tv Nightly Business Report PBS November 6, 2019 5:00pm-5:31pm PST
♪ >> announcer: this is "nightly business report" with bill griffeth and sue herera. building a foundation. one of the nation's top ten home builders wants to get gger. >> tech takeover why xerox and hp think the future mayto be betterther. >> the real question. the world's largest marketplace for luxury consignment says verything it sellss 100% authenticated. but our investigation finds a different reality inside the real real. those stories and more ton on b "nightiness report" for wednesday, november 6th. >> and we do bid you good evening, everybody a welcome. now when we talk about deal making, lately we've been referrin to trade deals. but not today. today it was about good old fashioned corporaor acquisiumons
across ar of diffebent esdustries. the kind of activity that can drive the market and change the investing landscape. we start with home building. there was a major merger in that sector. with taylor morrisong buy william lion. as usually happens shares of the being bng acquired rose while shares of the company doing the buying fell and this is a get together that both companies hope will make the combined firm a power player. here is dianaolick. >> reporter: scottsdale assess based taylor morrison willuy william lion homes a california based builder for more than 800 million in cash and stocks. making to it fifth largest u.s. home builder. the deal expands taylor morrison ingraphic reach puts it seattle abportland organ and las vegas. the deal gives it a larger footprint in denver, san francisco, austin, l.a. and riverside. it will also expand taylor
rrison's reach to the entry level market. right now a 28% of its siness is entry but william lionhare is 54% of that market. >> nef very successfuy been alk to al are appealo entry level rehe at the right place pint in the rht locatio continuing to go further to the fringe market. >> combined 36% of taylor morrison's business will be entry lev. 40% move up and 13 peppers active adult. >> we focus on the sbroe level but i'm actually equally excit about the active adult positions. and the fact that you know we have not been deep i5 a plus market in the west side of the united states. >> and cheryl palmer also told me that timing is just right, as seattle, portland and denver have been going through a reset recently after overheating. prices have settled since and buyers are coming back in. for nightly business report, dian olick in washington.
next up, a takeover involving two old school tech companies. there are reports tonight that xeroxs considering bid for hp. that deal would combine tol hous names both with complicated pasts. and in this case both stocks se intoday's session. >> the continued decline of printed paperocuments once a back bone of business may be pushing two tech icons towards a once unlikely marriage. cnbc is reporting that the combined companies could save more tha$2 billion in penses. most of xerox's $10 billion in annual revenue comes from renting and maintaining large copiers for businesses. often selling printers at a loss while bannngurchases of ink cartridges needs to run the printer. smaller ps and sprinting replies and remainsth one o
largest pc makers. hp's 2018 revenue topped $58 billion. so how can xerox afford to buy up the answer is tied to a failed fujio merge with japan's film holdings. fujiji is dropping all billion- suit filed last year when xerox walked away from the deal. investors carl icahn resisted claiming xerox was undervalued in the deem. and expectingo unwin a 57-year-old partnership with worthilm, selling stakes about $2.3 billion. i s what remains and humiliate packard split off the data storage business. packard enterpris in 2015. process in october hp announced plans to lay off up to 9,000 people, about 16% of the workforce. aiming to save $1.0 billion. part of a plan aimed to save a billion-dollars perea companies like hp be, xerox and
japan's canon it seems are attracting the attention of merger minded bankers, aware the digital age is pushing past the printed page. and now to trade and new figures accordingo the "wall street journal," the u.s. billion ia record $7 tariffs in september. during that month, new duties kicked in on aprel, tools, electronics and other consumer goods from china. riff revenue reportedly up 9% from august and more than a 59% fr year earlier. those figures are based on an analysis of customers department data. and again today wall s hung on every headline about the coming trade meeting between president trump and chinese president xi. today there was speculation of a possible delay. cale ray tausche did some digging to see what may really be going on. >> the white house is stillin wo to reach a phase one deal with china by november 16th, the date presidt's trump
apear xi would have met i the apec summit before chile cancelled the event due to un st. a senior administration official axe nojs the deadlin might not be feasible as they continue to negotiate and a venue to sign. if the date isushed out, the signing summit could move to europe where president trump tsll be in early december. he is exp to attend the december 3rd and 4th.n london trump for months according tofi als suggested switzerland as the ultimate neutral location even as the u.s. pushed china to sign the deal eystateside. reported switzerland and sweden are under discussion but officials say ner unlikely but not impossible sites. the firmist evident deadline for sign something now viewed at december 15th. that's the dat the tariffs on $150 billion in consumer goods effectake for nightly business report, kayla tausche. uncertaintye stalled stocks.
