tv Nightly Business Report PBS May 27, 2019 5:00pm-5:30pm PDT
> this is "nightly business report" with sue herera and bill grfith. ♪ ♪ >> good evening, everyone, and welcome to the speci edition of "nightly business report "qwest. >> memorial day, of course, isn ered the unofficial start to the summer season and the time of year whenadou hit the r the airport and head off on vacation. >> so tonight, since the market is closed we decided to do something different and take a look at the condition of those roads and airports and other parts of america's infrastructure. >> but before we do that we want to talk about thetock market first. every year when the weather does turn warmer, investors ar reminded of an old wall street adage, sell in may and go away, but as bob pisani reports now thatei strategy is tested this year. >> sell in may a go away. it's that time of year again,
but this year you may not want to sell and get out not just yet and the bestix-month strategy has been legendary on wall street and cashing out, switching to fixed income for e next six months and that has dramatically outperformed just owning fhe dowm may 1st to october 31st. if you invested $1000 in the dow in 1950 from may 1st to october 31st you end up with a little over $11,000 today and that's a measly gain of a little over $1,000 in 69 years, but if you invested the same $10,000 from november 1st to april 30th you would have a return of over $1 million and that's according to the stock trader's almanac and that's huge and that's the power of compounding interest.hy so does it do better between november and may, first areer s slower trading activity in the summer and back to school
and the end of the dressing tha stocks to sell offd n september metimes october which is why september and sometimes october typically bad m ths for theyear, but when you move into november, company's efforts inh the fouuarter to beef up their numbers can help drive the market higher as do holiday shopping and an influx of year-end bonus money. the bottom line is this, sell it may does necessarily mean may will be down or that even the next six monthbeeriod will down. it doesn't mean that. the point is that most of the november ains occur through april and that the market tends to drift sideways and it's more prone tofs sell- in the may through october period. for "nightly business report" i'm bob pisani at oce new york exchange. >> many of us will head out on vacation. infrastructureur is crumbling. we have several reports on that issue tonight and we'll with the backbone of the economy. roads and bridges. frank holland is in columbus,
ohio. >> our roads, getting a d in the most recent report card of america's infrastructure. the primary reasons, congestion andl structu deficiencies. >> our transportation network, i think, is slowing in some ways, our economy and mak lg itess efficient. >> the estimated impact by 2025, more than .3$2rillion in sales lost and more than 1 million lost jobs. >> it becomes the inability of the economy to grow with the rate at which it should grow. >> the nation's bridges getting c-plus from the american society of civilngineers and its failure to act and report. that study also estimating there will be a funding gap of more than $1rillion by 2025, half the money needed to fix our roadbrand ges, and taxpayers will likely pay for problems one way or another. >> motorists on average in this
country spend about $600 a year in additional maintenance on their cars justf becausee poor road conditions. >> driverless cars are expected in coming years just outsidof columbus, ohio, and they're preparing by lining the roadway by fiber optics like these and building a 35-mile, wi-fi highway that can connect with the cars of th future. >> at the end of u.s. 33 is the transportation research center where connected and autonomous vehicle technology is being tested to make it safer. e state also investing i smart lights like these designed to send and receive data from vehicles. >> ultimately, our goal is to eliminate the serious crashes at ersections. 20% of all our fatales in ohio occur in these intersections, so this technology has the ability to eliminate them and want reduce, but ultimately eliminate them once theehicles and the signals are outfitted with the
technology. >> nationally, fatal crashes have increased by 7% over the past five years. >> the cost of the economy of thoseatalities and crashes is billions and billions of dollars and that's sometng we also can address through improving our infrastructure. >> the cost for families, even greater.in for "nightly bs report," frank holland in columbus, ohio. >> more amerittns will be g the road this summer. according to the travel survey, 75% of americans say they are planning a classic road trip. that's a 16% increase compared to last year, but will high gasoline prices be a problemig joining us now, patrick dehan, the head of petroleum analysist gas buddy. good to see you again. welcome back. >> thanks for havingom me. >> parts of the country are already paying $4 a gallon plus. how much higher can y see it happening going higher this summer? >> i think, thankfully so far
