tv Nightly Business Report PBS September 26, 2016 6:30pm-7:01pm PDT
♪ with tyler mathisen ansiness attention shift. the fed was so last week. now investors have shifted to the debate. and they're riveted and nervous. potential suitors. two high-profile companies may be considering buying twitter. disney and microsoft. and the king. anticipated was a legend on the links. those stories and more for tonight, sep 26t. good evenin and welcome. investors are getting nervous. some on wall street say it's becaus of the presidential e tightening race as we head into the first debate between hillary and donald trump. the election is starting to look more and more like a coin toss.
the polls ar narrowing. uncertainty is increasing and according to many strategists that could in volatility. 166 points to 18,094. the s&p 500 off 18. but the election wasn't the annually thing that weighed on the market today. dominic chu explains from the new york stock exchange. >> it was the financial stocks that really dragged down the major indices. among the worst stocks, regional banks like suntrust and comerica and bank of america. interest rates moved lower as traders bought the safety of treasuries and lower rates have generally been seen as hurting bank profits. but a lot of today may also have been about the weakness in european markets and specifically the large banks. you've got german banking giant deutsche bank moving lower on reports the government over there wouldn'ting as likely to help in financial liabilities here in the u.s.
remember, deuts bank is facing a pro by regulators who may impose substantial penalties to the financial crisis mortgage bonds. art hogan said it looked like deutsche bank sneezed and everybody else caught the cold. many energy stocks outperformed, oil prices moved higher. in algeria for talks on what to do about supplies. and election concerns also perhaps part of the story. randy frederick attributed some of the weakness today to investors lightning up on stock exposure ahead of tonight's presidenti debate. others say it's too early to tell if the markets will be impacted by what is happening in the race for the white house. regardless, stos are weaker, treasury bonds strengthening. financial stocks will certainly be ones to watch in the coming weeks, as well as energy. for "nightly business report," i'm dominic chu from the new york stock exchange. >> what can investors expect to hear from hillary clinton and donald in tonight's first one-on-one encounter. john harwood is at hofstra
university, which hosts the debate. john, what does donald trump need to accomplish tonight? >> tyler, donald trump's task is pretty. he has about 60% of the electorate now saying they don't think he has the temperament and experience to be president. he needs to change minds. he needs to add votes, because he is slightly behind hillary clinton. the targets of his suiting, courting tonight, are college-educ whi voters. he needs to show some policy depth and some temperamental steadiness to bring them aboard. >> and what about hillary clinton? what's her task tonight, john? >> hers is much different. hillary clinto is deemed ready for the job by a large majority of people in t but she's not generating tremendous amount of enthusiasm. and so if hillary clinton cannot inject more passion into her voters, especia young people, she may have difficulty turning them out in the numbers she needs to hold the coalition
do debates ever change elections? there's a big debate among historians about that fact. there are some elections like 1960, kennedy/nixon, are people assumed it had some impact. it hasn't really been shown definitively with reagan and monday detail in 1908. the wun clearest case we have seen was in 2000. al gore was the vice president, george w. bush, the texas governor. heading into that debate, al gore held a lead of eight points in the gallu poll over george w. bush. after that debate, it was even. after the second debate, bush up two points. after the third debate, he was up four points. the race turned around in the spac of that time for those three debates. and even though al gore ended up catching bush and winning more popular votes, he did not get to the white house, and the debates were part of it. >> what about the popularity issue? neithe one of the candidates is all that popular with the electorate. either one of them have to
show their softer side, perhaps, tonight? or a different side than what they have been showing on the campaign trail? or not? >> well, both of them do. and the disaffection of many voters is what lends an air of volatility to the end of the campaign. even though the vast majority have long since picked sides in terms of what they think about donald tru and what they think about hillary clinton, you still do have a critical core of people. ma 20% of the electorate, who really assistant like either one of these candidates. and so what kind of impression they may get from this mega event, maybe 100 million people watching, could be decisive in what they decide to do or whethe they vote at all. >> all right, john. going to be an interesting night. john harwood in new york. so how might tonight's presidential deb weigh or help the financial market in the days and weeks ahead. david less co wits joins us, senior equity strategist at ubs. welcome, as always. you know, john mentioned the
record numbers that are expected to tune in to tonight's debate. but from a wall street perspective, how important is the event tonight? >> oh, i think the debate is just one part of the obvious election process. and i think there could be different implications for markets, dependi on who does ultimately win the election. i think investors tend to look at this through the lens of uncertainty. and the clinton victory would be a continuation of most of the status quo, and most of the policies that have been in place over the last eight years under the obama administration. whereas if we did have a switch in the white house to the republican party, and trump begins to gain and becomes the president, then that's probably going to be at least initially a little bit more uncertain. and i think investors are going to potentially see a little bit of volatility if that were start to become the higher probability. primarily because we don't know exactly what policies will
