Skip to main content

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

5:00 pm
this is "nightly business report" with tyler mathieson and sue herrera. >> so live by the sea, let's have the two largest economies meet for the first time ever. they've got a lot to discuss and both have a lot at stake. military options, the white house vows in response to syria over a chemical weapons attack, but what will that response be? and how will markets react neighborhood, stuck in the middle. a baby boomer or millennials, but gen x eers have spending power, why are they being ignored? good evening, everyone, welcome, i'm timer mathieson, sue herrera is off tonight. well, the talks are likely to be tense, in diplomatic parlance,
5:01 pm
blunt for frank. the stake for consumers, investors ordinary citizens are high. chinese president xi jinping arrived today in florida for a summit by the sea with president trump. on the agenda, trade, jobs and north kor korea kayla reports tonight from palm beach. >> reporter: the leaders of the world's two economic superpowers meeting for the first time president trump on home trip at his resort in florida and the 24 summit begins. china's president xi jinping greeted by saex rex tillerson, last month, he called for future respect and a win-win relationship. but drew a harder line on thursday. >> even as we share and desire to work together, the united states does recognize the challenges china can present to american interests. >> reporter: the meeting is the toughest diplomatic test for
5:02 pm
trump and the administration several days in, several key posts still unfilled and a diverse set of views on china with trump campaign ire. >> we can't let china rape our country. that's what they're doing. it's the greatest theft in the history of the world. >> they met with sharp rebukes from china's second in command. >> we seen a trade war right now between the two countries. >> that would make our trade fairer in this economy. >> reporter: but urgency came from north korea's continued test launches of missiles, two days before xi and trump were to meet, before that, during trump's meetings with japan's prime minister. white house officials say china still has economic influence over north korea, where political influence has faded. china is its only trading partner, proping up an economy, just $1,200 in gross income per
5:03 pm
capita. the focus on north korea means economic issues will take a back seat. white house officials say the frame will be discussed for dealing with trade, tariffs and currencies and setting deadlines for the near future. for "nightly business report," palm beach, florida. >> well, the trump administration had its goals, but there are also things the chinese leader wants to accomplish with president trump. we have that story from beijing. >> reporter: for president xi's visit to mar-a lago, chain has a message for president donald trump. don't blame us for america's problems. the foreign ministry has been telegraphing what president xi and his delegation are likely to emphasize at the summit, that china has contributed greatly to the american economy. the foreign ministry rattled off a list of statistics to back china's architect, saying 40% of
5:04 pm
china's trades are generated by china's companies here, 2.6 american jobs are created by bilateral trade and investment and each american family saves $850 per year because of cheap chinese goods t. message has been reiterated in the state press, but the comment's parties global times newspaper running a editorial with the headline that reads, u.s. job losses are not china's fault. in driving home this message, the chinese are hoping to deflect what they expect to be heavy criticism by trump over the trade deficit and job losses in manufacturing. the message also provides a window into what beijing is most worried about. the meeting could lead to finger-pointing that could destabilize the relationship. from beijing's perspective, what's most important is for president xi to project strength at the summit. china is facing a leader ship shuffle in the fall. so for domestic reasons,
5:05 pm
president xi needs to appear tough t. worse jario for china is any developments perceived as embars ament for president chi. he signed an awkward moment for a disrespectful tweet t. best scenario for the chinese is if they manage a full agreement on trade, market access, north korea or other issues, and if the two sides construct a path to constructive dialogue. nay wait for the relationship to be on a stable course. for "nightly business report," beijing. >> on wall street today stocks rose despite the president indicating he is considering a wide range of options following a capital weapons attack if syria. investors took notes, got a little jittery. they finished at 20,662. at one point, it was down by fix points. nasdaq was up 14 at the close
5:06 pm
and the s&p 500 higher by about 4.a. bob pisani has more on the geopolitical rumblings and how they affect the market. >> reporter: stocks were posting modest gains into the middle of the day. then you have to change course after president trump made comments it ended in the green. in contrast to the 200 point in
5:07 pm
