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tv   Nightly Business Report  PBS  June 28, 2016 6:30pm-7:01pm PDT

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this is nightly business report with tyler mathson and sue herera. >> turn around tuesday. stocks rose sharply for the first time since the surprise uk referendum. as many now say limited. record settle. . $15 billion to settle charges it cheateded on emissions test. but they be be just the begi making every dollar count. you can't control volatility, but you can control krour finances. best ways to build a budget, save and manage good evening, everybody. and welcome. i'm sue herera. tyler is on assignme. bounce. stocks climbed for the first
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time since the uk's surprise decision to leave and the gains were strong across the board. even as traders tracked explosions like this afternoon at turkey's ataturk airport, where according to reports, two suicide bombers blew themselves up. it's likely to be on investor's radar tomorrow as wem. today by the close, the dow jones industrial 9 points to 17,409. the nasdaq added 97 and s&p 500 gained 35. bob pisani has more on today's rally on w. >> the markets bounced back on a come by thags of oversold conditions, a bounce in oil and the end of the quarter.e was on. a good sign there was a buying interest after significa drops. while the s&p 500 is down object 3% this quarter, broad swaths of the market have seen significant
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decline, including banks, restaurants, airline, retailers and many big cap tech stocks. microsoft, apple and alphabet are all down double digits for the quarter. thes groups today that led. we had accident gains for delta. and for banks like bank of america and citigroup. many are expecting them to announce increases and buybacks after the results. their stress tests announced tomorrow. i'm b pisani at the new york weak exchange. guidance and sluggish sales after the market close. the world's largest sportswear maker earned 49 cents a share, a penny better than esti tn expec and revenue for the quarter came in at more than $8 billion. up about 6% from a year ago. stock fell sharply in initial
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fter hours trading af its future orders. courtney reagan has more. >> the athletic wear company saw strong sales is including western europe, greater china, emerging markets and japan while sales in the key north america market disappointed. not only were north america sales light, but overall growth margin fell in part due to a clearing of excess nike inventory in the region. nike footwear showing the strongest growth in north america by category was apparel sales growth not far behind. equipment was the worst performing category in the region. orders made by retail rs around the world for delivery o b shy expectations. for nightly business report, i'm courtney reagan. >> and now, to europe where there were boos and there were heckles. tengs within the uk spilled over into brussels where european union leaders met for the first
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time since the united kingdom's unexpected vote to l th of the meeting is to prepare for the divorce from the eu. we begin in brussels. >> today in brussels, leaders of europe's 28 nations met for the first time since last week's historic brexit result. it was also the final eu summit to be attended by uk prime minister, david cameron, after he announced he was resigning. upon rival, his comments were positive and forward looking as he attempted to heal some of the wounds that had be opened in cent days. i also got a chance to catch wup the leader of the uk independent party, who did somewhat steal the spotlight d him tow signifi an ent last week's victory had been. >> this was the little people. ordinary people standing up against the multinationals, the
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goldman sachs' and getting a victory. >> i asked him whether his own victory had implications for whether donald trump could win the u.s.l race. >> it's going to be a fascinating contest this i ens he may well win it because he may get people votingf he'riy clinton may need to be worried despite recent polling. tonight, support from brussels, i'm willfred frost. in london, thousands took to the city's founders square to protest the outcome of the vote and to show their support to remain a member of the union. sara eisen was there. >> we want in. we are european. these were the chants of thousands of people that gathered in london's square today. and then marched through parliament. they're here with a message of solidarity with with the euro o leave it.ion