be pursued by a president trump. >> let's say there is a president trump. would wall street tend to favor his approach on corporate taxes as opposed to secretary clinton's, which i don't t has really been fleshed out fully yet? >> yeah, i think that's an important point, tyler. that there could be some uncertainty initially around president trump, because i think the broad mosaic of his policies haven't been fleshed out as much as secretary clinton's but at the end of the day if there is one candidate that has better policies more pro growth and he said up leading to higher corporate profits, the stock market could eventually come around and gravitate to that outcome. and it could end up being positive for trump, even though initially there might be some more uncertainty at the beginning. >> you know, david, you justified touched on to ty's point, the lack of detail from
both candidates on certain issues. is that what's really important to wall street, is getting some clarity and transparency as to what their policies really a onnishous? >> i think it is. i think investors at the end of the day, they want to understand the rules of the road. and to the extent that a change in who occupies the -- which part occupieses the white house, that's going to be -- there is going to be some change in the policy. and i think that could lead to some uncertainty. but at the end of the day, we will eventually get more policy clarity once someone is in that seat. and that should diminish things. now, you know, a president and a policy that a president pursues can certainly impact the economic environment. but also, that person is going to have to work with congress and congress is going to -- sometimes is going to be hard to get a lot of these proposals through congress. so i think we have to keep that in mind, as well. >> absolutely. on that note, david, thank you very much.
ubs. the audience for tonight's debate is expected to be mammoth. the event could be watched by more than 100 million people, nearly as many as this year's super bowl. and those numbers are commanding high advertising rates. julia boorstin has mo >> reporter: the first presidenti debate is expected to be a record-breaker with between 80 million and 100 mi people tuning in. nearly as many as watched this year's super bowl airing on a record of platforms, not just the broadcast networks and cable channels, also live streaming on twitter, facebook, youtube and the huffington post among others. broadcasters are expected to cash in on and before and after the debate. broadcasters have no cost to carry the debate and cnn, nbc are selling out of ad time with 30-second spots selling north of $200,000 at nbc and cbs.
higher than the 2012 debates. advertisers pla into the action by customizing spots like this audi ad about two valets duking it out. and this spot makes a joke about a wall between mexico and the u.s. made out of beer cans. the debate is expected to be a blow to espn's monday night football ratings, and the debate's numbers, a sign of what to expt per ad rates around the rest of the debates, as well as elect the highly contested rates is certainly a win for broadcasters. >> julia, thank you very much. julia boorstin, reporting. as dominic chu mentioned in our program, concerns about deutsche bank weighed on the financial sector, which contributed to the broader market decline. investors are worried about the bank's capital position, after a german magazine said chancellor angela merl had ruled outstate assistance for the lender. but l bank says it doesn't need the government help ahead of a legal settlement with
the justice department over a mortgage securities investigatio u.s. listed shares of deutsche bank fell about 7% today. in the oil market, there was renewed hope today that the major oi exporters will agree to limit production to help absorb some of the excess crude in the market. that sent the price of domestic crude higher than 3% on the day. opec members meeting in algierses. and tonight we're. we're here on the coast of north africa for the kickoff of the international ener forum, a meeting of nonopec and opec oil producers and the big question is what, if anything, will come of this meeting. we've heard a lot of speculation over the last 24 hours. we have heard from the russian building minister saying any agreement is noncritical for his country. wee heard from the iraqi oil says all options on the table. and the algerian oil minister
has said no one wants to walk away from this meeting without some kind of an agreement. the big question, of course, has saudi arabia decided to declare victory in its battle for market share over these u.s. oil producers, and the question, of course, for iran is whether or t they will agree to a freeze when they're trying so desperately to back to presanction levels of output, as well as rebuilding their economy after these years of sanctions. and, of course, all of this happening against the backdrop of the failure of the u.s./russia cease agreement syria. so saudi arabia, iran and russia, all of them with big stakes in the game. for "nightly algiers, i'm hadley gamble. still ahead, hash tag bidding war. two more behemoths reporting trou
♪ speculation is swirling today that disney and microsoft are both interested in the social media company, twitter. cnbc reports that microsoft is preparing a bid. bloomberg says disney is working with financial advisers on one. senior analyst at s&p global market intelligence, and he covers disney. welcome. good to have you with us. why would disney want twitter? >> well, i think the answer is simple. i think it provides them potentially -- another avenue to distribute the content, target a very precise audience and perhaps monetize billions of dollars in content, which they have already created. now the deal looks good on paper, but i think it's going to come down to what valuation twitter is going to command.
