tv Nightly Business Report PBS September 25, 2019 5:00pm-5:31pm PDT
♪ this is "nightly business report" with bill griffeth and suend herera. back to basics. stenographs rose on optimism of trade between the united statess and china even as the impeachment inquiry divides washington. up in vaich, pressure mounts on the e-cigarette dustry. and investors wonder whether it's still a viabl business. salese surge. th housing market heats up, but it cop coming at a steepprice. those stories and much more tonight on nightly business report for this wednesday, september 25th. and we do bid you good evening, everybody. and welcome. sue is off tonight. tll it was another noday,er headline and big market response. at the open this morning, scks continued to trade lower after
yesterday's selloff ahead ofe hopeaker nancy pelosi's announcedment about an but later in n e morning president trump made an offhand remark during mee ungs that a trade deal with china may come sooner than later. that's all itook. stocks reverse course and headed higher again. the industrial average closed u 162 points at 26970. nasdaq up 38. the s&p added 18. but the fallout in w from the impeachment inquiry was stillery much on the mind o of investors. the president did call the h inquiryxnd said he suorts transparency on whise-blower information and from the democrats a well. dan mui has moren the drama in d.c. >> reporter: democrats and republicans girding forir battl on capitol hill ashe impeachment juriy divides washington. this morning the white house sileased notes ofp'resident tr july 25th phoneho call with a leader of ukrine. in it trump said, there is a lot
of talk about biden's son.e a lot of peo want to find out about that. so whatever you can do with the attorney general would be great. the justice department said that president trump never spoke with attorney general william barr aboutukraine. and that bar b has not communicating with ukraine. but the doj said it did review the complaint from the whistle-blower who raised concerns about the president's conversation wh the foreign that it determined sent to congress.eed to be democrats said these new details only strengthen resolve to move forward with impeachment inquiry. >>hat the n reflect is a classicia mike shakedown of a foreign leader. >> some republicans were roughle add wells there is bipiptisan pressure to release more information and mitt romney described the caly as deeply troubling. >> i did read the tr. it remains troubling in the treme. it's deeply dtroubling. >> today democratic leadership
said there is no set time line for action butioantn to move exditiously. fo "nightly business report" i'm ylan mui in washington. now many washington analysts impede nafta or usmca.inquiry t it mak m changes to the relationship between the u.s. and canada and mexicode but cratic leaders insisted the inquiry will not be distraction. speaking of trade the u.s. and japan annnced aimited agreement. the packet will open japanese markets to american farm goodss and c american tariffs on japanese turbans, bicycles and goods. the deal was announced when president trump met with shinzo abe on the sidelines of the united nations general assembly today. while chief executive follow trade talks closely there is another country where they see the potential for big opportunity. that's india. and today the leaders of some of america's biggest companies met
with india as prime minister. seema modi reports from new york city. >> reporter: american companies are lacking to expand their operations in india. a growing emerging marke with 1.3 billion people. the opportunity to expand into great that top executives including jp morgan chief executive and the ibm ceo metrs for two ht a private meeting with indian prime minister narendrausodi. but as the opportunities are great, so are the challenges. ceos used the meeting t voice concerns. >> i thought it was a really good conversation. you had some of the biggest ceos in the americ prime minister gave almost two hours of time and listened to a lot ofdeas as well as issues. and i think people were qte candid about some of the things they think india needs to do. and he was receptive to hear the. >> the timing of theting
cos as india as economy slowed to a 6-year low and unemployment rose sharply. according to sources in the meeting modi tried to calm concerns abouthe slowdown. referencingax cuts unveiled last wee tst he say will have positive impact on the economy. >> i think the prime minister when he walked in he had the ceos a bit skeptical to the and he lifted the mood. and you could see they were and -- , positive. but experts say there are other road blocks like ob training construction permits and acquiring land inndia. atec aent e-commerce ruling-m challenged wart and amazon's growth in the coury. but executives remain hopeful that this rulin will be relaxed in the near future. >> what did y discuss with moditoday. >> we had a great discussion i'm glad we came to the meeting. we have a tremendous opportunity in india. and it's great to have the dialogue. >>l do you think he will
