tv Nightly Business Report PBS March 13, 2019 5:00pm-5:31pm PDT
>> announcer: this is "nightly business report" with bill we're going to be issuing an hibition order of p to ground all flights of the737 max 8 and the 737 max 9. >> tro u.s.ds boeing's popular plane. a major blow to the world's largest aerospace company. banner star. 2019 has been good to wall street and new milestones are within reach. big business. tonight we'll take a closer look at t fast-growing college consulting sector, an industry getting a lot of attention. those stories tonight on "nightly business report" for wednesday, march 13. and we do bid you a good evening, everybody, and welcome. the federal aviation
administration today i aued emergency order grounding all boeing 737 max 8 and 9 planes in the united states. it's an action that doesnpp very often, and it marked a turn-around for t u.s., which had to this point supported the aircraft even as countries around the world were suspending its operations. shares of boeing, which had lost billions in market value this week managed to close higr in today's trade. the max jets are the company's best-selling aircraft. they account for almost one-third of boeing's operating profit. ntessa brewer is covering the story for us tonight and she joins us now. s >> nice to you, bill and sue. the faa gotef newlyed satellite data that led to the decision to ground these boeing maxft airc the grounding is temporary while the investigation continues, but boy is it dramatic reversal from the support the faa was voicing even late yesterday out the safety of the aircraft. the acting faa administrator
talked aut how this new information led them to see similarities in the two deadly crashes. a likeness in the aircraft movement of the ethiopian airlines crash and the lionir crash. >> the full track of the flight, ethiopian flight was very close to lion air. the initial track we got on sunday and monday morning was only three minutes the new track data we looked at was almost the entire length of the flight. alsovihence that we discovered on the ground actually was even further evidence that the flight was very simar to lion air. >> and the order actually says that an emergency exists. d thea recorder and cockpit voice recorder were damaged so special equipment is needed to extract information from them. they'll go to france. ethiopia leads the investigation out a ght aware sent
statement saying it and its partners at aerion provided data on flight 302. it's part of the information they use to monitor planes globally. it was given to the faa monday ania can officials tuesday night. by wednesday morning canadian officials have reversed course and grounded the planth. the u.s. authority said once they refined the data, they followed suit today. reaction to the grounding of these gplanes, boe says we're supporting this proactive step out of an abundance of caution. safety is a core value at boeing fore as long as ween building airplanes, it always will be. there's no greater priority for our company and our industry. after plummeting 3.5% on the news, boeing's share price rebounded and closed up half a percent. united, southwest and american all say they areoing to work to get these passengers rebooked on other flights so it causes as little headache as possible. >> and all of those airline stocks finished higher todays well. contessa brewer, thank you, as
always. turning toall street, the s&p 500 hit a new high thanks to a rise in technology shares and economic data that showed stability in the manufacturing sector and mutedinflation. the dow jones industrial average rose 148 points to 25,702. the nasdaq added 52 and the s&p 500 was 19. we're almost midway through march, and if things continue t hu along, the market could ending the quarter m new milestones. dominic chu takes a look. >> it's been a banner start tohe 2019 for stock market. if the s&p 500 can stay above a gain of12%, we will be on pace for the best first quarter performance for that large capc index sin the start of 1998. now, during that quter, the s&p gained nearly 14%. but it's not the only part of the market that's moving up at a break-neck pace. after gteting bn down during the final weeksfnd months 2018.
the nasdaq composite is up arou 15% so far this year, meaning it's on pace to have ist uarter to start a year since the year 2012. drilling down into aouple of key industry groups to watch, transportation stocks, often a focus for traders and investors, as al possible s for overall economic activity. the dow jones transportation index is up around 13% so far this first quarter, meaning it is on pace for its best quarter to start a year since 2013.an computer chip stocks also on a tear with the semi conductor etf up around 19% quarter to date. if things stayhis way, it will be the best q1 since the inception of the fund going all the way back to the year 2000. something to keep an eye on as well is the current level of the s&p 500. we've seen a stalling out here over the course of e past last few weeks. oi will be a key hurdle if stocks are to resume their run to reclaim record highs.