the dow that happened yesterday, a every the federal reserve said they would be moving to reduce their balance sheet later this year and then house speaker paul ryan says tax reform could take longer than health care reform. both comments came at a much bicker impact on the markets. so here's the bottom line, geopolitical risk is now surfacing as a risk to markets. it's a big risk factor remains the federal reserve and any risk to the trump agenda, tax cuts and infrastructure spending. for "nightly business report," i'm bobpisan owe bob pisani at new york stock exchange. we are now going to discuss, brad, i don't mean for you to criticize or contradict what bob pisani just said, as you look at the panoply of the markets and investors must consider, does he have it right, it remains, the
5:08 pm
fed the economy the trump agenda that are number one in investor's eyes a and the geopolitical things that are a distant second and third? >> i do agree with him, tyler, i think the thing that's remarkable is not what happened but what didn't happen, in other words, we have the president of the united states taking one of the non-geopolitical problems and saying we may act alone and essentially nothing much happened. i think it is about the fundament fundamentals, it about the a the economy. whethe that's a good thing or not, i don't know. i think it's good people are starting to pay attention again. >> it does strike me as this event unfolded around mid-afternoon today with mr. tillerson's press conference and the president flying down, making some comments on air force one, it brings us into the position to hear the idea that with respect to north korea, the other factor effect there is on china. with respect to syria, the other
5:09 pm
country affected there is russia. two of our biggest rivals are in these fights. >> well, i think when you look at syria, for example. first of all, you have to consider, we had troops there. we have enormous forces throughout the middle east. and we have for since the year 2000 as least. so whatever we do, the russians that were there, we've actually worked this well on strikes against isis. so this is not something that's going to be too disruptive in any event we're not on that good terms with the russians anyway. so whatever we do, motdest, if any, china, of course, is a much bigger relationship we are still on reasonably good terms with them. we will see how that works out. so in north korea, is liright i the middle of everything. you got to remember, too, we have south korea to consider, japan to consider. in other words, we're not going to act on this alone. you can make comments, you can
5:10 pm
issue tweets, but policy, particularly, military policy, has to go to through the normal project. >> we'll come back to where we started, which was a discussion more on u.s. fundamentals and the economy. tomorrow the jobs report. quick thoughts on it. how important is it? >> it's very important. but it's only important on the down side. if we get moderate news to good news, over 180 or something, recovery continues. well below that, we have to answer tough questions. >> brett, thank you, have a great evening. we appreciate it. brad mcmillan, commonwealth network. the other big story for the market today is tomorrow's jobs reports. so far the geolabor market has seen a gain. the pearson reports, march may have been a month of pull backs. >> in march, it was a strong sell-off, blanketing much of the northeast and the mid-west that
5:11 pm
slowed the face of hiring. the investors employers added 175,000 workers to payroll last month. the unemployment rate holding steady. that's below the 237,000 above average the first two months of the year. >> we do see forward job gains in the spring, such as construction, because projection that wouldn't have been started in january/february under normal circumstances may have been started that way in 2017. >> reporter: however, for the second straight month, there was bullish private sector job growth. but closely watched adp survey says the client added 263,000 workers and jobless claims fell by 25,000 last week. they haven't dropped in two years. but there are signs oevery a slowdown in hiring, as businesses wait for a better read on the process president trump proposed tax cuts and infrastructure spending. >> it's certainly possible we see a little of a slowdown on
5:12 pm
those fronts. i think at the beginning of the year, we would have seen more details on those plans by now. this week, fed minutes, showed monetary policy makers remain concerned about popular wage goatth growth and a reluctance of the trump economic agenda. >> i would say the fed obviously wants to see the job market. it wants to be overconfidence that inflation is getting closer to that target. what would really help is a true acceleration in wage growth t. friday's job report falls short of expectations. some economists are already saying, strong underlying economic data is setting the stage for a strong comeback in april. for "nightly business report," washington. the still ahead the big money behind the big push, is eight final? >> i'm a stimulator for starliner, astronauts of the international space agent as soon as next year.
