tv Nightly Business Report PBS August 16, 2017 5:00pm-5:31pm PDT
>> announcer: "nightly business report" with tyler math i sen and sue herera. business rift, the president's advisory council made up of influential ceos have been disbanded. what that could mean for the economy and the white house pro-growth agenda. tough talk, negotiations on a path for the north american economies, two industries have an awful lot at stake. split addition. they are divided over interest rate hikes, leaving investors with an uncertainly path. more on "nightly business report." good evening. a business backlash at the white house. for the past several days we've
been telling you about the ceos who have decided to step down from the president's manufacturing advisory council in the wake of the president's remarks on the deadly rally in charlottesville. today the council hag come toage bankrupt end. also disbanding the separate strategy & policy forum, led by blackstone's ceo steve schwartzman and the members who included the ceo of walmart, the nation's biggest employer. gm's chief and the head of jpmorgan chase. all of this happened in dramatic fashion. eamon javers is following thissyout i'd trump tower in new york city. >> reporter: after the fireworks yesterday, this morning began very calmly. we saw a few members of the trump family coming in and out, but no high-rankings members of the administration were spotted here at trump tower. then in the early afternoon, the first hint of what would become a deluge, the ceo of 3m saying
he was in fact leaving the advisory council. after that we got word of a conference call of elite ceos led by steven schwartzman. once that conference call got under way, we learned in fact they had decided to disband that council. moments later, we saw a tweet from the president of the united states, saying rather than putting pressure on the business people of the manufacturing council and strategic and policy forum, i am ending both. thank you all. the president there insinuating it was his decision to end both of these councils, though we had had reporting that the ceos made the decision themselves before the president's tweet. throughout the afternoon we got additional statements from members of all of those ceo advisory councils, distancing themselves from president trump in one way or another until we got the statement from aetna's ceo that he was ashamed of the president's behavior, some of the toughest criticism.
the president left trump tower to the bed minister golf course, we'll see what tomorrow brings. i'm eamon javers. the president has had two public ruptures, one with the gop leader in the senate and now -- how enduring are these splits. how much harder, if at all do they make for progress on the president's agenda. jeff bush, welcome. it's easy to say things like the president has lost business or the presidency is collapsing, but my question for you is whether the country and businesses beyond manhattan, beyond the beltway, and beyond the fortune 500 see it this way. what do you think? >> i think that's great insight. certainly there have been a lot of challengeses for the president over the last several weeks. once you get outside the fortune 500 companies, there's still an appreciation for the long-term
agenda of the republican party, lower taxation and regulation. that's while there's a disconnect in the interim, i think the long run businesses will still support the republican agenda. >> do you think that the president will be able to push that agenda through with republicans on the hill? >> the republicans ran on the same plat much as donald trump, lower regulation, lower taxation, and so forth. they know they'll be judged on that in the midterm elections. therefore they have to get something going or they'll have to answer to the voters next november. >> does getting those things done, the agenda items, the platform items done become -- how much more difficult do they become if the president becomes in some ways an untouchable or a pa rya to some views? >> well, the president hasn't been overly hands on with the legislative agenda thus far, so i'm not sure this changes that
dynamic tremendously. the legislation starts within the legislative branch. i think that will continue given the current agenda of the republicans. i think the one exception would be the affordable care act repeal and replace effort. the president and his administration wanted to put additional effort on that they're in september. i think that's where we could see some diminished graph taos around the hill and so forth, in trying to push that agenda. >> are you surprised we haven't seen more volatility in the market because of the headlines that have been coming out? i was certainly. we did see a bit of a sell-off in the stock market, but then it came back. what's your read on that? >> well, interestingly we had said since january of this year to anticipate an increase of roll stilt in september and early october as it relates to the debt ceiling and the budget issue. the budget issue is the real issue. this is ancillary things, including north korea and the press conference that
donald trump held earlier this week, those things amplify the increased volatility that we an around the fiscal dialogues later this month. >> thank you very much, jeff bush, with the update in tulsa. the top trade adviser demanded major changes to the north american free trade agreement, known as nafta. he didn't mince words that the president has blamed for job losses to mexico. >> views of the president about nafta, which i completely share, are well known. i want to be clear that he is not interested in a mere tweaking of a few provisions and a couple updated chapters. we feel that nafta has fundamentally failed many, many americans, and needs major improvement. >> as negotiations of that trade pact begin, we have two records tonight on two industries that
could be impacted by any changes. aditi roy reports on what's at stake to the agriculture sector, but we begin tonight with phil lebeau on the auto business. >> reporter: be honest, do you know where your car was built? most people don't. increasingly they're coming from the south of the border. more than 4 million autos with the majority of the winding up sold. >> nafta negotiations are pressured in all sorts of ways, but certainly having that growing footprint and growing capacity in mexico is one of the pressures on the negotiators at the table. >> reporter: the trump administration wants more of what's sold in the u.s. to be built in the u.s., so it's likely to push for automakers to use more parts and components made in america or in the nafta region. otherwise they could be hit with a tax that could add hundreds to the cost of a vehicle.
