Latest Breaking News On - Christine campbell - Page 1 : vimarsana.com

Transcripts For BLOOMBERG In The Loop With Betty Liu 20140401

we see automakers continue to climb and exceed sales. with more and particularly on meri kara, i want to bring in -- , i want to bring in matt miller. matt, let's start with you. we know there is a lot of trouble that general motors is in. what about mary barra herself? is going to answer why she did not know about this as the chief of engineering design. before she was made ceo, she was in a number of other leadership positions at this company. runningently, she was hr. before that, she was the head of product and in that role, she should have been in control of quality. why would she not have known about this? if she did not, what does that say about her leadership? those are the questions that people are going to be asking on capitol hill. mary, i thinkwith a lot of people think she has handled this very contritely. it looks like she is willing to cooperate. much differently than any of the previous ceos would have when they had into washington. general motors is going to have its own problem. this image ofover putting out for quality building, shoddy american cars and have finally won over the automotive media and consumers have been really impressed by their new models. these that you are looking at, no big deal. last night, they recalled another 1.5 million cars for steering problems. that has doubled the amount of cars they recalled last year. together, they have about 7 million cars recalled here today. that is 10 times with a recalled last year. that is a real problem. >> it is. the more details that come out, infuriating it is to hear about all these problems that were overlooked. i know she has a video apology. it helped in terms of relating to consumers, but will that help run the hill? i cannot wait to hear what bob has to say about this. in a longerogized video presentation. she issued a statement yesterday where she apologizes. she is very contrived out this and she appears to want to cooperate with congress. it will be interesting to see how she sets up the new gm going forward. it is a new company passed a bankruptcy. she is a new ceo. on the other hand, she says she did not know about it and does not know why the ceo was not told about it. i cannot wait to see what bob says about how does the ceo of the company not know when a product is killing people. segue intoa great the former chairman and ceo of chrysler. you have been in the seat four times. >> i have. matt poses one of the most challenging questions -- you have been there over 30 years, is it possible that this never reached your level? agree witht aside, i matt. she is doing a great job. it is unfortunate that as she is trying to get her arms around this willb that totally consumer. preparing for four of these, you are head down, locked up in a room, trying to recall and recant everything that has happened during that period. it takes her off track relative to running the company, to get ready for this grilling that will go on today. >> how do you prepare for something like this? >> why was that chrysler and gm when we were going through these hearings, we were heads down, in a conference room with a dozen or so four or five inch binders, going through every document, every e-mail, everything that was turned over to the congressional committees so that you knew you're going to get drilled. they have armies of people going through here looking for questions to try to trip you up. prayer -- mary will prepare appropriately for this. did you not know? if you knew, why did you not do anything about it? >> it is hard for me to predict how that answer will come out. there are situations where things are kept at the lowest level to avoid disclosure and what have you. i'm not saying that is the case, but it is possible. it did not elevate itself to the ceo. that would be unfortunate. she has taken a positive forward step in creating the vice president's office for safety. the families.th she has been forthcoming and open. you look at the number of documents turned over, this is a critical moment for a new ceo, particularly mary to do what she is doing. she has broken with tradition, may be prior -- how prior ceos would have handled it. >> also with the way how gm has traditionally been run. with this whole reorganization as she is going through right now, one of the questions we were thinking about as we were preparing for the story -- what goes into a recall? you did not oversee any recalls that chrysler. what happens in the car company. what are the steps that take place until a car company decides we have to call the vehicles back? >> one of the things we did when we acquired chrysler was we installed a very senior person that has a successful track record. we were able to recruit him away from nissan. we put him in place and started weekly quality tables. we would go through our check center and find the things that were causing quality and performance problems. if anything would endanger life, that was escalated. important partry of our culture. we did about 400 improvements in the first 90 days relative to quality, performance improvement. you have to instill that, the culture of the company, market focus, customer centric is critical. especially if it is endangering lives of your customers. >> at what point do you say -- we have to issue a notice to our consumers? that is a big decision and not one that sheds any positive light on the company. ofi hope today is not a case he said, see shed. -- she said. there ought to be some cooperative tension between those two organizations. >> is the notice given to knits up first? ntsa first? >> you have to notify them if you see totality's or injuries of that kind. -- fatalities or injuries. you are required to notify them. you want to work in a harmonious way with them, not in a combative way. i hope this does not create the unnecessary tension and we do not get overregulated now. the pendulum tends to swing when something like this happens. hopefully we can be constructive in the committees will do their diligence and not try to catch anybody in their deposition. about the relationship between general motors and the dealerships who have to handle these recalls? happyssuming they are not with the fact that these recalls keep happening and their customers are angry. forary has done a great job the dealership, relative to not creating angst against the brand. you must take care of the dealerships. they will have