and this is one of the details wall stree is going to say there is up side but it's got to come down to the numbers. >> disney is renown for cross platforming. they ha done that very successful for a number of years. twitte generates a lot of buzz. how important is the buzz for disney? >> well, you know, i think that buzz is going to be, you know, more and more important as disney continues to target, you know, the highly coveted, you know, audience that's, you know, aggregat on digital platforms. disney just recently made a deal for bantech, a streaming video platform that's owned by the major league baseball. there is a possibility that they might look to leverage that asset with espn, with twitter. which itself has kind of reinvented itself from a social media platform to media country. as you know, twitter is currently streaming nfl games,
and they have got packs with the pro sports organizations, an area where espn is really looking to, you know, diversify its viewership across all the platforms. there is potential synergy there. >> why do you think disney would be better at monetizing the platform than twitter has been? because twitter hasn't been that good. and second question, what's a fair price for twitter? >> well, first, i think, you know, disney has a lot of expertise in terms of monetizing, you know, digital content. they certainly have much more financial wherewithal. they've got a lot of relationship i foresee a situat anything is going to come together. in terms of the fair price for twitter, frankly, the number that i have heard thrown around doesn't ma sense on first glance for disney. if you consider that disney, all the recent acquisitions they've had, whether it's marvel, lucas film or picxapixar, those are k
quantities. twitter, on the hand, is a tossup in terms of the potential here. and the price has been thrown arnold, frankly, i think is making some wall street people a little bit skeptical including ourselves when you consider those interested in that aspect. >> tuna, thanks, with s&p global market intelligence. >> thank you. mylan may have underreported the amount it makes on epipens. the drug company's profit is reportedly 60% higher than what its ceo told congress when she testified last week. at that hearing, heather bresch sa profits were just $100 for a two-pack of the injectors, despite a $600 list price. but that number includes taxes. as reported by the "wall street " without that tax-related reductio mylan's profit on the epipen two-pack is closer to $160. two former wells fargo employees have filed a class action suit in california. the lawsuit seeks more than $2.5 billi for workers who are
allegedly demoted or fired after trying to meet aggressive sales quotas. the filing says wells fargo promoted employees opening fraudulent accounts but fired those failing to meet the targets. wells fargo's john stumpf will reportedly get more than $120 million in severance if he walks away from the bank. senator mark warner is asking the securities and exchange commission to investigate yahoo!'s massive hack. senator warner wants to know if senior executives at that company fulfilled their obligations to disclose the preach to investors and the public. th hack affected 500 million users. now there is some speculation about what the hack could mean for verizon's acquisition. in an interview, the v vo said he's conce about consumer trust and that still very early.
>> the situation right now is we have the integration work going on, the deal we found with yahoo!. the data issue we found out about last week. so i would separate the two areas into we're working with yahoo! right now to really get into the data situation and figure out what it is and we're very early stage on that right now. >> shares of yahoo! and verizon both fell today. pfizer says it is not splitting up, and that's where we begin tonight's market focus. the pharmaceutical giant said it has dropped plans to divide its new and established medical lines into two publicly traded companies and ended years of speculation ove a potential split. the drug maker can maximize shareholder value in its current form. pf ss the position won't impact its guidance for 2016. shares of pfizer down nearly 2% at $33.64. meantime, shares of gw pharmaceuts surged today after the biotech giant
announced positive results from its second late-stage trial of a drug for childhood enlepsy. the co said it expects to file for fda approval for the treatment in the fir half of next year. shares of gw phrma up 17% to > and carnival posts its strongest kwrl earnings report ever. the miami company held by higher ticket prices. the cruise ship operator saw profits rise 17% to nearly $1.5 billion. the company's north an and european brands all had strong performanc prompting carnival to raise its full-year earnings guidance. yet shares fell almost 2% to $46.47. sales at cal main food plunged more th 60% and the egg producer posted lower than expected earnings. the company cited an increase in egg supply as well as falling prices as the reasons for the miss. cal main also said it will not pay a dividend for the quarter. sharf cal main fell 2.5% to
$41.08. yum brands owner of taco bell and pizza hut hiking its dividend 11%. that's a nickel increase to 51 cents a share. also, the company's board gave the green light to spinoff its china unit, which it expects to begin trading separately in november. yum shares down more than a percent today to 89.52. and the ceo of lands end is stepping down. she's out after less than two years of the clothing retailer. it'sn reported the former exec and high end fashion label encountered a culture clash and core customers seemed to resist her vision of transforming the struggling retailer. lands end plunged 14% to $15.46. uncerin isn't just growing in the market ahead of the first presidential debate. it's also blossoming on main street. kate rogers tells us what matters most to small business this election year.