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>> the country is just unfounded by the results and the lies that we've been told. >> it's just a -- we've become quite reclusive against european union and europe ets burke we're a part of europe and we need to emphasize that. >> demonstrators hads a mess bo mayor of london who led the xam for brexit and is a current front-runner to be the next prime minister of this country. >> 30 weeks ago. he cannot minist >> whoever succeeded david cameron facing a divided united kingdom. little more than 48% of people voted to remain, while more than 51% voted to leave. many wanted to remain are here in london and are a younger generation. they feel their identity is european. those who voted out feel their identity british. among all these issues, the economy, immigration, sovereignty, the identity is is
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really at the heart of it. for nightly business report, i'm sara eisen in london. now to asia where those markets stabilized overnight on the pros monetary and fiscal stimulus. >> markets have calmed and in many case, strenacross as becausef a lot of talk of policy support. in japan, there was already discussion about greater fiscal stimulus to the tune of 1$100 billion in order to prop up the economy's air and it seeps as though the brexit fears have only heightened the need. the economy minister today said some of the money could be allocated to smaller companies that might be suffering after the brexit. in korea, the authorities there are talking about something similar. the government said it's considering a supplementary budget in order some of the negative implications. here in china, policymakers were
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out in to awage is market. even a chinese premier made a statement saying that beijing would try to ward off any roller coaster movement in the markets. investors are very much focused tass are that as sa investments, the dollar is going to strent and that could mean we could see a greater depreciation. the chinese central bank issued another statement of stresg weakness in the remnant b against the u.s. dollar, that it is stable against a basket of volkswagen's emissions cheating scandal will cost the settle.r about $15 billion. almost half a million owners here in the rust finding out how much money they'll be offered
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for driving defective models. the compensation is part of a huge agreement vw reached with state and federal regulators. >> volkswagen is paying a massive price for years of deceiving owners of diesel models about their current emissions. volkswagen's settlement totals billions with up to $10 billion paid to owners of diesel cars. there were also be hefty sums going to the nba and to develop zero emission vehicles to off set the damage of vw models that broke pollution laws. .> you can't suck the knocks out but what we can do is off set that damage by reducing pollution from future sources. >> owners of defective vws will be offered up to $10,000 and the option to keep their car and get it fixed or sell it back to vw
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at its value as of september last year, so if you take the buyback on a sedan, you would get between 13,50 -- a 2015 sedan owner could be paid just over 32 grand after selling their car back to e are gettings much or more money than they hoped or expected out of this deal and i think they like the option of see iing what they wa while the settlement is a huge step for executives grappling with the costly crisis, the real re th justice department is still conducting a criminal investigation and vw still needs to finalize ho dealerships and the brand is still st i sales the first compensation checks for defective models could be
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cut this october. with one vw owner telling me i'm taking the cash and leaving the vw brand for good. phil lebeau, nightly business report, chicago. let's turn to jack for more on vw's record settlement and what lies ahead for that company. executive mark analy at kelly blue book. good to see you. let's start with where phil left off. he talk today a person who said i'm taking the money and leave ing the brand for good. the vw brand permanently? >> i don't think as many as maybe others would guess. the consumers generally has a pretty short memory on this, plus, there is a lot of churn in the industry any way, so there isn't that much customer loyalty to a brand to begin with with a brand like volkswagen that's not
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so, so i think n the united probably about the normal amount of churn when we look back at it two or three years later. >> touk the me about a company who makes a legitimate m manufa tries deceive. really is a scandal bi versus what has happened before with recalls. i mean, what we have seen with recalls is there's le jet jit mat and we believe they're legitimate mistakes made. equipment not living up to standards. those kinds of things and they resulted in some rather terrible results. fatalities, injuries, terrible, terrible stuff. what we have with the volkswagen thing is something far different. no deaths have occurred because of this, but they intentionally cheated and admitted they cheated and i think that's the major difference between this scandal and other things we've seen similar to it in the past. >> what about the price tag that they are agreeing to pay?
