tv Nightly Business Report PBS April 7, 2016 6:30pm-7:01pm PDT
this is "nightly business report." with tyler mathisen and sue herera. hitting back. three well-known ceos of some of the world's most recognizable companies are making their frustrations with the government known. the power of parity. there are 2 trillion reasons why shrinking the jen ger gap could give the economy a massive boost. short-changed? have you ever traded in spare coins for cash at a counting machine? it may have cost you a lot more than you thought. all that and more tonight on "nightly business report" for sd good evening and welcome, i'm sue herera, tyler mathisen is off this evening. we begin with three very powerful ceos who are leading some of the world's biggest and most influential companies.
today they let it be known they are frustrated with the government and politicians. ian reid, jeff immel and jamie dimon gave a vigorous defense of their companies, most of which are widely held by investors. we'll start with pfizer. in a "wall street journal" op ed, ian reid slammed the treasury department's new tax rules which resulted in pfizer walking away from its $160 billion deal with allergan. "this ad hoc attempt to single out and damage the growth opportunities of companies operating within the current law is unprecedented, unproductive, and harmful to the u.s. economy." he said the broken u.s. tax system puts american companies like pfizer at a competitive disadvantage. and now to general electric. in an op ed in today's "washington post," jeff immel took direct aim at some of the claims democratic presidential candidate bernie sanders has made against his company including the criticism that ge is destroying the moral fabric
of america. mary thompson has been following the story, good to see you as always. jeff immel offered an impassioned defense of his company. >> he basically denied everything that sanders said. as you would expect, he talked about the company's 124-year-old history, the jobs it's created, the wealth it's created. he talked about the businesses they had, ge has, in sanders' home state of vermont. and invited him to come visit it. now sanders takes issue with the fact that ge has closed plants and shipped jobs overseas. immel respond, we built five plants in the u.s. in the past five years, and if you do business in 180 companies you can't have all the jobs on home turf. that said he's talked about moving jobs from china to lower-cost countries. >> he also made comments and has become increasingly vocal about his frustrations, if you will, with the government and the poor relationship that corporate america seems to have with the administration. >> anyone who read his annual
letter would say, the relationship between corporate america and washington, d.c. is the worst he's ever seen during his career. he accused the government to some extent of beingtwo-faced. he said they love exports but they don't like tray. they love small business, they regulate them to death. he points out when german chancellor angela merkel travels she's always with a german business leader, to showcase german goods, he said that would never happen in the u.s. >> do you think most businesspeople would agree? >> he has supporters but carcinogenics say the export/import bank is a financing tool for foreign companies who want to buy company tools. ge would counter, other countries have financing tools and this is a way to level the global playing field. >> there's more to this story, appreciate it, mary thompson. the ceo of jpmorgan now in a letter published late yesterday explained why the bank is not too big to fail. jpmorgan is the largest bank in the country by assets but jamie
dimon says its balance sheet is a fortress and asks shareholders to reject the call to break up wall street's banks, something that has become a central component of bernie sanders' presidential campaign. one company that is no longer considered too big to fail is metlife. the legal opinion on last week's decision to strike down that designation was on field toduns. the judge sdab described the label of systemically important as capricious and argued to bring that stricture under federal rules. the pentagon is raising concerns about the takeover bid between canadian pacific and norfolk southern. the issue rests on the voting trust canadian pa disk has as part of its bid and says it could affect national defense. the ceo would vote as part of
that voting trust. stocks fell as concerns about global economies resurfaced. investors sought safety fleeing stocks they rushed into government bonds as the price of oil fell and the japanese yen strengthened. by the closing bell the dow jones industrial average, which has been down about 200 points this afternoon, lost 174 to 17,541. the nasdaq fell 72. and the s&p 500 declined 24. you can often find china at the center of global growth concerns. while the recent economic data out of the world's second-largest economy has been better, those reports may not be telling the whole story. >> reporter: the six-week bounceback by the stock market has some investors wondering, what happened to the great wall of fears surrounding china? all the talk of a slowdown in the world's second-biggest economy and its effect on global growth. this week some short-term economic data from china has shown improvement.
