
has embraced an economic model dependent on massive market barriers, heavy state subsidies, currency manipulation, product dumping, forced thnology transfers be, and the the of tellectual property. and also trade secretsa o grand scale. >> the president's criticisms of china were expected less expected thoughway was his criticism of social media giant which he laid into in the speech zpla a small number of social media plaorms are acquiring immense power over what we can see andver what we are allowed to say. my administration has made clear ocial media companies that we will uphold the right of free speech a free socie cannot allow social media giants to silence the voices of the people.
>> the president also ecifically named iran as being responsible for the attacks on the saudi o refinery we saw last week opinion thesi pnt not specific what specific action he wants to take to punish iran for attacks. for "nightly business report" eamon javers toe united nations. there was pheitical drama in the yungd as wel the british supreme court ruled that prime minister boris johnson illegally suspended parliament was a setback for johnson and means that debate over howve to european union can continue. >> i have the highest respec of course, for our judiciary and the independence of our courts but i must say i strongly disagree with in judgment. and we in the uk will not be deterred from getting on and delivering on the will of the people to comeut of the eu o october the 31st.
because that is what we were mandated d to >> johnson has pledged to see the uk leave the eu at the end of october even if there is no deal with the eu about howex tly it will work. >> and now. now to the reports as mentioned consumer confidence fell more than expected in september. american outlook onco themy grew more gloomy amid t trade war china. a separate report on housing showed a 3.2% gain in home isces in july know housing cooling in large cities. drawnmortgage rateslo are home entires back into the market. a solid quarter for nike, the athletice and apparel company reported better than expected earnings and reven amid sharp increase in sales in china. and despite risingde t tensions between the u.s. and china sending the stock to a new high in t initial after hours trading. sarah eisen has moren the nike quarter. >> nike optimists could be
rewarded with strong results and e results were strong around the globe. but one particular highlight continues to be china. ike saw 22% revenue growth in china. that would have been closer to stronger u.s. dollar.fect of the that comes despite fears of a slowing chinese consumer and trade tension rising between the u.s. and china. tariffs flying back and corth andcerns about the perception of american brands, ziet at, china continues to be the bright spot in the portfolio. the other big takeaway, nike is going direct to consumer leading to higherm growths f its rivals in places like north america. its oem market where nike saw growth of 4%. it means growths within sneaker attention less on kpt stores and foot locker which aren't doing well. digitata is big. part of the strategy. and finally higher margin that i higher than theec street e
and continues toise. owing nike is able to charge more selngigher prices of the sneaker and get better margins for it. andy campion the cfo summed it up, saying even amidst the volatility ndmacroeconomic geopolitical environment we expect the unrelending focus on serving the consumer to continue to fuel strong growth across the global portfolio. the results from nike show despite the stronger dollar. and risks, nike continues to speak to the consumer. for nightly business report, >> and joining now with more on nike's enings is mary anne month tan witnt grade yant inve again. ce to see you nice to see you sfwlu sarah gave us some of the take away from nike report but what really stood out ud? >> there were several things that stood out.
i mean the strength in china was phenomenal. but also the margin expansion. so we had 1.5 percentage point gain in the gss margin. and again that's related toed pricing. and then we also had an expansion of the operating margin which means they were able to leverage all their fixed expenses and marketing. that was something that pulled back on the reportn the prior quarter. and so it was nice to see that turn around a they're stron back to school season. >> did the strength in china surprise you and d expect that to continue given the fact that there's been very little progress made on the trade front? >> tright. whatnk it shows is that there is strong demand for their particularproduct. we have heard reports about the away fromying to stay american brands and everything. i guess they don't care when it comes to theirthicks. just like that nike style and they're goingfter it in
all of the greater china greater asia area and latin america as well. ey arereaking share from others appear. and i think that's really speaks well ofnyhe com and how they're designing product for the particular cuhomers. >> y the innovation certainly std out in a report. so did the dlnl initiatives. that seems to be paying off. >> yeah, youknow, everyone likes to have their own individual everything. and they've made it so easy to design your own show shoeswh an get what you want or what you need. it's awesome they've been able to produce the results. we did not expect a 28% increase in earnings per share. we were looking for more like 6% in line with the consensus thinking. >> that's with the strong currency as well. >> right, right. so has just been another admonition of knowing their customer, being superflexible in terms of cering to customers.