despite the president threatening 35% tariffs on autos built in mexico, most in the industrial expect any changes in the trade deal to be less dramatic and taking years to implement. >> the automakers and suppliers have timelines that go much longer than what we're looking at for the nafta renegotiation, plus once we know what's coming out of nafta, there's a period of time before things start to phase in. >> reporter: if you're looking to buy a new car or truck in the foreseeable future, these nafta talks will not change what you end up paying. depending on what happens, in a couple years, vehicleses built in mexico or canada could come with a higher sticker price. phil lebeau, "nightly business report," chicago. farmers are watching the talks. many have benefited from the trade deal, but they also have a wish list of improvements. aditi roy is in america's garlic capital, gilroy, california. >> reporter: harvest season is
in full gear in gilroy, california. the bell peppers are shiny, red and in perfect shape to go to vendors and ultimately customers' dinner tables. has it been a good season so far? >> yeah, so far so good. you know, production has been good. the markets have been good. >> reporter: in a few months when they peppers aren't in season, yusigi farm owner says he relies heavily on farms in mexico to supply bell peppers so he can stay in big year round. >> there's a four-month window where we can't product in california, it's too cold, the days aren't long enough. it's a big part of our program. >> reporter: as the trump administration enters renegotiations with the mexican and canadian governments over nafta, some farmers are aingely awaiting the outcome. for added tariffs could in the short run affect up to a fifth of his revenues. >> doing business with mexico is
a very important part of doing business here in the understanding for producers like us, and that revenue all gets generated up here in the u.s. everything gets imported, sold up here, puts food on the tables for everybody up here. >> reporter: the american farm bureau says canada and mexico are critical markets for u.s. agriculture. since nafta was enacted, the organization says u.s. agricultural exports to those countries have risen more than 300% to about 38 billion dollars last year or about a third of total u.s. ag exports. the american farm bureau says that helps boost farm incomes, which have been cut in half since 2013 because of low prices. >> we're looking at different opportunities to increase demand, but we certainly don't want to lose one of our most important markets and our important customers in canada and mexico. >> reporter: still, there are some items on farmers' wish
lists for nafta talks. some poultry and dairy farmers want more access to canadian markets, somewhat less red tape to registers genetically modified crops and reduction in wait times at the border. >> it's the unknown that worries us. >> reporter: but he would be happy if things stay the same. >> that would be the best-care scenario. >> reporter: if other protectionist measures, some trade groups warn in the long run consumers may have to shoulder the burden for paying higher prices for produce like this. i'm aditi roy, gilroy, california. the top government tax writer says congress is forging ahead. chairman kevin brady says members of congress are making pros on one of the republican party's top priorities. >> 2017 is our year to deliver to make history on tax reform.