manufacturing expanded for the first time in nine months. the services purchasing managers index rose a point in march. any number above 50 indicates growth. also chinese industrial firms posted higher profits for january and february and currency rates have stabilized some since last summer's downdraft. but china's change from a manufacturing to a consumer-based economy leaves some investors wondering if a turnaround is really possible. >> china has the advantage that its service sector is very strong, growing double digits. we think that will keep that economy stable. as long as they remain committed to consolidating the manufacturing and construction sectors you're going to continue to see weak manufacturing data leading out of china and that's going to drag down those same sectors in the neighboring countries. >> reporter: indeed, many of china's asian peers -- south korea, hong kong, and japan -- countries that rely heavily on demand from chinese companies, are not faring as well. south korea posted a double-digit decline in
first-quarter exports. hong kong's manufacturing levels are at their lowest level since august. and in japan, business confidence has been dropping. >> and with every statistic we see out of asia, ex china whether taiwan, whether hong kong, and other asian countries, they're suffering slowdowns from their sensitivity and exposure to china. global growth continues to shrink but china being a big part of that. >> reporter: it's just one of several globe concerns that continue to haunt stock markets. in a year still full of question marks. in europe, talks of a brexit will hover until summer. after that an already-hot u.s. presidential campaign will shift into high gear. pack at home the number of workers who applied for unemployment benefits fell last week. jobless claims, a proxy for layoffs across the economy, dropped 9,000 to near historically low levels. if the data of the economy remains strong the president of the dallas fed would advocate
for a hike in interest rates but robert kaplan declined to say exactly when they would company so. he did say the economy is approaching a point where it would be prudent to remove some accommodation. a new mckenzie global institute study says the u.s. economy could grow an extra $2 trillion by 2025 if the public and private sector did more to shrink the gender gap that prevents women from reaching their full economic potential. according to the report, every state in the country could increase its gdp by at least 5% over the next decade if it narrows the gender gap at work. quelan of mckenzie and company and lead author of the study joins us now, nice to have you here. you looked at inequities or gaps in a total of about ten different sectors. what did you find in the united states? >> across the united states, we found that the value of closing the full gap would be about $4
trillion. but we didn't think that closing the full gap over the next 10 years was realistic. so instead we looked historically at the fastest rate of improvement across the u.s. states. and if you match that fastest rate of improvement that gets you to about half the gap or the $2 trillion. as you mentioned, that is at least 5% gdp for every single u.s. state. and that's 10% gdp growth for half of the u.s. states. that's the equivalent of adding the economy of the size of the state of texas to the united states. >> you looked at 10 different indicators in the u.s. economic, social, political, in terms of the gender gap. you found the u.s. had high or extremely high inequality in 6 of the 10. if you had to pinpoint one or two of those inequalities that would perhaps make the biggest economic impact, which would they be? >> the two that i would point to of the six would be leadership and management positions. so for every 100 men in leadership positions, there's
only 66 women in the united states. the second i would point to is unpaid care work. the women do on average double the amount of unpaid care work as men in the united states. but two-thirds of that unpaid care work is routine housework. cleaning, cooking, laundry, et cetera. less than 20% of it is actually care of loved ones, kids or the elderly. so reducing that unpaid care work so that woman can more actively participate in the workplace would help capture the share of the $2 trillion. >> how much of this has to do with the fact that, in many cases, women end up working part-time or they take time out of the career for either child rearing or elder care or something along those lines? >> about one-third of the overall $2 trillion opportunity is coming from part-time mix. as you described, women tend to fillmore of the part-time roles, 64% of part-time roles, only 42% of full-time roles. 30% of that opportunity is from
that, 40% of it is from more workforce participation, having women more equally match men's participation, and one-third is from sector mix. women tend to be in lower-average productivity sectors like services, versus manufacturing, which tends to be more male dominated and higher productivity on average. >> is the answer part regulation, part government interventi? what's the most effective way to generate the type of income equality, if you will, so that women are on better footing? >> to capture the 2 trillion we think the private sector really needs to act and accelerate what it's been doing. the government needs to act and accelerate. the nonprofit sector needs to act and accelerate. not only act within each of those areas but increase collaboration across those sectors. >> thank you so much, appreciate it very much. quelan ellengrud with mckenzie and company. why high-end home sales are
soaring in one southern city. mortgage rates followed treasury yields lower today, falling to levels not seen in more than a year. according to freddie mac the average 30-year fixed rate sank to 3.55%, down from 3.71% from the week prior. yields have fallen in reaction to janet yellen's remarks the central bank should proceed cautiously in raising interest rates. while mortgage rates are falling during the busiest home selling season of the year, there's also a big shift under way in the luxury housing market. and as robert frank reports, high-end home sales are soaring in one southern city in