based on what we see now, gasta prices haveed to recede and that may continue for the bviouslyng as the u.s. continues to battle china in the trade war and it cld continue as long as there is no trade war. refineries have ramped up production that' allowing gas prices across much of the country to decline and that should continue into the month of junet least for now. >> we do have a lot of headline risk, don't we, patrick? iran and the u.s., there are increased tensions there. what might the impact be if thos tensions continue or ramp up a little bit. >> that's right. we'reooking at a summer of volatility. iran is one of those issues that could flare up at any mome . urse, middle east destabilization could happen as a result. we've see some rumors and some sabotage in saudi arabia and the market is very on edge and that could certainly cause gas prices to flare back up as we progressed towards the end of the summer and keep in mind that on top of that in july and
august, u.s.-atlantic hurricane season starts to ramp up, as well, so there could be additional price pressure for motorists towards the mid and end of the summer. >> by the way, 75% omecans planning a road trip. that's a 16% increase than last year. why this year? hy the sudden interest in road trip >> i think what we're seeing is the strength of the u.s. economy. a lot of us are complainingec about thed largest rise seasonally in gas prices ever, that 67-cent increase from the national average from the start of the year is only second to 2011's increase andhe resiliency of the u.s. economy isin contito drive interest in hitting the road this summer even as gas prices have gone up. >> so you need to shop around, i would think. >> absolutely. if you're hting the road this summer, gas prices all over the map a still above $4 a gallon in much of california where it could be below the $2 a glon range. >> quite the spread this summer.
>> thanks for joining us tonight? my pleasure. if flying is more of your thing, here's some eunwelc news. for the furst time since late last year domestic airfares in the u.s. are going up. phileau has more on how much more you'll pay to ply. >> get ready to pay more. airlines have raised fares$5 on each way on most flights in the u.s., the most industry-wide fare hikin the year. >> we've seen prices increasing since april and we expect them to continue increasing until about mid-june, end of june and then they'll slowly fall back down until the early h fall. >> we typical domestic round-trip ticket going for just under $230. the average airfare today is still far lower than a few years ago partially because ultra low-cost airlines like spirit have added more routes and flights.
have ditional airlines responded by offering more low-priced basic economy fares and overall, the industry has steadily addedghore f and that is holding down fares. the bigha question is impact, if any, will be felt by american, united and southwest parking more than 70 boeing 737 max airplane, forcing them to adjust their schedules. >> so what we're seeing them do is shift capacity to their highest demand routes and back or cancel routes in the short term that are lower demand. >> which means, airfares on high-demandoutes like l.a. to new york may not go up much, but on a route likeo pittsburgh l.a., flights may be trimmed because there's not as much demand so fares there could go up. >> serall, airfa remain relatively low, but passengers are finding they're paying more for certain parts of their trip like checking bags.
many airlines have raised the cost of checking a bag from $25 to $30. phil lebeau nightly business report, chicago. >> adding to the issue, airports are getting busier a upgrades are badly needed and a handful are building new, better terminals. phil lebeau also has us covered as well from new orleans. >> the big addition at new orleans airport is almost done, a billion dollar terminalith pa gates and plenty of restaurants and sce to handle the city's surging air traffic. since 2009, the number of people flying out of new orleans has jumped more than 50%, with 6 million travellers in 2016? as the market continues to grow we're in a better position to ndle the growth and its market and also we've done this in a
way that keeps the costs to airlines on the low side. >> new orleans airport,ike others in the u.s., is bursting at the seams. airlines have added more flights to feed america's appetite for travel, increasingly, tarmacs crowded and airports are struggling to keep up with booming business. >> in n terms of airpos in america, we haven't seen one built in decades and you go to a chin they're doing is building rail and airports. these are economic engines for the economy of these countries and we are way, way far behind. >> some airports like new york's laguardia and salt lake city are building all-new terminals while dallas has added moreates and upgraded facilities to handle ire flights and passengers, but billions more needed and travelers are tired of going through old, worn-down airports.