to handle this plethora of recalls. regardless of how aggressive and forward she is with gm, chances are, there will be another one. there are millions of cars in the system today. let's be careful to say we will never have another recall. that is going to be challenging. when you think of the thousands and whatand materials goes into assembling a car, it is a huge challenge to make sure everything comes together appropriately. >> all right, thank you. stay with me. he will be my guest host. ♪ moving and shaking the sour, mark zuckerberg, he has taken a huge pay cut. -- his salary was/two about a dollar last year. his fortunes soared last year after facebook shares more than doubled. about $27worth billion. that makes him the 22nd richest person in the world. warren buffett's salary is $100 in the year. who is buying the tesla cars these days? the answer may surprise you. one of the best known names in whiskey wants to revitalize the brand and beat the japanese. we will be talking scots with a master distiller. we're just getting started on this tuesday. ♪ >> new jersey will become the first state in the u.s. to ban direct sales by tesla motors. who are the people who want to buy these teslas? we break down the numbers for you. ♪ let's talk more about tesla and cars. i want to bring back bob nardelli. you know this issue inside and out. what do you think about what elon musk is trying to do? manna i think he is brilliant. >> i think he is brilliant. brilliant in his approach. a good friend of mine in arizona travel to california. he puts his $40,000 down payment to hold a slot, goes back to arizona. the car is delivered to him on a flatbed. a technician spent an hour with him going through how to read it. fast forward a few months later, the technician calls and says, your 12 volt battery is malfunction -- is not functioning appropriately. we will be there to change it. certainly, tesla market focus, ustomer centric. >> it is almost like they have built a customer for life. you can only dream of that with a gm car. >> if you think about the business models we have, jack nasser tried this with ford. direct sales -- why? in manufacturing, you are looking for volume to absorb your fixed overhead. all would love to have the margins that you get out of parts and service in used cars. there was always that attention to the dealer network. if you think about the dealers and their franchise agreements, state-by-state, they are -- they have tremendous legacy and are regarded in a state that is very tough. very powerful. dealers are approaching this appropriately. let's not have a massive right and lose -- a massive fight and lose everything, let's compromise and see what we can get done. ohio just excepted. limited. i am going to build a battery plant somewhere, i will do it in a federal -- a friendly state. there is a study out that shows state-by-state where he is approved relative to limited showrooms. some are within the nsa. no one else is doing it. taken another approach. he looked at the business model and said, i have all of these dealers, i do not have to re-create a service organization, i do not have to spend a lot of capital on tools and facilities and brick-and-mortar. i will benefit my dealers because i will draw more traffic into my dealerships. that was the business model he elected. >> this only works for elon musk and tesla because they only sell less than 30,000 cars. if you are trying to sell 300,000 cars, you cannot do that by yourself. >> the question will be, if he grows the 300 taliban -- if he grows to 300,000 cars, ken is margin -- can his margin grow to the infrastructure? does he have enough margin in the auto to be able to cover those forward costs. sell directlyt to to customers? is that something that automakers would like? >> we all think about that. if you look at what fiat did, i would like togio have a separate dealership. a compromise was that the dealer had to spend xmas and of dollars to create a studio -- an x mill dollars to create a studio. working have a great relationship with those dealers. they are in place. they have invested capital. they have tremendous loyalty within the community. team, political relationship. it is embedded. personal front, most people do not like going to dealerships in mind cars. for most people, it is a terrible experience and they feel like they're are being bilked out of lots of dollars. is there something more that should be done with regulating the dealers? there have been many attempts. maybe tesla has it right. dramaticake something and revolutionary as what he is trying to do to try to get a compromise. i do not think it is either or. youoday's digital world, want to have options to buy the car the way you want to buy the car. >> stay with me. bob nardelli. high --p, the trading has expanded. the fbi has launched its own probe. ♪ >> you are watching "in the loop." is losing its fizz. the slump in soda sales got worse. i answered is taking the biggest hit. sales of coke were down about half a percent. pepsi down more than three percent. look at the diet versions of these colors -- colas. they dropped almost seven percent each. that is a huge problem. americans want to be more healthy. they are just skipping colas entirely. is 26 minutes past the hour. bloomberg television is on the markets. caffeinated with olivia sterns. >> maybe you'd need a little bit more soda question mark -- a little bit more soda. s&p posted the fifth quarterly straight game. we are up about 1.3%. the key thing investors will be watching as the isam manufacturing index. continued growth for u.s. manufacturing. overseas, let's show you what is happening in the rest of the world. stocks are rising. airport is showing that any factoring remains near a three-year high. unemployment is at about 6.7%. stocks are broadly higher in asia. conflicting reports on the pmi. a slight contraction, slowdown of manufacturing. the government gauge showing a slight improvement. we will be "on the markets" again in 30 minutes. investigating high-frequency trading. they joined state and regulatory authorities and trying to determine if firms are guilty of insider trading. the investigation has already resulted in at least 79 convictions. amazon is not planning a free streaming media service. they are planning to hold a media event in new york. the wall street journal had speculated that they would announce streaming tv and music video service. malaysian authorities reiterated their belief that there was a deliberate action by somebody on board flight 372 diverted from its scheduled fight -- flight path. words in the cockpit were not all right, good night, but a more formal, good night, malaysian three seven zero. back in washington, the obamacare exchanges on t rack to hit 7 million. those glitches are the latest on what has been a rocky road in enrollment. megan hughes has a look at the timeline. >> before it launched, testing showed big problems. crashes during stress tests. on day one, only six people enrolled. by day 2, 248. tens of thousands idled in a virtual rating -- waiting room. signing off was another story. the white house announced an emergency text search -- tech surge. by the end of the month, only 106,000 have signed up. most of the sign-ups came from state rice changes. by the end of the year, obamacare moment rally. through december, 2.1 million people enrolled. 