the e-commerce to help you grow there. >> we'll zblee executives pushed mo to debt a trade deal with the u.s. >> my think something wait and watch. these are two economies which are growing together. and the trade deal will happen. >> any progress made on trade would be b welcomed u.s.co businesses that are trying to grow their market share in india. for nightly business reportma modi, new york. memewhile, the housing mechanic here in the u.s is definitely reheating. e have more evidence of that today from a new report showing surprise surge in newly built homes in august. but it didn't come cheap. diana olick explains. >> new home sales jumped to th second highest level in over a buyers took ust as advantage of cratering mortgage rates. the average rate o the 30-year fixed was over 4% in mayfe but to 3.5% by august when the contracts on the new homes were signed. just one of the reasons for an upgrade of big blders len nar,
kb home and toll brothers by buck horn. >> low mortgage rates sub4% mortgage rates w definitely enough of incentive to go buy houses. and that's what the data indicated. and that trend appeared to be accelerate really into july and august. >> but the action is still on the higher end. just 1% of sales were for homes priced below $150,000. and 9% were between 150 and $200,0. the he biggest growth in luxury. sales of home priced above $750,000 or up about 60% compared with a year ago. >> the new entry level, the redefinition of it in markets starts at $300,000. and that's for adot of households still an aspirational type number to reach. >> the surge in sales caused the supply of newly built homes to drop dramatically. for the first time this year the supply is lower than it was a
year ago. >> another red flag, falling mortgage rates. they're not falling anymore. in fact they moved sharply higher this month and could keep going. that's already making that priem m for aparkly new home even bigni are. fotly business report, diana olick in washington. bogey today announced settlement in some lawsuit involving the victims of the 737 max crashes, they are separate frrs the millions of dollion the cocoany mass already agreed to pay out of a victim's compensation fund. it's all an attempt by bogey executives to try and jus move forward. here is phil lebeau. >> reporter: n crly arier after a bogey 737 max plunged into the java sea killing 189 people bogey settledome of the lawsuit involving that crash. routers reports the families ofi each v will receive at least $19.2 miboion. y has not commented on the agreement. they come as bogey faces dozens of lawsuit involving two 737 max
crashes. while it could take month c or even years to resolve all the cases, bogey is also offering additional compensation to the families of victims. each is eligible for approximately $144,000. so bogey00. could payust under $50 million and families would retain the right to sue the company. ken fienberg, who ovsaw the 911 victim fund saying says in the bogey case families are emotional and weighing optionos zp what we are trying to do with the families and lawyers of the foreign countries is all explain to them thereeally are no hidden agendas he. we are trying to get the money out. bogey is pushing to get the out separate the litigation. there is a deadline ofr decem 31st. >> meanwhile, bogey is considering changes to theitay designs and build airplanes. so there is a greocer on
safety and oversight. all of this com as bogey ceo says the 737 max could be back me service by the end of the year. ing we can be just a few weeks away from thefaa rekrerting and deeming the max safe toly phil lebeau, nightly business stilloa ahead atrip in an rv. >> $3 billion-dollar of rv sales expected at the annual event where dealer buy new. mode the astro has been slumping in recent years but ceosge of the b companies say they're optimistic about the future. i'm frank holland. i'll tell you why coming up on "nightly business report." ♪
♪ the average cost of employer provided healthoverage has hit a record, surpassing $20,000 year for a family plan. accordinggo the kaiser family foundation on average employers cover about 70% oft.hat c employees pay the rest. right w, deductibles rising faster than premiums and costs for health care are rising faster than wages. pushing an increasingumber of erican workers into less expense of plans that cover as much or chosen not to enroll actually. newwell t re was a lot of in the e-cigarette business today. while tobacco executives appear the fda commissioner were on capitol hillestifying about regulations and health issues, leading e-cigarette maker juul announced a shake-up and a tenth 10th the d tthide to videotaping was announced. well we have missouri.
>> for juul, the edwin marked the change at e very top. ceo kevin burns is sing down. long-term altria executive casey crossth i stepping in as the new chief executive effective immediately juul has come under increasing scrutiny by lawmakers and critics for elinge the underinking vaping ep dem. >> we saw 78 petros increase last year a 38% increase on top of that of kid using e-cigarettes. that's arisis borne of the access and appeal of the prodts to kids. >> here on capitol hill wednesday altria ceo pushed back on accusation that is juul alone fueled what some like the governor of massachusetts this week called a public health emergency. >> the increase startrt before juul was a very significant pruct in the market. as the category started to grow rapidly driven by juul, the youth issue became a significant issuhat i think approprtely caught the focusf the fda.
