tv Firing Line With Margaret Hoover PBS October 11, 2019 11:30pm-12:01am PDT
♪ thi is "nightly business griffeth.ith sue herera and bill >> we have come to a very substantial phase 1 deal. phase one the u.s. and china reach a partial accord onra and said tariff increase also not go into giving investo something to cheer about. brexit breakthrough? the odds of the uk making an orderly exit from the european union improved. lifting sentiment. so what's next? thatex the big questionor inve are asking. with a heavy dose of earnings just around ther. corne those stories and much more tonight on "nightly business
report"fror ay, october 11th. >> good evenin everyone and welcome. what at a day and what a week. on this friday, the market got a little of what it's been looking for, a partial trade deal. president trump met with china's vice premier at the white house where the two sides a founced thest phase of what they call a substantial trade deal. investors were dbeat all about something. anything happening. the dow jndustrial average advanced 319 points to 26816 after rising more than 500. the nasdaqasp 106 and the s&p 500 rose 32.an all major indexes were higher for the week on the hope that progress was beingaden trade. bob pisa has more on the market's response. >> the rally rolled on today with the dow having the best day since early june. snapping three-week losing
streaks. investors cheered prospect of china trade deal how much more steam does the rally have.e &p moved 40% 1 from the oltd highs. does the mini deal get the markets through christmas? general consensus among traders is it's not clear. the key problem for the markets is that it dsn't really change the lower growth narrative for 2020. not yet. again w l don't have of details. and it certainly doesn't end the trade war. this is just a battle over 2020 where we see battles over capital flows and export controls and indus policy. fi plly two other factors fueled the rally besid trade talk. a potential brexit brehthrough whparked a rally in europe and word that hong kong protester discuss dialing downt the ps listing the hong kong the market at bter than 2%. fourpgt quarter injures kick-ofr behap with jp morgan and city citigroup all g.report and markets shift back to
fundamentals. tlr "nibusiness report," bob pisani. >> day two of the trade meetings in washington w up early this afternoon. then negotiators headed to the oval office where the first part of the dl was outlined. >> because it's such a big deal and it covers so much territory that doing it in sections and i phas i think really better. >> kayla tsche has been covering the story for us and joins from us the white house. kayla what's the partial agreement? >> well, bill, china pledged transparency on its currency moves. also removed barriers to entry for non-inese financial services firms. so those firms don't need a chteese investor to ope interest. in response china will be buying up to $50 billion in u.s.arm products. and the u.s. will not be raising tariffs to 30% next tuesday on $250oo billion in u.s. g.
>> the president mentioned phases this in. what's the time line for get going done. >> he says negotiators will be trying to writ the substance of the deal over the next four to five weeks. t thee line is crucial because on november 16th president trump and president xi b will a attending a multilater summit in chile where it's expected the deal would be signed. the clock is ticking for them to actually put this agreement on paper. the president says after that, phaseot two ntions will st nt immediately. but those are open ended. we don't know when those wil wrap or whetherhere are deadlines associated with those. and the president says there could be a third phase if they don't get everything in the second deal. >> well what is tre to be done? what issues still need to be worked out at this point. >> well there is still a lot to be worked out at this point. for instance china pledged to open the financial service industry for three specific sectors. but the u.s. was asking for a multitude of that.