>> it was very important with dining and we need shopping and we need comfortable places and we need places to have our phones and we need to have our kids with delayed flights and this is nowhere to eat and just to hang outnd stuck sitting on the ground. >> when this new terminal in new orleans is finished later this year it will cap a-y fir proyekt and it won't be the end of airport construction in the u.s. as more cities realize they'll need to expand to handle more people filing. lebeau, nightly business report, new orleans. as th weather heats up, everybody needs water handy, but aneeher area in of upgrading is the nation's water system, and as contessa brewer tells us,ome agencies aren't waiting for the federal government to take action. she's in bridgewater new jersey tonight. >> thousands of dams and levies are on the brink of failure and
the drinking m water fillions of americans is at risk. the infrastructure gets the greatest d from the american society of civil engineers which blames failure in leadership and planningeq >> what's rred is really bod planning. >> new york city's tackling the problem of aging infrastructure. much of the system is at least a century old, but it's spending nearly $20 billion over ten ars on projects to repair, maintaim and ove the water and waste water asinfructure. the delaware aqueduct brings water from the catskillto mountainhe city. it's the world's longest tunnel, but it's old. >> we have a leak. we're going through fixing that rid now. it provides a capacityf 900 million gallons a day and the project will ct $1.9 million get this done. >> new york city has the money to pay for these repairs because it's operated by an independent
water agency that sets the rates stomers pay and to finance authority th sells bonds to raise capital mono pep new york's rates are 15% lower than the nat average in part because there's almost no cost associated with pumping and filtration. >> it's dinitely aorld leader in search for protection. >> new york is not alone iny trying to shead of the infrastructure curve. >> american water is the nation's largest publicly traded water company, operating in 46 states. it's spending $8.5 billion over the next fiv years upgrading trtment plant, replacing thousands of miles of water mains. many of those projects are tied to resiliency with the climate variability that we're starting see across the nation in the world, frankly. it's very challenging tosu make that we can get through those climate issues through those natural disasters and make sure that we can stilltain in service to our customers. >> that means investment in flood control barriers and levies.
in new t reservoirs likes one in bel air, maryland to collect st wm watern available, and distribute it during dry times. it means grappling with chemical t toaminants showing up co coast. >> we routinely test for com pounds that are not regulated and we install treatment for compounds before they'regu ted if we know they're there. >> this complicated task of maintaining and proving the system requires big money. the american water works association estimates they will take $1 trillion, and the american society of civil engineers say they need toec re the true cost of infrastructure. contessarewer, "nightly business report," still ahead, a parn, about how the idea can be knocked off. one company that's so veg rausly
fighting impoppers, but first, words of wisdom from tim fcook. >>ou do what you love you'll never work a day in your life. in apple i learned that's a total crock. ♪ ♪ >> you work harder thanou ever thought possible, but the tools will feel light in yourand. >> it started out as the american dream, final straw which makesn environmentally friendly straw raised nearly $2 million in crowd w funding and even on shark tank, but the dream turned into a nightmare folding half way around the globe in china. andrea day has the story. >> this is final strahe world's first collapsible, reusable, tally bad straw. a totally bad ass idea, a straw desio save the planet and set to make millions. emma cohen and co-founder miles
epper even pitched the idea on shark tank. not in my wildest dreams could i have ever have thought anything like that. >> while attorneys work to secure patents and trademarks for the invention, the team launched their idea on crowd funding site kirestarter. >> w just hoping and praying to sell enough straws that wealn't havehe to make ourselves. >> the little straw went viral. >> we raised over $200,000. and it didn'take longefore backers shelled out 2 million in funding, but as the cash rolled in backers weren't the only ones taking notice. where did it go? >> it went here to factories in china w we ready to rip off her big idea. >> it took us about nine months to create the tooling and get the product ready to manufacture. they were able to do it inf a matter o weeks. >> she had no clue anything was brewing overseas until she spotted it for sale online on
retail sites and phony websites and they ripped off images of her d burrita. >> these straws sold like crazy. >> amadeo ferraro is fighting to keep them afloat. >> how brazen are some of these impofters? >> absolutely brazen. they have complete disregard for rules. i believe that they're going to do whatever they want to do and ask for forgiveness later. >> on the site, alibaba. we found plenty of listings for what lookedtr like final knockoffs. this company saying ready to ship to the united states for just dollars a strawptnd the descn looks familiar, totally bad ass. >> totally bad ass straw. we reached out to a woman listed as a contact to the factory and she declined to speak with us. we sent a report toer to beijin
