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tv   Nightly Business Report  PBS  October 10, 2016 6:30pm-7:01pm PDT

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this is "nightly busine wit. the putin rally. oil gushes to multimonth highs as russia's president supports supply limits, and energy shares take stocks along for the ride. samsung struggles as retailer in the u.s. stop selling even the replacement note 7 phones. those were the ones that were not supposed to catch fire. but are. what's next for korea's biggest brand? >> your money, your vote. ow the investment markets interpret the presidential race those stories and more tonight on "nightly bu for monday, october 10th. good evening, everyone. welcome. politics top of mind for just about every investor,
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stocks began the week with gains, powered by a rally in the price of oil. and that can be attributed to a statement from a man whose name has come up a lot lately. russian president, vladimir putin. sai he supported internatio eff to limit the supply of oversupply has dogged the energy market for quite. putin's remarks followed similar comments from the saudi official, and with that, settling above $51 a barrel and that lifted the broader marked. up to 18,329. the nas dan gained 36 and the s&p 500 added 9. steve sedgewick reports from a meeting of major oil producers in istanbul. oil prices got a double boost on monday, as two of the world's largest produce of oil actually pledged to support , here at the world
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energy congress in istanbul, one of the largest gatherings of oil producers in the world, we heard from t saudi oil minister who said he thought it was very likely that opec would put meat on the bones in september and actually carry through its first output since 2008. he added he would be speaking to in the next couple days to see if it could be expanded to nonopec members. and this afternoon we sa president putin of russia as a guest of turkey building bridges between the two countries, followg conflict at the tail end of 2015. but mr. putin made a very interestg contribution to the old debate, saying that russia was ready to join any output freeze and a cap on extra producti at th moment. that boosted oil prices even further. mr. putin said failure to do so would hurt investment and potentiay create more volatility in the world oil market. and it remained to be seen
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whether russia and saudi can carry through the plans but both were very supportive for the price of oil on monday. this is steve sedgewick for "nightly in istanbul, turkey. the market also likes certainty so investors are watching polit very closely as we enter the home stretch of the preside according to kneelsen, more than 66 million a watched the debate last night. mike santoli right now. >> r the market has not quite called the election for hillary clinton, but wall industri has grown more confident the odds moved in her favor. the relationship between financial markets and election outcomes is indirect and hard to prove. in balance, stocks are generally stronger when clinton's odds of victory are rising. this followed a tumultuous weekend when donald trump lo the support of many after his taped comment was released. the stocks climbed as soon as they opened monday evening and
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higher. ma take wagers on the looks and had clinton's odds of raising more 80%. mexico's currency climbed by 2% against the u.s. dollar on monday. peso a key barometer of trump's position on the assumpti his trade and immigratio policies would hurt the mexican economy. wall stree pol analysts say investor don't necessa have an outright political tilt toward clinton but markets prefer the more predictable status quo candidate. markets also tend to do better under confide divided government with the split between the parties. latest surge has replaced republican control in the senate in jeopardy and sparked some talk the house could shift to democrats. while republicans sway over the house seems reasonably secure, a democratic sweep could make investors anxious about what that could mean for regulation of several i shares of drug companies, banks and oil companies could come under pressure in such a scenario. and investors might also brace
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for an upper income tax release to realize gains in the current tax year. still, many experts are reluck tonight to declare clinton a sure winner. for one thing, this race has been volatility with significant swings from week to week. for another vetting markets were dead wrong on the brexit vote in june. investors are wary of another shock. which means wall street has four more weeks of uncertainty before it can fully price in the next four years of u.s. leaders for "nightly busine" i'm mike santoli at the new york exchange. >> taxes. and whether we will pay more or less under a new administrat in last night's debate, the issue came up it wasn't clear-cut. steve liesn t a look at what we know and what we don't about the candidates' plan a debate overtaxes finding a sliver of air time amid the
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personal attack that dominated last night's meeting of the two presidenti candidat here's some of the controversial exchange. we're cutting taxes for the middle class, and i will tell you, we are cutting them big league f middle class. and i will tell you, hillary cl is raising your taxes, folks. you look at me. she is raising your taxes. really high. and what that's going to do is a disaster for. >> so it's true. trump is proposing tax cuts for the middle but it appears to be false that all the low and middle class will benefit. new york univers law prof and former obama aide, lily batchelder said 7.8 million mostly middle class single parent families with children will actually see tax increases, some because trump would repl certainly exemptions and others move up from a lower to higher tax bracket under trump's three-brac plan. the trump campaign has not
