Skip to main content

tv   Nightly Business Report  PBS  January 11, 2017 6:30pm-7:01pm PST

6:30 pm
. >> this is nightly business report with tyler matheson and sue herera. funded in part by hss. >> our valued principles are patient first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient in the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do. >> they are getting away with murder. the pharma. the pharma and a lot of lobbyists with a lot of power. >> the president-elect takes a swipe at the drug industry and
6:31 pm
immediately shares of some of the world's biggest pharmaceutical companies stumble. what's next? >> donald trump outlines plans to quarantine himself from his complex empire. is it enough? >> pushing up prices. why increased competition is not able to bring down the cost of life-saving medicine. the second part of our series and more on nightly business report for wednesday, january 11th. >> good evening, everyone and welcome. for the first time in six months the president-elect held a formal, but not sedate news conference. he took questions on a range of issues at trump tower in manhattan that captivated not only main street, but wall street. the incoming president by terms gracious thanked fiat for their u.s. investment plan that rch etted up general motors to do the same. he took a shot at the f-35
6:32 pm
program from lockheed, the most expensive weapons system and repeated the pledge to repeal and replace obamacare. it was his staff on the drugmakers that hit the stock market today. fizer and johnson & johnson shares were the worst performing stocks today and look at the sharp decline in the biotech etf midday when mr. trump described the industry as getting away with murder. >> the drug industry has been disastrous. they are leaving left and right. they supply our drugs, but they don't make them here. they are getting away with murder. pharma. pharma has a lot of lobbyists and a lot of power. there is very little bidding on drugs. we are the largest buyer of drugs in the world and yet we don't bid properly. we are going to save billions of dollars over a period of time. >> john harwood joins us from
6:33 pm
outside trump tower. can we assume that the president-elect put the drug industry on notice, especially when he mentioned that last phrase there. bidding by federal drug buyers like medicare which is something that the drug business resisted for years. >> no question about it. he is reiterating something he said in the campaign. the question of course is going to be does the republican congress go along with the president-elect on that issue? this has been a subject of contention between republicans and democrats since prescription coverage was added on medicare. democrats wanted to call for it and republicans said no, that's interfering with the free market and using the heavy hand of government to weigh down on the private sector. we will have to see how it ams can out, but the president-elect said he was going to advocate for the interests of blue collar workers across this country. this is one area where he is making a signal that he is going
6:34 pm
to follow-through. >> he repeated his pledge to repeal and replace obamacare. did he give a timeline at all? >> not a precise timeline. he said as soon as the hhs secretary dez ig me in from georgia is confirmed, they will ofoffer a plan that will be passed, he says, simultaneous or virtually simultaneous with the repeal of obamacare. what does the republican congress do? they don't have a consensus on what they wanted the replacement to be. >> let's talk about tax reform. he really didn't, right? >> he really didn't. he got a question about whether or not he was going to rapidly have a plan to overhaul entering taxation so that overseas profits would come home.
