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tv   Nightly Business Report  PBS  September 6, 2017 5:00pm-5:31pm PDT

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this is "nightly business report" with tyler mathisen and sue herera bipartisan shift. democrats reach a deal to pass aid for hurricane harvey victims and avert a debt crisis, at least for now. if irma hits while the country is recover iing from harvey, > me peo are renting ou their cars. and big automakers a notice those stories and more tonight on "nightly business report" for wednesday, september 6th. >> good ooempk and welcome. an unusual thing happe today. president trump and democratic leaders put aside their
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differences to reach washington biggest issues. an agreement was reached that includes a three month extension of both government funding and a three-month increase in the debt limit whil pro hurricane relief money. house speaker ryan had called the democratic proposal ridiculous. but then later in the day, the top senate republican mitch mcconnell said he supports the where had. kayla has the aisle. >> president trump struck a deal with with democrats to the government and suspend the debt ceiling, but only until december 15th. the plan was first floated wednesday morning by democratic leaders. hours later, the president agreed to support it. republicans were planning a three month extension on spend, but one in the debt ceiling through 2018. chuck schumer said his deal
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offers more certainty. >> theg the debt ceiling and we're going to do it with date not an amount means there's room to deal. >> mitch mcconnell said he would add the deal because it has the president's backing to a bill for hurricane relief. expected to pass this week. his feeling was that we needed toe together to not create a picture of device iness i've at a time of genuine national crisis. >> the deal buys congress three months to find common ground, but the issues are familiar turf for many bitter battles in me. republicans seem to have had an upper hand thanks to a slow majority in congress, but many worried privately the white house's t for democrats will put them on flat footing come december. let's get some perspective on today's developments from
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bryan gardner. welcome. good to have you. this decision unexpected to say the least, basically punts the budget and debt ceiling debate into december. why do this short-term patch and what does it mean for progress on tax reform? >> great question. why do it short-term. i think doing a short-term debt ceilg extension is just bad idea and it's going to put congress i ward positi in a couple of months, the timing is uncertain. it may go beyond december into next year. i do think that the as you alluded to, that the reason for doing this is to try and clear the decks for the rest of the fall so congress can turn its attention to tax reform, which is the president's number one priority. or at least it s not sure it's going to work out as planned. i think it could be
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counterproductive. i think there's going to be blowback from republicans that will hurt his attempts to pass tax reform. but i think that's the reason why he did it was to get tax reform back on track. >> now, if indeed things go along and we're at the december deadline, is again, the race to the end of the year, the race to the 11th hour on that will have to be dprased? >> certainly, the spending bills will come up in the middle of december and there's going the threat of a government shutdown. no doubt about t the debt ceiling is a little different. treasury is once again will have its extraordinary measures to manage this this ceiling, manage the debt limit and stay under it as it has for the months. e could last into the middle of 2018. so it might be a little bit
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longer term than what we're counting on, but certainly, when we get into the holiday season, a government shutdown is goi going tok looming. i have no doubt about that. i think we were expecting it would be punted to year end and this is playing out how we expected. i think each side is going to start to dig in its heels and certainly conservative republicans are going to dig in more. most feel they didn't get anything out of this. they're going to want to have something to show for today when they get to december. >> two questions. did the republicans get rolled on this? did the president get rolled? number two i gather that passing a full year budg reall critical to get tax reform done. why is that? >> so, i think that the president capitulated on this. i don't think he got any re eck september for
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clearing the decks. that's a judgment call on the white house's. the second part, people who don't get into budget geeky stuff, it's an outline. a road m unususually, even people in washington don't in order to get to the reconciliation rules and strategy that the republicans need to pass tax reform, you resolu. >> okay. >> the budget resolution must e instructions. therefore, if there's no budget resolution, there's no reconciliation. if not, there's no tax reform, so these are, getting it done is critical to getting to the tax
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nearly $8 billion was approve d for harvey relegal. >> some 40% of small businesses hit by flood disaster like harvey never reopen according to the federal emergency management agency. part of reason, they're not covered. most are covered by what's known as a business owner policy or bop which does not include flood coverage. that can be obtained through a program or excess policy through a participating carrier. fda has physical and economic
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injury loans for small businesses. both with caps of $2 million. homeowners can apply for disaster stance and elig to $20 dwaul fi for about $40,000. after the 2005 gulf coast hurricanes including katrina, they approved $10.9 billion in funding for some 160,000 loans. after hurricane sandy, the fba approved $2.5 billion for some 27 recovery loans and even though it's managed through the small business administration, the majority of these loans were approved to homeowners and renters, not small businesses. while the damage from harvey is sill being assessed, they're recommending all businesses and homeowners get their claims in as soon as possible as it can take up to four weeks to get funding approved. i'm kate rogers. well, hurricane irma is is one o f the largest ever atlantic hurricanes. it is roar iing through the
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ca flori and resident in the state are getting ready. jackie is in ft. lauderdale tonight. >> at this home depot, lumber is flying off the shelves. generator scooped up second after being put on the floor. >> generators came in this morning. 36. gone. ten minutes, everything >> bridgette hampton is expectin spend about $400 to prepare her home for what could be an historic storm. >> supplies, gas, cash on hand. pe everything that you could thin that might be helpful. >> the same is playing out in florida. even before clearer picture is known. stress this enough. do not i guess evacuation orders. we can rebuild your home, but no irma, which has started to batter the caribbean,
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is expected to make its way to we spoke to are heeding the governor's warning, not taking any chances. >> i see this as a practice run. either it's d worth it or i'll be ready for next one. >> right now, people are preparing without panicking and stores like this are trying to keep the s concerned because this be one of the worst storms in the state's history. >> with irma on the heel of harvey, could this be a one two punch for the economy? paul wallach is director of weather strat ajnd swroinsk abo. if indeed irma takes the path it's projected and has a dregt hit on florida in the wake of harvey, what kind of losses could we be looking at? >> oh, it could be basically ae
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harvey. it's kind of a almost a worst case scenario with this track a beeline straight for south florida, straight for miami. right up the coast and into georgia, south carolina. that path is, is literally our worst case scenario. and what makes it really worse case is that this is coming seven or eight days after we just went through hurricane harvey. to have those both happen at the same time just seems inconceivable. >> one thing i notice it seems to be moving more quickly than harvey. harvey just kind of sat there. number two, the predictions are that more relatively of the damage will come from wind than with harvey, where most was with flooding. how does that change the insurablety of some of the losses that ar sust >>. >> the area it's target iing.
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>> it's a very built up area. you're right, it won't be as big a flood risk, but a big impact as it relates to storm surge ahlo before i came in to check the weather forecast on for sunday. on that app, it's saying winds will be 140 miles an hour. those winds can cause tremendous damage. and it's just such a built up area and there's so much stuff in the way that the insured loss will be significantly higher than it was potentially with harvey. and then the overall losses could be comparable or worse. the estimates for put out by swissry for example, we could see well over $100 billion from a track like this. it's a big, dangerous risky storm. >> i think the keyword is big. when massive. so it's not just miami. i was wa it.
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residual winds it most parts o on one part of the hurricane or on the backside of the hurricane. so the scope is so much bigger than harvey. >> that's right. and it's following the path we saw last year with hurricane matthew, but it took a jog to the right and kept the worst winds just offshore. that possibility is still here. just a very slight shift in the track and it can change the trajectory of the damage from being catastrophic to being just se so we're hoping for that, but right now, i don't know. all the models are looking pretty grim. >> we'll keep our eye on it. thank you very much. in the busin floridans may be watching the aftermath of harvey to avoid fraud and scams. >> the agreement on the debt earlier in the program helped lift the stock market.
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investors had been concerned about the possibility of a ravernment shouutdown if the lit s up. nasdaq gained 17. s&p added 7. economic activity grew at measured pace across the according to the federal reserve's beige book. r indicates this labor of an markets remain tight and there's no wage pressure. in auto protection. several districts noted that sales were down and inventories were rising. >> there are reports that president trump is up likely to nominate gary cohn to become the next chair of the federal reserve. cohn is currently the president's top economic adviser. he was reportedly on a short list of candidates to replace a change. but according to dow jones, his chances of leading the fed dropped after he criticized the president's response to last
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month e's demonstrations in es separately, federal reserve vice chair is stepping down. citing personal reasons. his resignation is effective mid october and vice chair fisher has been an ak voe cat of o maintaining post crisis financial regular laces. still ahead, why a drug maker saw a do new hope for those suffering from a rare disorder. the company reported positive rumt frs a clinical trial of a medicine for dushen muscular fi.
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>> the medicine is for patients with dushe nrn muscular dystrop. it can rob kid of their ability to walk before they're teenagers and can be fatal before age 30. medice to ed treat dnd. it targets genetic draiivers of the disease affecting about 13% of patients. they are now testing additional medicines to reach more patients. the ruts today were for one of those programs. >> we had extroed natroid nairl po results. hopefully, a step forward in our mission to eventually tr d >> it drove the stock higher. the company is the subject of one of the biggest controversies in recent history.