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disputed this but said those families will allowed to file under the old system. tax experts think that's a recipe for further confusion. for trump's claim that clinn proposes raising your taxes really high, this appears mostly untrue if you consider the vast majority of americans, anyway. she will raise taxes on the wealthy. in some cases, quite substantia no one under $250,000 will see a tax increase. the tax policy center in washington did find that some people in the 90th percentile, but that's due to not income taxes. experts need to provide more detail. bu it's more likely both candidat are taxing themselves with details of personal attacks than details of personal income for "nightly busine report,"m s. warren buffett find back today. the billionaire investor responded to trump's claim in last night's debate that he,
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buffett, took a massive tax p ad for the first time that he used a business loss of nearl $1 billion in 1995 to avoid federal income taxes. th he did not say how long he used the so-called loss carry forward. a statement, buffett said, "i have paid federal income tax every year since 1944 when i was 13. i have copies of all 72 of my returns, and nonus a carry-forw buffett said he had an adjusted gross in of $11.6 million in 2015, took $5.5 million in deductions inclung $3.5 milli he says he paid $1.8 million in federa buffett, who is a supporter of hillary clinton, also challenged trump to release his ret in corporate news, brift total myers squib is facing a major set back with its lung cancer drug. a medical meeting over the weekend showe patients fared
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worse on brings troll's drug than those on chemotherapy. a rival from merck showed strong benefits in had a similar late-stage study. that sent shares of bristol- sharply lower. merck rose nearly 2%. the crisis at samsung deepens. the company has halted production of its replacement galaxy 7 note phones, following a global recall of 2.5 million of those smartphones on reports the phones caught fire. and now sprint has joined at&t, verizon and t-mobile in suspending sal of the replac this phone forced the emergenc evacuatio of a southwes airlines flight in louisville kentucky, last week. ryan green says the phone began to burn inside his pocket. he says it was a replacement issued for the galaxy 7 note. he turned in as part of a samsung re l
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the serial number indicated it should h samsung has yet to confirm the incident involved a new note 7. those note 7s, though, have been blamed for dozens of fires, damaging a garage in south carolina, a jeep in florida. without specifying what the problems are, samsung said it is halting production of the note 7, quote, in order to take further steps to ensure quality and safet that's in stark contrast to its initia last month to questions about battery charging levels in its replacement note 7s. the issue does not pose a safety concern, said the company. today verizon, t-mobile, sprint and at&t stopped issuing replacemt not >> we've taken the extraordinary step to stop exchanging them out of an abundance of caution until samsung really does the retail work to understand if these
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replacemt phos have an issue or not. >> last month, samsung blamed one of its battery suppliers for the initial problems. saying it stopped using that company, and that it had not used that company for any of its replacement p. but problem another replacement note 7 started smoking in the hand of a 13-year-old minnesota girl on friday. and a samsung customer in richmond, virginia, said he woke up sunday morning to a loud noise, smoke and flames coming from his replacement note halting sales of the note 7 in the fourth quarter could cost samsung $630 million in sale but that may not be samsung's . the world's top seller of tv sets and south carolina's most profitable company is also dealing with reports that some of its washing machines have exploded. the samsung brand could be in for an extended spin cycle. >> i just actually ordered the
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new pixel, just having too many issues with samsung. i can't risk it. >> i think this could be a serious marketing problem for them. i mean, especially the more publicity >> we're discussing how much damage he thinks the ongoing problems at samsung could have on the samsung brand. good to see you, again, dean. welcome back. >> great to be back. ever i assume you agree with the people we just heard from on that tape that, this is a very serious issue for them. >> usually you say a brand is on fire and it's good. but here we have a phone literally on self destruct. it's corporate greed, brand arrogance and a painful solution ahead. >> why were they so slow to react? ist because they're not domicile here in the united states? why? >> i think it's -- they basically blew the four cardinal rules of crisis management. in the first place, when crisis hits and news and social media burst, you the ceo to stand up and look at the problem