6:35 pm
he skipped that and he was going through a lot of subjects. dinging the press for their attitude and focus in particular. some outlets and of course the story about russian influence and the potential intelligence that had been gathered about that. >> that was the overhang at the event today. thanks very much from trump tower in new york. >> donald trump is not only the president-elect, but also a business man. today he explained how he will handle the financial and business conflicts of interest that will accompany him to the white house. robert frank has the details. >> answering one of the central questions after this election. how can the richest man ever elected as u.s. president separate business and financial interests from the oval office? the president of course is exempt from ethics rules, but trump started out the press conference saying he doesn't have to do anything. he passed up billions of dollars in deals since the election to
6:36 pm
avoid a conflict of interest appearance. >> i have a no conflict situation because i'm president. i didn't know about that until about months ago. it's a nice thing to have, but i don't want to take advantage of something. i can run business and run government at the same time. i don't like the way that looks, but i would be able to do that if i wanted to. >> he announced several steps to sprayed himself from the trump organization. first and foremost, he is stepping down as ceo of the company and will remove himself from operations and strategy. the company will now be run by eric and donald jr., his twos. they will have an ethics adviser to approve all major changes and they are not doing any new deals overseas and they will continue to expand in the u.s. his ownership will be put into a trust. it's unclear who the beneficiary will be. donald trump's attorney said in the press conference that he
6:37 pm
shouldn't have to destroy the business he created because he became president. the big question here is whether all of this goes far enough to solve the critics who worry about a pay for play or the possibility of trump employing and exploiting the oval office for financial gain. >> he got the ownership in his business and say that he is free of conflict of interest. he is not. there will be national security problems connected with this business empire. >> for nightly business report, i'm robert frank. >> is mr. trump's newly outlined plan enough to separate himself from the business empire? mark kendy is at the constitutional law center and james madison chair professor of constitutional law. welcome. it's great to have you here. >> there is a saying thaw shouldn't let the perfect be the
6:38 pm
enemy of the good. most people say that what mr. trump outlined is not a perfect solution to the problem. is it a good one? >> i think it's very imperfect. it's like swiss cheese. it has so many holes in it. it's good that he recognized that there is an issue. no question there, but by putting hiss in charge of the business, it's not really a fully blind trust. by not selling assets, he eliminated that option. he has contact possible with foreign governments that raises a question. for all of these reasons, while it's good that he has recognized there is an issue and has done so perhaps grudgingly, none the less, this is swiss cheese. there are so many loopholes on ways foreign governments can try to influence his businesses if they want to. >> it sounds like you are saying he has not satisfied what is
6:39 pm
called the e mollment clause. am i reading you correctly? >> i think that's right. he has certainly maintained his rights to have foreign business deals that are in place from what i understand remain in place. to have foreign government leaders provide e numration for services and other kinds of activities that are involved. i think the clause was very much geared towards preventing that from happening. i'm glad he recognizes that he has to perhaps cut back on new deals, but i don't think he solved the problem. >> thank you very much for your point of view. mark kendy is at drake university's law center. >> it was choppy on the street as investors swooned from the comments. he managed another record close. the dow jones rose 98 points to
6:40 pm
19,954. the nasdaq added 11 to an all time high and the s&p was up 6. if we learned anything from today's market action, it's that this market is hyper sensitive. >> the markets had a slight kick up around president-elect donald trump's conference earlier today. drug stocks dropped as trump said drug companies will not get away with murder. companies like lockheed martin dropped when he said he would bring the jet fighter way down. okay. but why did the market move? there was nothing new here. we heard all this from trump before and stocks rise. it's hard to figure out. however the answer lies where we are in the markets right now. we are priced for perfection. that's the problem. the markets are like a coiled spring right now, ready to break out one way or the other.
6:41 pm
stocks are near historic highs. consider that. confidence is way high. investing sentiment is very bullish right now. volatility is very low. all this is good news, but it's a volatile mix. the stocks have moved on expectations of earnings and they will be much higher than 2016. it's all the turbo charge by the trust promises of lower taxes and less regulation and the stimulus program. that's where the risk lies. in the very real possibility that it's going to be some kind of disappointment in the next month or so. the market is not in the mood for any disappointment right now. here's whey think needs to happen. traders need to get a grip and stay calm and believe that better earnings will be coming, but not immediately. that expectations were much higher and earnings growth is not wildly inflated overall.
6:42 pm
if that mentality takes hold, they can look forward to a peaceful few months with lots of mostly sideways kind of action like we have seen. if not, it's going to be a very rocky winter. the new york stock exchange. >> did they hear what they wanted to hear from the president-elect? strategist at ubs joins us more to talk about that. good to see you as always. >> thanks. >> we heard a lot about international topics such as russia, etc. did the market hear what it needed to hear on the business aspect of the new administration? >> i think a lot of details that the market has been searching for on the new economic policy, that the health care and drug pricing comments came out of left field for a lot of investors and that was the focus of the market reacting. you saw a lot of stocks overall move down on that.