the major averages a were littl unchged after struggling moving to further record territory. theow fell less than a point closing at 27492, nasdaq down 24, the s&plied two points. the big economic report today shows that p ductivit fell the first time since 2015. the0.3% conclude decline from the third quarter reflected a lotback in production as the economyd towards the end of the summer. economists say bceinesses re production response to softe demand, especially for exports. now to one of the biggest corporate stof the year, boeing and its 737 max. the ceo of american airlines said today he expects the f.a. plane to r to the air in nded the near future. and ceo doug parr said that airline will be ready. ed his the ceo of boeing talked about his decision to foerg his bonus and sed that he will give part of the bonus to 737
max victim's compensation funds. speaking at the "new york times" deal book conference, dennis muilenburg said the amount would be in the tens of millions of dollars. he told andrew ross sorkin that he came to that decision in part after meeting with the families. >> i wish i gone to visit them earlier. we haveedeen foc ever since the accidents on understanding what happened,ve doingthing we can to fix the airplane, improve the max. we have been focused on working to make it the safest airplane ever to fly. but the personal element of this and the impac it's hadn families, you know it's reminded me of the importance of the work and we talk a lot about at boeing about the fact that lives depende on whatdo, rirltly. that should demand in incredible sense of excellent in how we do it. but until it's personal and you talk wh the families and really hear the personal stories, there is nothing else like that. that's going to stick with me forever. >> as we reported yesterday,
boeing's new chairman said bonuses or equity grants for the year until the 737 max is back in the air and flaying safely. time to take look now at some of the upgrades and downgrades. we begin with shares of lowes. upgraded to outperform from nurmt at credit suisse with the analyst citing improves industry trends and hecompany's current valuation. price target now $129. the stock rose a fraction to to 112.67. blackrock upgraded to buy from hold at deutsche bank. thenalyst citing the improved macroenvironment for the company. prictarget $543. the stock up 1.5% to 489.54. and groupon downgraded to underweit from neutralt jp morgan. the analyst citing lower online sales and international headwinds. the firm has no price target on the stock buthares fell more than 2.5% to>> 292.
still ahead, what kohls is spirit. get in the monthly day >> mime will i'm courtney raying 199new york city at kohl's i'll tell what you the retailer has in store for the season coming up on "nightly business rert." ♪ the california attorney general says it has been instigating facebook for 18 months and says the company is not cooperating.s officire now asking a court to force facebook to answer its nas. california is looking into the social media company's privacy practices. the state says the probe began with the cambridge analytica stand pd scandal but expanded.
in a statement facebook says it has cooperated extensively with that investigation. dunkin' donuts is hoping to get in on the fakeeeat craz today it laufrmd a new plant-based breakfast item, the beyond sausage sandwich. and companies that make fake meat are looking to expand beyond the u.s. t china, since that countrys one of the largest in the world i meat consumptio eunice yuan in beijing for u tonight. ceo pat brown is in china for impossible foo debut here. and he told me he sees china becoming one of the plant-based meat company's most important markets. >> mcis the biggest consumer of meat in the world. and the demand forn meat china is so great that chinese -- china doepts have the farmland to produce its own meat supply. so we want -- did it's a huge opportunity, a opportunity for us to have a huge impact on clima change
and biodiversity impact of meat because china is such a big consumer. >> on this trip where he attended the import fair in shanghai, he said he is looking for china-based partners. he said the plan is to manufacture here and source raw mate locally. he said he is confident the company would be able to maintain the strict quality control standards aot he is concerned about china's slow approval for gmos. as for pricinghrown said pork and beef prices rising, the plan-based, competitive. the company is serving up 50,000 samples of burgers and dumplings at the fair. one unique aspects of the market,hey have a thriving fake meat dining culture. because of 250 millionst budd you can get plant-based pecking duck f brown said his consumer target is different because they are not necessarily vegetaria but want aeat eating experienc
for nightly business report, eunice yuan. >> chicken nuggets spice up wendy's. the wendy is raising thefu -year outlook as it plans to launch the breakfast menu neck next year. shares off a fraction pin. cvs topped analyst expect dedicationtations driven by strong numbers fromnahe pharmacy ment unit and the aetna health insurance business. the company raised guidance. sprattly, the company is shuttering 22 stores next year. cvs rose more than 5% today to strong growth in the medicare advantage health hunt helped humana beat expectations. it lichted the toutwill being d expected to match the analyst profit targets next year. humana shares up 3.5% to 304.94. "the new york times" saw growth in the onle