and really taking share from others. >> what would y say was there anything that wored you in thert re or where you saw a weak spot? >> i guess if there was any weak spot it would be in north america where sales were only up 4%. but i don't think that numbers's going to stay that lowor long. >> mary anne month tan with gradient investments pmt thank you so ch. >> thankyou. it is time to look at some of today's upgrades and downgrades. apple was upgraded to buy at jeffery, the analyst saps wall street underestimates how much moneyropple will make 5g. the price target $2. despite t t grade, the sto fell a fraction to 217.68. corage of disney was initiated with an outperform rating at wells fargo. the analyst calls disney the best name in media. as you know disney will soon launch the streaming service. the price target is $173, the shares down slightly to 131.97.
ralph lauren was upgraded to f overthm neutral at atlantic equities. the analyst cites the sol turn around and stock valuation. on the price target is $138. ckand t s was down just a fraction to 92.60 senator sanders says billionaires should onhe richest ame.poses a new tax ♪ ♪ ♪ wework's cofounder and ceo was forced to step down from his
company. iram neumann will become non-executive cn of the embattled shared office company which had been one of the most luable start-ups of the last decade. the redesign to designed to win over investors after the value declined. the governor of massachusetts declared a public health emergency and impose add four-month ban on the sales of all vaping p sducts. thete will block sales of e-cigarettes used for tobacco ana. mariju official froml an the centers for dease control today followed lawmaker that is consumers suld avoid all vaping products until the cause of recent lung illnesses and deaths is identified. >> it may not even behe thc or nick teen parar it may be the additives orubstances common. it may be material that is not labeled app dpriately. think consumers need to be cautious right now. >> the docto also said hundreds
of new vaping illnesses have been reported inthe l week. facebook is making an acquisition that sounds like something out of a science fict its buying ait company specialis in allowing human fossontrol mputers using their brains. the size of the deal is reported to be between $50 oh million and $1.0 billion. the start-up will work to developo augmented reality smart glasses. and facebook is one of the companies under increased scrutiny from washington due are due to privacy and competition issues today the debate took shape with with developments here and in europe. ylan mui in washington tonight. >> a big win for big tech overseas but still under siege at home. across the atlantic, the highest court in the european union issued a landmark ruling in favor of google. the court found that google does sflot to apply the right to be forgottennrc to sea results worldwide. eu users r can onlyuest that
personal infortion be removed from searches that occur within the eu. in a statement gogel says that it's worked har to implement the right to be forgotten in europe and strike a sensible balance betwe the right to access information and the right to privacy. here in theu.s., california wi be the first state to implement a european styley privacaw next year. a new state analysis finds that could cost businesses as much as, sr. 16 billion to comply. that could allhe shapeebate on capitol hill over the need for a national privacy ll at the same time, lawmakers are growing more worried about the potentialor monopoly power in at a hearing this afternoonre publicans and democrats took internet giants and the regulators thatoversee this them to task. >> i'm turned the ftc and dojes are igating whether the tech giants have violated anti-trust laws. a i'o concerned that when might overshoot the mark in our efforts to reign in the firms. >> i'mha more concerned consumers are ending up with a
pie in their fac if we don't start taking action soon. >> there is no sign that either party is going toy letp. for "nightly business report," ylan. mui in washingt disappointing results for blackberry and that's where we continue tonight's market focus. the communications software provider postede weaker than expected revenue citing softness in enterprise software unit. black behr also lowered guidance. the shares fell more than 22% to 581. engineering and crmstruction fleur will be cutting ipvidend in half and selling the government and ent rental businesses. looking to raise $1.0 tllion fr asset sale as part of strategic review. the shares dropped nearly 8.57% to 18.95. strong used vehicleal helpedd car max top analyst the auto retailer has beaten wall street estimates for six
quarters. but the stock fell a fraction to 86.74. but auto zone is warning customers it will raise prices to combat tariffs. the company ceo tasteth o says e increase could be as much as 25% this comes as theretailer saw say store sales thanks to ongoing demand for after market car parts and accessories. the shares dropped about 4.5% to finish at 1096.63. > electronic manufacturer javo topped estimates thanks increase in demand for 5g, loud, energy and health care services.separately, the company back up to $600 million of shares. it rose to 32.85. action at aing the wealthsy has been become a common call among democratic presidential hopefuls. today senator sanderss released his plan hitting multibillionaires especiallyrd . here is robert franke.
