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tv   Nightly Business Report  PBS  March 11, 2013 6:30pm-7:00pm PDT

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>> this is "nightly business report." >> lucky number seven. the dow and s&p 500 posted a seven-day winning streak. and the dow set, you guessed it, another all time high. >> investors are re-examining their retirement portfolio. >> and women in the workplace. cheryl sandburg ignited a fire storm with her new book. we will weigh in. >> good evening and welcome to our public television viewers. >> early in the day, maybe not so much. but by the end of the day,
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absolutely true. stocks did overcome a flat and maybe even down-ish open. that pushed the blue chip dow index. quite a streak. the dow added 50 points to close up 14.447. and the s&p 500 rose five points. it is less than ten points away from its own record close. >> more than half of all americans are invested in stocks and bonds with most of that money in retirement savings plans. with the s&p 500 closing in on its own, many of us are following the markets more closely than ever, retooling our accounts and seeing if the 401 ks are getting bigger every day. jane wells has more. >> reid ruker is checking his 401k again. >> i have looked at it more in
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the last four months. >> and investors like him are starting to call financial adviso advisors. >> the volume of calls has definitely picked up. americans are clicking away as the market hits new highs. more than 5.5 million unique visitors went on to trading sites the first week of march. >> i was checking periodically throughout the day. >> shawn likes what he sees. >> it's nice. but honestly it doesn't change my day to day life. >> what are people doing about it? one sold some of his boeing stock and moved it to cash. another is concerned that a muni bond fund may be part of a bubble. >> i'm feeling pressure to move that money out of there. >> when we asked people on twitter what they're doing, most
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said they are checking them more often and a few are starting to make changes. >> contemplating dumping bonds but can't find a good alternative. moved half from equities to money market. got a bad feeling. but it was countered, adding more risk as long as big ben is here, so am i. >> advisors are being bombarded with questions about where to go from here. >> it's not about timing the market. it's about time in the market. >> in the meantime it's de ja vu all over again. back to the days when checking your 401k was something you looked forward to rather than dreaded. >> well the rise in stocks may have many americans feeling better about their portfolios. the ceo of general electric today warned that overregulation and political uncertainty could
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restrain the pace of the american recovery. he said the u.s. faces more political storms this year. the fiscal situation, debt limit controversy and tax reform. we fear this will impact capital investment. with more on what's happening or maybe not happening in washington, we turn to john harwood. we hear tomorrow from representative ryan. he will present his version of a gop budget. is there any movement towards some kind of agreement that could produce a budget under regular order? >> no movement yet, but there is a possibility of some. there was a promming interview that paul ryan gave over the weekend. he talked about his budget which presumes the repeal of obama care. of course that's not going to happen. it presumes a shift in medicare to the voucher program that president obama ran hard
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against. but there are things that we can do together, republicans and democrats that don't force ether o one of us to violate our principles. looking to consolidate the ideas. >> john, just wondering, to what extent is it look, this whole budget battle is impacting our growth outlook and we may be hearing from other ceos. do you think the administration and lawmakers pay attention to comments from ceos? does this push pressure? >> it does. and they look forward to more pressure. most of the major corporate ceos are practically minded. at the end of the year they push for the so-called balanced deal the administration wanted that had cuts and tax increases. what they are hoping is after a
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period after the fiscal cliff deal, many of the ceos retreated from the spotlight. having them come back on and push con fress to act the administration believes it will help them overcome some of the resistance. >> john, thank you very much. >> overseas issues could also impact markets here in the u.s. european markets took a hit today after italy's dead was downgraded. and data out of china showing an uneven economy in that country as they hit a 10-month high. and rising prices could lead to problems here. >> reporter: if your dress shirt has a banana republic or j. crew ta tag, there is a good chance it was made in this factory. keeping prices attractive for its american customer is getting trickier.