1.6 million in december alone. to 2.4uary, it jumps million. last week, the president announced a milestone. >> is the white house on a victory lap? >> not yet. you can expect to hear more on this today. i have it confirmed that they are on track to hit 7 million. no official announcement just yet. lastow that as of 8:00 night they had 3 million visitors to the website. it was a record day as far as that goes. number is a big achievement. that was the target enrollment goal before any of the glitches, before the enrollment began. that is an achievement and you can bet that if these numbers bear themselves out, we will hear a bit from the administration. >> this went through. it had no republican votes. republicans are not buying these enrollment numbers. memo we heard from one thing that the books are cooked on this. two of the things that they're looking at when it comes to these numbers, questions that they want answered, how many of these people were uninsured before enrollment or are they just switching plans. that is something that the administration has not been able to answer. the other question, have they pay their premiums. they have signed up. they have not checked up to see who is paying the insurer in companies. those are going to be things that we're going to be looking at. >> thank you so much. i want to bring back bob nardelli. what is your biggest question around us? learn how not to to introduce a program, this is -- >> this is the case. auld you imagine if this was new platform for general motors to launch new cars? lessons learned here. point number two, there were two important words used in your exchange. one was visits, the other was enrollment. having tremendous experience in online sales, we used to track visits, but most important were orders placed. >> you are skeptical of these numbers? it depends on what words you are going to use. enrollment, if you mean paid, it would be another perspective. it is a harrowing experience to get insurance. >> you tried to get onto the exchange? terminated because the insurance company decided not to carry insurance in california. we went with a local provider, 30% increase another 30% increase, then we were notified canceledmuch of the because the policies they had did not meet with the affordable care act requirements. we went back out and tried to find carriers that would comply. from $160 a month to 600 dollars a month per child with a $500 deductible. i cannot tell you how many hours we spent trying to secure that. they like their doctors and to keep them, that is what we had to go through. >> this experience is why the republicans are making it a focal point of their campaign. tom, a republican congressman in arkansas, when you go to his website, he is running for senate. obamacare so bad, obama does not want it. anger thatng on the he believes voter has against -- voters have against obamacare. are there enough americans that are angry about this? phrase,is the old politics over policy. no one argues with trying to make sure that affordable health care is available. that is an important thing. it is directionally right. it is the implementation, some of the controversy on how it has happened. i think changing the goalposts as we went along to make sure, i think there were a number of issues in the implementation that could have been better. i think bipartisan basis, when we have more people in the room, that we brought people in from the business community, what is the impact, how have you implemented major software changes relative to ernst & young does this, s&p does this. >> stay with me. bob nardelli, former ceo and chairman of chrysler and home depot. ♪ bob nardelli is one of the sayness leave years that what you need to know to get ahead. spent --ve to learn to learn different customs. if you are serving that customer in that country, you have to be available. want to take on the responsibility as a ceo and a chairman, the priority is doing the job, not so much the speed of decision. would say they regret not making a decision sooner. i am not talking about knee-jerk or cavalier. i am talking about getting the facts, getting as informed as you can from the constituents as -- from as many of the constituents as you can. i was told that was a big risk in my response was, not taking risk is a bigger risk given the situation. we have to listen, learn before we can meet. i only wish i had the wisdom and the experience that i have now 20 years ago. i think i would have been much more effective. contributeduld have more to the success of the business and been a better partner to my staff. >> if we could all roll back time. thank you for doing that with us. i want to talk more about management. welch, her boss, jack wrote this piece that we highlighted yesterday. he spoke more about management and how to cultivate talent. he said one of the things that he believes people -- he believes companies do not do enough is pay attention to the hr offices. do you agree? he has been a great friend and mentor to me. i can't think him enough for the lessons that i have learned. people look at him for management advice. >> i agree with that position. depot, one to home of the first things i did was bring in one of the strongest hr chief human resource officers and we started to put process into place. you have human capital and physical capital. a lot of times you will spend an inordinate amount of analysis on the physical capital and it is your human capital that brings back to life. the chief human resource officer needs to have an equal share at your staff's roundtable which they often don't. important.thing more if you look at the history of ge and the ability