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tv   Nightly Business Report  PBS  September 26, 2019 5:00pm-5:31pm PDT

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♪ >> announcer: this is "nightly business report" with sue herera and bill griffeth. > on edge. impeachment talk witachm aid concerns loom overhe market as investors disclosel watch developments in washington. on the menu, beyond meat, partners with the maker of the big mac in a big test that reshape the faux meat industry. >> older americansliith trs of dollars in assets are the perfect talk for fraud sisters but there are steps you yn take to protect your wealth. those stories and much more tonight on "nightly business report" for thursday, septeer 26th. good evening, everyone. and welcoin. we b tonight with the stock market. which has been laser focused on
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our nation's capitol. trade has been a looming source of uncertainty and this week a cloudy political outlook was thrown into the mix. today the two combid. ocks lifted lower after release of ae o whistle-blower complaint that sparked impeachment inquiry against president trump. then came a report that the u. unlikely to extend a temporary waiver that allows u.s.o companies sell supplies to the chinese tseom gnt huawei. by the close, the doungs industrial average fl 79 points to 891. the nasdaq was down 41. and the s&p 500 slipped seven. trars did snd muchraf the day watching the developments on capitol hill. the acting director of national intelligence testified about that whistle-blower complaint that alleges president trump abused the power his office. ylan mui has our story o from washington. >> it was another dramatic day inas washington. the acting director of national intelligence testified before lawmakers amid dramatic
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new allegations surrounding president trump's phone call to with the leader of ukraine. >> our president sacrificedur national security and our constitution for hisersonal political benefit. >> just minutes before the hearing began,he house intelligence committee released plredacted version of the whistle-blower cnt at the center of the controversy. it said that white house aides were deeply disturbed by the calls andoved to lock down an electronic transcript in a tra special servereith c word level security. it also said administration officials in ukraine worked with that country's leaders on navigating the presid request. lawmakers then spent about three hours acting dni director joseph maguire why it took so long t gue the complaint. maguire argued the law didn't allow him to. >> i raemzed the importate of the m that is before us this morning. prudent for me to ensure that in
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in fact it t met statute before i sent it forward in compliance with the whistle-blower protection actre >>dent tmp lashed out over twitter. calling the allegations a democratic scam, and fantasy a another witch hunt. capitol hill meanwhile, republicans dismissed the ails. >> it was a nothing burger n fo me. >> while democrats had tough talk of their >> this is a cover-up. >> one thing both parties can agree on, they want thear directly from the whistle-blower. foror "nightly business r" ylanan mui washington zbraas ho the impeachment inquiry will not derail work on other issues. such as legislation to lower drug prices as well as trade. pelosi said the house is moving ahead on the new nafta, otherwise known as u.s. mca. in the senate, lawmakers passed a short-termor funding measure, that vote averts a government shutdown after the end of the month the house stopped thet bill l
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we keeping the government open through november 21st. the tegislation goes the president for his signature. a new report says that the u.s. economy grew at a modest i% ra the second where backup that was in line with estimates. consumpending as we no he was strong but business investment contracted more sharply. marking the steepest decline 2015.the end of corporate profit growth was also tepp i had over that period of time. business spending and profit growth kwo raise doubts eventually about whether consumer spending ce conti at its current pace. >> home buyers arek b the market signs contracts to buy existing homes. pending home sales rebounded in august attention 1.6%. the gain reverse add slump in july and was likely fueled by falling mortgage rates. a separate report shows the labor market remains robust despite the marginal rise in wak weekly jobless claims. jobless claims are the number of ericans filing applications for unemployment benefits and
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remain historically low. the vice chair of the federal reserve said today that inflations expectati are right where they should be. onomists are interpreting the rks from richard clarida to mean he does not see a pressing need to cut rates further in orerr to stimulate the economy. as you know policy makols cut rates last wee and at their july meeting. fed chair jerome powellch acterized the cuts as insure against the risks to the on y. >> a monthlong federal in mstigation into the twoas s of the bogey 737 max plane has called into question some of the assumptionsy used bogey and by regulators. phil lebeau is in chicago with an update on the ongoing story for us. fifl, what exactly did the ntsb say in the report? >> ll, they ha two things, sue. first the report on the accident. and that's whe thessumptions come in. when they look at the two accident involving bogey 737 max they found basically the pilots were in a state of chaos as the planes were pitching up
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and down, the pilots thought they wereeacting a certain way. in the report the ntsb says the crs did not react in the ways bogey annual the f.a.a.ed ass they would. aning that bogey and the he airplanumed when would react with the m cat software gnat pilots would react concurrently a different way. that didn't happ. as a result, they have made several recommendations that's the second part recommendations that they make changes in the ture in terms of how pilots are interacting or made aware of things through alerts in the co tpit. >> does report in any way alter the time line of when we get the 737 max back in the air? >> good question. i'm not sure it does. at this point bogey maintains it expects to have the max flying but bill we're already almost into the fourth quarter. and that means you have to get rekrert attention, not only faa but other regulators to sign off. and the you have to get the planes back in the which isth n