in fact while we may have not be in washington, tax teams are meeting, sometimes twice daily. >> congressman brady added the tax committee will update the white house on their progress soon. potential reforms out of washington being watched very closely by the federal reserve. according to the minutes of the last meeting, persistently low inflation is dividing policymakers at the central bank. hampton pearson has more. >> there's a split over exactly when there could be enough fed interest rate hike. monetary policy makers struggling to balance concerns about the decline in inflation with signs of a job is market that continue toss tighten. one faction expects inflation to be at or below the fed's 2% target for the next 12 months. they observe, quote, they can afford to be patient in deciding when to increase the fed fund rate. the other set of polymakers, if
you will, are concerned about pressure from a lake market that's already at full employment and could tighten further. another piece of news from the fed minutes, still no exact date as to when the fed begins to plan to launch the rue ducing the bond portfolio. they decided instead to wait until the next meeting when they would have more information about overall economic conditions going forward, although at that late july meeting, there were fed members that wanted to announce a date certain for the beginning of the bond buyback program. turning now to concerns about the overall economy and possible speed bumps, there is concern about the lack of action on fiscal policy, whether it's the trump white house or congress. monetary policy makers are concerned about the lack of action on fiscal policy, trade and health care. they say the is slowing down spending and hiring in the
private sector. which would helped boost overall economic growth, but they remain largely positive about the overall economic, especially jobs and increased consumer spending. next up for the fed, the annual economics symposium next week in jackson hole, wyoming, the next meeting of the fomc is in september, at the fed, i'm hampton piercing for "nightly business report." on wall street stocks struggled to hold on to the gains after the release of those minutes. ? strategists say the tension around the white house may be contributing to uncertainly in the market. 9 dow jones industrial average rose 25 points to 22,024. the nasdaq added 12. the s&p 500 was up 3 1/2. still ahead, what target did that most other retailers can't.
tart's turnaround may be taking hold. the retailer was brought back shoppers. sales rose, profits beat expectations and the company issued an upbeat outlook. that sent the stock higher. courtney reagan has more in retail. >> it's wrecking retailer sales and profits. and this quarter target is one of them. comparable sales thanks to the highest store traffic in it
2 1/2 years and online sales growth of more than 30%. target is more confident about the sales and profit expectations for the rest of the year, it says it's still being prudent. >> we have seen this with target before where we've seen good quarters with good traffic and good e-commerce and sometimes it's not been that consistent. so i think it's a step in the right direction and they're doing a lot to improve their business, but we need more sustainable improvement to feel better about the direction they're moving? >> target paid a price. it costs target more to fulfill online orders and have lowered price toss better compete. as a result, profit fell. while sales growth was broad, grocery is still struggling to find growth. the problem, because grocery is what gets customers into the store, the retailer has hired two new executives to help, one from general mills and one from walmart. as part of a three-year plans, target is spending $7 billion to
billed new smaller stores, remodel existing stores, improve its website, delivery speed and add new brands. earlier this week, target bought grand junction, a transportation start-up it hopes will help deliver online orders more efficiently. while it exceeded expectations, it's not yet a trend, just one quarter, and the most important part of the year is still ahead. for "nightly business report," i'm courtney reagan. sales felt for the seventh consecutive court for cisco. after the bell, the technology company said weaker performance in its switches and routers business was behind the revenue slip. the results still managed to top analyst expectations, however, earnings fell as well, but they matched estimates. sharing initially fell in the extended session, but they did finish the regular day up fractionally at 3234. l brands reported stronger
than expected news even as the parent of victoria's secret suffered lower sales due to the decision to no longer sell swimwear. it gave weak guidance for the current quarter, and that initially sent shares lower. they did finish the day higher by 1%. urban outfitters shares rose following the better than expected results after the bell yesterday. same-story sales felts at the company's namesake and anthropologyie brands. it says it's rolling out several initiatives. shares rose more than 17% to 1976. united healthcare said its president would take on the role of ceo as the current chief executive transitions to the position of executive chairman.