to continue to have strong talent on the bench. i think it is very important. >> there are so much fight for talent on the west coast area there is a story about how the chamber of commerce has decided that they are going to put an office on the west coast. is -- in time with the issue of the day. taxes, privacy issue. assumingimming -- i am they feel there is a need for their services. >> you have to be immersed in the markets and in the environments. tom does not have a glass jaw. as he moves to the west coast, --will need >> i was going to say. you have had companies that did not renew their membership because they do not agree with some of the policies by the chamber. the environmental standpoint by them. i am not expecting a red carpet rolled out for them. >> they will move into a facility with high security area , the right thing. he is balanced, thoughtful, represents the chamber, works of both sides of the aisle. of these larger corporations that have elected not to participate will rethink that decision because you would rather be at the table then not at the table. we talked about this in the last segment. out,ully by then moving they will demonstrate their willingness to engage, listen, learn before you leave area and >> it has been great to have you here. coming up, it is the most expensive home ever sold in l.a.. who may be all-cash offer? cuddy stark is releasing its first new whiskey and 80 years. has -- the company's master distiller joins us next. ♪ >> 102 million dollars. that is the price of a five acre estate on l.a.'s west side. in 10 days.losed it was an all cash deal. it set a new record for l.a. real estate. who is this person? the address ofns michaeltank chaired by milken's. to make you think about. i hope it has nice storage in that house. our next topic is about whiskey. u.s. distillers are gaining popularity. foreign spirit producers are not rolling over. cuddy scotch is upping me whiskey wars. for more, i am joined by jason craig and christine campbell. thank you for joining us. we seem to like alcohol in this program. tell me about this prohibition addition. >> prohibition is the new premium expression from cuddy stark. it is 100 proof. it is very smooth and easy to drink. that is not something people expect from such a high-strength spirit. >> where is the demand for that? thet's coming from bartenders. they are looking for authentic, higher strength spirits to mix in premium cocktails. why is there a growing demand for the high-end product? was a growth of authentic spirits. crafted --f the handcrafted, having a face behind the spirit. people like to know who is making it. local neighborhoods like to know where the craft beer is coming from, where the local spirit is coming from. -- theyike cutty sark have been there for years. >> who are the customers? consumers are never ones to drink with their dads drink. they want to discover something for themselves. they will discover old brands and some really new, up-to-the-minute brands. we are a mixture of both. -- they arewhiskey gaining in popularity. they are competing with brands like yours. what is the difference between theirs and yours? sark, it works , veryell on the rocks well and cocktails. it is versatile. >> what about the japanese competition? >> they learn by coming to scotland. we talked about to make whiskey. they use a different type of low. it gets different characters in the whiskey then american oak or european. facilities in japan are very similar in style and shape to the scotch ones, but the barley and water is different. you use different east inwood. different kinds of wood. seacrest says the battle blackberry may not be over yet. what he plans to do next. mcdonald's is doing something it has never done before to get traction in the breakfast wars. you may get your free cup of joe this morning. stay "in the loop." ♪ >> it is time for this versus that. this is ryan seacrest. he is the american idol host. a start up he cofounded came up with something he thought would be a big seller. an iphone keyboard for $99. blackberry is suing secrest's theany for stealing keyboard it in mensa the bank to be listed. ban can be lifted. bloomberg television is "on the markets." equity futures are heading for another rally. we are "on the markets" again in 30 minutes. probably having the toughest day of her career. how will she stand up to the barrage of questioning from lawmakers. mcdonald's doing something it has never done before. trying to get a leg up on the competition for your wallet. you are watching "in the loop." ♪ >> 30 minutes away from the opening bell. you are "in the loop." the s&p even as the fourth quarter in the green. mcdonald's hopes the reckless crowds drinks of the new promotion. for two weeks the chain will give away small coffees during the morning to come meet with the likes -- compete with the likes of taco bell. senate investigators say caterpillar found a way to avoid 2.4 billion in u.s. taxes. they say they shifted profits from a unit in the u.s. to one in switzerland. now the news keeps getting worse for mary bharat marra and gm. the total number is almost 7 million so far. joining us now is auto reporter tim higgins with more. how do you think the ceo as she heads to the hill today, how do you think she will hold up under the assault from congressional lawmakers? >> the hits keep on coming for her. probably the biggest crisis for gm since emerging from bankruptcy. she is surrounded by folks that have experience on the hill but she will carry the baggage of old gm. a generation of bruising and safety fights and regulatory battles gm has conducted over time. she will have to pay bit the forany and make the case being an new gm that cares about quality and transparency and customer. >> so far seems to be getting a thumbs up. i am sure for the lawmakers it is a little bit too late. >> past regulators like to say this is in some ways a classic pr move to make the right noise and say the right things. the proof will be in the footing over time to see what they do. are they able to change the culture? she says they are trying to address the issues going forward. you talk to gm officials and are very aware of the idea they need to do what they claim -- say is close to the right thing. >> who are the lawmakers to watch out for? rex we will see a see a lot >> we will of tough questions. is this baggage of the past? we have seen pretty tough questions from members of the democratic member of the committee who will have a hearing today that want to