they were ssking foreral more industries to be opened. a and they want china to deliver on that. they also want changes to china's intellectual property laws which chb an unwilling to grant. china has been looking for licenses to huawei and remove the designation of a currency manipulator. officials in the oval office today sai those will come separately and perhaps sooner than a phase 2 keel. >> kayla tausche at the white house thanks. and now to breks et and the uk effts to leave the european union. it appears some unexpected h progre been made and a pathway to a possible deal is starting toe. eme the villa marks is in london tonight. ♪ >> for the pas three years, this french politician has walked, talked and breathed brexit. michelle barnier is the eu's top northbounder in talks with the uk. and by n even heay be
running out of steam. >> brexit is like climbing a mountain. we need vigilens determination and patience. >> but today h met his british counterpart stephen barkley and smiles and hand shakes boosted pound sterling because currency traders and itors sensed the two sides may be approaching a long losive agreement one that may avoid a disorderly and onomically damaging british departure from the eu. in private senior officials tele meare slightly more hopeful but in public remain reticent >> i'm not going into emotion from the podium. we are working a towards deal because this is the determination to arrive at a al. and i think if there is a will there is of course a way. otherw be, people would not working on this. >> among those working hard is the british prime minister bor olhnson and irish. their s on thursday amp
seemed to spark a breakthrough. but even the brexit basher donald tusk acknowledged on a visit to cypress. >> when the irish teshok and prime minister met they both saw th first time a pathway to a deal. i have received promising signals from the tishok that a deal is still possible. >> nice. to meet >> you back in britain boris johnson batted awa question base concessions he m have about customs checks at the irish border. it would be wrong of me to give a running commentary on the negotiations. and why -- wh the greative possible respect, i think look at everything that i have said previously. i think you can draour enconclusions from that. >> his critics may still consider him a political paper
tiger but if a deal is finally sketchedut this weeken the prime minister may hav painted his way out of a particularl perilous corner. for "nightly business report" back here the federal reserve said today it plans to start buying treasury bills to avoid unexpected strains in money markets and steady short-term interest rates. the purchases will continue into the second quarter of nextea fed chair jerome powell says the emergency stimulus but rather to keep the plumbing of the financial system operating smoothly. let's turn now to luke lloyd to touk talk more about markets and what to expec next an investment strategic at strategic wealth petners welcice to have you here. >> fad to be here. >> we got a partial trade deal. the market up about 50 oh points and thent l better than 200 points. how do you read that? was the market disappointed or just looking ahead to next week?
>> so day after day, the thing that continuesri to the market is the recent news about trade. and we're rlly trying toune out the political noise right now and take a long-term perspective. we really believe that the -- we're in a trade range boundun l a deal gets done which i hear partial deal i hear they can't agree onig terms right now. >> what does tha do to the market? theig parts have been about the impact its having on manufacturing, and oncu agural especially. and that seems to be easing up a little bit with this partial agreement. >> absolutely. so right now international data is kind ofeak. so what that's going to do this partial deal is east upon tensis hat but in regard to the international side we see flashing lights. if we see that we will watch the numbers closely until they get better. >> does that mean increased volatility until we get the final pen on paper. >> absolutely the volatility
here is to stay npve the upcoming election in the year. no matter in the trade deal is done until growth krermts w will be watching the earning season the next two or three months to make smur numbers are the u.s. consumer is still strong. as long as the u.s. consumer is strong that's makinghe economy good. i think the world right now is watching the u.s. consumer. >> and they're going to f watch th later this month. the president said today in the oval office there he would like to see them cut interest rates even though they have this partial deal. and in fact, t expectations on wall street for another cut thin month down after this deal was announced. do you want to weigh in? what are y specking here. >> >> i really think that the federal reserve is going to really cut interest rates this month even though the prseability wen down bec of the partial trade deal. because we're at least one more is year whether october or the end of the year. but really we still think that theederal reserve needs to cut two more times this year to make sure that we fix this inverted
yield curve. and we really continue to go down the right path in regards to economic growth. >> luke lloyd with strategic wealth partners. g mehanks for hav >> in the meantime tech stocks rose on the news of the partial agreement. semi conductorsee may the biggest relief because of that sectors exposure to china. josh lipton has mores >> chip sto move on trade headlines and for good reason. china is an important end market are t companies. qualcomm, micron. could have been o. roadcom app texas instruments all get roughly 40 to 60% oevenues in china. china is also pennsylvania vital lynch pin inemi supply chains. today, the chips moveth higher. smh an etf tracking the chips has now surged more than on track for its best year in a decade. beyond trade headlines, semis have moved higher on what analysts say a improving
