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tv   Nightly Business Report  PBS  August 25, 2017 5:00pm-5:31pm PDT

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this is "nightly business report" with tyler mathisen and . >> powerful storm hurricane harvey intensifies, with texas its target. refiners are u shut. oil output has been shut. ports and businesses are closed and the aftermath could ripple through the economy. roll back regulations. not so fast says the fed chair, making a forceful defense of the rules governing wall street at a meeting of central bankers. the money fight. the big bucks behind what could be one of the most lucrative masses in history. those stories and more tonight on "nightly business report" for friday, august 25th. good evening and welm sue h. tyler is off tonight.
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we begin with hurricane harvey, a massive that strengthened into a category 3 this afternoon. it is now barrels towards terkz and the center of american energy activity. the gulf coast is to home to as much as half of the nation's oil refining kae in capacity. ports in that region have been clos preventing goods from getting where they need to go. and to help put the potential economic impact into perspect e gd p p is estimated to be made up in the state of tek live in an around cities like houston and galveston d corpus christi. and that is where jackie is for >> the eye of hurricane harvey approaching the coast of texas. some have evacuated already, ohs have not. stocked up op food and hunkering down their homes to be ready for
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the storm. >> my father's handicap and my parents are pretty old. so, financially, we don't have the money to go ahead and take that ride out of town. so we're going to go ahead and stick it out here, you know and we got sandbags ready. we've got our food for almost a week now. we've got water, everything we need. >> the mayor under scrutiny because he did not force an evacuation. the evacuations here were voluntary. >> when you trigger a mandatory evacuation, it triggers a lot of things, playly for the business community and for our businesses in this community. that means if we call for a mandatory, that means you've got to start loading up patients in hospitals, children's hospitals, nursing homes and transporting them somewhere. that really creates a hardship on a lot of people. >> they are known for housing
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five refineries. those will be important to the energy market in the coming days. also, the court here critical, now closed. >> after the storm passes, it will still take several days for us to get back and operating. i would expect if it's severe, it will be midweek until we're back and running full speed. zpl for those who haven't left, it could be a rough few days. this storm is expected to hover and they need to hunker down. >> so how much of an economic ripple could we get? the chief economist at p pmc financial group and joins us now. welcome, gus, nice to have you here. when i hear words like catastrophic, massive, this is no ordinary storm. certainly. what do you anticipate might be the economic impact of it? >> well, i mean obviously, we're going to have to see how much damage there is. there's the potential for
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enormous damage. the houston area economy is the fo metropolitian area economy in the united stt o refining plants, home to a will tlot of so there's a potential for a huge amount of economic disif it's as bad as it might be. >> one of the things they're talking about is what jackie mentioned. the fact that once it makes landfa landfall it d linger for some days, many are saying, so does that change the equation? it makes it harder for businesses to reopen. tougher for people to get, that have left, to get back home. >> absolutely. and also that increases the potential for economic things throughout the united states. so if the refineries are shut town for an exb tended period of time, that means less gasoline production in the u.s. we could see prices move a lot higher. if the ports are shut down, that
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t there is potential for through significant effects on the u.s. economy as well. >> we saw that with superstorm sandy, although probably not as great an extent because of the refining capabilities and gasoline prices. what kn impact economic impact do you think arise in gasoline prices might have? we talked to the chief economist with gas buddy last night and he suggested maybe up to a 15%, 15 cent move in gasoline prices. >> we could see a significant sprik in gasoline pr significant permanent damage, that should quickly come down. so i don't think that should be a huge problem for consumers. certainly consumers are paying more, that means they have less money to spend on other goods and services, so depending on how long it lasts, it could be a prop. >> all right, gus, thank y
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the world's most powerful central bankers are meeting in jackson hole. while rates, she had a warning for washington and a push to roll back financial regulations. steve liesman has more. >> by the president of the european central bank and governor of the bank of japan, janet yellen took what might be her last stroll. her term is up in january while has said she's under consideration for reappointment, her speech on financial regulatory reform here may not have helped her case. with a president who said he wants to do a quote big number on the dodd frank financial reform act, yellen cautioned against rolling back essential reforms from the crisis. she said they made the financial system more stable and improved the banks in economic growth. she said it may be more difficult for some to obtae ove was growing in line with the