>> senator bernie sanders launching a wealth tack proposalle cut billionaire 15 years.in half over the next thee plan follows elizabeth warren's wealth tax that huss lifted her in the polls. >> what we are saying to the billionaire c ss is stop the greed. stop the greed. op the corruption. stop stepping on everybody in order to makend more more billionaires. >> sanders' plan wld attack taxpayers worth 32illion or more or about 180,000 household in the u.s. it's sliding scale starting at 1% but quickly rising to 8% for those with over $10 billion. je bezos would pay 9 billion in wealth tax this is year under the plan with his income tax property taxes and capital gains taxes. bi gates would pace an 8.5 billion-dollar tax bill while rren buffett would pay around 6.5 billion. the top ten in the cntry would
pay $60 billion in wealth tax this is year. the economist advised sanders estimates it would raise 4.5 trillion in revenue ever over the ten years twice warren's plain. it would entirely close the gap inap wealth growths between billionaires and the average american family. polls show that 60% of voter including half of republicans support a wealth tax on the for nighterican pps business lyreport, i'm robert franke. >> coming up, lockheed martin lands a megadeal to get mankind back to the moon.
♪ executives at volkswagen were charged by germanos utors for allegedly misleading shareholders in the months befor the emissions cheating scandal. the indictmen argues that the former ceo martin winter corn withheld information about the scandal abo an attem to prop up stock prices. back in 2015 u.s. officials disclosed that vw rigged millions of diesel powers vehicles to cheat emissions tests for a decade. volkswagen is the world's largest auto maker. 1.3 million more workers will be able to r over-the-pay. the labor departmentep finalizea rule expanding eligibility which is effective january 1st. under that rule, most salaries workers who earn less than
$35,000 per yea will b religion. and that's up from the current threold of about $23,000. and we finish the program tonight with a different kind of story. one that takes us farrom politics. and to the space race. there is a big push become to the moon and nasa is leading lockheed martin lead wait awarding a major contract that could create a lot of jobs process. morgan brennan has more. >> 3, 2, 1. >> another step closer to>> the moon nasa awarding lockheed martin a contract a deal valued at 4.6 billion to put orion into production. the buy six space craft to t option to up t that 12. >> this is with the lack heed's ace segment accounting for 20% of earnings and this is in the satellite subsession zbloomt orion was designed for deep space exploration with astronauts. but built by lockheed martin. cy
>> nasa plans to use oline ryan to send astronauts to the poon. part of the pgram to putoots back on the surface in five outpost.d establish a permane over the years orion has drawn critic due to delays and costs. but the contract signals a sift shift and commitment to the productiononger term. cremates o'brien ryan's placetl perman in the program. >> i think it sends a strong message that the u.s. is openo human exploration to the moon and potentially mars. you know thatam pro was previously shut down in 10ur and constellation was cancelled. this reopened that and says the u.s. no longer wants to use other country capacity to shuttle human beings back and akrth. >> but it s to the turf battle between states. as another piece of the plan wento the marshal someplace flight center. texas lawmakersceoudly v opposition. orion will be managed at texas
johnson space cente getting to heart why space like defense is seen as crucial, not just because of national security and innovation but because space programs are jobs programs. for "nightly bubuness report" i'm morgan brennan. >> and before with goe a final look at the day on wall street. the dwou fell 142 points. the nasdaq down 118. the and s&p&p 500 dropped 25. that's nightly business report tonight. thanks for joining us. have a greatvening. and we will see you here tomorrow. ♪