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sog do you overnight. that takes at least 20 to 40 day moving fastreally >> the other big story you've nden following for us, the general motors uaw strike. >> right. >> there were reports yesterday we two sideetting closer to a deal. what are you hearing? >> well it's not imminent. line. the bottom are they making progress? you bet. they arethy at the negotiating table, the mainable where they hash out the big issues that are at the heart oft this.e we talk bag job guarantees, the use of temporary workers. they are making progress, sue. but to call it imminent we see a deal by the enof tonight. everybody i talk to said no,x rela may be we don't see something until perhaps the end of the weekend. >> quickly, are we at the point where we start to see this at the dealerships hurting sales or anything. >> no we haven't st yet. we compared sells wentd to lmc auto most sales for the first week of the strike same week in septembe last year actually
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slightly higher >> thank you so much, phil. philebeau in chicago. >> you bet. downgrades today.at kupgrades ad we start with sharls of whirlpool graded to overth from neutral at jp morgan specking shipments to show growth over the next year.2. price target $ the stock rose 154.84. square upgraded to outperform from market wells at wells fargo. the analy element citing strong fundamentals culling it attractive at the levels.e pris target $80. the stock up nearly 4% to $60.80. >> boston beer upgraded to outperfo from market perform at bemo kpap mahertz. the analyst cites strong demand for the seltzer company called truly, price target $410. the shares gaining more than 4% to 363 pft 93. target named a topic at cowen up more ts 60% t year. and the analyst says it could go
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higher. the pre target is $130. the shares fell a fraction to 106.29. >> 5g as you may know in the next generation wireless network. d the next big thing f the technology industry because it promises to bring muchaster download sfeeds and better communication between connected devices. and inm everything f smart cars to smart factories. but how long is it going to tak to bring 5g to you? three of the biggest players in thendustry give an update on that today here is josh lipton. 5g, the next generation of cellularhnologys coming. promising to bring superfast wireless speeds to people, delivering data ten times or even faster than 4 g pmt 5g also cuts down the lagime when data is sent or received. that will impro the reaction time of cutting edge technologies likeself-driving cars. technology executives see 5g t us improve a number of
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industries. >> my mom was recently in theal hosp i spent a week coordinating moving big files from each health care provider or gou to the remote surgery. internet 4 picture walk in a factory and it's wireless think of all the wires and cable cables and what it could mean to safety and maintenance. that's one they are working on. a retail store. if iould look at all the video realtime i could stock shelves 5fferently. ts so critical, that it's now become the subject of intense national interest. and one question frequentlyra ised is china ahead of the u.s. in this 5g race qualcomm ceo acknowledges that the t chinese are moving fast. >> they're going at it with a lot of intensity. what's different this time around is the speed to which the chinese are deployinge relat to the leadership that may be established other places. for example in traditially in cellular it would launch in verizon or maybe japan and then it might bers several yea before
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you get a tremendous amount of intensity with china not the case this time. you see a lot of deployment intensity ely on. >> here in the u.s. a 5g rollout will be gradual for companies and consumers. analyst estimate mass market adoption of 5g mobile devicesdo n't come until 2021. one reason why verizon ceo says that h doesn't think his company will realize significant revenue from 5g until 23022. for "nightly business rort," josh lipton, san francisco. still ahead, c suite shuffle. opportunity for investors? ♪ ♪
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micron technology today warned that first q arter profit going to fall below wall street targets. th chip maker said despite a ncckupup in memory chip demand tradetainty i an issue especially after the trump administration blocked access to hau wi, something we mentioned at the top of the broad broadcast. huawei as you know is the world's large telecom equipment maker and micron's single largest customer. shares fell after hours in the earnings report in the initial after hours trading. mcdonald's is known for its burgers. but it may sne known for its plant-based meat. the world's largestast food chain partner something beyond meat to test the new product sending shares of beyond meat soaring 11% while mcdonald's was pretty much flat. and in gety together rea could be a game changer for the faux meat market. kait rogers explains. >> as consumers continue to clamor for alternative meat options, the biggest playeren the gs getting in on the
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action. mcdonald's announced it willst g a pl tchlting t, a plant lettuce turato at 28 restaurants in canada over the next 12 weeks wks. the burger will be made with a beyond meat plant based patti. it has thegreements withther locations in canada. and coulde sometime time before mcdonald's attempts a nationwide rollout for one reason. supply chain capacity. one analyst from stephen said an alternative chicken product in the u.s., a more likely nationwide launch in the next two years. beyond mt ceo ethan brown said earlier in the summe the bra has learned from past supply chain hiccups. >> we went through a toughua supply son two years ago over the summer where consumers elrprised us with the l of interest in plant based meat but we learned from that and learned but people. t only inacilities customers are hungry forhe option. one online petition hags more