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economy, contradicting a direct regular laces. she conceded that some reform frek, those about small and medium sized banks. in a cnbc interview, fed fed.nor disagreed t >> we need to protect the ponte reforms. higher capit liquidity, stress testing, resolution planning. but she said clearly, that we're committed to reviewing the reforms to see whether they're ektive and where they could be improved. she said that several times and that's what we've been doing. burden for small mprove banks. there's a long list of things we're working. these are common sense reforms to achieve effective regulatioy. >> draghi said a policy was still needed in europe and that the european recovery was still in its early stages. markets have been anticipating
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some announcement about the ecb ease iing off on the accelerat chose not to make that news here in the tn jackson hole, i'm steve liesman in jackson hole, wyoming. on wall street, stockily rose after federal reserve chair janet yellen offered few clues about the path of monetary policy in her speech today. the dow jones industrial average rose 30 points to 21,813. the nasdaq was off five and s&p 500 added four. the dow notched its first weekly gain in three. the nasdaq and s&p 500 were higher on the week. investors pulled money from u.s. equity funds for the tenth straight week, marking the longest stretch if in 13 years. according to bank of america merrill lynch, total outflows since the end of june stand at $30 billion. some market watchers say that the political deadlock in
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y leaving the u.s. g doubt on sto stoc. well, the economy got some not so good news today. orders for durable goods fell more than 6 p.5%. the most in nearly three years. according to the commerce department, it was led by a drop in the category of civilian aircraft, but there was positive news. within that report, gauge of business investment rose last month. >> president trump will publicly start campaigning for tax reform next week according t.o. president's top adviser, gy . made the statement in an interview with the financial times. where he also criticized the president for his response to charlottesville. eamon javers is at the white house tonight. >> insuggested that the big three deductions
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will all likely be protected in the new effort. he said that the team that's working on the proposal envisions a one-time repatriation tax on offshore corporate earnings, but said congress ultimately will decide which tax deductions stay and which will go. he added there are no longer discussing the so-called border adjustment tax. they've decided to move away from that proposal. he also addressed his future here in the trump white house saying that he had been under pressure from a loft side to either stay or resign his post in the wake of the president's handling of the charlottesville, virginia racial fie vry lens, cohn saying though he is inclined to stay on the job. for "nightly business report", i'm eamon javers at the white house. still ahead, looking for stocks that could double their dividend. our market monitor has some recommenda
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the white house has ordered rou of economic sanctions orne venezuela. the order bars u.s. citizens and banks from buying new bonds from the venezuelan gov hits state oil company. they come as the trump administration steps up criticism of venezuela's pres >> let me be clear. today's action is focused on restricting the regime's access to american debt and equity markets. he may no longer take advantage of the american financial system to facilitate the whole sasale looting at the expense of the
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people. >> at confer the secretary commented ton debt ceiling. he said it will be raised in september and that after talks .ith congressional leade the de facto chief of samsung and other corruption charges. chair was sentenced tosam five years in prison. that was less than the 12 years that prosecutors thought. his attorneys plan to appeal and it is unclear who will lead samsung if he is in prison. they account for about 15%. the housing market hod a lousy week. ther diana oleic looks at some o the e facing. there are houses for sale, but
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not nearly new. e buyer high housing demand struggling to afford down payments as home price dwanes are accelerating gep. they're not back to normal levels of production. add all that up and you see why sales are now slumping. higher mortgage rates, yes, they've been sitting near lows and all the talk of higher rates hasn't happened yet, but the federal reserve is goi sheet an inflation rises, it could taper more, both of which could push rates higher. then there's the interest deduction. it's never on the table, except maybe now. paul ripe suggested it could be improved and industry insiders say the treasury is considering cutting the current cap of $1 million in mortgage debt in
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half. bottom line if the market doesn't see more supply in the coming months, which is not expected, affordability will weaken more and keep even more potential buyers on the si sidelines. for "nightly report, i'm diana oleic in washington. >> to read more about housing's challenge, head to our websi big lots lifts earn guidance for the year. an increase in furniture sales helped the retailer grow sales and profit with both result coming in ahead of street targets. same store sales rose and they were bet r than expected. but shares still fell to 49.61. the medication for treating a side effect caused by a drug for parken son's disease was ge gre.
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it is the first of its kind to win approval so shares surged 40%. nordis cleareded its treatment. the company said this is the first time approved a treatment for reduzing heart complications. sha and share of game stop e video game all today. retailer's earnings miss after the bell yesterday. revenues topped estimates and the xwaen reported a a surprise impress investors. shares plunged nearly 11% to $19. $19.40. time now for our market monitor, who likes xaeps he says are growing dividends. the last time he was was in january and recommended u.s.
