This is nightly Business Report with Tyler Mathisen and sue herera. Funded in part by all it takes is a spark. One idea to take flight. The courage to seek the unknown. To innovate, disrupt, to move us all forward, to explore a different perspective. At nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy. The future isnt tomorrow. Its right now. All it takes is a spark. Nasdaq. Ready, set, hike. The fed starts its meeting where it is widely expected to raise Interest Rates tomorrow. The question is, is this the first of many . We will ask the experts. And foreign affairs. Tomorrows dutch elections are the first of many overseas even events. Health decisions. Which Companies Win and lose in the gops new Health Care Plan . All that and more on nightly Business Report for tuesday, march 14th. Good evening. Welcome. Well, todays snow flakes on wall street could give way to tomorrow and a flurry of Interest Rate likes. Federal reserve policy makers began their twoday meeting today. Tomorrow, they will issue their decision on rates and given recent upbeat economic data, many expect the central bank to raise rates for only the third time in a decade. To get their outlook for the economy, the rates and the stock market. At the beginning of 2016, the fed forecast four rate increases. It ended up liking just once. Now it is projecting three rate likes. Is the forecast any better this time . And the answer may be, maybe. One difference between now and then, the market this time believes the fed. The cnbc fed survey says 60 responded three time in 2015. Others say there could be four rate likes. And others say theyll be going i know what what the market believes. If you look back to the last two rate cycles, they have to move in line with market expectations. If that happens, the market can do well. So i think theyll be tempered in their language. They will indicate continued slow but steady increases. Thats alongside better economic growth. So i dont expect this to be a head wind for the stock market. It includes economists, Money Managers and strategists. Most see another rate like coming in june of. Clearly were going to see a quarter point increase tomorrow. I think thats been well telegraphed. But i think the real issue is the commentary afterwards. How hawkish is that . The survey respondents are upbeat giving high marks to deregulation and tax cuts for businesses and individuals. They seriously dislike what they hear over the president s trade jenld. Most think the Controversial Border adjustment the is negative for economic growth. Meanwhile, 64 think they are too optimistic. They marked up just. 210 for 2017. Thats a far cry from the one or two full percentage rates which thinks the administration thinks they can deliver. For nightly Business Report in washington. The fed is the big domestic highlight this week. There is first of several International Events over the coming months that could move markets. Thats tomorrows dutch parliamentary elections which declaring a bellwether for politics. Tensions in the buildup move up a notch on tuesday as the row between netherlands and the turkish state built up with president erdogan accusing them of standing by during massacre in 1995. To the Prime Minister of the netherlands and he called it unacceptable. We have to take steps. We have to draw a line and say this is unacceptable. Well 97 negotiate on sanctions. He had a key vote on president ial power and thats why the turkish president is sending people across europe to try to get them to vote for the changes. The dutch have not allowed they will to speak over the weekend and thats why the tensions have built up so aggressively. In the meantime, an increasingly fragmented election in the netherlands with one or two parties unlikely able to form a coalition their own. It seems the Prime Ministers party could well be in pole position to try to for that a government. But government forming here can take up to three months, historically. This is steve sedgwick. Lets turn now to talk more about how the youre penal elections could imfact u. S. Markets. Mark, welcome. Good to have you with us. A couple years ago all the talk and worry was about what was going on in little tiny greece. This time there are more of consequence, involving bigger countries like france, germany. How essential is the bond market to what goes on there . I think theyre not really interrelated very much. I think the populism, nationalism is alive and well on the couldnt penalty ntinent. Brexit happened. But i think elections in europe are not going to go as far right as people think. I think the u. S. Stock market is more vulnerable because of valuation. Whether it could be that bullet that you dont see that kills you event where somethinger happens in europe, liquidity starts to dry up. But i think it is more about what is happening in the fed and really with bank lending rolling over. One of the worries on the International Front is that the move to the right, to nationalism might