fundamentals,fi spelly that smartphone shipments have been better than feared. and that a recover in the data center business they say looks likely in the fourth quarter. of course there are risks for chip investors too. do thought improving fundamtals hold up? and big questions remain. there have been talks of the trump administration planning to allow theom sale of supplies to huawei, a cheyenne tech giant that buys a lot o semi companies but administration officials saying they are not dealing with huawei at this time. for nightly business report, joshlipton, san francisco. it's time to looke at s of today's upgrades and downgrades. johnson & johnson upgraded to outperform from market perform at bernstein. the analyst says the legal overhang on the share price is overdone. the price target is $155. shares rose more than 1.5% to 131.33. boston beer upgraded to buy from neutral aiti. the analyst cites quote terrific
growth of hard sellser brand. the proos target is $448. the stock up 4% to 397.03. outprormd from secretary are. at rbc capital markets. the analyg cit strong fundamentals as well as the streaming trends these days. price target, $155. the stock gained more than 4.5% to 121.60. delta airlines was downgraded to hold from buy at argue us research. the analyst citing the outlining for increased costs appear softt sales growth te company talked aboda yestery. firm says that the stock is likely to remain volatile a as a result and shares fell a fraction to 52.95. >> stillahead, o market monitor and why investors may be able to find some big gains in small cap stocks.♪ ♪ ♪
♪ ♪ ♪ oil prices climbed after of an explosion on an iranian tanker raced tensions in the middle east. that led to concerns of potential output dis rption in thion. the commodity got a lif from opt minimums surrounding the u.s. china trade talks. crude settled 2% higher. in the news tonight, that california wildfire, this one broke out overnight northosf angeles. about 100,000 people have been evacuated so far.e and s freeways closed. in so-called saddle ridge fir s spread to more than 4,700 acres. and the cause remains under
investigation at this point. general motors took the to striking employees. circumventing uaw in a blog post the auto make earn outlined the terms of the latest offer to e w o thek stoppage. in response, the uaw sent a message to membersng sait continues to work to get a good agreement and to endhe strike. wendy's helps skpers have a appetite for breakfast where q wenn the market focus with the burger chain unveiling to investors its fullrefast menu. wendy's expect breakfast to account for 10% of daily sales, the menu will be launched early nextier. and investors ate it up. >> um-hum. >> sending shares 4% higher to 20.78. meanwhile forward today said it sees decline in the second larges market. china. vehicle sales there dropped 30% in the latest quarter. the auto maker still planning to launch more than 30 new models in chf over the next few years.
including electric vehicles. ford up about 2% today to 8.78. and fastenal topped speck aches as the indtrial product driblt he is said the strategy of higher prices helped offfft ta and inflation. shares rose more than 17% to 36.34. ctc intee is planning to spin off its controlling interest in thevi dating s match group to iac shareholders. iac will eliminate matches dual class structure. iac up a fraction to 227.03. uber increasingresence in the latin american grocery delivery business by auiring a majority stake in corner shop. specifics of the de not disclosed but its uber's continuing effortso expand beyond the core ride share platform. the stock rose to 30.13. and s.a.p. ceo bill mcdermott
stepping down two members from the executive board will be sharing the ceo duties. a this com s. a p. reported a preliminary rice in revenue and cloud bookings. shares up 9.5%. time for the weekly market monitor. our guest this we can has three small capn stocks the apparel retail sector. jayoy kaplan manager of the royce dividend value fund thanks for joining usto ght. >> you're welcome. >> and the first american eagle. high dividend yield 3.6%.of a and the stock cut in half in the last year or so. you must love this for tha reason. >> well as the contrarian that i am i do love stocksbe that have cut in half. but it's also good when they have a good reason for the stock to go let me tell you a bit about why that is. they are the number one selr of women's jeans in america. they're the number two seller of jeans inotal in the country. and there is a -- there is a denim cycle.ea and are back in popularity
again. so that's really good. but what's really exceptional is they have a brand called airy. airy sells intimate apparel to young ladies ages 15 to 25. a now more authentic brand it's regular people rather than el superm of the victoria secret. only 23 states you now and stationwide business. >> sec pick is designer brands. dfw stores and they are launching a kids line. >> they put kids throughout the whole chain. that's bee reallygood. navy consolidated and acquisition they did inanada. at's also really good. but what's really interesting is anf acquisition the kamuto aands allowing them to d private label. increasing marginens and you >> that one almost yielding 6% at this point. >> it is. >> here is one that's not. clariss. a comdny aro since the '1880
apparel retaper another one where the stock went down but only yielding 1.25% right now. >> it does right now because they spend a lot of carbon buying women's brands. they're one of the leaders in women's brands with naturalizer and sammed edleman for example. but also own the famous foot ware chain and there is a about to be a cycle withdu nike p that should be exiting and great for sales. >> it sounds like you are beuming on the co. the consumer is still strong in your book? >> the consumer is strong. you know when w talk about the fear of recession and -- and by the way there is no recession yet. consumer spending is still okay. and the stocksll have r discounted a terrible outlook. i don't think the outlook is quite that bad. >> and given the -- the mandate of your fund you're always looking f dividend payers so that you're paid even if the >> we are looking for dividends. we don't care if the dividends are large or small. but we want to see dividends and we think that's a great management teams can do with free cash flow.