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straight in th eye, and you don't want them to hide behind formal statements. they did that. the second issue is, you can't have lengthy procedures or be bureaucrat have done that. thirdly, they need to respond boldly. clearly, they didn't respond within the first 24 hours of the actual thing happening. it took them a week. that was bad in itself. and then finally, the big boy is hide nothing, tell all. and we know that a smoking gun here regarding the fact the company was aware, senior manageme was aware, these problems existed with their that's a really big problem facing them as a brand. >> you say there is a painful solution ahead. what would tha >> they've got to dump the 7. the note 7. they've got to dump the galaxy note 7 series. no two ways about it. who wants it now? it's tarnished goods. they'r going to take a hit of $650 million in the next war. what $20 billion if you don't
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sort this problem out now? >> this points to the idea, they make lots of things -- washing machines, lots of televisions. i have them in my own home. does this problem with the -- with t cell phone bleed over into the brand perception and the willingness of customers around the world to buy samsung? >> well, that's it. you know, the court of public opinion is out there right now, and i don't they're going to come back with a positive verdict, whether it's a washing machine or a phone. this does bleed across their brand, it impacts it in a major way. and it's about integrity and it's abo trustworthiness. and both of those are under the spotlight right now. >> all right, dean. always good to have you with us. thank you. >> good to be with you. >> dean crutchfeld with the dean crutchfeld company. > still ahead, assessing the damage from hurricane matth as cleanup
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the billionaire carl icahn will close the trump taj mahal in atlantic city, new jersey, after he was unable to reach a labor agreement with thousands of unionized workers and said he could no longer operate the casino without l icahn bought the damage mahal out of bankrup in 2014. five casinos have closed in the last two years. as north carola conti to struggle with flooding, early assessments of damage from dead hurricane matth are star materialize. morgan bre. . >> it was the worst hurricane to hit the region in more than a decade. not quite as disastrous.
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the category 4 hurricane, estimates of insurance losses spiked upwards of $25 billion with experts warning matthew could be a top five storm in terms of but after the hurricane lost some strength and resisted landfall up much of the coast, estimates 1.5 millio homes and businesses likely sustained wind or storm surge damage, putting property losses between 4 and $6 billion. not including flooding, which the federal g ensures against, and lost business. it's a meaningful sum, but still relatively small, compared to a and $20 billion for . still, analysts do expect this to dent some insurers' fourth qur results. >> the hits will be meaningful, but manageable. i would expect -- to have bigger names, most likely somebody saying like an allstate, because they have such a large presence and homeowners will take some
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material losses. interestiny enough, you could see progressive takes and losses, that will be something of a new development for them. >> many national carriers limited their exposure in florida due to strict regulati but small cap names includin universal insurance holdings, heritage financial and federated national holding company have large florida operations the reason those stocks tumbled as the storm approached. but none of that takes into account the broader economic impact. risk assessment firm, kennit i think analysis, thinks that could make this storm a top ten disaster event. the jacques alone could cos $3 billion but as people return to their homes and cleanup begins, it will take some time to sort out the true cost of weathering matthew. nor "nightly businereport," morgan brennan. >> twitter continues to tumble
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as takeover interests dwindles further and that is where we begin tonight's market focus. over the weekend, bloomberg reported salesforce.com was unlikely to make a bid for twitter and this follows a report from rico last week that said apple, disney and kboolths were likely out. ceo marc benioff had expressed interest in th social media company, but stopped short of saying he would make a bid. result? shares tumble, 11.5% today to 17.56. manufactu equipment maker dover slashed its profit and revenue forecast for the year, the company citing producti problems in its refriger unit and lower capital spending in some markets. were off more than 7% to $66.69. and the pharmaceutical company, novartis said its experime drug for treating breast cancer slowed the disease when used in combination with
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another therapy. they would seek approval for treatment from u.s. and european regulators this year. shares dow to >> a another cancer drug shows promise. biotech company, tasaro said its ovarian cancer treatment performed wel during a trial. the news also prompted bank of america and merrill lynch to upgrade the stock to buy from neutral. surged nearly 19% to > biotech company lumina warned of a sales shortfall for the third quarter. the company which focuses on jennetics- research said the results are due to less demand for its sequencing instrument also said fourth quarter res will flat to just slightly higher. shares plunged 24% in after hours. but they finished the regular session up 36 cents to 184.85. if you don't work a traditiona 9:00 to 5:00 job, you' not alone.