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than it 25,0 signatures urging mcdonald's to wri on the meatless edition. the ceo said the company is watching the spacese c and analyzes what adding a plant-based option would mean tor restaurants. >> people don't degreat thes tools you use on the grills. some people purchase it because they are not beef eaters. we know there is complexity. the question is will t demand make it worth absorbing the complexity becau it drives the business? we had a similar discussion around all-day breakfast where ittainly adds kpreksty to the operation but the demand was sufficient we want to absorb that. so, youknow, it's something we're certainly taking a look at. >> in theeantime mcdonald's vice president of global menu strategy says this test lous us to learn moreor about real complications of serving the plt and impact on restaurant operations. for nightly business report, kait rodgers. e> peloton hits resistance in the wall street debut with where
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we begin the market cused with the home fitness company opening for traang at $2 share below the ipo price selfie 29. peloton has a market vue of nearly $7.57 billion. the ceo said said it's all about growing right now. >> we are investing andn we're investment mode and prioritizing growth over profitability right now. we are hiringtr itors opening storiesop doing logisti all of that is expenses out in front o renue. we call it investment stage. and we think it'sin disci investing. >> but it was a rough opening for those shares closing down 11% today too 25.76. meanwhile, cruise line operator carnival beat earning eavimates but weaker than expected guidance due to a jump in fuel prices. lot of factors at work. >> a number of noisehings. we had hurricane short-term disruptions and itinerary. arab yan gulf disruption and planra ities had to cancel
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and rebook people in shorter periods and s so a on. mber of noise factors that led us to primarily because off the spike fuel prices to lower guidance a little bit. >> carnival shares fell 8.5% to 43.9 and i is been a bumpy road for uber and investors after going public a few months ago. but the ceo todt said t he believes the company is expanding services has it on the right road. >> we take a hard critical look at what ware doing. we think that the ride business and the environment around the business glebllys constructive. we think we can grow. but we think we can taket cost f the business both on the ride and on the e-side and build r the long term but responsibly. >> uber down a fraction to 51.37 frmts. >>bionagra beatty expectations thanks to a strong showing from recentshow acquisi of the pan package food company
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pinnacle foods theyaw demand for the slim-jim and frozen foods. the shares rose more than 3.5% to 31.even. discovery is emdeem team one amazon launching a new app called food network kitchen offering o demand cooking classes with celebrity che part of the strategy fog zing streamntent on viewers passionate about cooking. >> what this is, this is not anr entertainmentce. it's a functional product. no one needs to be alone in the kitchen anymo c. liking classes every day. almost 1,000 classes on demand. martha stewart, na, bob flay p everyone on our network doing classes. they are superexcited. and we have over 150 other chefs. >> discovery was off about 1% t4 amazon dropped 1.5% to 17739.84.
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as pressure mounts on the vaichg and e-cigarette industry the ceo of phillip morris saide believes nick teen products must be regulated through the fda and vaping will be regulated in reg next two to three years. er it is a emotional issue as we know. because it involves using -- use by teenagers and vaping. and thisuld be the priority by everybody toby e address. because this is a serious issue. say end much '21, '22. what weill see is higher regulated in terms of product, o restrictions category. >> phillip morris up a penny to 75.29. well it's been a rough we can in the c suite, the ceo of wework, ebay and juuled ste down this week. joining more than 1,000 other u.s. baseos departing this year. is that good or bad for investor
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sn our c departures are a red flag or can they represent opportunityhose investors? joining us with his thoughts tonight david nelson chief strategist at bell point asset management. great to see you welcome back. >> tha fs having me. >> i know you are an avoid numbers cruncher. but how much does the person sitting in theic corner o affect your decisions. >> it's a big part. but sometimesid you can't a making the investment. mark zuckerberg was certainly under fire for cambridge analytica and other issues as o we that i have. when you look at the numbers this is a company top line growing at 20%. ratio of around 1. sometimes tough take that into sonsideration, watch the ceo, watch what happut sometimes you can't avoid being in the name. >> now, when you look a a stock, you say sometimes you canned c 't avoid thename. but how much does the ceo's performance if there is a crisi
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or issue, how much does his or her performance influence your decision to either buy or not buy a stock. an certainlyeo the can make or break the company. certainly but not everybody is a ste jobs. knows are rare events. and in the end i come back to the numbers but i look for red flags upon a ceo. >> you're not big fan of those. >> not ath big fan. me companies like apple that have so much money they have to buyback. bu for mother most it's out of the ideas. >> bob iger ishe ceo of dinelson you fault him for buybacks squh heoo back when they raemzed the problem with stream over the next sever years they spend many years buying back stocks. they could have bought netflix for the same money. maybe that wasn't use an li efficient use of capital. they are into streaming right now and be a formidable kpet disbelieve what about the incoming ceo, for instance we saw some ceos step down thiske i