5:13 pm
this freeze is heating up. we have that story coming up on "nightly business report." aetna plans to fly out of the iowa's health care exchange. the decision comes three days after blue cross blue shield said it would not sell plans in the state next year. at least iowa with two insurers. aetna covers 30,000 people who buy insurance through the obamacare exchanges the company still evaluating if it will sell plans in three other states. paul ryan says republicans are making progress on health care, but there is no bill yet. today he indicated that new
5:14 pm
legislation will take time as various gop factions work out their differences. >> i actuallily the that they're dividing quickly. what this here represents is a goal that everyone from the freedom caucus to every other group that's represented here is seeking. how do we lower prem numbers? how do we lower premiums for people with pre visiting conditions? this idea does that, this narrows the decision and brings people closer towards consensus. >> health care is just one of the many faces of unfinished business in washington as lawmakers leave for spring break. eamon javers covers the story from our nation's capitol. is it a time line or a fluke? >> tyler the time line remains not right now. not necessarily any time soon t. problem is, for speaker paul ryan, he's trying to wrangle the
5:15 pm
house freedom caucus, conservatives who want to dismantle obamacare entirely. he has to balance that against other forces who don't want to dismantle some of the more political popular assets of obamacare. obamacare, itself, continues to rise in popularity as more people from the countries and other prospects of this being taken away. so that political dynamic hasn't changed since the failure of the health care plan a while ago, as they still try to negotiate on capitol hill. paul ryan is trying to bring republicans together with the house of representatives. if he is successful in doing that, he has the challenge, which is senator republicans. they don't see eye-to-eye on that as well. >> speaker ryan ratherling the market yesterday, when he sort of pushed off the day as the time line for tax reform. today, though, mark meadow says it could come by august. what are we hearing here? >> luke, august is an ambitious time line. it's always been an ambitious
5:16 pm
time line. the trump administration set that out with tear goal. this is a complicated piece of administration, as the trump administration tries to move through the challenge they have is they want to be not a deficit-busting bill. >> that is they can cut taxes dramatically. how do they raise revenue at the same time they're lowering tax rates. one idea is the border adjustment tax. that's not necessarily going to fly in the trump white house. they had about a minute-and-a-half, the idea of the value-added tax or carbon taxes after about a minute-and-a-half, that was shot down as well. so they are still stuck with this idea of how they raise revenues in all this. >> let's switch to the confirmation here, a vote on the supreme court, judge gorsuch, where does it stand? >> well, as of right now, republicans in the senate are clearing the way for that, they're doing that in relatively dramatic fashion by senate standards. they call at this time nuclear option. it's not as fiery as all that.
5:17 pm
but what it means in the senate is it ultimately they're going to lower the threshold needed to pass the supreme court nomination from a 60-vote margin to a 51 plus vote margin. when they change the senate rules, as a dramatic step by senate standards, they will be able to get mr. wilson to confirm and probably by late tomorrow, he will be confirmed with the supreme court. the white house is already planning. >> eamon javers in walk, thank you very much. unilever unveiled restructuring plans, a big one, that's where we gin the market focus the consumer giant recently spawned a $143 billion takeover offer from kraft heinz, it was selling its sprint division and merging businesses from an effort to try growth. the maker of dove soap, don't try to eat that, folks, an ben and jerry's ice cream, with i is delicious, says it plans to rate the dividend and launch a more
5:18 pm
than $5 billion share buy back program. shares rose a fraction to $50 even. snowco will sell a majority of its convenience stores, the 7-eleven parent company for more than 3 bll. now they are focused on the fuel business. snowco shares up 20% -- sunoco elevated credit made a market debut today on the new york stock exchange. in its second attempt to go public. the company increased its share offering while cutting the offering price, despite cutting the price, the ceo says he's still happy with the results. >> we raised the amount we were originally intended to raise. so we will be able to pay down the debt we wanted to pay down and fuel that ongoing serving system, in the massive markets. >> shares roads 19% to $7.76. goldman sachs slapped a sale rating on the semi conductor
5:19 pm
advanced microdevices saying it's not confident the company will be able to compete against intel and n vidia. they questioned beating financial analyst's targets and gave the stock an $11 price target. shares of amd were sent down 6% to 1327. well, amazon plans to hire 30,000 workers over the next year. the positions will be in the u.s., but part time. the jobs will be in the virtual examiner service unit and in its warehouses, as a parts of a larger hiring spree by the company, which said in january that it would add 100,000 full time jobs. and speaking of amazon, jeff be bezos is taking the space rate to a whole new level. amazon founder says he will sell a billion in amazon stock every year to help fund his space rocket venture blue origins. his goal, space colonization, he's not the only one, morgan
5:20 pm
brennan joins us from a space symposium in colorado springs where entrepreneurs are gathered to share here die hard ideas. >> it's much harder than it looks. after the annual space symposium. >> oh, no. >> the mission is clear. it takes not just a small step but a giant leap for all mankind towards the final frontier. >> we are, if we take people up -- >> she is the co-founder of a company which hopes to in the near future take passengers for the ride of their lives. >> we take off on these large balloons which is an incredibly gentle way to get people up into space. we can also hang out there in these incredibly large views for hours at a time. we have a borrower on spaceship.