particular. >> reporter: when it comes to luxury real estate the big money is shifting to texas and florida from new york. a new report found that austin, texas, had the fastest growth in the country last year when it came to sales of homes priced at $1 million or more. a report by coldwell banker showed austin's million-dollar home sales threw more than 30%, saying austin's recent boom in tech, entertainment and educationn is fueling demand fo a higher end and higher-priced homes. >> two things i think of, not being from here. the sun, ft. lauderdale, i've heard a lot of californians are going there. and also the fact that it's a tax-free state. >> reporter: ft. lauderdale came in second place, followed by seattle and san diego. but when you look at total volume of sales, new york still dominates with more than 7,400 sales last year. but smaller growth. l.a. is number two. as for the most popular zip code for million-dollar home buyers,
90210 is being upstaged by florida. the top zip was 33160 in north miami beach. when it comes to homes sold for over $10 million, miami beach is 33139 top honors. this year experts say they expect continued growth in that state, though sales at the very top independent of the luxury market could slow down in all the major cities. demand for high-end housing of course will all depend on how much wealth the stock markets and the economy can create in 2016. for "nightly business report," i'm robert frank. tech giant yahoo! has reportedly found a bidder. and that the where we begin tonight's "market focus." according to a bloomberg report, phone carrier verizon communications will make a bid as soon as next week for the company's core business and yahoo! japan. also a yahoo! document given to prospective suitors reportedly shows that the company expects revenue to fall nearly 15% this year and also forecasts earnings
to drop by more than 20%. shares of yahoo! fell about 1% to 36.17. shares of verizon down over 2% to 52. reservations for tesla's latest car the model 3 continue to ramp up. the carmaker started taking them last week and so far the company reported that over 325,000 deposits for preorders have been made. ceo elon musk said that amount translates to about $14 billion in future sales. however, the strong demand has some analysts concerned about the company being able to produce so many vehicles. so shares fell 3% today to finish out at 257.20. conning a ra which makes packaged foods saw shares rise after the maker of slim jim snacks postederings and revenue well above annual targets. the company sold its private label business and plans on spinning off its frozen potato
segment. shares rose over 1% to 46.11. sales at costco rose 3% in march helped by strong demand in the u.s. and canada. however, shares of costco fell after the company reported comparable store sailed rose 1%, which missed analyst estimates. shares of costco down 3% to 152.03. it has been six months since the justice department announced it would be allocating more than $23 million to police departments across the country. that money is to be invested in cameras that will be attached to officers' uniforms. as more departments roll out the new technology it's raising a lot of questions. but also becoming a big business. andrea day has that story. >> reporter: you're watching footage captured by officers' body cam. split-second decisions caught on tape. nationwide, these tiny cameras becoming a staple with law enforcement. >> there's always two sides to the story. then there's the truth.
>> reporter: with the push of a button the most reliable witness. >> the camera doesn't lie. >> reporter: officer eric rodriguez patrols this new jersey community where just weeks ago they rolled out a pilot body cam program. do you think you'll do anything differently because you're wearin honestly. >> honestly, of course. >> reporter: the debate, a hot button, even in the race for the white house. >> it can solve a lot of problems for the police. it can also solve a lot of problems, period. where they're accused of things. >> we should make sure every police department in the country has body cameras. >> reporter: according to the bureau of justice statistics in 2013 police cameras were worn by at least some officers in 32% of departments. with more coming on board every year. >> i think it's a huge piece of conversation in policing across the country. you see what's happened in places from staten island to ferguson to baltimore. and people would like to think
that body cameras might have changed some of the policing activities. i don't know if that's necessarily true or not true. but ultimately that's where the conversation's going. >> reporter: mayor steven fullup of jersey city in new jersey pushed through the initiative in his city. >> we think this will be a good thing for the police officers as much as it is a good thing for the public. >> reporter: but fullup believes for the new technology to be a success, new guidelines will be necessary. >> the policing interests, the city's interests, and of course the transparency interests. >> reporter: in re yacht toe, california, the chief was ahead of the curve, implementing body cams four years ago. >> it was really more to evaluate the impact that the cameras would have on law enforcement. >> reporter: almost immediately, he says, there was an 80% drop in complaints. and a 60% drop in use of force. with the federal push for body cameras come millions in government contracts. one manufacturer, taser, says fourth-quarter 2015 sales of body-worn cameras jumped to over $44 million, up nearly 82% from the year before.
back in new jersey, officer rodriguez says cameras act as a reinforcement of what every good shop should already know. >> you have to do everything the way you're trained to do. >> totally by the book? >> by the book. >> reporter: some of the issues lawmakers are facing, how quickly will this footage be made. >> un? that's being challenged in courts across the country right now. police departments are adjusting to the technology including what parts of an officer's day should be captured on tape? where to store the footage? how long to keep it? i'm andrea day for "nightly business report." coming up, thinking about taking that jar of coins to a counting machine in exchange for cash? you may want to think and count twice.