of course theee coming will be busy with everything from brexit to china trade talks to federal reserve interest rate meetings and commentary, offering plentytu of oppty for momentum to continue or to shift. for "nightly business report," i'm dominic chu. inflation at the wholesale level rose slightly last month, but ov sall itll remains in check. the producer price indexhich measures the wholesale cost of goods and services rose just 0.1% in the last month, mostly because of higherli ga prices. the index was actually negative monthsee previous year over year, wholesale inflation is up less than 2%. orders for durable goods, those that are expected to last at least three years, rose in january and the important business investment component rose by the mos since last summer. orders were up nearly half a percent driven by gains in commercial i aircraft. ththe third straight
quarter orders have been higher. and oil inventories fell by nearly 4 million barrels last week. that decne in stockpiles sent the price of domestic crude higher today. west texas rose about 2.5% to roughly $58 a barrel. and if there's an industry that can be rattled by geopolitics, it's energy. which is why brian sullivan asked theta secry of state today about a number of global hot spots at the conference in >> it was a rare and exclusive opportunity to sit down with cabinet level secretaries about foreign policy, energy and where they meet. we began by discussing china, because most of the conversation around china is the united states sellingal liquefied nat gas. but china has its own energy particularly in the south china sea. we began by asking secretary of state pompeo what the.s. is willing to do.
how far we are willing to go to blunt china's energy >> president trump has made it clear we want a fair shot. we want tariffs that are even,i nont barriers to be shut out. we want the rule of law andan arency. when we get those things i am very confident that american companies wl prevail. we can always outcompete. >> we then turned the attention to iran andta i asked sec of state pompeo if the u.s. was willing to extend thensanctions ag iran selling exported oil. >> keep up or extending tti sas on iran? >> yes. >> for how long? >> until we get a change in behavior that the people in the middle east -- >> you said you'd like to bring it down to zero barre of exports. >> i'm not going to get o ahe myself or the president. make no mistake, we want to deny ir the resources to continue to underwrite hezbollah, a whole st of terrorists around the
world. when their behavior changes, we'll be happye to invhem back into the community of nations. >> the conversation then turned to venezuela. humanitarian, economic and political disaster there. secretary of state pompeo saying th.s. government is willing really to do as much as it takes to get the maduro regime out and make sure that that country returns to some form of stability. for "nightly busine" brian sullivan, houston, texas. uk lawmakers rejected the idea of leaving the european union without i a dea place. that means a so-called hard brexit is becoming increasingly unlikely, in part because of the economicncertainty and trade disruptions that it could cause. but leading up to today's some in britain were preparing for an uncertain future, and villa marks talked to them.>> brexit's uncertainty has been bad news for most british ut businesses,ot all. >> having a no deal that's looming in the next cple of
weeks is a factor as to why the business has grown significantly. james blake is a co-founder of an emergency food supply firm. says this branded box has helped attract many new customers. >> people have accuseds of profiteering and fear mongering, but we are a preparedness company. >> she has prepared extensively for brotit. >> we've retailers telling us you're not going to get fresh veg.t and you've got suppliers stockpiling. actuly why don't we do that too. >> she spent a little extra to stock up on essentials and avoid anyor ges. for her family, brexit threatens more than just the food supply. >> the biggest concern for me is my medicine for my daughter. my daughter has severe epilepsy. without medicine, the consequences could be catastrophic. you know, she could die. >> the government is t worki protect the flow of drugs and medical supplies with newer f routes, six weeks of stockpiles and a measure known as a serious
protocol. >> it could be used to change the quantity on a prescription so that everybodyas enough. >> gordon hawkey runs operations at psnc which negotiates government drug prices with pharmacy the. >> we don't know what will happen. >> but for worried parents, brexit is bringing very unbelievable policies. >> how can a country that's one of the biggest countries in the world be talkingls pro and what medicine comes th tugh. >>e to take a look at some of today's upgrades and downgrades. carnival was upgraded to buy from neutral at goldman sachs today. the analyst cited upbeat growth figures for the cruise line operator. the price target is $65. carnival shares closed at $56.09. sanderson farms was upgraded. the analyst cited higher chicken
prices and the prospec of china opening its markets to u.s. poultry products. the price target $127. it closed at $126.89, up more than 2%. and coming up, new guide lines that regulators move to tighten sales of e-cigarettes in an effort to combat youth vaping in an effort t curb teen vaping, the fda has released draft rules which couldemove some flavored e-cigarettes and cigars from store shelves. aditi royas the details. >> reporter: after months of tough talk on e-cigarettes and the skyrocketing use of tobacco
products among youth, the fda is out with its highly anticipat policy to curb vaping among teens. under the proposed, poli retailers would have to keep flavored e-cigarettes in separate area off limits to anyone under 18. it also requires store owners to impose online age verification tools and impose a qntity restriction for most flavored e-cigarettes purchased on the web. e agency also moved up an application deadline for e-cigarette manufacturers to permission to have their markets remain on the from the year 2022 to 2021. the draft rul don't apy to mint, menthol or tobacco flavored e-cigarettes because the agency says those flavors are alsovailable in conventional cigarette and help adult smokers qt those products. but the guidance would ban most flavored cigars. last s weekcott gottlieb spoke about the agency's crackdown on retailers who sell to minors.