>> very good. jay kaplan with royce dividend value fund. good to e you again thanks. >> thanks, again. >> there has been a lot of talk among democratic presidential hopefulless about taxes the rich oftens arguing t they don't pay their fair share. the problem is no one can agree on exactly how much wealth americans pay in taxes. robert franke edition through the numbers. >> the tax headlines this week were about how the rich pay lower t rates than the rest of america. articles and op-eds "new york "washington post" a other publications said the first time in over 10 oh years the richest 400 americans paid only 23% of the income inaxes. while the bottom half of americans paid 24%. the research is from a new book by manuel sayes and gabler zukman at university of california berkeley advising elizabeth warren and bernie sanders and wealth taxes. tht economists looked
estimated taxes paid for that including state, federal, stating with payroll, local and property taxes and then calculated the total of those taxes as a share of people's income. te numbers are proof they say the rich should ed more. but other economists say their findings may be ngmislea the economists did not for instance include the earned income tax credit and other transfers that help lower earnersen a since theax rates for the richest 400 americans are not availae, the economists estimated the tax rates based on corporate profits. more widely accepted numbers from theal congressiudget office show the rich do in fact pay higher rates than the rest ofofmerica. the average 1% pay average o federal rates 33%. compared to o with about 145% or less for the bottom earners. jay furman obama's economic adviser looked at all taxes paid found the top 1% found they nay
40 peppers compared to less than 20% for ttose at the b as furman tweeted, the standard data shows that the tax system is overall progressive. now furman andthers say there are strong arguments for raising taxes on the wealthy. but for now the numbers appear to show that the wealthy pay higher rates than the rest of america. for "nightly business report," i'm robert franke. and coming up, it's the biggest venture capital backed private company out there. you may not know it. but your kids probably do. ♪ ♪ ♪ ♪
here a look at what to watch for next week. on tuesday,,oldman sac johnson & johnson, jp morgan and united health care are justome of t companies reporting their earnings. on wednesday, theeederal rese releases beige book which is an anecdotal look at the economycross the country. and on friday tariffs on imports from the european union are set to g into effect. and that is what to watch for next>eek. when facebook first announced its cryptocurrency project called libra it had a lotinf bigcial companies onboard. but today a number of them say they will noonger be part of it ebay, visa master card and stripe all said tha they see potential in t project but they have chosen to focus on other efforts instead. this comes just a week a after paypal announced its withdrawal. most of the time we talk about companies that are publicly traded. but it is also important to watch private companies.
even those you probablyaven't ard of. julia boorstin tells us about one such company growing very, very ickly. >> china based biteance is t most valuable private venture backed company in the world. valued at $75 billion. bite dance as most familiar to american consumers is tick-tock, the video sharing appwn k s for 15econd lip sernging downloaded over half a billion times this year alone. other popular app asia.dozen process the flagship is tuta a chinese news and information. and owns sellsy happen snapchat duoshon and indian hello. they say the family of apps reach.5 billion users around the world every month. th company reportedly generated first half of thi year.n the with you u.s.-based tick-tock busine is still naysant.
>> tick-tock sells branded hashtags a experiments with inapp ads but despite being the most popular in the apple app story in the first half of the of the year. they face significant risks. e content creator can secure sponsorships oret tips by fans. but theyon't share ad revenue like youtube. raising risks that creators could ditch the platfor plus, there is tick-tock's chineseow rship. >> the a lot of the way the chinese government uses soft power abroad is that it rarely tell. companies what to do it acts in ay requiring companies to guess the government and does it emmit previa no oers on high just the understanding you do what beijing wants. >> concerns about censership prompting senator marco yub rube yo to call for government review of tick-tock. it's been finedearly $6 million by the ftc to semgts algation that is it illeg
collected personal information from children. up company promised to ram protections as it works to avoid more regulatory scrutiny. for "nightly business report," julia boorstin in los angeles. and before we go, ainal look at the day on wall street. word of the partial trade dealh sentarket higher. the dow advanced 319 points after rising more than 5 asset part of the day. nasdaq up 106. the s&p rose by 32. and a of the major averages high are for the week. >> indeed. aeek it was. >> that is "nightly business report" to want i'm sue thank for joining us. >> i'm bill griffeth. ghave a great weekend.nd we'll see you . ♪ ♪ ♪ ♪
♪ yohello, ev, and welcome to "amanpour & co." here's what's coming up. one year later, what have we learned with who ordered the brutal killing of jamal khashoggi? >> they believe with medium to high confidence that the saudi crown pnce probably ordered the journalist's death. >> i speak with the award-winning journalist nathan rudman about his new book. >> then -- >> i said i'm not going t write anymore books. >> you sort of quit? >> i did. >> patrioia cornwell me, one of the world's most successful writers, jumping back intohe fray anduter space. and, from syria to benghazi to