subscriptions but the publisher says it expects calks for the digital advertising plform. >> weuided to a potentially challenging fourth quarter for digitaladvertising. there are particular reasons for that. fantasticallyid well a year ago, digital advertising up 30% a year a that's a tough comp. one or two very, very bigeals ar not going to repeat in the fourth quarters. we've done the deals, similar big deals. they won't appear untilil 2020. >> shares slid nearly 4% to 30.69. tiffany is reportedly askin for a higher price from suitor lvmh. routers said the board felt the $14.5 billion biddas enough and is willing to open books and provide confidential informati the french luxury company to prove that it deserves a higher bid. tiffany sres rose a fraction to 124.69. after the bell tonight, qualcomm reported better than expected
result with the ceo saying the technology and inventions leaves it well positioned as the rollout ofes 5g acceler next year. shares initially rose in after hours trading, csing the regular session down a fraction at 84.63. > also after the bell roku topped wall street revenue estimates but reported a bigger net loss due to higher costs in video streaming unit. increase inctive accounts and average revenue peruser. shares initi ily dropped after hours trading. closed the regular session up about1% too 141.05. the most important time limit of the year for retailers is just around the corner. and kohls which got an early start on the holiday planning is stepping up a notch. kourtney reagan i new york city tonight. ♪ >> reporter: department stores strugglepp to excite ss in recent years as mall traffic has fall. .
amazon has grown and consumers turn to brands. competitors like jcpenney massy's and storesre but kohls leaned into the stor the vast majority of which aren't in the mall. even offering the amazon return service to drive shoppers inside. ceo michelle goss said the retailer is excited about the returns of amtzen driefgt. and return of new customers and accretive.t will be economically they know they have to offer consumer a reason b to after dropping off the amazon return. the department store is focusig onnewness, the key word she and other ecutives use to describe the hiday strategy and beyond. >> this is kohl's four-day p-up in new york city. it's meant to introduce shoppers to new brands or refresh ooducts. it's intended to resemble norngz holiday windows. >> for ask consumers outside new york city they created thisau ented snapchat experience, a
virtual social repel indication of the holiday pop-up. kohls iso leans i more opportunities for social moments. the new york city pop-up is good example of that part of the strategy. hoping to leverage the influencer community and consumers less familiar with kohlss since the closest store is in newman. while total sales disappointed in the recent quarter, home department sales underperformed the rest of the store thretailer is hoping the new property propertiew and nd by jonathan scott will get shoppers spending. it's the large multicategory home launch t relevant retailer has ever done. kohls has been more aggressive withhe comtitors with the holiday strategy. starting in july. and the black friday ad. daily deals for theim first t appear free for thes with santa as the retailer urges giftetives to srt. .r six fewe days between thanksgiving and christmas this year. for "nightly business report" >>urtney reagan in new york
city. oming up, the real real, the world's largest marketplace for xury consignment says everything it sells is 100% the authenticated by a team of experts. but an investgation finds aea differentty inside the coany. ♪ ♪ ♪ ♪ uite wasover in the c the highest on record in october. according to the firm challenger gray and christmas. there were 172 ceoss leaving last month up from i 1 chokepoint. challenger tracks changes in companies that have been in business two years at least and have at least 10 employees. >> ss.res of the real real fell
for a second straight day today. the stock closed down morthan 7% for a two-day decline of about 18%. asow you may the real he will is the world's largest marketplace for luxury consignment goods and recently went public raising hundreds of millions of dollars. . the company has been growing quickly buts it sacrificing quality for profits? sharing arent reality?yees andrea day has our investigation, the real question. >> reporter: our goal to deliver a tremendous value for our new investors. >> she is the founder and ceo of the real real. reselling luxury goods like preowned burn bags and cardi a. watcheie >> j wayne wright's 8-year-old company went public in junepp >> the totalortunity in the s. is 200 billion. >> most of the business is to date. th thr retail stores >> well now we are just like how
big can we get. >> and growth rapid. merchandise volume up 48%. revenue up 52% in the first nine months of the year. inill companycials sw it's not profitable. >> everything is up indicated. >> the realreal's promtz. >> authenticated by our experts. >> with an expert behind every item we ensure everything we sells 10 oh% real. 10 oh% authentic. >> there are no fakes on our site. thato essage is key te real real's appeal. andt's helped drive growth. but has it grown so fast it can't deliver on the 100% promise. >> we are going to the gallery opleing. >> just ask thielebrity designer. she recently called out the company on instagram for selling a fake version of her >> what's up, you guys. >> and hundreds of fired up customers like this one posting youtube. >> it looks like it's been scratched by a cat.er >> a speaking with nearly
three dozen former employees and obtaining the internal company documents, our investigation uncovered a different reality >> did you actually see fakes make their way onto t site for sale? >> yeah. >> chenis was a copy writer in the new jersey firm. bu the seem did more than just write about the goods. they authenticate zblootd do you think they had the training to e thent kait to the luxur >> no one had enough training to authenticate anything. >> and the real real expert behind the items. >> only some items. >> greta stare worked as a luxury manager for the real real in los angeles spending most day was consigners but saysco a 201 any tour of the warehouse in new jersey left her questioning the business. >> most pieces were handled by
the copy writers. and only v very high value items it seemed were being authticated by the actual lead you a they want indicators. it was very surprising because i was under the impression eve as an employee was that every item was authenticated bexpert. >> i'm grahamar wer. >> he has been the very public face of the real real. >> this is truly amazing. >> but what did his team authenticate. cnbc obtained the internal chart from 2018 sent out to copy writers selling spelling out what was to be processed by the authentication team and what copy writers were to handle. based on anything anything chenell went to t prada bags only legislate are and gucci lts and shoes, both nos. according to a 2015 world customs organization report, some of the most counterfeited brands in the world include
chenille and gucci. >> some people don't know the difference between real legislate are and fake leather. how are they going to authenticaten zbliemt top authenticators are trained but tiny details inesigner bags like the number of stitches per panel in the chenille iconic quilting pattern. chenille is suing the real real claiming the company sold counterfeit bags on the site. the real real says the suit amounts to harassing with meritless litigation and the se is pending. according to parchment when fakes and misiskes were discovered o s thee they were added to a list to be corrected. >> how many of thesens correct were happening every day? >> too many to count. >> did mistakes happen? >>absolutely, yeah. all the time. >> emily bob worked as a ka copy writer at this warehouse more than a year and says she w tasked with authentication >> i sort of had an idea how to authenticate a handbag. i would go in and do it myself. praying that it was you aen
authentic. >> do you think you had enough training to know what's real and >> i wouldn't say i had enough bags that i published on the site that were fake trying to figure out the bag is real or not is not the top o. your priori >> so what is the real priority? >> it was get outs much as you can. >> this internal document list as quota for 2018 and '19 saying copy writers are expected to consistently reachhe daily quota. and copy writers are subject to iplinary actions. >> the way we were expected to work was like a machi from julie herself that we had to get in the numbers by the end of evy month in order to please the investors. >> stare says she left after three years to work for a competitor. the real real suitor for taking denies.nts which she the suit was eveually settled. >> we siftedhrough close to
1,400 reviews of t real real online and in public records. the top three complaints include fakes, damage and customer service. >> everything we carry is real. is so important to us weut it our name. >> but this big name is now gone. chief authenticator graham wexbarger tells cnbc i won't discuss why i left t company. >> when asked about the departure aft w nearly seven years he denies r it wasated to our story. and when it comes to copy writers authenticating items, he had he wo dth not comment. company declined our repeated request to go on camera. sending in statement saying in part, we stand behind our authentication processwi an always work with our customers to make things right. and if there is a question about thent autity of an item purchad from the real real we refund theurchase price upon return. the company refused to provide any more details only saying, that this is our
final statement. for "nightly business report," i'm andrea da >> and on monday during the company's earnings call, the ceo said for the copy writers do take part in the authentication process and only the so-called high ri items go to experts. that's what we've been asking the company for monthsut got no response. and that is "nightly business report" for tonight. i'm sue herera. have a great evening. see you tomorrow. ♪ ♪ ♪ ♪ ♪
narrator: funding for this presentation is made possible byby. woman:l, a language app that teaches real life conversations in a new language, like spanish, french, german, itian and more. babbel's 10 to 15 miete lessons are availa as an app or online. moreelnformaon on baombb narrator: funding was also provided by... the freeman foundation. by judy and peter blum-kovler foundation. pursuing solutions for america's neglected needs. and by contributions to this pbs station from viewers like you, thank you. woman: and now, bbc world news. he
IN COLLECTIONSKQED (PBS) Television Archive Television Archive News Search Service The Chin Grimes TV News Archive
Uploaded by TV Archive on