involve not only isolationism but protectionism which might affect trade. It might affect the Economic Situation here at home. Is that overblown . Or do you see that perhaps having a Ripple Effect through markets . Look. I think it is a big risk for europe. Europe is just on the precipice of easing back into recession. Theyve barely got single digit gdp growth. Although ours wasnt many better in the u. S. So i think Global Growth is really subject to what will happen with global trade. And global trade, if there is more nationalism and protectionism will shrink. So thats negative. Explain what it meant a moment ago when you mentioned bank lending rolling over. Yeah. It is a very interesting phenomenon. As the shadow Banking System grew after the Global Financial crisis, the banks were rebuilding the balance sheets. Now weve tried to give banks more authority to make loans but theyre not making them. Or maybe nobody wants them. Theyre about to go the negative year over year. When that happens we have a recession. Thats something to watchful we appreciate it. With morgan creek bank. And a drop in oil prices dragged Energy Shares lower and it weighed on the broader market. Domestic cruelty dropped more than 1 below 48 a barrel. And as went oil, so went stocks. The dow dropped 24 points. The nasdaq dropped about 19 and the s p gave back 8. Oils drop was partly fueled by a surprise output increase from saudi arabia and that makes the growing list of worries for big oil even longer. Oil was down again today. Saudi arabia may be throwing in the towel and cutting the oil output. If so, tts latest in a long string of headaches for oil. Saudi arabia indicated to opec that its production had increased to just over 10 Million Barrels per day in february. That was a little more than in january but the saudis said, it was in its agreement with opec. The market brushed the comments aside. And oil barely budged. So the market clearly believes there are cracks in the saudi commitment to cut oil production. Now, that adds to the long list of crudes troubles. It is a growing number of u. S. Rigs drilling for oil. We have Higher Crude Oil and now prospect of a rate like might take it higher. That would almost certainly hurt oil prices. So oil stocks are getting hit hard again. Exxonmobil hit a 52week low. Much is prigtd on oil trading closer to 60, not 47 where it is now. Another headache for the saudis and thats aramco. They want to take it public next year. That may be the biggest ipo ever. They were expecting it to be worth more than 2 trillion. With oil dropping, it could be worth a lot less. Seen in this light, it might make sense if they start to question the point. Continuing production costs. At the new york stock exchange. Up next, as old man winters storm whacks the airlines, the cruise industry is sailing right along. Why they are enjoying the strong start to the year and where they see more opportunities on the high seas. A late season has hit the east coast, with several governors declaring states of emergency. As blizzard warnings exist in some of those areas. And while major cities were spared the heavy tows, many inland areas were expected to get more than two feet of snow. And the winter storm is easily the biggest of the season to hit the airlines. And it is packing quite a punch with more than 7,000 flights kansas he wi cancel. How much it will hurt the airlines and h mhanhe bod . With airports throughout the northeast looking like ghost towns, the airs have had no choice but to cancel scores of flights and told many travelers theyre not flying in the storm. It is a big impact. It is crippling, from d. C. To boston is having a huge impact. Among the hardest hit airports, jfk and laguardia, along with boston. All scratching more than 70 of their flights. The airlines had which have waived fees for rebooking. This storm like i to 30th bottom line because carriers plan on a couple big storms every winter. The revenue loss is gone. But opt meization of getting on your feet and getting the airline working again, the big boys have it down. In fact, while the airlines have canceled more than 800 flights for wednesday, as the day goes on, the schedule should return to normal. And by thursday morning, if not by the middle of the day, most airlines will be back at 100 of their flight skes. Nightly Business Report, chicago. If you have been caught in this storm, you may well be dreaming of a cruise getaway and youre not alone. The cruise industry riding a growth wave and it is going hightech on keep the vacationers coming. Susan lee drew the short straw today and has more from ft. Lauderdale. The best wave season in years for the cruising industry. 