tv Nightly Business Report PBS September 24, 2018 5:00pm-5:30pm PDT
. this inightly business report" with sue herera and bill griffeth. tariff escalation. china says trade talks are off and calls the u.s. a bully just as new duties go into effect impacting everything from the cars you driveo the homes you ve in. merger monday. companies are doing deals, all kinds of them, even with the market at these lofty levels. what's in a name? one iconic company's rebrand. does it work? those stories and much more tonight on "nightly business report" for thisse monday, ember the 24th. nd good evening, everybody. welcome. trade concerns once again crept into this market pulling stocks back from record levels. china pulledut of trade talks with the u.s. suggesting that a resolution will not come any
time soon. this as new u.s. tariffs on a additional $200 billion in chinese imports took effect. adding to the downbeat day was uncertainty about whether deputy attorney general rod rosenstein would stay in his job. he meets thursday with the president. that's t same day the president's nominee for the supreme court testifies. so when all is said in done today, the dow jones industrial average fell 181 points to 26,562 breaking its four-day winning streak. the nasdaq rose 6 and the s&p 500 was down 10. and when thosefs tarent into effect this morning, china had some choice words for the white house. eunice yoon is in being for us. >> reporter: the u.s. has started taxing $200 billion worth of chinese goods, another 10%, while china is collecting tariffs between 5 and 10% on ofther $60 billion worth
american goods. soon after china made its position on the trade conflict known with a comprehensive 36,000 character white par. e government will detail it further tuesday morning china time, but about half is dedicated to criticizing what it described as the u.s.'s trade bullyism, brazen unilateralism, economic hegomony and at the same time they suggested ways t improve negotiations based on mutual trust. the chineset have made clear that they believe that that mutual tru has been broken. according to sources over the weekend, the chinese decided to pull out of planned negotiations between vice premiere and u.s. treasury secretary steve mnuchin. the trade talks looked shaky after president trump announced his intentions to impose the tariffs. then the u.s. imposed sanctions on china's defense ministry for
buying from russia. chines policy experts say that they don't expect to see any serious talks until after the mid-term elections in the united states when they believe that preident trump could be m amenable to a deal. for "nightly business report," i'm eunice yoo in beijing. many of the items affected by tariffs will be auto parts and components we buy to fix and maintain our cars and trucks. phil lebeau takes us to emporia, kansas, where one company is embracing higher costs and tariffs. >> reporter: the ceo of hopkins manufacturing is about to raise prices on hundreds of products his company assembles or imports. everything from snow brushes to brake control units now costing more due to e latestound of tariffs. >> we are very hopeful that this is a short-term issue that the administration will get what they need to reduce thefs tar or remove them and we can get back to business as normal and
not impact jobs. >> reporter: with 350 workers at its plant in kansas and 1,000nyn the com worldwide, hopkins supplies parts and accessories that are sold to retailers like autozone who, in turn, sell them to t. publ so those who repair and maintain their own cars could face higher prices on a variety of products. >>hat's the bar concern is all these smaller parts that china might supply will eventually start to add upst an t to pinch theum co's wallet. >> reporter: that's what worried brad france.t while m sell for less than b5 and the tariffs might push up prices a few bucks, it could ultimately cost the company millions. >> like much of industry in the aftermarket, it's made up of a lot of small companies and hopkinstself not a large company so $5 million impact is very signicant to us and our bottom line. >> reporter: with more than 000 companies supplying auto
parts and accessories, this late part o tariffs will affect a wide array of products. the hope is t thatse higher costs will not scare away people who may be paying more to take care of their car. phil lebeau, "nightly business report," chicago. and it's not just about auto parts. new tariffs on chinese goods will also hit homeowners where they live in repairs and in r o rvation renovations. diana olick has that story from jesup,ry nd, tonight. >> reporter: demand for home renovations like this one is soaring, and s are the costs to do it thanks to a new round of tariffs onhinese goods. >> it might end up being that this is sort of in the short term the newmal for pricing. >> reporter: contractor justin sullivan said the costs are going up so much, he has to do something he's never done in over a decade in business. >> clients and contracts are having to set contracts with escalation clauses for projects that are beingul sch for 6 months largely because we're not
sure how far prices go north.g to >> reporter: the latest round of tariffs hits about $10 billion worth of chinese products exclusive to home building and remodeling according to the national association of home builders. a 25% tariff would be equivalent to a $2.5 billionax increase on the industry. tariffs have already hit lumber, steel and aluminum. the n round adds everything from wall and floor board to light fixtures, cabinets, heating and cooling equipment, even the tile forbath rooms and cksplashes. david benson said his clients at architectural ceramics will see the increases on mosaics, most not made in the u.s. >> it would impactnhe cost ceramic and natural stone and the glass materials and it would increase theosts at least 15 to 20% of our, youknow, import duties on those items so will go up for sure. >> reporter: the tariffs will hit materials used for
countertops like granite, marble and especially quartz because quartz is being hit for antidumping duties in addition to the tariffs. while that wl make these more expensive for homeowners, it will increase the market. >> it will hel the american market. there have been three or four manufacturers of porcelain tile in tennessee that have popped up. that business will increase and i think it willelp the american market for sure. >> reporter: u.s. tile, however, s more expensive to begin with, so regardless consumers will have to dig deeper as foreign trade policy really hits home for "nightly business report," i'm diana olick in jessup, maryland. trade concerns are prompting ceos to scale back investment ccplans. thisding to the latest survey of the business roundtable which is anci asion of ceos. nearly 2/3 saide fut tariffs and trade tensions would have a negative impact on the capitals
innt decisions over the next six months. the survey showed the plans for hirie slowed. j.p. morgan chase ceo jamie dimon said today the trade seissues could get wrom here, but it's still unclear if they will have a drag onow economic . >> i worry about it and i just don't know. i think china has been very predictable in retaliation and i think the market kind of expected a tit-for-tat retaliation. i think we're expecting nafta to get done. it could get worse from here. we really don't know. i hope they sit down and have ration conversations. >> dimon added that the economy will continue to grow at the current rate of 3%. comments in philadelphia where they're opening new bank branches even as other banks are clo.ng th the u.s. and skroouth korea signed a new trade deal. the president said it was long and coming and called it an, ot
historic milestone. they'll get better access to the south korean market and sets an example for other trade markets. they are still in an explore ra torr ri phase. the european trade negotiator said deal negotiations have n started yet, both sides are looking at facilitating sales of u.s. liquified natural gas to europe and reducing the regulatory barriers to trad well today saw the return of merger monday in the biggest dealun and, comcast outbid 21st century fox and its backer sney in an auction for control of u.k.-based broadcaster sky. e value of that deal, $40 billion, but somenvtors worry that comcast may have overpaco. ast is the parent company, as you may know, of cnbc which produces this program. comcast shares were dow about 6% today while twenty first century fox and disney both rose. in another deal barrick gold
is going t buy rival randgold billion. they will be the biggest goal miner. shares were higher in today's trading session. and there were more deals. sirius xm radio is buying online streaming serviceandora for $3.5 billion. that deal comes amid heightened competition from streaming muse sib apps and podcasts. shares of pandora and sirius fell michael koors is reportedly interested in buying versace in a takeover that values them at 2 3w8d. michael koors has been looking for both in the luxury line to competeith lewis vuitton and coach. shares of koors finished the day 8% lower. despite today's pull back in stocks, thearket does remain near all-time highs but will investors continueo take on more risk and lift equities even further? mikeantoli takes a look.
>> reporter: stocks are about to enter the fourth quarter in good position for a winning year. the s&p 500 is up 9% so far in 2018, on tra for a better 12% annual gain. along the way the market has rakd up points against some stiff resistance. concerns a that trade war would under cut the trade economy, ld that the fed wift rates, that the late summer months would pose trouble for the stocks and that the market was growing tired nine years into an economic expansion. brisk corporate growth and steady credit conditions have been more tha enough tooffset the concerns so far. the question now is whether the market can stay on offense as wall street enters the final quarter without giving up the le h. the s&p 5 been fully supported by rapid earnings growth but even so the valuation against heforecast profits for coming year is back above the five-year average. the fed looking to raise rates in the ten-year treasury back
about 3% this could restrain stocks from pull backs on any signs in ant signifi pull back next year. during the economic expansion the market has not tolerated today's valuation of 17 times forecast earnings with bond yields this high for very long. in the 1990 early 2000s, stocks were frequently more richly valued with yields even higher. what's unclear just yet is whether investors will be willing to pay up for stocks the way they did in priordecades. as with many aspects of the market outlook, this will depend heavily on investor perceptions aboutab the sustaity of current u.s. economic growth rate andhether signs flicker on the horizon. for "nightly business report," m mike santoli. it is time to take a look at some of today's upgrades and downgrades. at&t was added to the short-term buy list at deutsche bank. the analyst cites improving trends in the enterinment businesses. the price target is $37.
the stock was up just a fraction to $33.91. advanced micro devices was initiated with an ngtperform ran rcb capital in new coverage. aming chips d for and amd's solid gains in the server market. the price tget was $41. the stock was up 5% to $32.61. the aims celestial price was raised by jeffries. the market trends should reverse with better utexecn. the stock was up more than 4% to $21.44. royal caribbean's price target was raised today. they cited strong 2019 bookings at the company. buy irm maintained the rating on the stock but shares fell 1% to $130.02. still ahead, when an iconic brand rebrands, does it work?
there are new estimates tonight on the cost of insured losses from hurricane florence tich, as you know, hit the carolinas earlis month. according to global risk monitoring firm rms the total will be between 2.8 billion and $5 billion. that figure, by the way, includes wind, storm surge and inland flooding damage. theworld's major oil producers did not commit to an additional increase in output at a closely watched meeting that took place over the ldekend. that increase w have addressed expected supply disruptions of aboutil 2on barrels per day resulting from u.s. sanctions on iran's exports. that sent the pricef domestic crude to a two-month high and the global benchmark to its
highest settlement iny nea four years. the ceo of saudi state owned oil company aramco said today he cannot say whether an ipo of the company will happen by the year 2020. an ipo, as you may know, had been planned for this yearwa bu delayed and he added that reports that the offering has been shelved entirely incorrect. >> spoke to the minister last the , indicated that government is committed to the ip ipo at time of choosing when the marketonditionsre optimum and the reason i say it's incorrect, look at what the government did so far to make su the company i ready for the ipo. >> if it happens, the ipo for aramco is expected to be the world's largest. biotech amaran sees promising results from its fish oil ug. that's where we begin tonight's market focus.
the drug maker said itsh f oil capsule reduces the risk of serious cardiovascular problems by 25% when compared to those on a placebo in patients during a study. amarin said the medication is not intended to replace current treatments like statin. we know lowering cholesterols wers cardiovascular risks b about 25 to35%. where our drug is focused is addressing the 65 to 75% residual risk. t to havet on top of the cholesterol management is both new and we believe very important in terms of an opportunity for improved health care. >> amarin shares soared 314% to sears ceo eddie lampert is trying to keep theg struggl retailer on life support. a regulatory filing has revead that lampert that owns hedge
fund esl investments has asked creditors to refinance more than $1 billion in deb before a $134 million payment is due next month. the ceo is also calling on sears to sell more than $3 billion worth of properties and assets. shares of sears fell 2% to $1.24. and appnd salesforce are working together to make it easier for businesses and developers to build their apps on ple's i0s system. under the new partnership the companies will work together to incorporate some iphone features like siri and face i.d. into salesforce's app. they say the companies that use itsy technolill be encouraged to make products to work seamlessly with apple. shares ofle orce gained 2%. oftware giant microsoft, adobe and sap are now partnering on an initiative that theyay
will help business clients like walmart and coca-cola better nd undersheir customers. this so-called open initiative will allow cents to seamlessly transpt data between t three companies. microsoft said the move will also help small businessese operate m efficiently. >> if you look at cloud, a.i. and the open data initiative, the idea that even a small business in indonesia can now icrosoft toobe and become that much more efficient is the real opportunity. so youre bringing down that barrier to be able to use thete and greatest technology for every business int every p of the world by really working together. >> as you can see, all threes, compan microsoft, adobe and sap were higher in today's trade. united technologies is reportedly considering selling its chubb fire and security unit for more than3 billion. reuters says the company is
likely it announce that decision within the n two months. shares of united tech fell by 1% to $140.34. and weight watchers is changing itsameo ww. the weight loss company said the name change reflects a new focus on ovall health and well-being. >> this has been part of anio evol of a journey to go from being undisputed leader in losshy eating for weight to much broader than that, to truly be a partner to people in overall wellness for what you eat, how you move, how your mino works, support you and how you become part of amm ity. >> shares of what is now called ww rose nearly 4.5% today to $72.89. and many other companies over the years have changth r names as well, and for different reasons, of course, but some examples include world wrestling federation becoming world wrestling entertainment.
gmac bank rebranding itself allied financial and the one we've all heard of, google changing itsame to alphabet. joining us to discuss why a business changes its name is dean crutchfeld. >> good to be >> let's start with ww. the market liked it. it was up 4.5% today. last year it was a huge gainer market.tock what do you make of their move today? o well, you know, brands are about standin or die. so to stand out you need to be relevant andgh wwatchers realizes that the past was about teting and looking good. today andorrow is about feeling good and getting more out of life and so they want to create a platform that's not just aboutut diet is beyond uset and in many ways they're an ecommerceess that can be selling dietary products, health food,li s health care equipment, an opportunity for a stretch for ww far more than it was for weight watchers. >> then there are companies that n't want to remind people of
the past of what's happened. gmac that sue mentioned before, gmac ban becoming allied bank. gmac was notoriouse for s of the subprime loans that lednc t the fil crisis, right? >> absolutely. they want to break away past. the gmac was literally drowned out by the whole subprime scandal. one of the best ways for a company tona s change is through a naming and identity program. it's the only public way one can do that. question is how well you do it, how well do you manage the process but most importantly, you know, what do people think? what's the perception espially from t investor market. >> you point out that an unsuccessful name change, and i'm sure there has been more than this one, but this one everybod will probably remember, research in motion became sackberry. yo by the time they did that and tried to become more hip and more relevant, it was too late. >> yes, i mean, they lost tir relevance. i remember recommending research
in motion back in 2000 change its name to blackberry but they were too aogant to recognize important brand was blackberry. that hurt them from a development point of view. by the time they graed aho of that name blackberry, they lost their relevance anddtill research in motion and the rest is history. >> then there's google. they restructured theo company create this umbrella name alphabet, but we still find ourselves even today, years later, referring to the company as alphabet, better kno as google. >> right. >> i mean, whether that name change has worked or not remains to be seen, huh? >> i think it's really about -- that's a business issue. that's businessefinition issue. don't forget they used to be calleduback up until 2000. google was a far better improvement.al abet is the view that the company has of a to z investment. it's got youtube. 's phenomenally successful
android platform. it creates products like pixel. it doesn't want to be defined by goog which is a successful search engine so strategically they're trying to build a reputation around alphab. it's particularly an investor brand like google. >> very interesting. thanks for joining us, dean. coming up, is golf on the rge of a major comebac >> squo. americans' credit scores are higher than ever before. theg credit rat firm fico said the national credit rating standst 704 which they consider, quote, solidly good.
they determine the interest rate a consumer will pay for aredit rd, a car loan or a mortgage. the rise in the average score was due in part to changes in how rating firms deal with negative credit you may have heard that tiger woods earned his 80th career victory on sunday in atlanta. it was his fir win in more than five years, and it could have a big impact on the golf dominic chu has more. golf's biggest superstar h come roaring back. tiger woods has completed his comeback with a tour championship win on sunday in a celebration that golf hasn't seen in years. >> nobody's ever played golf like tiger woods. nobody has ever handled pressure like tiger woods. nobody has won like tiger woods. it's been broad and fervent. >> it'sg a l road for the 14 time major winner. a year ago he was rankeds 1193rd after battling a o series
injuries, scandals and arrest. yet his celebrity status remained sky high. thousands gathered around woods to watch history made. >> i didn't think tiger woods would come back or he would win again. once the year started progressing and i saw he was overit, it was inevitable that he was going to win. w >>ds impact on golf extends far beyond fairways and greens to soaring tv ratings and merchandise flying off the shelves. tiger related gear is already starting to sell out. next , tiger takes the world stage at the ryder cup being held thi year just outside paris, france. the big question is cig build on that already massive up side momentum. forbu "nightlness report," i'm dominic chu. and finally tonight, "fortune" is outith its list of most powerful women in business and there's a new womas
in the topt for the first time since 2015. leading the pack isil m hussin, the ceo of lockheed martin. at number two, gm o mary barra and rounding out the top three, abigail johnson, the chairman and ceo of fidelity instments. congratulations to them. >> indeed. that does it for us tonight, i'm sue herera. thanks for watching. b i'ml griffeth. have a great evening. we'll see you tomorrow.
>> this is "bbc world news america." >> funding of this presentation is made ssible by the freeman foundation, kovler foundation, pursuing solutions for america's neglected needs, and purepoint financial. >> how do we shape our tomorrow? it starts with a vision. e see its ideal form in our mind, and then wgin to chisel. we strip away everything that