dig in. republicans will be there because there is an issue of gm and the bailouts under the obama administration is back to the bush administration. you so much. tim higgins, bloomberg news auto reporter. moving and shaking this hour is former pen co-ceo mohamed who we discovered is writing a second book. we landed our hands on the book proposal. do not expect a tell all about reports of tension between him and the cofounder bill gross. a book about the rise and potential fall of central banks. he will focus on what individual companies and governments can do to navigate an uncertain economic environment. the first book was published back in 2008, and new york times bestseller. about this is michael mckee joining me. the bestseller will be his tell all about bill gross. >> i think people will be a little bit disappointed they are not going to get this. central banks are little bit of a dry subject. very important but hard to see how this matches the bestseller because times are different. when you have a crisis, people tend to focus on how to navigate this. crisis, and by a all forecast we're going to get out of it in the coming years, people may not be as interested. >> this is interesting because we have all been wondering what he is doing and has been doing since he left himself and what a surprise it was. pretty much the talk of the markets for quite some time. mentioned in the internal memo he was thinking about writing a second book. no surprise he has gone ahead and done this. what is next beyond that? the book is perhaps an obvious. for him to waiting land. butl doing consulting work, of course he has enough money he does not have to jump quickly into something else. >> he can write books about central banks and not worry about it. >> one of the positions people speculate he might land in is the federal reserve. if you might write about the central bank come one presumes that would be off the list. a first look at the central bank roll. their role and what he was saying is the cap between what they have delivered and what they are expected to deliver going forward which could fall short of reality. >> a lot of people do not like central banks. particularly the fed. i am sure he will find an audience. we do not know he will be critical with the c. a critique is more like what he would do. that would be interesting to people who watch the central bank closely. >> we have janet yellen speaking at the chicago fed. you pointed the story out to me, which i was surprised to read the people some of she named as the picture of unemployed have criminal records. >> unfortunately a public relations problem. she did cite three people's history, people who could not get jobs after they were laid off and made the point that this is terrible and we should do something about it. unfortunately it turns out two of the three have criminal records, including someone convicted last year of heroin possession and the records may have cut them from getting jobs. feden and the people at the say that she knew about these people's backgrounds, but shows -- chose to go ahead anyway. not necessarily someone's fault, particularly someone convicted of something in her youth, decades ago. of it are not bad. because people do not like the fed, a lot of people have gotten an e-mail seizing on this, suggesting janet yellen made a if youkie mistake, that are going to tout examples, they should be examples that people can identify with that say this could be me so i understand what you're talking about. >> the argument or to date meant if they knew about this and were going to go-ahead with it anyway? >> yes, that she had spoken with people involved and decided to go ahead anyway. it will fade but did not help make the cupcake. >> distracting from the central message. great to see you. thank you. coming up, would you like a free muffins? the eggs make mcdonald's strikes back at taco bell's plan to go ahead to head in the breakfast wars. how the affordable care act impacted stocks and the health care industry. stay "in the loop" as we head towards the open. ♪ freedonald's giving away coffee. it started yesterday in select markets. for the first time in the company's history they will offer a free cup of joe for two weeks in a move to keep any competitors that made -- any customers that may be tempted by taco bell. head onl took them on featuring real people named ronald mcdonald. social media.zed joining me for more insight into the latest breakfast wars is david hinchey. you were surprised at how direct taco bell was, right? >> absolutely. good morning. when i first heard about taco bell coming out with breakfast, i thought the smarter play would be to position themselves as an alternative to mcdonald's. with this advertisement touting the people named ronald mcdonald, they are going right i'm a donald's. they have responded by giving away free coffee. we have always expected them to ferociously defend the breakfast turf. >> is that an effective move by have taken a> they bemused approach to this. i think it is the right tone to take. no doubt we have seen mcdonald's amah anyone -- any time anyone has come in into the breakfast base, they have defended it. free coffee is a new move for them. it is clear they do not intend anyone to tread lightly into the space and will defend it. mcdonald's owns about one third of the breakfast market right now. so there is still quite a dominant wars. i am assuming taco bell and starbucks smelling blood in the water when it comes to mcdonald's giving up its position. >> i think it is driven more by lack of growth. when you look at the white space around breakfast, still a lot of growth opportunity, despite the fact that mcdonald's owns it. think they look at breakfast as incremental growth opportunity. taco bell doing pretty well with the innovation needs to keep the ball rolling and will focus on breakfast as a new vehicle for them in 2014. rex you talk about how important coffee is to the whole breakfast menu into the consumer. was it a mistake that taco bell did not introduce a coffee line and focus on that when they rolled out the new menu? >> i think so. coffee are the big drivers for successful program -- breakfast program. while taco bell has a coffee program, it is not positioned as a premium coffee program. to becomepect them more successful and grows a breakfast program to do something and coffee because that is a critical component and something consumers look or when they are shopping around for breath test. >> why did you not like the social