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to a certain extent, is that kind of a shot across the bow of others saying list b, learn from what's happening to us. >> absolutely. i think that's very precisely what's going on. the epa, n its a, they don't want this to happen again. they want to avoid this at all costs. these damages are very high. these are hefty fines. hefty amount of money go quite a good deal, actually, for the volkswagen owns right now. and i think as exactly as you describeded it, it's a shot across the b manufacturers. very quickly in the few seconds we have left, the pending criminal investigation. that is another chapter, is it not? it is and it's a big issue because there has been kind of admission by the highest level of volkswagen of wrong doing
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.lready, so it's kind of hard to it will be interesting to see if criminal charges are actually levied. we rarely see criminal charges in this kind of a situation and of course in this situation, too, no deaths have resulted. you know, certainly damage to l have to see how that pans out. >> all right. i'm sure we'll be talking to you again in that cas with kelly blue book. still ahead, donald trump trashes free trade and says he'll rewrite the rules cu
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the u.s. economy expanded more than than in the first three months of the year, pu that pace was a slowest in a gross domestic product produced across the u.s. grew at a rate of 1.1%. the commerce department had previousliest mated first ar gro at .l%. the economic spot has been housing and today, we learned that home prices continue decline at a steady clip in april. the home schiller price index rose 5%, slightly less than the gain in march. the r on the west coast, portland saw gains of 12%, seattle nearly 11% and. and consumer confidence is rebounding. the conference sports gauge of consumer confidence climbed to its highest level of the year in june. that bodes well for household spending, however, the survey was conduct ld by the united
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kingdom voted to leave the eu. donald trump targets free trade. party's presumptive nominee took aim at globalization, saying it has made the financial elite very, very wealthy, but has left millions of workers behind. >> nafta was the worst trade deal in the history. it's like the history of this country and china's entrance into the world trade organization has enabled the dpraetest job theft in the history of our country. >> john harwood following the story from washington. good to see you, john. what else stood out in mr. trump's speech today? >> what was extraordinary about this speech was that you had the republican nominee, presumptive no, ma'minee, making a or a labor union chief would be very comfortable given, saying powerful corporations have rigged the system is.
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it's been a cats saying he was going to remove the united states from the trans pacific partnership and pull out of nafta if it couldn't be regroeshuated. >> is there chae tul work? >> you would think it could work, sue, if he had solid support among republicans because it would be a way of reaching out to blue collar workers. those voters are what he relied upon in the primaries, but he's got shaky support within his own party. 75% of republican members of congress in 1993 and in 2000 voted for china into the world trade organization and for nafta, so he was targeting his own party. he can't afford to lose big chunks of his party. >> now, speaking of hillary she did a very strong contrast. trump was talking about reviving manufacturing in steal industback. she was talking about the future. she was talking about technology, saying she wanted to
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expand computer education tr every child and that's where the global economyding talent from, u.s. workers, so he's focusing on making america great which she said code for the past. she was talking about the fauch. usually politicsing like to be top grounds of the future. >> there was an interview did today with the head of the independent party in britain who predicted that mr. trump might win because he will motive vat those who have not voted bef st voting. what do you make of that comment? d mes flows i the same direction at the brexit campaign. but a couple of significant differences. first of all, a presidential election is a between individuals, not an idea like a nationalist idea of pulling out of the european union. secondly, britain has a lot, a much wider electorate than the
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united states. and since a lot of the driving force be hind these both trump add the brexit campaign is concerned about immigration and cultural change, the numbers don't favor donald trump as much as they did brexit. >> thanks, john. the gas tax may be going up in nngz. the state assembly voted to approve a 23 cent tax increase and a 1% sales tax cut. if approved by the is that the and signed int law by the governor, the gas tax will go into effect on friday. the funds raised will replenish the state's transportation fund, which is expeblgted to run out of money this summer. profits soars at carnival and that's where we begin tonight's market focus. the results were better than expected and that helped in part by lower costs. overall revenue also increased at the cruise line operator onboard higher ticke