2017 has started up strongly for the cruise operators. With share prices up double digits. Were definitely on a roll. Life is good. People are cruising and our brands excelling in everyone of their markets. The big three, carnival, Royal Caribbean and norwegian own more than 80 of the market but there is still room to grow with fewer than 4 of north americans hitting the water. Crews are now outpacing land based vacations. One concern is government policy. As long as things stay reasonably normal with pricing, were fine. If it backs cascade where a large portion of the world, people are not allowed to travel, that would be a problem of. While demand is strong, companies are trying hard to differentiate themselves. From ocean front verdict andy as to wellness cruises with oprah. Theres a lot to offer. I think well continue to see demand growth but there is a limit when theyre already filling their shipments. At that point you start to get pricing, which for the longest time, the industry has struggled with consistent pricing growth. I think over the next couple years, that is part of reason why we remain bullish. On average, a third of people going on cruises are first timers. And cruise lines are trying to innovate and provide the experience thats will keep people coming back. Ft. Lauderdale, florida. Disney gets upgraded and thats where we begin the focus. Guggenheim securities raised from neutral and it also upped the price target from 28 to 118. The financial its Services Firm cited optimism surrounding the theme parks, pipeline products and upcoming films. Disney shares rose 79 cents to 112. 31. And activist, investor bill ackman sold his personaling funds entire position. That was a 4 billion loss and sent the shares to a sevenyear low. Discount shoe retailer dsw had profit thanks to a better handling of the expenses. The same store sales fell more than forecast. And overall revenue didnt meet expectations. Still, shares did manage to rise about a percent to 20 and a penny. And hudson bay may be shifting its takeover sites from place toys niemann marcus. Theres been speculation that they couldnt get the terms they wanted nouflt hudson is in discussions to acquire niemann marcus. To health care, now that we know more details about what is in the House Health Care bill, our next guest is back to talk winners and losers. He is the Health Research analyst at capital markets. Nice to have you back. Thanks for joining us again. Theyre still going to be in and out of this particular bill but in general, did you see anything in that it has surprised you . Or changed who and what companies you think might benefit . Sure. During next three years, they will see an uptick in funding. Then there will be significant cuts. The report last night said between now and 2026, there will be 880 billion cut from the medicaid system. So days theyre exposed, like molina, could be negatively impacted by the restriction on the growth in medicaid spending. Are these Hospital Companies basically . No question. Hospitals will be a big loser in all this. In addition to the cuts for medicaid, where more people, theyll be forced to provide more compensated care, additionally, the move toward health plans did a proposal encourages, means people will go to the emergency room an 8, 10, 12,000 deductible and people arent paying it. And hospitals will really be on the hook for a lot of this bad bad debt. As you look at the bill, if you had to hand cap it, what do you think will change . There are a number of contentious provisions for lack of a better word. If you had to handy cam what the final bill will look like. Tax credits had largely stay the same. You may see an increase for low income individuals, trying to help them. It really negatively impacts people 50 to 65. Those under 40 will have their tax cover it so it is like free insurance for younger, healthier americans. On the medicaid side, i think you will see the medicaid date move out so the 14 million americans out of 24 million that they estimate would lose coverage, 14 are in medicaid. I think theyll try to get that number down a little bit if they can. I am guessing the insurers would generally view this favorably because their risk will skew younger as opposed to younger. And the older people are the bigger consumers of health care. No question. Insurers exposed in the space, line anthem, shifts the upside. In addition theyre providing an additional 10 billion for high risk, trying to help subsidize those people that are the highest cost drivers. Chris meekins, thank you. Coming up, fixing the work force. Millions of jobs going unfilled because workers dont have the skills they need fill them. Where one Company Thinks it found solution to the skills gap. Get them while theyre young. We look at a watch tomorrow. The Federal Reserve will issue its decision on Interest Rates. The Consumer Price index are due out and the aforementioned dutch vote to elect the next Prime Minister will take place and thats what to watch wednesday. Nearly seven in ten manufacturers say they have trouble filling jobs. A problem of the skills gap. The positions require Technical Training that they just dont have. The ceos said President Trump that it needs a national solution. Couldn contest a brewer looks at one solution. I have ap physics, ap