media strategy by taco bell? >> i think when you look at social media and what they are doing with ronald mcdonald him and they are raising the ire. i think they are hoping they are getting the ire of for them. probably not necessary to do that but i think they're trying to make a wave and create a buzz for themselves was social media. >> maybe they feel like they can take rigor risks, right? >> i think so. i think they are starting essentially from zero and looking to create buzz and excitement and generate word of mouth. we are talking about it right now so at least somewhat effective in getting people to notice the breakfast program. i think they have an interesting program. we will see how it does over the next six months. >> all of these brands you and .'ve both grew up with coca-cola, pepsi -- they are all in a decline. i do not know if you saw the statistic yesterday that diet coke and diet pepsi are declining way faster than the full sugar counterparts. .hat was a stunner i would have to imagine that affects the fast food industry. >> when you look at the profitability and volume, it is incredible. it is a big boost to the bottom line. her placesd -- has like mcdonald's and all the places we are talking about. when you look at beverages and carbonated beverages, health and wellness driving this. there has been news around diet sodas and perhaps not as healthy as you thought. you look at innovation and excitement around different flavors and flavored juices and right nowd tea is hot so there is a lot more alternatives for people that carbonated soft drinks are not as exciting as they used to be. to feel good to order a big mac and diet coke. i guess not anymore. plain old water. thank you so much. hewlett-packard settles a shareholder lawsuit over allegations that a former ceo made misleading statements about the company. stay with us for more. ♪ >> president barack obama as had his revised target of 6 million sign-ups on the website, which the white house says is a big win. olivia sterns has more on who is making money on this. lex we know that health care as a sector broadly has enjoyed a big bull run. you break it down by some sector, you can see different ones are impacted by differently by the law. withay to track this is motives investing. one called obamacare. products forn hot the company. i spoke to the founder and ceo, a frequent guest on bloomberg. he said there is 45 times more successat on the law of than the has been failure. since inception, the obamacare group is up 90%. hospitals, generic drugmakers and also electronic medical record companies. what should happen next from the new cost control and the fact ist the government guaranteeing payment. no insurers because the impact is still pretty uncertain. my -- mainly medical device makers because in the sales tax and nursing homes and assisted-living centers because they will face lower reimbursement fees. unlike in washington where many politicians are talking about the potential demise of obamacare, investors betting the law is here to stay. >> inc. you so much on this. howia sterns with more on it is affecting the markets. a few minutes away from the opening bell. the top 10 trades you do not want to miss right after the break. keep it here. ♪ >> welcome back. ended its the loop" 26 minutes past the hour which means we're on the markets. the latest on futures before we open. headed higher. rex stock said to open a little bit higher. stocks were open the first day, up 1.3%. that marks the fifth straight quarterly gain for the s&p 500. the key thing investors will look for is at 10:00 the isi manufacturing index. the number will come in at 54. an expansion from february into march. >> cutting down to the open. the only trades you need to know about today. julie hyman joins in as well. number 10, marvell technology. they have to pay 1.2 million in damages to carnegie mellon over patent infringement case. they rolled that marvel will have to continue paying a royalty for producing the disputed technology. >> number nine is clean energy. the americas natural gas highway station will serve ups natural truck fleet. signing multiple additional fueling agreements. number 8, 3-d systems. starting coverage with a neutral rating. they do have potential for a jump in 2015. at 52 dollar price target on the stock. >> number seven, metlife. number one lists. bank of america merrill lynch. the company signed $15 million after a new york watchdog found a subsidiary solicited business misrepresentation to regulators. >> number six, united continental holdings. upgraded from fair to buy at ubs. made that based on accelerated unit revenue growth. a price target of $50. >> number five, medicines company. shares are plunging in the premarket after the fda voted in favor of antibacterial drugs that have the same use of one of the company's own treatments. a patent infringement case was launched. number four, wynn resorts. getting a boost from the premarket. gambling grows over 13% from a year ago. good news for wynn resorts. number three, blackberry. winning a legal battle against an iphone key start up -- keyboard start up. boourt order and the tae product from selling the keyboard while blackberry proceeds with the patent infringement case against the company. >> number two, hewlett-packard. agreeing to pay $57 million to shareholderttle a lawsuit. accusing the former ceo of making misleading statements about operations before he was ousted. the company legal troubles are not over. >> number one, general motors. mary barra will testify in front of congress later today on why it took a decade to recall two point 2 million vehicles with faulty ignition switches and to answer the company's problems in cars recall of 1.5 million with power steering issues. i recall about two 7 million -- a recall of of 27 million vehicles. janet yellen spoke yesterday at the federal reserve in chicago. even after the fed gazes out monthly bond purchases, committed to keeping rates low in order to help jobs. >> reducing the rate of new security purchases are not -- lessening of a commitment only a judgment that the labor market means the aid for recovery need not grow as quickly. >> i wanted bring in our call guess now. i want to bring in david joy of america prize financial. his call that yellen did not make an initial rookie mistake and talk about raising interest rates but put the markets on notice. you said that was the right move by janet yellen. >> i think it was. important to point out it is all data dependent. once they unwind quantitative easing, sometime around the start of the fourth quarter is sheer, looking to see if there has been enough progress, and if there is, that six-month progress comes into play. that took the market by surprise. you saw a little bit of a wobble in the equity market. i think it is the right call. they took it too literally. almost like she was trying to an answer.to hedge the market took the six-month time frame very literally. is a think six months reasonable amount of time to assess just how strong the economy is and whether or not it is appropriate to raise rates. keep in mind, after the first raise increase on the theoretically it will only be one half of one percent. hardly restrictive in that regard. a little bit much of a reaction. a couple ofere are groups you like that you are buying right now. we do believe the markets will go up from here. mostost banks -- >> banks did pass the stress test, citigroup aside. citigroup and bank of america vote had to resubmit plans and that means they will not pay out the dividends into the buybacks they initially hope to. earnings growth of the screen, overall for the second quarter will be 3.7% for the s&p 500. over here financials pretty much flat. looking at losses for the second quarter. even if the regulatory clouds have parted, still doubt about how much money these things will bring in. environmentt is an where in the immediate term earnings will be under pressure but the operating environment is improving. will see an ongoing increase in consumer or loans, increased capital markets activity. these starts are relatively cheap. under 10 times earnings and low price to book a people's. i think it is a long-term play on the economic recovery story. julie digging further into the region and what is going on there with the return. >> i want to talk specifically about the news from europe in terms of economic data. pmi for very -- various eurozone countries. showed growth and improvement in some of the areas that had been the worst performing areas. or spain, multi-month, in some cases multiyear highs. france also added 33 month high. you have that as a bright spot. you also have unemployment numbers that are still not great, particularly the new look in the pockets. overall euro area improvement, 11.9% among which was better than economists estimated. you still have the divergence between the likes of italy where unemployment is still at 13% and germany under seven. we have had a lot of renewed interest in europe over the past year. you still have the issue of there are areas that continue to struggle, italy and greece as well. >> where do you buy then? had to concentrate once again in the core countries. if you look at the eurozone and the aggregate, clearly it is not robust but it is a recovery. last year shrank 5.4% in terms of economic growth. the eu estimates one point two percent growth. you also have a central bank that remains very accommodative, and perhaps more so. we will find out later this week whether they add stimulus. areooks as though they further behind the u.s. and bank of england in terms of our restrictive they're going to be going forward. there is an additional monetary support that may no longer be the case in the u.s. and england maybe 12 months from now. >> thank you for joining us. david joy of america rise. hewlett-packard settles comments over a lawsuit -- a lawsuit over comments from a former ceo. the caterpillar offshore tax problem as the senate shifts focus to the equipment maker. stay "in the loop." ♪ >> here is a look at the top tech stories on the radar this morning. u.s. chamber of commerce planning a second out post in silicon valley. the chamber second in command david shaver and will relinquish his role as the coo to leave the initiative. apple and? in recent years have left the chamber. -- apple and yahoo! raising two million and an ipo. the company looking to challenge cisco. a profit of $45 million on sales in 2013 according to an sec filing. catch all the latest everyday at 1:00 and 6:00 eastern time, only on bloomberg west. we will get the government labor report. paycheck says those numbers are not going to tell the entire story. they have not for a long time. launch aith ihs to small business jobs index based on payrolls data from 300 50,000 small businesses. 95% of employment are small businesses with fewer than 50 employees. the nasdaq is where he rang the opening bell. it rate to see you again. why did you want to go ahead and do this partnership and index? >> they asked for the information the number of times over the years. largestwe have the sample size available with over five hundred 70,000 small to midsized businesses and felt good about the work we work -- we were able to do historically and now provided on a monthly basis. the largest sample size over 350,000 over three hundred employees and will be done monthly. about the labor report to say is not adequately describing the labor market? >> this index uses historical data from a very large client base of hours and not a prediction, not the survey but using hard data to show what has happened in the growth of the small businesses. >> what are you seeing with small businesses? that it is positive, an indicator of the growth and change in the growth rate has increased year-over-year for march. feeling pretty good. still a slow growth was still growth that we think is great. asso far what are you seeing far as what areas are seeing the biggest growth and what is lagging? >> the information indicates the mountain region has the strongest growth and also looking at states we will see texas as the top for the highest growth rate for employment for small businesses. major cities are at the top of the ranks there. of sense.a lot small businesses, what do they want, what do they need to create jobs? >> what they really need is consumer confidence in spending. consumer confidence took a nice increase last month in march. if that can continue, it will have small businesses to more confidence and expand locations. it is really about consumer confidence i believe. >> thank you so much. ceo of paychecks of the nasdaq. caterpillar prepares to defend a tax dodge that save them billions of dollars is what one senator called with the wave of a magic wand. we will be back with more on how it was exactly done. ♪ >> time now for the global outlook. nato foreign ministers meeting to decide to do -- about what to do next about the annexation of crimea. vladimir putin has started with his next step. hunt