and i think juul is committed to building on t actions they've already taken to drive down youth use of e-vapor. st the ff the ban, massacbasetts announced tuesday bannin all vaichg products for four months np illinois is also considering a band. theth white house said it's planning to ban the product until they are reviewed further. wednesday juul nounlzed it would stop advertisi the products and would not lobby the white house administration as it considers that ban. >> they with others in the industry wl have to ultimately reverse the increase of youth usage of e-por products. they've taken some actions already and i have no doubt t new ceo will help them decide what additional actions need to >> with but former fda commissioner scott gottlieb warns pulling o the product shelf could create another issue. >> it's increasing market forll the ial products. >> the cdc saying they have more th 10 oh people investigating the issue but warned it will take substantial time before a
cause is known alerty and phillip morris unannounced ending merger talks. alt altria bought8% stake in jewel last year. and joining us now to talk about the ffure this fast-growing industry and how likely it is to be regul ed we welcome the man you just saw in the pack ooj dr. scott gottlieb. thank you for your time tonight. >> thank iyou. occurs to me you can't regulate the product until you understand the rpose. are vaping products are smob smoking countriesation system, or is it just another way to smoke? >> well, probably both. i mean they could be a product at helps currently addicted adult smokers transition off combustible tobacco. there are products some kidsnd ults tition to nick teen. some of the adults might have gone to o smoking instead choosing to vape instead. but we know kids are initiated
on nick teen through e-cigarettes that wouldn't smoke. we stigma a tise smoking in a lot of the kids addicted to nick teen wouldn't have turn to cigarettes but for the fact they have they have now a nick teen addiction. >> what role does thc play in this? there is the fhalingis? sort of counterfeit vaping material causing let lung diseasen and some of the deaths may involve thc. does that getd exhibitin since marijuana is not legal federally? >> i think we need to o be careful to distinguish two problems. one is the crisis of an epidemic of teen vapcig of rettes and now the acute lung injuries which seem to be driven by counterfeit products and illegal products that contain thc or cbd. and they fall in a regulatory no man's land. it's not clear who is regulating those vaping products right now. one of the thipgts we saw the past summer was the launch of national brands of vorizing
hardware marketed deliberately for vaping thc and cbd. those compounds b t usage of contraband and thc oils vaped in the products tend to be m a pop business that are being produced under different sometimes with what we know are daerngts oils causing the lung juries. >> wal-mart has now stopped selling vaping v pducts. massachusetts has announced ma -- a tempory ban onelling vaping products, in part because of the lung disease and the deaths. do you find it ironic that they are banning tse products when theyell regular cigarettes. >> certainly i think a lot of thlts who potentially were using the vaping products might now some of them with nick teen addiction might transition to combustible tobacco kwhiel the vaping is not safe. they are less harmful than a combustible tobacco. we need to to be deliberate about the steps and i thinkg bann the products is
exacerbating the black market illegal vaichg products gnd could stretch some of the acute l injuries we are seeing if in fact many are the result of illegal products entering the market. >> today with all of the talk about the regulations, the bans, an ans that's going on around this industry, one prominent professor of publicpo health cy said that we might be oking at the beginning of the end of vaping industry, even as juul is still valued at about $40 billion. what do you ty. >> i this is an stre in tribunal right now. had they acted more responspoly when the issues around the youth epidemic first arose in 2018 when we first got the data and thein push back on meas we were trying to take to restrict kids access totd products you wouldn' see so many people jumping on willing to conflate the acute lung injuries with the illegal sold products. it may be the illegald products are causing injuries but it appears the majority of the lung injuries are result of
the illegal products. thero illegalcts have oims that are rmful. ducts are y sold p water solable. eht i think the industry behaved so badly when facewoodhe first crites now they are facing a second crisis they ar garnering very little consideration. >> former fda commissioner dr. scott gottlieb. good to see you thank you. >> thank you. >> elsewhere best buy sbeting on big growth over the next five years and that's where we begin tonit's market focus. during the annualnvestor day, the electronic retailer announced a goal of $50 billion in annual revenue by 202 i than part to a push into health services. it's also targeting a billion-dollars in cost cuts t duri same time frame. separately the company ceoly addresse how the best buys dealing with the u.s. china trade war. >> first we're trying to figure out what will be on the list, what's excluded. second to your point we work nlosely with vendors bringing in product early, talking about
mitigation strategies. you see supply chains move. i think what you are seeing heading into holiday is actually going to be hardo track directly through a perfect 10%r % tariff. >> best buy shares down aon frac to 67 pft 43. vp comp, the maker of the north face vans and other apparel brands.ap is outleted growth growth seeing double digit growth through 2024 and expects to turn $10 billion to shareholders over the time frim through buybacks and tifd dividends. shares rose a fraction to 87.02. and the ftc suing the mat group for allegedly using fake love interest ads to entice customers to pay for subscriptions for dating site match.com. the director of the ftc said the site cond people as he said, knowing the ad messages were from scammers. sharesea felly 2% to 71.44.