6:43 pm
then trump focused on the fact that he wants to create a lot of jobs and focus on faster economic growth. that is consistent with the narrative they latched on to since the election. that's assuaged some of the fears and stocks rebounded and finished basically where they were before the press conference started. i think it was a wash when it comes to the press conference. >> i heard of all different kinds of risks. market and interest rate risks. we have a new one. it's tweet and trump risk. what i wanted to ask you about, bob pisani talked about the market not conditioned to deal with surprises right now particularly well. do you empathize with that view? >> negative surprises are always going to be something that the market doesn't necessarily handle well.
6:44 pm
the rally since the election needs to be put in context. that can increase earnings per share between 5 and 15%. the market is up about 6%. it looks like a reasonable response to the trump's proposals so i don't think the market is vulnerable, but we need execution on the proposals over the next several months. >> that would be the risk that even though it's an aggressive agenda and he does have a friendly congress, if things don't move along as quickly as the market is factoring in and this is something they brought up a number of times, is that the risk for the market? >> that's one of the risks. there is always risk, but i think that if progress is not made on this, but say by the summertime and into the third quarter, especially on corporate tax reform, the market will be disappointed on that.
6:45 pm
>> the president has twisted business's arms one way or the other. president kennedy with the steel strike years ago and so on. is there a danger in playing that card too many times? >> i do think there is a risk here. you have a president or president-elect that is really getting micromanaging these very important corporate decisions. at some level it raises the question of does this mean that companies are going to earn lower returns on capital? that's not good for businesses down the road. right now it is very limited in terms of the companies he singled out and ad hoc. i don't think it has a brought implication, but something to keep an eye on. >> great to see you. with ubs. on capitol hill, rex tillerson faced questions from a senate panel as part of a confirmation hearing for secretary of state. he is arguably one of the most
6:46 pm
controversial picks and he was peppered with difficult questions on a number of issues. the stance on russia, climate change, relations with cuba and the iran nuclear deal and his important fortune. let's start with russia. what did he say about that? to that country and about the current sanction? >> he said he doesn't think the obama administration has been aggressive enough in terms of dealing with russia and the way the administration handled crimea and later into ukraine was weak. he thinks that the united states should have sent military hardware to the ukrainian military to help them budget defenses and send a stronger signal to vladimir putin. one of the toughest questions was from marco rubio who ran against donald trump in the republican presidential primary. rubio sparring with mr. tillerson over the issue of vladimir putin suggesting that
6:47 pm
tillerson might be too close to him and asking whether or not he thought that mr. putin was a war criminal for his actions. here's that exchange. >> is vladimir putin a war criminal? >> i would not use that term. >> what's in the record about what happened, you are still not prepared to say that vladimir putin and his military violated the rules of war and conducted war crimes in aleppo. >> those are very, very serious changes to make and i want to have much more reason for conclusion. >> i find it discouraging your ability to cite that which is globally accepted. >> that was one of the rounds of questioning. there were three for rubio. he went aggressive with tillerson in each one. >> indeed he was. where does he stand with climate change given a background in the oil industry. >> he said he would come around
6:48 pm
with climate change is a reality and united states and other governments ought to be doing something about it and this is a global issue. no one country will solve it himself. that's a bit of daylight for trump who suggests climate change is a hoax. on cuba he suggested that the current policy of the obama adinstation has not benefitted the people in the streets and suggested that the trump administration will be reviewing that policy possibly with an eye towards removing some of the president obama's executive orders on cuba. unclear where they are going to land on that, a much more skeptical eye towards cuba in the new trump white house that is coming in next week. >> reporting from washington. >> still to come, why prices of life-civing drugs are increasing at a time when they are needed most. the second part of our series later in the program.