5:21 pm
jeff bezos dreemdz of. he showed blue origin's new rock and a model of the castle. it will carry 16 customers at a time to the edge of space. they will be late next year. >> you can take any short cuts to put humans on this vehicle. we are ready and not a second sooner. >> bezos like at space entrepreneurs know the biggest thing is cost. >> right now they have a very high price of admission. if we can help to cost the launch by a factor of ten and a hundred, you will be living in a completely new world. >> it will be space exploration. >> reporter: a golden age that will include competition. they focused on costs and have three huge rockets the first time ever. >> that ability eventually does so efficiently like airplanes
5:22 pm
could transform the industry. much of it, yet many here believe soon it could become reality. especially as nafta which givens the u.s. space sector continues its own development. like boeing and air jet of the most powerful rocket ever built. >> development is always instant. so exciting and so, we're really really interested in, a heaviless rocket that will enable us to do the deep space exploration and it's so exciting that we make it huge out there. we will get them out tomorrow. they are in the atlanta airport for the list. it's very exciting times. >> for "nightly business report," i'm morgan brennan in colorado springs, colorado. still to come, the forkten t leaving one age group in the dust. we will tell you why that trend
5:23 pm
could be costing big firms. . advertisers have big brands, generation x for -- ignoring company racing x for millenials. today's brands are so focused on millenials they overlook the 61 million gen xers who make enough money to be a huge tuptopportun. why they are being ignored? good to see you. these poor gen xers are being ignored. >> yes, yes, they are. have been for some years now. everyone says it's the mill millenials, now the gen ds.
5:24 pm
anyone over 36-years-old has the top priority for most brands. sometimes you have to ask questions do why that is. >> is it because the millennials are the biggest generation in terms of numbers or because it is between those ages of 18 and 35 that people supposedly create their brand identities? >> once a quest user, always a quest user. >> you got to get the younger generation involved with your brand, build that loyalty, build that recognition, it's an absolute critical part of the consumer base companies, but to your point, gen x is a huge mark. guess what, they've got a lot of money. >> so do we baby boomers, done you forget it. >> i want to switch to two things, one is the advertising exodus on the popular show "the o'reilly factor." what do you make of it and do you see any ends in sight? >> i think there is no ends in
5:25 pm
sight. this is a serious acquisition i situation. i think what it shows is brands do ask themselves, they are accountable. they are responsible. they make those people they partner with just the same. this is a brand that basically said this is not good, there is not right. we don't like how fox has been behaving in terms with their response. so understandably, they are annoyed and it could damage their brands education, which is absolutely paramount. they must forget it. >> 30 seconds on the pepsi ad with one of the kardashian's handing a can of pepsi to a policeman amidst a demonstration. they pulled it. was it just a clumsy ad? >> it was a clumsy ad. there's three things, number one, you got to know your audience in this case, it was the millennials and the gen ds they were targeting. number two jumping on the back of a national movement about your product is not going to rely. >> that clearly didn't happen. actually what i think hasn't been talked about is they did pull the ad, it was too
5:26 pm
politically correct. i think that distorted it. it didn't give it any hope whatsoever. >> you covered a lot there. >> thank you. >> terrific. >> that's "nightly business report" for tonight. for sue herrera, i'm tyler mathieson, thanks for watching everybody. we will see you right back here tomorrow night. [ music playing ] . >> this is "bbc world news
5:27 pm
5:28 pm
5:29 pm
5:30 pm
america." funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits from newman's own to charity and pursuing the common good, kovler foundation, pursuing solutions for america's neglected needs, and aruba tourism authority. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm,