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tv   Nightly Business Report  PBS  January 12, 2017 6:30pm-7:01pm PST

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. >> announcer: this is "nightly business report" with tyler mathisen and sue herera. funded in part by hss. >> our value principals are patient first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do. >> 11th hour accusation with just days left in the obama administration, the epa says chrysler cheated on emissions tests. the auto maker furiously denies the charge but the stock falls
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10%. >> repeal and replace the senate moves to dismantle obamacare but the gop has not come together on what to put in its place. the latest in the high risk that touches tens of millions of voters. >> expanding access, what's being done to put a pricey life saving overdose medicine in the hands of those who need it most. the final part of our drug price crisis series tonight on "nightly business report" for thursday, january 12th. >> good evening. everyone and welcome. it is a case of washington versus corporate america. in one corner regulators in the other an auto maker, one leveling charges of cheating the other angrily rejecting the allegations. the epa illegally installed software that enabled certain diesel engines to emit more poe
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lul tants than the law allows. fiat cry lersaid that's not the case. phil lebeau has our story. >> shares of fiat chrysler today after the environmental protection agency accused the auto maker that exceed regulations. it sounds very similar to what we saw with the epa and volkswagen but fiat chrysler says this is a far different situation. 104,000 vehicles are impacted. we're talking about 2014-2016 jeep grandpickups and the epa says the software in those vehicles allows access emissions. it also says it was unaware of that software. that is an allegation that fiat chrysler sergio marchionne denies. he says his vehicles are in compliance with regulations. >> we have been unnecessarily maligned with a desire or a wish or intent on our part to try and
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defraud anybody. we haven't. >> fiat chrysler and the epa have been negotiating this emissions issue since late 2015. however, again the epa says fiat chrysler did not disclose the emission software. late today new york attorney eric schneiderman says -- denies that it has installed software that is designed to get around emission laws here in the united states. nonetheless, chrysler executives will be in california next week to mote with executives from the california air resources board phil lebeau, "nightly business report," atlanta. >> wall street stocks fell just an investors start to gear up for earning seasons. the three major indexes dropped sharply early in the day with the dow at one point losing 180
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points but those losses were paired by the end of the session. blue chip dow index closed down to 19,891. nasdaq lost 168 and the s&p 500 off four. with today's decline it appears as if the bill ragly in stocks since the election is taking a somewhat extended breather. >> the markets are weak today going into earning season and for a very good reason. i've called the market a coiled spring several times in the past week because the market's are essentially priced for perfection. stocks are essentially at new highs but consumers sentiments at a new high. on top of that there are very high expectations that earnings will expand in 2017. some are saying the s&p 500 could put up a 20% increase in overall earnings. that's an awful lot to ask from the stock market and you throw in the well-known trump tweet
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risk and fiscal stimulus and it's plenty of reasons for the market to take a pause. we've already seen down components like disney and boeing and get various down grades this week. several major bank earnings are out tomorrow including j.p. morgan, wells fargo, bank of america and pnc and while most industries are not seeing any real increase in 2017 earnings expectations since the election, earnings have seen modest bumps up. the problem is the prices have run up really big so is the bank index for example, is up over 20% since the election. they're all pricing in higher earnings. j.p. morgan jamie diamond will likely give up the comments on the economy but don't expect much in the way of guidance. he doesn't do that. the bottom line the earnings will get a nice boost this year, maybe not 20% but 10% certainly doable. the markets need to take a
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breath and believe the data will be forthcoming. for "nightly business report" i'm bob pisani at the new york stock exchange. >> dramatic day on capitol hill. donald trump's nominee to lee the department of housing faced intense questioning by a senate panel and it led to some very heated exchanges. diana olick reports. >> reporter: dr. ben carson a neuroroe surgeon by trade told a senate panel that he was well qualified to lead the nation's housing agency and oversee its nearly $50 billion budget. >> a good ceo doesn't necessarily know everything about the business but he knows how to pick those people and how to use them and that is one of the marks of good leadership. >> but running an agency that directly effects the president-elect's business the real estate industry, was a top concern for massachusetts democratic senator elizabeth warren. she pressed carson to make a promise that no hud money would