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with wages rising rapidly in factories like this one, manufacturers are looking for ways to keep exports surging. ceo roger lee says the biggest challenge is retaining workers. >> every day the average increase is about 15% in labor costs. >> better education and the internet mean workers are better informed, leaving lee to invest heavily. >> this is one of our recreation centers. it is a place they can play pool and table tennis. every night this place is full. >> a typical dormroom has eight beds but only six people stay here at a time. >> what's the mentality of the worker these days? >> really different. the workers just wanted to make money and take it home to build a home. now the workers come here and they want to enjoy life. >> lee plans to keep factories
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here, though the challenges for exporters is raising doubts that china can compete. >> it used to be one of the cheapest places and now it is not. >> meaning that shirt could end up costing more when they are no longer made in china. >> we have hit you with a lot of stuff so far, both good and maybe less so. let's try to put it into perspective with alec young. welcome and good to have you with us. some of the chinese data that came out today and over the weekend caused some worries. should investors be worried by rising chinese inflation and falling industrial production? >> i think there is certainly trends that we want to monitor but a lot of the inflation pressure was coming from food, which was up 6%. so a lot of that 3.2% increase in china was driven by food and
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we think the new year holidays in the late january, february time frame had a lot to do with that. as far as industrial production that could have been impacted by the lunar new year holiday. i think we will want to see more evidence before we need to get too worried about it as u.s. investors. >> you heard all of our reports about the stock market going up. other issues and headlines out of europe? a lot of investors seem to be preparing iffe inine ining for back. >> the trigger remains elusive. there are a couple of things we will be watching. number one we have the next fed meeting around the 20th of the month. speculation will continue. so that's something to watch. another thing.
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they need that to fund the government and avoid a partial shut down. i think if investors are looking at potential speed bumps, those are two events to keep an eye on. overall we think that equities are pretty well positioned. the data is coming in better than expected. corporate earnings are going to continue to grow. while we could have short term speed bumps we would urge investors to not get too dramatic. >> if i may infer that you're not in the camp that expects a five to ten percent correction, what would you suggest that i do with my money? >> i think one of the earlier gusts that was quoted on the program said it's not about timing the market, it's about time in the market. i think i would generally echo
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that. if we look at the number of people who have been looking for pull backs, myself included, i think it's a reminder, trying to time the market on a short-term basis most of the time over the long run, equities are where people want to be, especially given the lack of attractiveness. >> i was just going to ask you about that. you heard reports about 401ks. what's your advice to investors? time to rotate out of bonds? time to get into stocks? >> hopefully people already have exposure to stocks. i think some rebalancing is always a good idea. i think overall people that have a lot of time until retirement should take an equity focus. if they don't own quite as many stocks as they should, now is as good a time as in. if we do get a bit of a pull back they will be able to take
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advantage of that. >> we leave it, alec young. thanks very much. >> and our market focus tonight, four dow components touching or closing at all-time highs. boeing closed up more than 2%. disney, johnson & johnson and 3m had smaller gains. >> and speculation that there would be a share buy-back program or a share dividend. >> blackberry had its best day in five weeks as att said it will take orders, the first touch smart phone blackberry has been able to get to market. >> young brands set sales in china and that sent yum shares
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up more than 7%. yum's top market is china and the company is working to recover from last year's food safety scare in china. >> and good news tonight for your wallet. prices at the pump fell more than 5%. the lumberg survey said the national average price of self-serve regular gasoline was abo about. >> coming out of the really cold south by southwest conference. highlighting new technology from all different interactive industries. and we will show you why some are calling this year of the gadget. people were talking about a
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controversial new book about women and leadership. women, work, and the world to lead. it's getting a lot of attention because it's written by the super successful facebook executive. she started a fresh debate about women in the workplace. even though women account for about half of the work force, there are only four female skaes in the fortune 500. a lot of hard truths in sandburg's call for action. >> robin, a work at home mother of two with a third child on the way knows well the challenges that working women chase but doesn't quite see cheryl sandburg leading the movement. >> i don't find sandburg to be the face of the modern working woman.
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she's a token executive. >> but she agrees with some of the reasons sandburg told 60 minutes that men still run the world. she got a taste of it in her years working at a big technology firm. >> my first job in high-tech, my male manager on the first day showed me how he liked his coffee. when i was pregnant with my first son and i returned back from maternity leave, my male boss asked how my vacation was. >> still critics say most women will relate to the advice that sandburg offers. how many people can say they went from harvard to the world bank to helping google become a $250 billion a year business. sandburg did all that before her 30th birthday. no wonder time magazine's cover had this headline. >> i am not saying that everyone has the resources or opportunities i have.