and the team discovered at least one was not at theho address online. we tracked down a manager for another b straw online.sing the he agreed to talk only >> phone. e admits the idea for the straw that's being made in hise factory c from a crowd funding site online. bruce chin is a product designer in chinand saysven his own work has been ripped off by localactories. >> without the chinese patent, we went to kick-starter's evidence in brooklyn tohao advice they give new creators. if your coming to kickstart re raise funding, you probably want to get your protection in place before y launch and that is very important. once you launch the product is not on on it cancelled justs
ho in part. we are checking the i.p. of rights holder around theld w is critical to our business. we remove any i.p. infringing listings period. right holders canor e their i.p. rights outside china, u.s. patent rigs on our cross-border platforms. after we contacted the online retailer, alibaba began helping final straw incding removing fake listings and it wasn't just onlineetailers and tace went viral on socialed m with hundreds of posts for the copy kats. >> it was if it was a photoey of me with the straw and i was curious. and followers replying. >> social media, and there's no
body enforcing it. >> a meme account tip beingly posts funny ammagesnd videos and the person behind it is not always revea the woman behind this one has a million followers, and she said she ha no idea she posted for a knockoff until we reached out. >> i guessf i were to have googled that i could have seen that hey, this isn't the actual coany, but you know, it is so hard to only do so much digging and o figuring these answers. >> joey is an instagram influencer and this is his manager justin keller and he has 17 million followers across three accounts including a meme page. >> is it tough to evaluate every post before it goes up? >> yes, it is. there is so much wor into , and you have the time and you're willing to do it like myself and my team then that's what separates us from other people. >> but they admit it's tou to be totally sure what you're posting is the real deal. i've seen it so many times
with so many difrent products and it's all about who can get there quicker and who can make it cheaper. it's just a game. >> does the indusy like being in pictures and living that lifeyle, and a lot of it's fake. >> it's l >> most of the business i get are the phony products. >> we reached out to instagram for comment. the socialia m giant tells us in part we review every i.p. taket we receive and action to protect rights holders when someone has used their i.pt with permission and regarding influencer posts. when it comes toit partnering brands, we encourage creators to act responsibly and with intelyity. for "nigusiness report "qwest i'm andrea day. >> comingup, the upecofinancial challenges facing some of our country military families and first, ibm ceo message for new graduates at north carolina
state. >> if you will do brave technologies, like i believe we do, you have a responsibility to prepare society for them so lots of people from every socioeconomic background can orticipate. this memorial day we are looking at the unique challenges that faceenhe men and w of our military. a new study shows that nearly nine in ten active servi members worry about their personal finances. in fact, an increasing number are more concerned about meeting basic household needs than just a few yearsgo. sharon epperson takes a closer look. ♪ >> there you go. good job! >> like many military families the warners are used to bouncing they've moved four times in the last 12 years. most recently to fort meade in maryland all while raising a family on a single military income. >> you're trying to provide for more than one person and all of an you have to furnish a house.
you have new bills. >> some of those bills have been costly. >> when we came back from overseas we ha to rent a car for two months while we waited for the other car to get shipped that was a msive expense. >> nearly 11,000 active duty service members and their families can shop at the exchange at fort meade. like many militaryamies they face unique challenges when it comes to money and the cost o living adjustments and one of the biggest hurdles facing military families today. debt. c altogether, and janna t into trouble when they started spending extra money they received fm eric's deployment bonus while working in afghanistan. >> we got comfortable with it and all of a sudden it's like taking a big pay cut? ierine corps veteran says low starting sal and the structured world of military pay make it difficult for service members to dig themselves out of debt. >> once you get promoted mat
naturally you getd pay raise f you have to make the $20,000 service in a year it'ser not like anoervice will knock on your door and say let me take you in and take you up three wrungs. today more military families are more worried about money than going into battle. in a rect survey, service members and their spouses ranked financial stress as a greater concern than even deployment. for militaryspouses, it was the number one worry with 49% saying it's their top concern.wa >> i a struggle, we were pang now, whato they pay off. it takes financial discipline tr turn ind. >> you want to throttle back lifestyle if it got out of control and get yourself back out on the right path. >> that's exactly what they did. >> we sat down and made a budget together and we stuck with it,
and we didn't do anything fun because we figur it would be less fun to be deputily in dent. a value they're willing toed sp where others. i'm sharon epperson. >> thanks for watching nightly business report for tonig. i'm sue herera. >> i'm bill griffith. have a great evening, everybody. we'll see you tomorrow.