>> we're going to hold them accountable at a corporate level for those policies and look at their culture of compliance. some of s theseres have substantial violations. in the case of walgreens, 22% of the stores w inspected, over 6,000 stores, had violative stores to minors, many with repeat violations. >> gottlieb, who is expected to leave hi position in a few weeks, has been outspoken about teen vaping, pointing to a cdc high school students using er of e-cigaresi increased 78% between 2017 and2018. ned sharpless applaudedhe crackdown back in the fall. in response to the new guidelines, altria-backed juul which owns more than 70% of th e-cigarette market noted that its aeseadyicted sales to youth, noting we support tegorywide action. but some are outspoken against
the proposed new gles, includtore owners. a spokesman for the national association of retail stores says t group believes the fda esn't have the authority to impose some of the rules. a 30-day public comment period begins and the fdaays it will finalize its policy shortly thereafter. for "nightly businesseport," i' aditi roy, san francisco. a pot company adds a billionaire hedge fund investor and that's where we begin tonight's market focus. aurora cannabisas hir nelson peltz as aartner to advance the company's market instrategy. return mr. peltz gets options for nearly 20 milli shares that vest over four years. wall street seemed to like the news, sending aurora shares 14% higher to $9.07. spotify has filed a european union complaint against apple
saying it unfairly abused the dominance of its app store to favor apple music over spotify. apple charges content providers a 30% fee for all subscriptions made through the app store. apple music does not pay that fee and spotify says thatea s a competitive disadvantage. spotify fell 1% to $143.49 while apple rose a fraction to $181.77. verizon said i first 5g networkla wile in minneapolis. will make veriz the first carrier to roll out 5g. they will launch 5g in 30 more markets this year. kraft heinz is reportedly considering a sale of its reakstone brand best known for cottage cheese and sour cream products. bc says the unit is worth roughly $400 million. the potential sale is part of the review of its operations as it looks to pay down debt.
the shares gained 1% to $32.30. the collegein couns industry has found itself in the nationalpotlight following the largest college admission scam ever prosecuted by thef departmentjustice. yesterday, as you know, we told you about the rich and f who allegedly paid large sums of money and bribes to fake charities and for college test cheating o scams, allt their children in prestigious colleges. well, tonight we take a look at e fast-growing college counseling industry. according to ore estimate, t are tens of thousands of these counselors who serve both students a schools. the sector's annual revenue last year was estimated to be just under $2 billion.jo ing us tonight is one of those counselors. anna has been a counselor for 15 years. before that she was dean of admissions at the university of chicago's law school.
anna, thank you for joining us tonight. >> my pleasure. >> you say that the college admissions system is broken. what do you mean? >> it is. you know, w take the system as it is and try to help people naviga it, b don't love the system. i don't go to great lengths to dend it. it has gotten very complicated an competitive and a bit t cutthrs we all woke up to yesterday. i will say that there are lots of totally legitimate, highly ethical admissions consultants out there who are horrified, a i am, by what we learned yesterday. so when i say it's broken, i find it broken because we saw this perfect storm with this case. we see the crazynfluence of coaches and athletics on the admissions process with very little ersight or governance
from the admission side. at the same time, we also the abuse of the accommodations process for people with disabilities, which is extra frustring because, of course, there are applicants out there who are absolutely entitled to those accommodations, but it is a system that is ripe for abuse and, boy, those transcripts really were a playbook for how to do that. >> so how do we change it then? because it is such a large system. >> yeah. t bill wentough it with his kids, i'm almost in the process of doing it with mine. so if the system lacks transparency, there's too much influence from sports and coaches, how do you go about changing that? >> well,ou know, i should start off by saying that schools e entitled to have certain preferences and prioritize certain things. so it's not really my job to say, hooh, youd stop caring about sports or stop caring
about athletes, but i do hope that schools take a good, long look at their oversight procedures and think about what theyht want to change internally to make sure that these recruited t athletest they're bringing into their freshman classes are the real al. >> right. >> and on the accommodations side and the abuse of the accommodations system, you know, fraud happened on multipleac . one of them was test taking. unfortunately, of course, cheating on tests is as old as the hills. in a conventional setting for taking the s.a.t. or the a.c.t.o that kind fraud is harder to get away with. but if you work the systemor accommodations, then you can be alone in a room with a proctor that you bribed. so i'm sure the college board and the a.c.t. are revisiting some of the security procedures they have. >> no doubt. >> f those testing situations. so there's certainly tweaks that can be made tha would have a big effect.