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go to the trump empire. carson saide would use his moral judgment but would not rule it out. >> if there happens to be an extraordinarily good program that's working for millions of people and it turns out that someone that you're targeting is going to gain, you know, $10 from it, am i going to say, no the rest of you americans can't have it, i think logic and common sense probably would be the best way. >> the problem is that you can't assure us that hud money not of $10 varieties but of multi-million dollar varieties will not end up in the president-elect's pockets and the reason you can't assure us of that is because the president-elect is hiding his family's business interests from you, from me, from the rest of america. >> reporter: at the end of the hearing another senate democratic asked dr. carson if he would report back to the committee any time in the future
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when he did it see conflicts of interest between hud money and trump businesses. dr. carson said he would, he'd be delighted. i'm diana olick on capitol hill. >> to defend for retired marine james mattis to lead the defense department. today's hearing provided a first look into today's policies and whether military spending will start to ramp up. morgan brennan has our report. >> reporter: national security and defense were on the docket today as james mattis met with the armed services committee. >> i do believe that world order is now under more strain than its ever been. >> i think it's under the biggest attack since world war ii sir and that's from russia, from terrorist groups and with what china is doing in the south china sea. >> i think deterrence is critical right now sir
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absolutely and that requires the strongest military. >> do you think we have the strong enough military today in order to achieve that goal? >> no, sir. >> reporter: the retired four star marine corp general we can afford survival. strength and alliances and take a disciplined approach to the budget. the former head of u.s. central command also became the latest cabinet nominee to diverge from president-elect trump promise to improve ties with russia. >> i'm all for engagement but we also have to recognize reality and what russia is up to and there's a decreasing number of areas where we can engage cooperate actively and an increasing numbers of area where we're going to have to confront russia. >> reporter: also in focus the need for more aggressive policies against isis including the land based missile system which contractors are vying to
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develop. the hearing wasn't without talk of cost cutting including trump's recent criticism of the f-35 joint strike fighter as overbudget and behind schedule. mattis backed the program adding that trump has quote, in no way shown a lack of support but rather a desire to, quote, get the best bang for the buck. that resonated with analysts who continue to believe the president will be a boom for the sector. >> i think trump is going to be very good for defense spending. >> reporter: as the world watch the warrior morning on the hill, lockheed martin met with pentagon to negotiate his next contract. one factor that has helped to put defense stocks lower on the day. i'm morgan brennan. >> the ceo of at&t was at trump tower today. randall stevenson met with president-elect and ways to make america companies more competitively globally. the two did not discuss the
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company's proposed $85 billion merger with time warner which owns cnn. >> one company that plans to create more u.s. jobs is amazon. the ecommerce will create more than 100,000 full-time positions in the next 18 months. the hiring will take place at its seattle's headquarters and fulfillment centers across the country. the decision was made after the high profile meeting with tech executives and he is pleased to have played a role in amazon's hiring strategy. >> the senate took the first step toward repealing the affordable care act the bill goes to the house and this morning said the law is collapsing. >> we want to make sure that we move these things concurrently at the same time, repeal and replace. we need to show that there's a better way forward. we need to show that even though this law is collapsing we can
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bridge ourselves to a much, much better system. the pillars that we stand upon with replacing obamacare, more choices, more options, lower prices and more control over your own health care, those are the things that we all believe in, we're completely insync planning with the daily basis on the administration for how to roll all this out and that's what we're doing. >> the race to repeal he that law could result in a side effect the benefits the wealthiest americans. >> senate republicans have taken a strong first step toward repealing obamacare and cutting taxes for the wealthiest investors. allows them to erase obamacare's tax and spending provisions by simple majority vote which means they don't need any help from democrats. while debate is mostly centered on health issues the tax implications are substantial.