6:49 pm
the president-elect made his pick on the department of veterans affairs. he nominated the under secretary for health at the va. he was a physician and the chief medical officer of several hospitals. >> volkswagen made it official as we reported. the auto maker agreed to pay more than $4 billion to settle the emissions scandal. six executives were charged for the alleged role in the schemes. >> work day lands the biggest customer so far. it's a huge one. wal-mart. that's where we begin the market focus. in a regulatory software maker
6:50 pm
said wal-mart bought a subscription to the human resources applications. they noted the transaction would not cause it to update earnings guidance. work day shares surged almost 10% and wal-mart little change at 68.53. super value posted an unexpected loss and lowered sales in the latest quarter. the grocery store operator said results were hurt by deflation and competition. super value shares were off more than 7% to $4.43. >> same store sales during the holidays citing weak performance on the e commerce business. the owner of zales and jared finished down 3% to $84.70. shares of united continental rose after that airline said after the bell they expected unit revenue for the latest
6:51 pm
quarter to fall less than originally thought. the company cited stronger demand around the holidays. the shares were 2% to $75.4. are what happens when competition does not result in companytician from a life-saving drug. the drug price crisis is next. >> last night we told you about
6:52 pm
a drug on the market for decades whose price has escalated with addiction to heroin and prescription pain killers. it is squeezing budgets for first responders. tonight we have a deeper look at what is pushing up prices in the second part of the three-part series. >> steven started using heroin when he was 12 or 13 years old. >> i probably did every drug imaginable. >> he lost many friends to overdose, but helped save lives with this drug. a drug which as the video shows saved his own life in 2008. >> there he is. he's back. >> a lot of people come back and say if it wasn't for you, i wouldn't be here today. >> it can reverse an overdose to opioids like heroin or prescription pain killers, but the soaring cost poses a problem to people on the frontlines of the crisis like baltimore health
6:53 pm
commissioner nina nguyen. >> the price in our cities has more than doubled in the last several years. >> several companies make generics. a product owned by pfizer rose in price for less than a dollar per mill liter to almost $16. another doubled in price just after. >> that really limits our ability to save lives. >> others are priced similarly. it's a situation where competition has not succeeded in bringing prices down. >> they have a large increase in demand and look at each other and say if anybody is coming in, we will gr to raise prices. they praise prices and it went up. overall those price increases have accumulated. >> they believe it is priced responsibly and has an access program to make donation.
6:54 pm
they note increased manufacturing costs in his home state of california. investment in research and infrastructure. they are rebates with 11 states and some say despite the increases, the prices are not that high when compared to new products on the market. >> the auto injector which we call the kor vassier. everyone loves this auto inject injector. it talks to you and guides you through the process. >> injection complete. >> it's very expensive. >> from the drugmaker, it costs $3,750 for two injectors, up more than 500%. the ceo said the company increased the list price to boost financial assistance for copays, that still weighs on the system. >> at the end of the day, they are paying for it. who is that somebody?
6:55 pm
the chances are good that it's you and me. via the tax money and the health insurance premium. >> they make donations out of the drugs, but rising prices are still a problem. >> we should not be dependent on the good will of the companies in order to deliver a life-saving medication. >> as the opioid crisis grows, the problem is urgent. for nightly business report, i'm meg terrell. >> pat the final part is what is being done about the escalating prices and what could slow the epidemic of drug overdose. to read more about the issue on our website, it is a problem a public health crisis. >> it absolutely is. >> in many, many places. >> they have done a great job. i can't wait to see number three tomorrow. that will do it for us tomorrow. i'm sue herera. >> have a great evening, everybody. see you back here tomorrow. >> nightly business report has
6:56 pm
been funded in part by hss. >> our valued principles are patient first and we want to deliver the highest quality care. >> the goal of creating and sustains value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do.
6:57 pm
6:58 pm
6:59 pm
7:00 pm
elaine: young simon bright, he's killed himself. frances found the body when she was jogging up by the old air field. man in blue: he received a fairly hefty blow with some sort of blunt instrument. barnaby: has that girl got anything to do with this? laura sharp. get that photograph circulated, and i want her checked out. medical examiner: she could have been another victim. barnaby: have you harmed laura sharp? tony: of course i haven't harmed her. barnaby: did you kill simon bright? tony: me? no. eric: she's gaga. every night she leaves stuff here. barnaby: on your visits to the, um--the little lane, do you see anyone? rosemary: there's been a big car there for the last few nights. tony: fancy driving out for a drink somewhere? carol: i'm not interested, tony.

12 Views

info Stream Only

Uploaded by TV Archive on