>> anna ivy, admissions consultant joining us tonight. thank you for joining >> my pleasure. coming up, it's not your grandfather's rv. >> right now we're offroad in winnebago's newest model. we'll also take you inside the biggest rv show ithe u.s. and show you how manufacturers are trying to rev up sales. i'm frankni holland fortly business report." and finally tonight, after of gains, sales o recreational vehicles fell in 2018. they're expected to fallga this year. in order to stem this sales um some in the industry are turning to technology to attract
newst omers. frank holland is at the world's largest rv show in salt . >> there we go. and brake. brake. and hello, mother earth. >> reporter: the rv industry is expecto face an uphill cli in 2019, and that has manufacturers like winnebagog pushin innovation. >> they're luxurious but not as rge or cumbersome as your typical rv. >> reporter: here in salt lake city, utah, at the biggest rv show in the u.s., winnebago is releasing its off-road rv. they're also introducing a all-electric model aimed at business customers. this after motorome sales fell last quarter. shipments of towables areed forecao drop more than 4% this year. e more profitable motoromes by more than 9% according to the rv industry association.
more aw sales decline by than a third last quarter. the company is hanging its hopes on tech. >> the technology isn't as much about stealing market share froe the rest of industry, but it's about attracting a new customer. >> reporter: nowair dstreams wil ha smart technology built in. they canetrofit a hot spot andry control eing from the awning to the lights to the air conditioning with an app. >> the technology is jus an enabler. our younger buyers expect the tech. what they're really looking for is a morenv ient, comfortable camping experience. they don't want a lot of questions and uncertainty, is it hitched up right, are the systems running properly. when am i going to run out of water or lp. >> reporter: analysts say technology is the key to attracting younger buyers. rv makers hope all thi renovation will rev up growth. for "nightly business report," i'm frank holla in salt lake city. and before we go, one final look at the day on wall street.
acturely ay good rally when all was said and done. the industrial average gained 148 points. nasdaq tincontinued the streak s&p was up 19 today, at its highest level of 2019. >> pretty good day. that does it for us today. i'm'due herera. ike to reminding you this is the time of year your public television station seeks your support. >> i'm bill griffeth. thanks very much for that support. have a great evening, everybody. we'll see .
steves: the laquarter is the core of the left bank, as the south side of the seine river is known. this has long been the city's university district. in fact, the university of paris, a ading university in medieval europe, was founded here in the 13th century. back then, the vernacular languages, like french and german, were crude, good enough to handle your basic needs. but for higher learning, academics like this guy spoke and corresnded in latin. until the 1800s, from sicily to sweden, latin was the languageof europ, and parisians called this university district "the latin quarter" because that's the language they heard on the streets. today, any remnant of that latin is buried by
a touristy tabbouleh of ethnic restaurants. still, imains a great place to feel for the tangled city, before the narrow lanes were replaced by wide, modern boulevards in the 19th century. the scholarly and artsy people of this quarter brewed up a new rage, paris's café scene by the time of the revolution, the city's countless cafés were the haunt of politicians and philosophers who plotted a better future ashey sipped their coffee. and the café society really took off in the early 1900s as the world's literary and artistic avant-garde converged on paris. in now-famous cafés aialong boulevard st. ge and boulevard st. , free thinkers like hemingway, lenin, and jean-paul sartre enjoyed the creative freedom these hangouts engendered.