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eliminating them would mean a tax cut averaging $49,000 for households with incomes of a million dollars or more and for the top 400 u.s. earners the tax cut would average $7 million according to new calculations by the center on budget and policy priorities. that could set up a collision with this principal offered by steven mnuchin president-elect's choice to be secretary. >> so that there will be no tax absolute tax cut for the upper class. there will be a big tax cut for the middle class but any tax cuts we have for the upper class will be offset by less deductions to pay for it. >> mr. mnuchin was talking about a broader tax reform effort his remarks underscore one political eventual nerability, president-elect promises to reveal his replacement health care plan once his pick for health secretary wins
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confirmation but there's no consensus within the republican party yet. >> still ahead an influential tech execute says apple's best days are behind it. what apple is doing to make sure that isn't the case? >> shares of netflix have run up nearly 5% this year alone and adding to gains a big ones over the past two years. investors now wonder if the climb will continue when netflix reports quarterly results next week. julia boorstin takes a look. >> reporter: why do you hate us so much? >> because it's fun. >> reporter: friday netflix is launching new exclusive contact.
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based on a best selling book and star kneel patrick harris. when investors will look to see how this kind of original content is driving subscriber growth. the big question is whether shares will follow in the pattern of last year's 8% gain where the massive 134% growth the prior year, thanks to subscriber growth. >> our check suggests the consumer was a little bit more interested in netflix perhaps in the fourth quarter than they were in the third quarter. >> netflix shares are up 5% this year. j.p. morgan added netflix to its u.s. focus list. liberty media's john malone appraised he broke the mold and sunday night netflix one two goden globes for its new series the crown. it shows continues to dominate in viewing. 21 of the 25 most popular
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streaming programs were netflix originals. according to symphony advanced media. the question now will netflix face a massive threat from apple which reportedly is about to make a big investment in original content as well. >> netflix has proven remarkable adept at dealing with a range of threats, so what we hear from apple is probably one of the lesser threats. >> reporter: netflix has the advantage of a head start on apple, analysts says there's another key risk to watch. regulatory challenges in the trump administration. >> and julia joins us now to talk more about apple's move to take on hollywood. good to see you as always. apple would have to spend an awful lot of money to keep pace with netflix rivals.
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some say they may be late to this game. >> well apple certainly has the resources if they want to quickly ramp up spending and original content. when it comes to licensing content the movies and tv shows that netflix and amazon have licensed, a lot of those rights are already tied up and when it comes to investing in new original don't there's just a little bit of lag time. it takes quite a while to produce and get new shows on the air or rather on apple's new service or baked into apple subscription service. >> they have a good relationship with disney i'm aware of and of course that could be an interesting pipeline for them. separately the billionaire investor peter teal told the "the new york times" that apple's golden age is over. what's he talking about? what's the reaction been to that? >> well apple was such a game changer in inventing the iphone and inventing the ipad and the question now is really whether they're going to have another massive invention that's going to change the game. just look at the number of
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companies that live within that apple ecosystem that can only really exist because apple invented the iphone. and the app store. the question now is whether they're going to keep on doing what they're doing selling computers and ipads and phones or whether they're really capable of having another came changer. right now analysts don't see another massive game changer on the horizon. >> but julia thanks so much. julia boorstin in l.a. >> delta airlines had a strong holiday season helped sales takeoff. the airline posted better than expected sales numbers while its lower profit fell in line with estimates. delta ceo said he expects a met trick to improve this quarter. >> the last two years our fares have been down. and while fuel prices have been down which is a good pass
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through for consumers, fuel prices start to rise, labor costs have started to increase. we need to be able to improve our fares. our year revenues up between 0 and 2%. >> delta shares were off 1%. the drugstore chain cvs it is selling impacts laboratories generic alternative to my lan's epipen for a much lower cost. they can now buy a two pack of the life saving treatment for $110 a fraction of ep pill pen's $600 list price tag. impacts shares rose nearly 3% to 1275 and my lan was off more than 1% at 36.77. meantime eli lily it won a patent case against rival pharmaceutical case.