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according to a new study, the number of people making a living as independent workers is growing faster than even originally thought. as dierdre bosa reports from san francisco, it's not just changing the way americans work, but also the way we live. >> reporte grab a car share, post your home for a weekend get-away or hire a freelancer to help you move. rarely a day goes by we don't hear about the shared economy and how it's transforming the way we work an. but up until now, it's been difficult to quantify. mckenzie is out with a report that aims to do just that. it found that the independent work force made up of anyone who gets paid by task or sale from loft drivers to freelance plumbers is bigger than official data suggests and growing fast. >> there is more people doing independt wor than we had in the united states, we found that between 22 and 28% of the working age population is involved in independent work and
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deriving indep incomes doing this kind of work. >> reporte tha nearly 70 million people that put together their own income streams and shaped their own work lives. and the majority do it because they want to, and not because they need to. like barron lambert, a personal trainer that has built his business in the gig economy using thumb tack's online marketplac >> i can set my own schedule, i get to work with the people i choose t work approximate with. whether clien or new trainers we bring and i get to do what i want. >> reporte you it's not just millennis who make up the independen work force. mckenzie found they represent less than a quarter of the space. while seniors, defined as those over 65 years old make up nearly 10% of the group. the survey also revealed a work force diverse in terms of gender, incom and education levels, and cuts across all occupation a
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you could say the heart of the gig economy is here in san down market street, you've got uber's headquarters and airbnb. while gig gets all the headlines, it represents just 15% of the independent a vast majority of independent workers still don't use digital platform that could represent a big growth opportunity for this dynamic work force. for "nightly busine i'm dierdre bosa, san franc coming up, why your supermar may be loaded with food, and it's costing consumer billions. but first, a look at how commodit and currencies fared today. th bond market was closed for the columbus day hol
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here's a look at what to watch for tomorrow. alcoa reports earnings and it will be the last report before the company splits into two. the supreme court will hear a patent dispute case between apple and samsung. >>! shareholders will be looking for details on its china business spinoff at its investor day. an tha is what to watch for se crimi have turned their attention to food in the quest for a profit. they replace pricey food with cheaper alternatives, or water liquids down with less expensive additives. as andrea day reports, food fraud is costing consumers . extra virgin olive oil has a long, rich history of fraud. >> from olive oil to honor knee. >> you can't tell it's been cut. >> according to larry oilimsted, our supermarkets are loaded with fake foods. >> nationwide, about a third of
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our seafood is mislabeled. at retail, you can't tell red snapper, which is really expensive from tilapia, which is really cheap. >> most of the time, you get something like tilapia. and consumers pay the price. according to the michigan state university food fraud initiative, food fraud costs 30 to $40 billion every year worl and dining out? >> very few people realize that restaurant are sort of the wild west. they don't have to adhere to the same kind of labelling rules retailers have. >> food fraud has and does cause illnesses and has actually caused deaths in consumers. >> karen is a scientist at ufp. the group sets standards for medicines in foods. on her watch list, processed foods. >> resourcing ingredients from all over the world and putting them together into a finished food product. this increases the opportunity for fraud. >> like frozen pizza that can have dozens of ingredients. usp created a database for companies loo to prevent fraud.
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>> you can quickly identify which ingredi are prone to fraud, what what about used and which of those might be hazardous. if you look at somete paprika that' been adult rated with 19 different substances. if you're -- a manufacturer and you're being duped by one of your suppliers and that comes to light, certainly there's brand the fda and u.s. da are just two agencies that regulate food. according to the fda, combatting food fraud is the responsibility of both industry and regulatory authoritie the fda inspects manufacturers to make sure they're meeting requirem for good manug practices and also conducts label reviews during these inspections. and the usda tells us it, quote, ensures that meat, poultry and processe egg products entering commerce are safe, wholesome and correctly so what can you do? well, omahasted tries to avoid heavily process food, because they can hide a lot of fake
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ingredient when you can buy food in their most whole form. like coffee beans, whole fish and cheese. so y always know exactly what you're get i'm andrea day for "nightl finally tonight, two professors one from harvard, the other from m.i.t., awarded the nobel prize in economics for their work on contract theory. according to the royal cad believe sciences, their work has helped shape business, finance and publ and that will do it for "nightly b for tonight. th for joining us, i'm sue herera. and i'm tyler mathisen. thanks from me, as well. have a great evening, everybody. we'll see you back here tomor
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