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are you influenced in buying a stock depending on who is put in the new position? >> i need some food on my plate. i need to watch what happens, what they do with the company. i'm not buying a jus a personality. . i'll a wait a quarter or two how they sha up the industry, shake up the company and do they fix the problems a lot of the proble t are often brody because any sign these guys on in the first place. firstou mentionedar zuckerberg one of the founders of fv continued to b adam neumann, the cofounder much wework had to step dow this we can. the issue of an entrepreneur who then continues to try to run company, the google boys. >> yes. >> they even had to bring somebohe in to run company for a time. are you a fan of an entrepreneur, an elon musk for example who found a company and thenns as ceo. >> look, i'm the f t of the on vi and i think there is a role there. but at some point it's an operating entity. you had on the ceo of peloton
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it's probably endemic of ipo abthe focus on growthocusthe expense of profitability. right now wall street is saying no to that they want food on the plate. >> david nelson bell pnt asset management thank you. >> thank you. >> coming up older maren becoming more vulnerae to financial abuse. but there are steps you can take to stop it. ♪ ♪ here a look at what to watch tomorrow.l reports on encome and spending and consumer sentiment due out. consum spending has been a driving force behind the economy. durable goods orders will be released giving a peek intoee spending and on expensive and and a number of fed officials
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will be speaking on the economy. so lots to watch for on friday. six democratic senators today urged daretailer wal-mart walgreen's, right aid and dollar general to stop selling all tobago products. the snorps in the letters the current ep dem of e-cigarettes by teens a breakout of vaping related illnessesnd death a the centers for disease control says a 12 person has died and the number of vaping relat cases risen to more than 800. >> according to a survey released today by insurer aig, nearly half of older america are managing their own finances. but doing so could be putting them at risk for financial abuse. joining us now to discuss that is our senior personalrr financ pondent sharon epperson. sharon it's great to have you on the program with us always. how widespreadle is this pr >> this is a serious issue. as we see a rise in older ameran we see a rice in r
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incidents of elder fancial abuse. 3.5 million incidents happen every year. and when you think of c thet of at least $3 billion according to some studies, others s up to $36 billion when you look at nt fraud and scams that are out there, and the average older adult loses process they know the person involved it could be as much as $50,000. >> wow. what do they do? what can the do to protect themselves. >> well one of the first thing because they're not consulting with anyone inerms of their finances is to designate a power ofattorney so many people let alone seniors do not have a power of attorney. at's anmportant person to have if you don't have that yet start finding someone that you trust that cou get copies of bank statements and important so you have someot's doing a double check on what y have. and then don't add that person ersogh as a joint ownero the count. as long as you're capable to handle finances you cant. do having a power of attorney
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doesn't mean that you are not going to take care of your own financial responsibility. but if you have a join owner on the accout t person can go into the bank and say i'd like all the money taken out. >> wt abouthe scams out there is this? i know there are some we hear about all the time. and there are otherer people ar not aware of that are scams. >> well here is one elthing. a lot of seniors bieve -- 81% according the study believe that someone they know wou never hurt them financially. the reality is many of the financial schemeshat come out of there are from someone that you know, someone you think yo trust. onef the first thing is to think about people who come to you family members might ask you to change your information on an account. family members that come out of the blue. when was the last time you saw them and now they want to help you. or there is a pressure from a family member or somne that you know to be the power of attorney. so those are some flags but what i found interesting in the aig reports are were the popular scams that i hadn't thought of that is someone calling to say, that they're the grand child and so
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now they nt to have t t money. the lottery scam. you need to pay taxes you just won theer lottery is what one i wasn't familiar online dating. >> um-hum. >> online dating sms o seniors on the rise. and people getting involved in these relationships, yes. >> really. >> and taken advantage of financially. really interesting stuff in this aig report. very sobering and scary stuff too. but the bottom line, have -- have the money conversation that's what we always talk sfwa. definitely. and definitely with someone you trust. >> thanks sharon as alway sharon epperson. >> as always. >> nightly business rert, i'm sue herera. >> i'm bill griffe us. see you tomorrow 37. ♪
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woman: this is "bbc world news america." is made possible b the freeman undation; by judy and peter blum-kovler foumdation, pursuing solutions for america's neglected needs; and by contributions to this pbs station from viewers like you. thank you. laura: this isbbc world news erica." reporting from washington, i am
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laura trevelyan.

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