tv Nightly Business Report PBS March 22, 2016 7:00pm-7:31pm PDT
p. this is "nightly business report" with tyler mathisen and sue herera. >> fragile union. how today's terror attack threaten the global economy. >> airports on alert. what our government is doing to keep key transportation hub here safe. all that and more tonight on "nightly business report" for tuesday, 22nd. good evening, everyone. welcome. brussels, belgium, it's the defacto capitol of the european union. it's where companies like amazon
and microsoft and google's parent company alphabet are increasing their presence. today it's where explosions hit. it killed more than 30 and resulted in scores of injuries. this is the fourth attack in europe in four months. security has been heightened across the continent. travels and transportation, a key pillar of modern economies, disrupted. all of this comes as the european economy struggles to recover and continues to feel the pressure caused by the migrant crisis. we're jointed tonight from brussels. what's the latest? >> reporter: good evening. right now brussels is a city that's subdued. it's questioning the leadership not just in brussels itself but belgium and the european union. what we saw earlier today was serious, coordinated attacks. we understand that belgium police are searching for a man
they believe are ataconnected w the attack. his image was caught on tv just moments before the first two explosions at brussels international airport. the belgium police are asking for anyone to come forward with his whereabouts and identity. we're steps away from the metro station. the area where the third explosion took place later in the morning. the ministers go to meetings every single day. this is striking at the heart of europe. >> are raids ongoing so far as you can tell and i gather there are some complications having to do with belgium law about whether or not raids can be prosecuted after certain hours of the day. >> reporter: that's right. you can see behind me this is a city that's almost asleep as
well as being subdued. you have to remember this is europe. this is place where hours are strictly adhered to and also jurisdictions as well. we know the raids are ongoing. whether or not they prosecution will follow and it's a bigger question. the other question for the belgium prime minister. many people being critical asking what's happening next. he's come out with strong statements. he tweeted this country will defend its values and won't be subject to the barbaric attack. many people are questioning if they are ready to take this on. >> one of those raids produced another explosive device and chemicals leading some to speculate that perhaps other incidents were planned. do we have any clarity on that yet? >> reporter: there hasn't been much clarity on that. we understand this is not on snag was beyond the pail. belgium officials after they
were able to secure the third brother, they were involved in the paris attacks. they said the belgium prime minister saying another attack s problem. this speaks to the level of insecurity. they really don't know what's going to happen next. >> let me ask you a little bit about the fact that in brussels and in belgium there's lots of different jurisdictions and criticism about how well or not well they communicate on police operations and share intelligence. what can you tell us? >> reporter: that's correct. you have to remember, this is a country is at the heart of the european union. they speak several different languages. they speak english, french and
flemmish. they're speaking arabic. not only do you have different jurisdictions but so many different levels. barriers to communication and intelligence sharing as well. >> all right. thank you so much. live in brussels. ty. today's terror attacks shook the foundations of the european union. the assaults came weeks ahead of a vote in britain on whether the uk will remain in the eu. here to discuss the global impacts is david. always great to see you. i want to make distinctions between the eu and the currency to come and currency euro on the other. let's talk about the european union. does this weaken or strengthen the european union? >> it's tragedy. i think at first people pull together and try to make some
sense out of it and make some direction out of it. the country are being forced more and more to look out for themselves. they have to act in their own self-interest. i think this is part of the european union decline. not necessary the euro's but the european younion. they're supposed to have open borders and allow investment and trade to flow among them. that becomes difficult in this situation. >> does it heighten the odd about whether the june vote to stay a part of the eu of those that want to exit? >> i think it makes it harder. britain will vote yes or no. the problem is this kind of attack focuses the british opinion on the risk of brussels, the expense of brussels.
it also focuses on the bureaucratic nature of europe. that previous report discussed how hard it is for europe to operate among itself. if you're sitting in britain you say we'd be better off without that. i'm worried that's what's going to happen. >> are these attacks as you sit and look at them an attack on the european union per se? in other words, the people who claim responsibility for this say this attack was in retribution for belgium's support of and participation in raids that targeted isis in the middle east in syria and so forth. france the same thing. attack us, we're going to attack you. stay out, and we won't bother you as would be the case in countries that have not participated in that. >> well, i think that's the hope of radical islam. that's one of the war techniques to scare the opponent into
inaction and so certainly they're hope in europe is the countries will freeze and respond that way. europe is in a weak position for this because they haven't had much of a defense budget. they also don't have unity on what to do about the refugee inflow. this is a giant human catastrophe of the flow of refugees that want to come in and the expense of it. europe has multiple problems to deal with. what's the right thing to do and how do you pay for it? >> what about doing business in europe. this is the fourth attack in four months. they were not small attacks. does it deter u.s. companies or other companies from around the world from doing business in europe? what's the economic global impact? >> it does deter. world growth has been so weak that you may not notice the
deterioration. the bigger issue is in the long run over the next 10, 20 years there won't be enough investment. the euro itself might come under attack which would be a catastrophe for the world if it began breaking up. >> you just answered my last question. you think it puts pressure on it. do you think it will ultimately survive or not? >> depends on leadership. they've got to make a choice of how to defend it. the reason it's so dangerous is debt is denominated in euro. if you devalue, the whole thing unravels. i think it they will protect the euro as long as they can. >> that will be a real mess. thanks. >> thank you both. president obama condemned the bombing in brussels. he urged unity.