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but i am saying that we need to help women own the power they have, learn how to negotiate for raises, get the pay they deserve. >> sandburg is on a mission to reboot feminism. she says women need to learn to stand up for themselves. instead of holding back, women must lean in. >> men will attribute whatever success they have, that same success to their own core skills. >> something she is teaching her kids, two sons and soon enough, a daughter, too. women, as a general group, we are not. >> and supportive of each other and the choices we make. how can we expect men to fill that void? >> our next guest has blazed a trail for women in the workplace. the former chairman and ceo of
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hewlitt pack aard. nice to have you with us. when you became ceo of hp, you were the first female ceo in the top fortune 30. quick correction. there are 20 women today who are female ceos. but i want to start off by asking you. what's your reaction to cheryl shorthandburg's sandburg's assertion that women are not assertive enough? >> i think there are several things going on. good for cheryl sandburg. she spends an enormous amount of time trying to inspire women in some cases it is true that women are reluctant to take a risk. on the other hand it's also true that sometimes men are reluctant to take a risk and hire a woman who has not done something before. in many cases women don't have the tools or the choices or the
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options that men have. so i think the goal here is to be sure that as many people as possible, women and men have the tools and choices and options and we know that women's choices are tougher. >> when men and women exhibit the same behaviors in the corporate setting, and men are perceived as leaders and women are perceived as bossy or worse. how do you recommend that women knave gait that very tricky area? >> i think it's clearly true that women still are subjected to a level of scrutiny, personally pointed commentary that men are not. it is still true that a man is described as aggressive and leader-like and a woman is described sometimes as you know what that starts with a b.
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i think that is clearly still the case. it's because we don't yet have enough practice with women in positions of leadership. let's take this out of the gender context and talk about it economically. women are the most underutilized resource in this world. we have one in six people living in poverty 70% of those living on under $2 a day are women. when women are engaged in problem solving, things get better. many times i think we talk about the issues always in the context of gender. it's really a human issue. how do we give more women the choices, the toilols, the optio. >> so, you have had a lot of experience in this area, having
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been a ceo for so many years. what is your advice to women? to men? to parents? >> first i think the goal is to have a person, a child, a woman or a man have as many choices as possible. and that means they need the tools of an education. they need the opportunity that a job presents. they need people who will take a chance on them. women are minorities. it also means that women need to think carefully about what is the kind of life that i want to lead. the goal is for women to be able to lead the life they choose and have the tools and the options to do so. >> former chairman and ceo of hp. >> sandburg's book hit the shelves today. now let's look at what is on our
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radar for tomorrow. costco reports results before the bell. paul ryan will release his federal budget frame work. the doors close at the sistine chapel. all that and more tomorrow on the "nightly business report." >> the annual south by southwest conference in austin, texas, brings together leaders and newcomers all looking for the next big thing. but this year is a bit different. some of the biggest names in tech are using the cool factor of the festival to unveil a host of new products. >> reporter: this talking shoe is the talk of south by southwest interactive. it's google's latest creation and google is trying to show just what its technology can do. why? because there are 25,000 people here.
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entrepreneurs, engineers and cool hunters out to find the next big thing. south by was a launch pad for twitter and four square. but this year the focus is on physical products. >> it feels like this is going to be the year of the gadget. >> like this leap motion controller which let's people play games and surf the web by moving fingers in front of the screen. and this 280 device makes a digital flip book of your life. >> it's become a key destination for big brands to boost their cool factor and reach new customers. >> yahoo! is also in the thick
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of it. and car service uber is fighting to stand out from the crowd with a new high end service. >> pushing a button and a rolls coming and picking you up? that stands out. >> uber expects to add as many as 10,000 customers from being here. and start ups and fortune 500 companies are here. for nightly business report, i'm julia. >> and finally tonight, a judge struck down a proposed new york city ban on the sale of high sugar sodas and other sugary
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drinks larger than 16 ounces. the judge ruled that it only arbitrarily applies to some businesses and drinks. bloomberg has been tough on a lot of issues but this one -- >> got so many people inflamed. >> he and city council they they will appeal the decision of the judge. >> that's it for us. this is the time of year your public television station seeks your support. and that's support that makes programs like this possible. >> and on behalf of your public television station, thank you. we will see you back here tomorrow night.
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