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bank corp., united airlines, down 14% and va lerks ero. there higher. before we get into the recommendation, i'd like a broad swath. most agree we had a earnings season. the market is either fully valued or maybe slightly overvalued how do you feel about it? >> i would agree with most of the assessment. it's been a good earnings season. the question is is, can earnings keep the same rate going forward. you've u got to put that in the context of where rates are. they're still very, very low. we don't see policies changes
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that will cause you know, long-term rates to rise. short-term, yes, the federal reserve and interest rates raising. it's going to keep evaluations under stock. >> let's get to your stock picks. last time you liked valuer o, you likeded it and you hold it. >> only up 3%. its dividend has grown by 17%. that happened just this year. individuald cash flow. typically at some point. most people recognize the fact outperforms andividend, that >> does valero have any exposure in gulf of mexico from hurricane harvey? >> they have huge exposu they've been through many hurric
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they've got vital services so will probably be shut down for a period of time. operations are spread around the country and they'll come back. we growing that dividend going forward. >> accenture next on the list. you like its new s. >> correct. sales growth has been consistent. it's been in the technology fin r companies that can benefit from all the things happening in with accenture, it's a consulting company. they provide services to businesses to get involved with the cloud. to digit and those services for them grew double digits the last 12 months.
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dividend isn't terribly high. >> dingital reality. we call it the company that. all the equipment and in of the service companies that ma it's a 3% plus dividend we think they can grow by high single digits. >> thanks so much. have a great weekend. >> thank you, sue. group. mayweather and mcgregor will battle this weekend and it will likely be the most viewed combat sport ooempbt in history. there's big money behind this much hyped fight. it is been hyped with a road
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show. >> $800 millio >> a spectacle backed by spectacular money. >> i'm going to outbox this man at his gone game. after 21 years, i'm still here. >> but this unique event had better deliver, especially for showtime. >> floyd wouldn't let it go. >> 40-year-old floyd mayweather, undefeated in 49 fight, came out of ret ufc phenom, conor mcgregor, who's never boxed. pay per views could set a record topping a half a billion dollars and both boxers stand to make more money than they ever have. estimates have mayweather's purse in the $300 million range. mcgregor could make 100 million. three times what he's made in his entire career. so much hing o the pay per view money coming in before the fight. >> tas a game of chance and a nail biting experience. >> odds suggest it's not even a
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contest. mayweather ifavore t s many people are betting on mcgregor that if the irishman pulls an upset, vegas sports books will lose millions. but would it be the worst thing ever to happen? >> it would be. without a doubt. >> jay rude runs sports book and he sees a silver lining even if he takes a bath on a win by mcgregor. we're going to have people lining up. they might play game, go to dinner, a show. >> if mcgregor wins -- >> great rematch, hopefully. >> bill calls the fight las vegas' super bowl. and security is tight. >> in today's environment, there's heightened security herement and anything of this scale that we do, i think anywhere in the world, not just las vegas. but sin city's biggest bet is that saturdaal fight, not a --
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"nightly business report," jane wells. coming up, meet the entrepreneur who started his first venture as a teen and grew it into a big business. tonight, how i made my millions next. on monday, whole foods amazon searcher is expected to close. along with that, lower prices. on friday, major automakers will release their monthly sales i report for aulg and that's what to watch for n apple is considered one of f the most value bable brands in the world. its stock is up nearly 40% this
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year alone. and that is great news for entrepreneur larry o conor, who built his business off of the giant's success. tyler has his story in tonight's how i made my millions. business, other 've never heard world computing, but its products can be found in millions of computers around the globe. >> we ship thousands of f pieces out of this facility each and every day, so it's very, very busy. hardware and software, as well as refurbished computers in do it yourself kits. all through its website, macsales com. >> 2015 revenue was 120 million. 10 to 20% this year. >> larry's fascination with the technology started in his early teens.
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the day his dad lar sr., brought home an atari personal computer. >> it was like touch iing a mat to gasoline. gat into a different world. in 1988 at age 14, larry start ed his first venture, working on printes from tiny office from inside his dad's barn. but it changed to the computer itself. >> i needed more memory, more storage. >> the pteen starte eed buying s himself. >> i said not only can i do this myself, but i can help others he wasn't thinking of making money from it, but in 1989 after a shortage of memory chips sent prices soaring, he figured out how to sell the chips for less and offer them on. >> i was a kid. they didn't know i was a kid. the beauty of the internet, this is america online back in that
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day. >> not to say it was easy, especially in 1990 after larry expanded his inventory and started making his own products and barn. >> somebody broke in, didn't have business insurance and learned that things that don't kill you, they make you stronger. >> it did all the way through high school. >> when i went to college. it almost destroyed me. business got to a point where had to make a decision. either focus on school or focus out, set up a . website and expanded manufacturing. >> i didn't think about it becoming a multi-million dollar build and go and keep growing it. >> by 2008, owc opened this nearly 40,000 square foot facility in woodstock, illinois. and today, the company employs workers. larry attributes his success to
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t inventory growth, it hadlying to be profit bable. if it wasn't, we wouldn't be here. >> larry says he's on track to grow other world computing into a half billion dollar business ye l keep track of him. that is "nightly business report s herera. thanks so much for watching. have a great weekend and we will see you
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