are you being shortchanged by coin counting machines? after spending months, maybe years, collecting coins, you may be ready to cash in that change. but you likely have no idea how much change you really have. so you take the coins to your local grocery store or bank and put it in the coin counter. you assume ty're accurate. giving you back exactly what you put in. but as first reported on the "today" show by nbc's jeff rossen, that's not always the case. >> reporter: you've been saving. now it's time to cash in. these coin-counting machines make it easy. just dump the money in and out pops your total. and we can trust them, right? to find out we went to the bank,
getting hundreds of dollars in coins from quarters to dimes to nickels. and you know even these pesky pennies. as you can see my team and i are counting every single roll. we know exactly how much we have. we unroll all the coins, carefully separating them into bags of $300. first up, these popular coinstar machines found in stores across the country. and right away, good news. they come up accurate. right down to the penny. next we haul, and i do mean haul, our loose change to one of the country's largest banks, testing their penny arcade at five different branches. we pour all our money in. but we don't get all our money back. none of them are accurate. this one is off by 5 cents. this one is off by 53 cents. and at this machine, even more. >> it's 70 cents off, doesn't
sound like a lot but think about it, customer after customer after customer. it's your money. >> reporter: things are about to get much worse. >> 296.27. it's off. >> reporter: way off. we lose nearly $4. but things really don't add up at this location. my producer jovanna pouring in exactly $300 in change. remember, we counted all the rolls ahead of time. but the machine tells her she only has $256.90. off by more than $43. >> hi, my name is jeff rossen from nbc news. >> reporter: i go back the following week to alert the manager. >> we came in here to test the accuracy of your coin machines and we brought in $300. and the machine gave us an inaccurate count. in fact, the machine gave us more than $43 less than what we brought in. i wanted to give outheads up, this machine isn't accurate. >> i'll look into your concern, absolutely. >> reporter: we also contacted
td bank corporate telling us, we are disappointed with the experience that the "today" show had with our penny arcade coin counting machines and place a premium on their integrity, adding, we clean and test them twice daily. >> what do you make of these results? >> i'm shocked. you think of a bank being 100% accurate. if you're a penny off paying your mortgage, they're going to slap you with a late fine. and here they're giving you less of your money? not right. >> after showing what rossen and his team found, td bank is now pulling all coin machines out of service at all branches nationwide to be evaluated and retested. those machines will only go back into service when the bank is satisfied they meet the performance requirement. td bank also telling nbc news they're enhancing their routine maintenance program. best advice, count your coins before you go so you know exactly how much cash you deserve. finally tonight, the masters. it's one of the most well-known
golf tournaments worldwide where players go to win the coveted green jacket and where companies go to be seen. dominic chew reports on the big names and the big money in augusta, georgia. >> reporter: the worlds of sports and business regularly collide. and it happens in a very big way each spring at the masters. all week golf patrons and corporate leaders gather to mix and mingle with each other in the hopes of enjoying a great tournament and perhaps making some business deals in the process. >> it's very distinctive. it has many values that are shared, common values, between rolex and the masters. the tradition, the beauty, the elegance. >> reporter: it's no secret that the game and business of golf has faced some head winds in recent years as fewer golfers have hit the links and there are a number of reasons why. >> you have to have accessibility and affordability. it's an expensive game. if there's some way to scale the
product, the golf balls, all that cost-wise, i think that would be be a attractive thing. >> reporter: there is arguably no greater and more prestigious golf event on earth than the masters. and that's why corporate sponsors are looking to associate themselves with this tournament in the hopes of networking with their clients to promote their own brands. >> we would do events around the world, play world cup soccer, take the olympics, wimbledon. but in my view, nothing touches the specialness of augusta. the masters does something this week which makes it completely different to any other golf tournament, any other event, in my view. >> reporter: golf takes an even more global stage this year as it becomes a summer olympic sport yet again and there's the u.s. versus europe ryder cup competition this fall as well. now the big question is to what degree global companies will seize on the opportunities. for "nightly business report," i'm dominic chew, augusta,
georgia. >> to read more about the big money behind the masters, head to our website at nbr.com. here's another look at the kind of rough day on wall street today. the dow, which had been down over 200 points this afternoon, lost 174 to 17,541. the nasdaq fell 72. the s&p 500 declined 24. that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. have a great evening, everybody, and we'll see you right back here tomor
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