calculus, ap english, grafb arts, and u. S. History. That may sound like hes College Bound but it makes more sense to start working right away. To this High School Junior in wisconsin is jumping right in. Joining as a paid youth apprentice. Theyre teaching me everything they can. For the most part, im having. But i have wrapped up a skid or two and helping where i can. It is a massive printing coil. It employs more than 22,000 people globally. Likele american companies, it is struggling to find enough skilled labor. In wisconsin alone, it has 150 open positions. Ceo joe said even manual labor jobs come with the expectation of training for more technical positions. You will see that we use a lot of hightech equipment. Over the years, you know, weve seen a big decline in the number of peel coming into the trades. Quad graphics revived its apprentice ship program more than ten years ago. First recruiting from within the company and then going to vocational and trade excuse. There wasnt enough skilled people to go around. By tend, we were fighting internally over enough people to run equipment, to develop into apprentices. So this year Quad Graphics went to 16 area high schools, offering apprentice ships for credit at 12 an hour. Far more than most teenagers make at parttime jobs. The Company Second all the students who applied. Nine of them. They have a really good enthusiasm from the counsellors. And the students may not understand what an athe present it isship is. I think they hear so much about fouryear university from parents, counsellors, other friends, that they forget that the usefulness of the tech schools. Jeff bowman teaches printing at the high school. He battles the common dogma that a College Degree is necessary for career success. And he struggles to keep his programs afloat financially. Look at this job right here. This is easily two hu200,000 i equipment. Schools dont have the funding for that equipment in the schools. So Companies Partner up to support tech ed in excuse. My only support was from my teacher, mr. Bowman. He was the one, he knows im really into tech. After his apprenticeship, he could make 25 an hour. He could still attend university as his parents expect bust he said even they are coming around. Thats nightly Business Report for tonight. We want to remind you, this is the time of year your Public Television station seeks your support. Well see you right back here tomorrow night. Nightly Business Report has been fund in the part by all it takes is a spark. One idea to take flight. The courage to seek the unknown, to innovate, disrupt, to move us all forward, to explore a different perspective. At nasdaq, we connect the world, its ideas, its capital, its businesses, the people that drive global economy, the future isnt tomorrow. Its right now. All it takes is a spark. Nasdaq. Steves prague is perhaps the best art nouveau town in europe. Art nouveau was an epoch of beauty. It celebrated creativity and the notion that art, design, fine living it all flowed together. For a closer look at that art nouveau aesthetic, visit the mucha museum. I find the art of pragues alphonse mucha, who worked around 1900, incessantly likable. With the help of an abundant supply of gorgeous models and an ability to be just provocative enough, mucha was a founding father of the art nouveau movement. His specialty pretty women with flowers, portraits of rich wives, and slinky models celebrating the good life. But he grew tired of commercial art and redirected his creative energy. A short tram ride away in the Czech National gallery of modern art is muchas latest work, his magnum opus. Mucha dedicated the last half of his career, 18 years, to painting the slavic epic. Its a series of 20 huge canvasses designed to tell the story of his people on a grand scale. In this selfportrait, young mucha is the seer, a conduit determined to share wisdom of a sage slav with his fellow czechs. Mucha paints a brotherhood of slavic people serbs, slovaks, poles, and czechs who share a common heritage, deep roots, and a hardfought past. Through these illustrations of epic events, czechs can trace their ethnic roots. Mucha, with his romantic nationalist vision, shows how through the ages, goths and germanic people have brought terror and destruction to the slavs, whose pagan roots are woven deep into their national character. With each panel, you get more caught up in the story. The establishment of the Orthodox Christian faith provided a Common Thread for the slavic peoples. To maintain their identity, they stood up to the roman church with courageous religious leaders boldly confronting vatican officials. The printing of the bible in the czech language was a cultural milestone. Then they endured three centuries of darkness during the time czechs were ruled by the catholic austrians. Muchas final canvas shows the ultimate triumph of the czech people as, in the 20th century, they joined the family of nations with their czech ethnicity intact. The slavic epic