shares fell fractionally. and kansas city southern raised the quarterly dividend to 36 cents a share. the yield on that stock is now more than 1%. the railroad operator also replaced its current share buyback program with a new $800 million plan. shares rose 1%. paypal about bar users from accepting donations to promote hate and violence. this comes following revelations that the company played a key role in raising money for the white supremacist rally last weekend? charlottingville. in a blog post, the company outlined its policy of not allowing its services to be used to advocate racist uses. visa and mastercard are coming under pressure to do the same. other companies are popping up to take their place. contessa brewer looks at what call the alt-economy. >> as the kay otherwise unfolded, daily stormer found
itself in the thick of the action. it had heavily promoted the rally even offered rides of what they called the hate van, an alternative to uber, which had refused service to white supremacists. now daily stormer has moved to a russian domain, as american companies moved to distance themselves, they leave a voight increasably being -- the alt-right is largely self-funded, members of the movement donate to their favorite organizations. if go fund me wos hon them, researcher will. most posting ask for legal funds for white supremacists and neo-nazis. daily storming has raced money on this site alone. you can pay with credit cards or bitcounsel. counter.fund will offer an
intermediary wall, it even converts bitcoin to cash. funneled in part. it's founder told me we can't trust these companies, because they're controlled by the left. we need to build our own systems, a shadow economy. we can't rely on any of these companies. dickinson pictures counterfund as a grocery co-op with members buying from each other and job boards where applicants would have no fear of being fired for controversial views. when youtube changed the way it compensates content creators, many artists filmmakers and -- joined patreon, but it kicked off lauren southern. it offers a platform to pay creators who push each the most extreme speech, as much as 15% of its revenue comes in bitcounsel to allow anonymity
and cut out the middle man. the founder insists he's not a white supremacist, simply commit to do open discourse. he told me we're at a -- you can have all the opinions you want as long as they're the right ones. gab welcomes all pins, a social media alternative to twitter and facebook. it's raised more than half a million in 36 days and counting, gab is not only protecting defense, but planning a new crypt occurrently to compete with bitcoin. >> if paypal is listening, we're going to replay paypal and replace the whole system. we're also good deal to replace credit cards and all the bank transaction fees these big banks take. gab is not about left or right. it's an economy populist
movement. >> a movement that's making money and becoming more sophisticated all the time. contessa brewer, "nightly business report." coming up, is apple using its massive cash pile to become a player in hollywoo apple will take on hollywood. it's reportedly investing a billion to make sure it's a real competitor in the crowded market for original content. julia boorstin has more. >> apple has set a budget of about $1 billion to produce and license original content over
the next year, according to "wall street journal." expected to include those shows in a new video-focused offering that would launch in addition to apple's $10 a month subscription app. the billion dollar number is significant, but in the grand scheme of apple, it's pretty modest. apple has $225 billion in revenue. they will spent about $12 billion in r&d, and this is a relatively small number for apple, given its huge size. >> so far apple's investment in original content has been limited, and tied to apple's core focus on music and apps, such as carpool karaoke and planet of the apps. that makes this push into content like "game of thrones" is a big departure. apple declined to comments, but it's hired some veterans to run the video efforts, also tapping
the former head of wgn and tribune studios to head its area for development. >> if it -- that's still just about half of what time warner's hbo spends annually. now amazon reportedly spends about 4.5 billion, and netflix will spend $6 billion this year. >> this position of sorting starting later in the game is not unusual for apple. now, whether they will be ultimately successful or not remains to be seen. they certainly are the war chest to win. i mean, they are more cash than anyone else, and they generate more cash flow than anyone else. >> apple will not want to jeopardizes its relation ships. apple earns 30% of subscriptions through the app store for the first year after which its take is 15%. one advantage apple has as had
fineness. this is a bbc world news america. funding of this presentation is made possible by. the freemen foundation. and coal fuller foundation pursuing solutions for america's neglected me. planning a vacation escape that's relaxing. is a lot easier than you think. you can find it here in aruba. families. can all find. on the i