>> we stand in solidarity with them in condemning these outrageous attacks. we will do whatever is necessary to support belgium to bringing to justice those who are responsible. >> president obama called the belgium prime minister to offer his condolences and support saying the u.s. would stand alongside the eu. on wall street the trading action was muted. stocks opened slightly lower and climbed to break even midday. the dow jones fell 41 to 17,582 snapping the seven day advance. the nasdaq was up 12. the s&p 500 down nearly two. investors did buy up gold that saw prices rise. one group of stocks garnered
particularly interest. >> reporter: the attacks focus attention on airlines and travel stock. airlines stocks in europe and u.s. were done 2% as were cruise lines like royal caribbean and travel sites like priceline. terror attacks have had only a limited short term effect on the global equity markets. stocks tend to dip and rise a few days later. some stocks like the company that runs the paris airport took a bit longer to recover but overall even airline stocks quickly went back to performing with the overall market. airline and travel stocks did underperform in january and february but they underperformed because of concerns about a recession slowing down travel, not on terrorist concerns. for "nightly business report," i'm at the new york stock exchange. ncht a flight from brussels landed safely in orlando. there was no announcement on the
flight about the attack and the passengers did not have wi-fi. they were told of the bombing when a caravan of law enforcement officials met them on the tarmac. the orlando airport wasn't the only one to increase security measures. airports across the country were on heightened alert. marry thompson reports from newark international airport in newark, new jersey. >> reporter: terror strikes abroad and in u.s. cities like new york, officials prep for the worst. >> expect to see extraordinary nypd presence out over the coming days as a sign of our readiness to protect people at all times. >> reporter: at newark liberty airport stepped up security very visible. the travelers showed little concern about a similar attack at home. >> i thought there might be more delays this security. i feel pretty safe. >> i'm a seasoned traveler. you have to do what you have to do. i'll be okay. >> reporter: united airlines and delta rerouting flights to
belgium. 400 of them in and out of the brussels a cancelled tuesday. while it won't impact domestic travel, they would if they were traveling abroad. >> i wouldn't want to put myself in that position too soon. >> reporter: american airlines offering refunds if the plans impact. hotel operator offering to waive inhalation fees for the prop properties in brussels. businesses making quick adjustment to terrible circumstances. i'm mary thompson for "nightly business report." >> following today's attacks, a number of u.s. wireless carriers waived their fees. at&t and, verizon, t-mobile and sprint offering free service for those trying to communicate with friends and family. facebook activated the safety check for users located in
brussels. it automatically sends your status to friends in the form of a notification that you are safe. a court hearing between apple and fbi wads cancel today after the government revealed a third party hacker may be unable to unlock the iphone. it would also eliminate apple from making a back door entry. are we relieved or not that the government found another way. paul, welcome. nice to have you here. >> thank you. >> if this is the case, if there's a third party, what's your reaction to that development? >> well, i have to tell you, if this is correct, and they have found someone that can help them unlock the key to get intelligence out of phone, i'm delighted about that. i think it's fantastic. >> why? >> because we need the information. the end of the day, this is why this is such a unique situation.
this is not an example of the fbi looking to have an intelligence gathering exercise. this is part of a criminal investigation post a terrorist attack with 14 people killed on american soil. in order for us to get information from this phone, if it's a third party, whoever it is, it's critical for us to have that information so we know who was involved in the attack and also if other attacks were being planned. >> does the incident today and the arrest on friday of one of the terror suspects in paris who reportedly used encrypted messages to communicate, does it strengthen that silicon valley needs to cooperate more with authorities? >> it does. this isn't a full court press against apple or corporate
america. measurem and balance. when we talk about encryption, we want people to feel their communications are safe and private. l the line in the sand so that we clearly understand that in cases like this, levels of encryption are fine on the privacy side but nothing will supercede us keeping people safe at home. >> let's say the justice department succeeds breaking into this phone or develop a get to get into other phones. aren't we going to sooner or later find ourselves back in this situation because isn't apple then going to respond by a new and more difficult to break form of encryption? >> absolutely. you're 100% on point. apple has some of the most brilliant minds in the world. they have over 100,000
employees. if that comes to fruition and the fbi has a source that can get into this phone. you can bet that apple will find different encryption. >> thank you very much for your perspective. we appreciate it. still ahead, shares of nike have been on a long run. what tripped them up in the most recent quarter. we'll take a look. a revenue miss for nike. the largest active wear maker said a strong dollar hurt. they reported earnings of 55 cents per share. that was better than expected 48
cents. 7% better than a year ago. investors weren't all that happy with that revenue number pressuring shares initially after the report. sarah takes a closer look at nike's quarterly result. >> it was a mixed quarter. profit came in much better than expected. it was the overall sales number that came this light. two week spots. china coming in a bit less than analysts expected and western europe as well. the common theme could be the stronger u.s. dollar chipping away at nike sales. nike says sales grew 8% from a year ago but that number would have been 14% higher if you take out how much the sales were dinged by the stronger u.s. dollar. as far as the outlook ahead, nike's bullish about its prospects in china. they gave future orders to investors a look forward. it says that in china, those orders are set to grow 36%.