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would infringe on one of lilies patents. shares of lily up two and a half percent. >> straight path communication reached a settlement with the federal communications commission regarding an investigation into possible fraud at that company. the wireless spectrum owner said it would pay the fcc $15 million and give the treasury department a percentage of any future license sales. shares rose nearly 31%, that's a relief for you, to 41.13. in a regulatory filing activist hedge fund disclosed more than 8% stake in health care consulting firm the advisory board company. the hedge fund said it believes the advisory board stock is significantly undervalued and would like to speak with the company about maximizing shareholder values. and home improvement company lowes is reported planning some job cuts according to cnbc.
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the company will be changing its store staffing model and that will result in less than 1% of the workforce being laid off. lowe's employees about 285,000 employees. shares were up $0.32 to 71.58. >> the automotive supplier could plead guilty as soon as tomorrow to criminal misconduct. the company is at the center of those defective air bags the scandal that was linked to a number of deaths and injuries. the company is expected to pay a billion dollars to resolve the criminal probe. >> coming up what's being done to make a life saving medicine accessible to those who need it most? find out in the final part of our series drug price crisis, that's next.
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this week we've reported from the front lines of this country's opiod epidemic. the drug that reverses overdoses from heroin or prescription painkillers may keep it out of the hands of first responders and others who need it the most. and we looked at some of the reasons companies say prices have risen. tonight meg actuary relevant looks at what can be done in the final part of our drug crisis series. >> it was the death of a friend that prompted his work around a life saving drug. >> we had talked about this as an agent to use but we had john's death was the reason we started using it. >> john's friend died two years ago of a heroin overdose. big has worked with the organization they founded together the the chicago
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recovery alliance. >> we have reached over 72,000 people with o.d. prevention and we now have over 8,000 reports of pure reversal using it. >> he and his team funded from private donations and the city of chicago can be found each day of the week in a different neighborhood of the city. >> people see this drug and they know they can come here for help, getting anything for clean syringes to a flu shot and this. which contains 3 sir inks which could save three lives. >> as deaths from heroin overdose have overtaken those from gun homicides in this country, federal have worked to increase the distribution. >> i think this is more manipulation by the pharmaceutical industry really to profit from the epidemic as it exists. >> the drug makers say they price the drug responsibly and the increases are due to the
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manufacturing and patient assistance. still researchers say solutions are needed some include bulk purchasing similar to how governments by vaccines. and importing it from other country where it's cheaper. others like dan big shouldn't require a prescription at all. >> you go into a wall green or something you can see a dozen different nose sprays and they're all under ten bucks. that's what the market should look like in my opinion. >> without a prescription through special programs. over-the-county version the same way we buy ad vil would require a different investigatory pathway. ed fda is supportive of the idea of over the counter but that would require manufacturer to pursue regulatory. >> we have to save someone's life right now because if we
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don't save their life today there's no chance for a better tomorrow. that said, it isn't the answer. because once a person is saved, they still have a disease. >> a new bill providing billion dollars in funding was just signed into law. primarily focused on increasing access to substance abuse disorder treatment. >> addiction is a chronic brain disease and yet the surgeon general's recent report found that only one in ten patients with a disease of addiction can get the help they need. and what other disease would we find that to be acceptable? imagine if i said only one in ten patients who have cancer can get chemo therapy. >> it's an urgent problem with much more work to be done. i'm meg actuary relevant. >> and that does it for "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'm tyler mathisen have a great evening and we'll see you back here tomorrow night. >> "nightly business report" have been funded in part by hss.
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>> our value principals are patient first and we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient at the center of the equation. >> the purpose of this organization is to help people get back to what they need and love to do.
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