>> reporter: recent data from the national federation of independent business finds politil uncertainties at an all-time high. something that resonates with mike stannic, owner of cleveland cycle tours in ohio. he i seeking more consistency from washingto so he can better plan for his business. >> every year, the extenders have to be reauthorized by congress. and that always becomes a circus, if you will. and they're extended so late in the year that it's difficult for business of any size to react appropri to them. so we really like to see those tax standards put into the tax code rat playe with ev year. >> reporte regulations of are concern. national federation of independ business finds that complying wit governmen regulati top two issue for main street businesses, costing small businesses with fewer than 50 employees more than $11,000 per worker. costs are some 30% less at
margin larger businesses. rick snow in score boro maine is concerned abo the overtime rules which go into effect decemb 1st. the new rules will make more than 4 million salaried employees eligible for overtime pay. >> one of the biggest things that's concerned us is the upcoming overtime regulation for salaried employees. obviously, we don't have the capacity to increase everyone's payroll to over $900, essentia a doubling of everyone's pay. >> others like owner of pro performanc apparel in littleton, colorado, are looking for clarity in the new administra >> like most business owners, we're not here to make $1 million. we a part of the community. that's importa to us and we really just want a government that will be supportive of businesses like ours that will get out of the way, that will help create a fabric and environmen a regulatory culture that we can thrive. it has some predictability and
some certainty to allow us to be here in perpetuity, if we so desire. one thing for sure as y cl and donald trump take the stage in tonight's debate, small business owners will be watching listening closely. for "nightly busine m kate rogers. coming up, arnold palmer not only the king of golf, but also a king o. ♪ here's a look at what to watch tomorr. nike, which is facing increased competitn releases its quarterly earnings. the case-shiller home price index for july will give us another read on the housing market. e sene scheduled to resume debate on a spending bill that
would keep government running through r 30t. that is what to watch for on tuesday. > t golf world has los legend. arnold palmer, known simply as "the king," died yesterday at 87. some highlights of his remarkable career. he won a staggering 62 times on the pga tour, capturing seven majors, includi four masters, two british opens and one u.s. . with all of his accolades on the links, dom chu tells us arnie .lso had a big impact in >> reporter: per no other man in the history golf did more to bring the main to the masters than arnold pa, and he did so with a style and flair that helped set the stage for golf, as we know it today. but it's off the golf course where palmer parlayeded his prowess on the links into a business empire. his business and endorsement deals have made him one of the richest sports figures i he has endorsed dozens of brands, everything from cadillac
to hertz, to rolex to pennzoil. >> same pennzoil, new package. >> reporte according to forbes, $875 million, lands him at third among the world's highest-pa athletes. palmer's business empire has a variety of diffe operations. among them, a golf course design company that had a hand in the creation of over 300 golf courses all across the world. he had an ownership interest in famed golfers or pebble beach. he teamed up with a lawyer named mark mccormick, a cornerstone to become sports agency giant internatio manag group or img. he licensed his name to one of his favorite drinks, a mixture of lemonade and iced tea, the arizona beverage company produces over 400 million cans arnold palmer's each year. and it's fitting that television propelled him to stardom for a 1995, he helped start the golf channel, at the the first-ever single sport cable network. week the golfing world converge in chaska, minnesota.
held every two years. rememberin arnpalmer's life and contribution to the game is expected to be a part of the but off the course, palmer will be remembered as one of the kings of sports marketing, laying the ground work for other athletes to follow in the legacy he worked so hard to crea for "nightly businereport," dominic chu, at the new york >> and also a really nice man. >> everyone said it. he didn't so much swing at the ball as lashed at it. >> that does it for us tonight on "nightly busine i'm sue herera. thanks for joining us. >> i'm tyler mathisen. we'll see y
mordaunt: you seem moron edge than before. robert: i received another letter. mordaunt: does this letter urge confession too? yes. could these letters be from your wife? they're not her style. mordaunt: but you two are estranged? for many years now. shall we talk about why she left? i can be... obstinate, doctor. evidently. to what are these letters urging you to confess? that's my business. we're bound by privilege here. your secrets will stay secret. and what will happen