keep in mind, nike has been a high flying stock out performing the s&p 500 this year and over the last 12 months. it was priced for a good quarter. that miss on sales could have an impact on the stock. for "nightly business report," i'm sarah isen. a warm winter drags down sales for g 3 apparel. the seller of calvin cline and levi's saw shares tumble. the company plans to reduce its outer wear offerings next year. g3 issued guidance for the year. it came in below expectations and shares of g3 fell sharply, more than 19%. shares of acorn surged after the drugmakers posted 2015 reports and 2016 guidance. last year the company said it would restate the 2014
financials after it identified accounting errors. they plan to file the report with securities and exchange commission by may. shares surged more than 40% to 2632. the securities software company semantic initiated its buyback program. they are down $18.82. lumber liquidators paid the board $2.5 million to agree that the flooring company products contained formaldehyde. they will practice certain compliance procedures to ensure products meet the regulators requirements. shares soared 16%. general electric is exploring potential business opportunities in cuba. the company has signed memorandums of understanding
with the cuban government expressing interest in selling aviation, medical and power products in that country. shares of general electric fell to 31.06. beginning in may, carnival be offer cruises from the u.s. to cuba making it the first u.s. cruise company to provide travel between the two companies. the ceo said there's huge demand for u.s. travelers to see the caribbean country. shares fell 2% to 48.75. five below topped earnings and sales estimate for the latest quarter and saw a 3% rise in store sales. the company issued weaker than expected outlook for the year. shares initially fell in afterhours trading. the stocks ending the regular session down more than 1% to 38.89. the supreme court sided with workers at tyson food. they sought to get overtime pay.
tyson challenged the class action judgment. the 2014 decision was upheld. the fda says it's requiring new, stronger warnings about the risk of addiction, abuse and overdose for short acting opiod pain medications. the decision is seen as a step toward addressing and curbing the epidemic of narcotic use in the u.s. the addiction was called one of the most devastating crisis. tax day is a few weeks away. the tip on how to avoid the one thing no one wants, an audit. silicon valley has lost an icon.
andy grove passed away at 79. he was instrumental in building intel into the world's largest chip company. grove was ceo of intel from 1987 to 1998. he served as chairman until 2005 and was time's man of the year in 1997. a sobering study on retirement. only about 20% of the americans are very confident in their financial future. according to the latest annual survey that percentage of workers hasn't changed much in 26 years. in this survey, roughly four in ten workers said they and their spouses have less than $10,000 in savings and investments. speaking of investments, it's time to get out those income statements because tax filing season is here. every tuesday from now through april 18th, the deadline, day, we will tackle a different topic
to help you navigate this annual task. let's start with what taxpayers worry most about, maybe a little more than they need to. how can i avoid getting aaudited, besides not cheating. >> less than 1% of americans are being audited. it really impacts you if you make a lot of money. if you make over 200,000 you'll have a 3% chance. make over a million dollars, you have a 9% chance. also if you're self-employed, not that they think you are hiding anything but your tax return is complicated. that can raise a red flag and if you make large charitable donations, make sure you document everything because that's another red flag. >> if you fall into that 9% or something lower than that but a high risk group or if you've been audited before, what can you do to lower your chances of being audited?
>> i hope donald trump is listening. >> you want to report all your income. they will cross reference and match the numbers. some people say i'm going to lump all my dividend income together, all my investment income together. each account they want to see how much you have and make sure you break it down in that way. just be accurate with the numbers. that's the best thing you can do and when you do, you're filing online, there's a lot of things that can help you. >> are my chances of being audited higher if i file early or higher if i file later? >> it's much higher if you miss that deadline. the deadline is critical. if they miss it, they don't pay what they owe. that's another red flag. even if you file for an extension, make sure you pay what you owe. that could be another red flag. >> even if i get that 4868, the form that gets me the extension.
i know that stuff. >> he knows the number. >> you have to pay. >> april 18th is just going to fly by you. if you do owe know you have to pay that even if you file for the extension. >> thank you very much. >> that does it for "nightly business report." i'm sue herera. thanks for joining us. >> i'm tyler mathisen. have a great evening. see you back here tomorrow
>> the following kqed production was produced in high definition. [ ♪music ] >> in san josé a new gallery is dedicated to showing only local artists. >> cherri lakey: a lot of these people that work in those corporations are also artists. >> you've undoubtedly heard but did you know that its revival may have started in berkeley? and experimental music pioneer pauline oliveros. >> pauline oliveros: one of my major accomplishments in life was going beyond fear through music. >> this time on spark. [ ♪music ] >> major funding for spark is provided by the william and flora hewlett foundation, supporting creativity and innovation in the arts since 1967.