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spending. shares of carnival 43.75. barnes and noble education reported a narrower than expected loss for the latest quarter as better than expect e revenue helped lift resulted. thanks in part to strong demand for graduation related worldwide as part of the deal to take over with dow corning. the company said it's the closing of fort silicone plants in north carolina and jap. whirlpool said the cent brexit vote will not affect earnings for the they it will con to keep an eye on foreign operations and will take swift action to off set any negative
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impact stem frg the brexit edition. whirlpool shares rose 4% to 161.4. general electric will sell the majority of its restaurant financinging assets to three buyers worth $1.5 billion combined t. deals expected to close the third quarter of year. shares up to 29.94. coming up, when the market a number of things that you can and make every dollar count. here's what the watch for
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tomorrow. the federal reserve will release the second set of result frs the stress test which will determine whether a bank can increase payout to shareholders. pending home sales which were signed contracts will give us a look at the spring selling season and members of the european central bank meet to discuss the economy following the brexit vote in the uk. that's what to watch for on wednesday. speaking of euro the european union is reportedly set to file a third set of antitrust charges against google. this time, over advertisin a of manipulating search results to favor its own products. the eu then alleged android manufacturers to default to google's search and now, according to thee is google prevents website operators from placing ads that compete wit ad business. lift has reportedly hired a boutique investment bank best known for helping tech companies
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fibd a bir. reported, catalyst partners has contacted auto mareks and other companies about acquiring a stake in the start up. it's unclear throw whether lift wants to sell itself or raise new funding. unfortunately, as we know this week, there's not drama unfolding in europe or the fact that some of your investments may be in the red, but that epperson is here with some tips. let's start first of all w we talked about creating the right portfolio mix last night in the wake of th we saw. let's drill down more. one of our viewers tweeted us asking if we could take a step someone can better manage their expenses, their own little mini economy, their butts.
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>> that's a really g we can do is focus on what we can control and there are a couple of things you can fix or you can make sure that you stay on top of. keep your job and make sure that you are spending less than you make and saving more than you think you need because you're probably going to need more of that than you think you need. >> i would think so, especially with what's going on in the stock market. so, we understand the three steps to controlling your money better, budget is part of that. i know it's different for everybody, but what does an ideal budget look like? >> many rules of thumb out there. one i like to follow that's simple and to keep it simple, something that fidelity has put out. the 50-15 rule. you divide your money into four parts. your money in for essential expenses and that includes your housing, any bills you must pay on a monthly basis, then make sure 15% of that money goes to retirement savings. your contributions and your employer's matching contributions.
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the other 5% should go to short-term savings and keep up three to six months worth of emergency savings, but also if you have that, you want to make sure you have money saved for short-term expenses like if you ant to save money money for a car over the hort-term. that 50% that's essential expenses, a lot of people want to know how much house they really should buy. like what's the ratio when tween what you make and what your r b savvy money has come up with. breaks it down even fehr thur. there, you put about 35% of your pay into housing. that is your mortgage or rent, utilities. take the other 15% and pay back debt. credit card or student debt. 15% should go to transportation. your car payments as well as gas
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and insurance and other things related to your car and you want to keep in mind that you have to have 10% in savings. less than the other budget, but maybe more realistic for people and the rest of the 25%, other living expense, saving for college and other big ticket items. >> lots ofe botline. before we go, here's another look at the day on wall street. the dow rose 269 points. 17,409. the nasdaq added 97 and the s&p 500 gained 35. that will dot f nightly business report for tonight. thanks for joining us. have a great evening and we' ?
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i already know the killer's identity. john evans. by the end, evans was just sitting there, rocking, singing a nursery rhyme about the gingerbread man. i've had too much to drink. i think you've had just the right amount. why won't you ever let me have any fun? you don't want to arrest me, not now. what are you talkin' about? bank job, all right, a big one. he's cut my hair...why'd he do that? donald's in jail--he's been charged with attacking a girl called sylvia. never, you see that girl, him love her. you're a disgrace to the uniform. when nelson hears about this, you won't be my problem anymore. good riddance. (bluesy theme music) ♪


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