and activist hedge fund elliott magement sent a letter to marathonme petroleum rec it break the company up into three separate entities. elliott suggested that the energy company keep marathon as the refinery business but split and maermt operations into independent companies. they rose 8.57% to 60.15. yes the economy is solid but slowing and some the risk of recession rising. but someone forgo to tell the rv industry which some look to as an economicndicator. the theory is simple. when rv sales do well, the economy tends to follow. sow. we sent our frank holland elkhart, indiana where a large percentage of reeational vehicles are made. >> a motor home with a bedroom that can unusual a garage. it's one of the many new model at the rv open hse in elkhart,
indiana, where dealers arey expected to $3 billion of inventory. >> my personal feeling is that the american consumer is still solid. ceo of winnebago, michael happy is optimisticut abo this consumer discretionary industry, despite projections that would have sales falling a third straight year in0 after a cord 2017. >> bon bob moornt zefs it's on the road to recovery. >> there is no doom and guardian gloom. they are positive looking at the next year and even looking to the fall of this year s >>al of air stream, author's higher end product are close to the 2017 record numbers according to the company. they believe it's a sign that the consumer economy is still very strong. >> we look atk millennials as probably the next big opportunity. it's a very large group.'s it larger than the baby boomers. they are connected to social experience. and being outdoors. appear so for us, if we can
start talking to them now and bringing them into our units maybe the smaller units as they get arted, less expensive they may not own a home b they like adventures. the they expect the tariffs to impact the companyne wingo by tense os million but consumer confidence numbers and falling interest rates are just what the industry needs. >> i thinkarf our ascension in terms much number of units sold in the last ten years has been because, you know, financing has been available. and a sflineway and affordable. and i think another quarterth point drop certainly would be beneficial. but injury the industry is healthy. >> another bright spot for the secretary are, the number of household camping more than three times a year increased 72% since 2014. in elkhart, indiana, frank holland, "nightly business report." and coming up advertisers finding new ws to get your
attention and it's raking in the cash. ♪ ♪ ♪ if you want to work a mcdonald's, you can now ask alexa oar google assist for help. the smart speakers allowob seek tors start application by using voice commands. mcdonald's say it's the first direct employe to use the platforms in this way. and it allows the fast food chain to stand out in a tight labor market. also part of broader effort by mcdonald's to incorporate more technology into operations.
speaking of h,wh as hiring goes high tech so does advertising. and the industry's innovative push was on full display during this ye 's ad week conference inew york city. julia boorstin has. more >> billboards and radio spots may seem old fashioned compared to facebook and instagram adz. but new technology is it dij advertising traditional formats appear jump starting growth. >> alexa, can you tel me about the newe. mcdonald's sc >> happy to. >> with the explosion of home speakers streamingusic services such as spotify appear pandoraa, as well as pod casts the digital ad market drew to $2.3 billion last year, a 23% increase from the prior year. >>iven that smart home devices are driving the growing and the digital audio environment ight now it makest sense tha amazon has moved forward with a digital audio product given that they support alexa, the largest smart home device on market. >> and now amazon, therd largest ad giant is using
digital audio ads in the ad supported music service to drive growth. >> a lot of what has driven brands to look at digital audio vertising is to target the customers specifically in the environment. but pandoraapofy rely lebron jamesl on third party data. amazon has piers party data they can use. >> outdoor advertiseom benefit igital tools asig well while the overall ad market hwn g had had% a kbreer dlm billboards arresponsible for 5 a of the growth now comprising a fict of all outdoor adr revenue unon start upbringing up the billboards is ad quick aggregates the billboardin from 1,000 media owners nationwide including clear channel and lamar. the enabl buy tors target zip codes and measure the impacts offed adz based on increase in web traffic from locations. in the more traditional billboarding are converted into
digital displays, the more opportunities for brands to tap into the potential to pot swp o ing and customize ads based on the zip code. for nightly businesseport, julia boorstin. >> finally tonight we learn that gm and t uaw are close to a tentative deal to end that stri. sori that will be a focus of tomorrow's market after today's gain. that is "nightly busiorss report" tonight. i'm bill griffeth. thanks for watching. we'll see you tomorrow. ♪ ♪ ♪
woman: this is "bbc world news america." is made possible by... thfreeman foundation; by judy and peter blum-kovlefoundation, pursuing solutions for america's neglected needs; and by contributions to this pbs station from viewers like you. thank you. michelle: this is "bbc world news america." reporting from washington, i'chm le fleury.