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when it was approved last year, many questioned whether the data approvting it were s studies were run in a small number of patients and didn't prove a clinical benefit. approval was based on dis fin, important in the disease. facing intense loblying from the patient community, fda granted accelerated approval. requiring the company to prove in a study that the drug confers a clinical benefit. if it doesn't, the fda could pull the medicine from the market. helps produce re a few years more than 51 suggesting it, too, should receive accelerated approval, but the controversy doesn't stop there. people question the pr $300,000 or more a year per that the ceo defend. >> it's a small company and we loan has invested a billion dollars fighting the disease and
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we're thot done yet. this is a societial question fundamental question is does it make sense, is it worth the investment to find solutio deva that often are crushing to children more often than not. the answer obviously is yes. >> the market could reach as as $600 million a year in the u.s. according to estimates from rbc capital market. this next medicine targets a smaller proportion of patients, swrus 8% of patients. still according to rbc estimates, that market could reach $400 million a year. for "nightly business report", i'm meg terrell. >> united continental slashes its outlook and that's where we begin tonigh. passenger unit revenue would fall as much as 5% in the current quarter. sales lost by harvey disruption. united said last month's threat
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to strike guam has caused demand to weaken in that area. shares of united fell 1% to $60.33. harvey's impact also being felt by a household goods maker. that company said nearly all of its suppliers located in texas and louisiana were not operational and as a result, newell lowered profits revenue for the year. shares were off to 37.03. trivago said slower than expected growth would cause them to cut its full year gui weren't able to adjust its own spending to off set the drop and that hurt profits. shares were punished today. dropping 16% to 12.49. after the bell, the home goods retailer rh, known as restoration hardware, reported results that topped extech
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peckations. pro the company to raise outlook for the year. shares soared in afterhours trading, but finished the regular day down fractionally at 49.42. as florida watches the skies for hurricane irma, texas is still cleaning up from hurrican and dealing with one of the worst effects. fraud, scams and rip offs. scott cohn is in houston with a look at what they'ca >> on sage hill drive, this is the storm after the storm. >> you can see the water line in these areas here. >> rosy got more than two feet of water in our south houston home. since the water went down, she and her husband had been trying to save what they can. >> we're staging things that can be salvaged on our lawn. >> with with most of their worldly possessions out here, they're having to fight off
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salve skav gjeres who think they can help themselves. >> this is personal. it's emotional. it's heartbreaking. it's your life turned upside the neighbors. .> i've had pilfering through it. and that's not cool. >> then there are the contractors going door to door to make a quick buck. >> they're leaving business cards. what about helping someone? taking out a rug? moving down the street first wa of what thieves and thousands of storm victims will deal with. federal state and local law enforcement is on the scene looking for fake cha including crooked contractors and schemes to rip off government aid programs like fema disaster >> reality is there's a lot of money to these fraudsters after a disaster. >> authorities say the scams are
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remarkably similar in storm after storm after storm and the bigger the storm and the more pub lissy, th publicity, the bigger those frauds are. after katrina hit in 2005, government audit tors found 16% of aid paid out was lost t that's a billion dollars. contractor fraud was rampant. so was insurance fraud. identity theft. more than 1400 people arrested across the country by a joint disaster fraud task force. a r tas force is already at work here in texas. >> know if you're caught the full weight of the law both federal and state will be upon you. for victims of this and future storms, authori identifica do give sensitive information unless you're sure you know who's get iting it. don't makeall, be on guard. for "nightly business report", .
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>> coming up, if you can't afford your dream car, some have figured out a way by renting out their ride. in the sharing economy, people have become comfortable renting out things like a room in their house and now, a new trend is developing. people are renting out their cars. he business is growing so fas motors are taking notice notice. phil lebeau has our story. >> when brian rose bought his
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tesla two years aerks he took out a loan with a monthly payment of $1500. too much to handle? not for rose, who has cut the payment by renting it out a few days each month to total strangers. >> had about 60 t over the last two years. it helps pay off all of o the payments so it's as if i got to drive it for free up until n. >> rose rents out his tesla through turo, a car share company that f 160,000 feevehicles. everything from a high-end bmw to a basic toyota. all being rented out by their owners, who are known as hosted. >> i think a lot of our hosts have realized that for practicely no cost, they can afford to own a nice car. and make that ownership experience much more pleasant for their personal wallet.
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>> dime lehr is investing in turo, which 4 million members. the growth has caught the attention of g tor, wh around t. what started almost 20 years ago with zip car offering hourly rentals has grown in popularity. partially because the rising costs and hassing owns a vehicle has convinced many to rent for a day or two when ever they need a car or truck, which is good news for brian, who says he's made about $25,000 rentin >> i do about 200 a day. right now, if i get a few rentals during the weekend for the month, then i might take in about half my monthly payment. but there were some months if i got a longer rental, like a week or two or in some cases, i work a lot of two day rentals, where i sometimes got like double what may payment was. >> what about auto insurance for
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customers who rent through turo? like rental car company, they offer it. to cover any damage total strangers might do to your phil lebeau, "nightly business report", chicago. >> $25,000. made off of that. >> i know. our jaws b dropped. good for him. that does it for us tonight. thanks for joining us. >> thanks from me as well. have a great evening and we'll see you ba.
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