for the missing malaysia and judd is now in the fourth week and lack of flight data is presenting investigators from narrowing down the search area. an aircraft as returned and reported no significant enough -- development. a new job report shows how europe's economy is running at two speeds. the jobless rate unchanged, the lowest in at least two decades. in italy, unemployment rose to 13%. the council has met this week to discuss the need for more stimulus to boost jobs in areas where it is meeting -- needed. senate investigators have said that their sites to caterpillar inc. the latest effort to uncover tax avoidance schemes. carl levin released a study on operationsturing of and why it may have done. phil mattingly joins us now from the hill as company executives face a senate committee. what are we likely to hear and see from this? >> the hearing is already underway. one senator levin is conducting an investigative hearing, the company will probably have a hard time. he has laid out systematically piece by piece the strategy caterpillar put in place. put in place in 1999 with the help of price waterhouse coopers. the company paid the $5 million to figure out a way to shift the third tardy parts business, at least the prophets, to a swiss subsidiary. according to investigators, and that ended up saving or allowing the company to do for two $.4 billion over the last 13 years, not a small amount of money. i think we will see multiple panels trying to point to the strategy as another way the are trying to make sure they do not have to pay the full share of taxes inside the u.s.. >> in the fantasyland of international tax, caterpillar waved a magic wand to make billions of dollars in u.s. taxes disappear. >> as you can see, the senator not mincing words, something to keep an eye on as this goes forward. >> tell us a messaging. the messaging and explanation to lawmakers. >> got a hold of the testimony. nothingint is this, they did was illegal. everything they did complies with u.s. tax law. they firmly stand behind the strategy they put into place in 19 99. another point caterpillar executives have made, when it comes to the overall tax rate, they pay a higher percentage the most multinational manufacturers. about 30% higher than most of the competitors. their point is this is legal and looking for a way to basically try to pay as little as possible , as any company would do. it comes to paying domestic than am a we're doing more most. >> caterpillar not the first to take heat over this issue. the biggest difference is just that, they are a manufacturing company. what you have seen from the panel is they have gone after apple, microsoft, hewlett-packard. shifting over to manufacturing. what committee investigators are saying is this is not one interest rate for multinational companies as a whole. something that we are picked up over the past couple of days, senator john mccain is a top senator on this campaign. he is not endorsing the report. he did with apple, microsoft and hewlett-packard. his willingness to step aside and say i am not totally sure they are totally egregious as they are saying they are. that will be helpful throughout the day. at least they will have some type of ally as they go through the testimony throughout the day. >> thank you so much. washington correspondent, so mattingly. that does it for today. tomorrow a huge guest for you, managing director neil cosh kari telling us about his next run to be governor of california. also, scott rijo of virginia weighs in on the controversy surrounding tesla's sales model. lemon ceolu the christine day talking about her experience running a health food company. that is tomorrow at 8:00 eastern time. ♪ >> it is 56 minutes past the hour, which means bloomberg tv is on the markets. i am olivia sterns. time for futures and focus. silver futures trading higher. they have erased most of their games so far this year. or more, i am joined by ken hoffman. no joins us from the floor of the cme. what is behind the price swings? >> silver has been a real disappointment over the past few years. down 30% since the beginning of 2013, versus gold which is down 15%. the main reason, china loves gold. they do not love silver. it -- imports are done for years in a row. >> is retail demand stoking the market? 18%.ndustrial demand is that goes into batteries and electronics. the rest goes into jewelry and investment demand. >> you trade silver. how are you treating it today? -- trading it today? >> it is difficult to trade. it is a mixture. it has a medium strength correlation to the dollar, negative correlation to the dollar, and it trades in anpathy with gold but not in 80% rate. more around 70% along with gold but falling fast. ofomberg reported at the end march that the inflows into silver etf's were slightly higher while al of gold were passive. -- massive. very difficult to trade. trading it, you have to include technicals. not so much with gold or equities. silver very difficult to trade the point it is at now. i am a putting -- if silver trade, with a gun at my head i am selling silver. we are in an area of congestion with silver right now. if i want to put on a solid silver trade, i want to move back up to 20 .40. then i have room for short-term target and possibly break of 19 level for medium-term target. >> let me put the trade into perspective. if you short silver at 19.01, ad close profit of $.73 per share. futures contract controls 5000 ounces. a profit of $.73 per ounce. that means the contract will 3006you a payout of hundred $50. let's stick with you for a second. what do you think is driving the divergence between gold and silver? demand coming out of china got go >> on the mentally china loves gold. india loves gold as well. the demand for the jewelry side is not now nor is it ever going fore as strong as it is gold. on the industrial site, that is what it gives it the difficulties fundamentally. janet yellen talking about a stronger economy. janet yellen has the best track record in terms of predicting economic future and outcome in the u.s. so if we get a stronger economy, the industrial uses increases. then a fault in unison with gold a little bit. struggles at that point. >> joining us of the cme. thank you to ken hoffman joining us from bloomberg industries. on the markets again in 30 minutes. coming upakers" next. stay tuned. ♪ >> live from bloomberg thisuarters in new york, is "market makers" with erik schatzker and stephanie ruhle. >> recall debacle. gm recalls more than one million more cars. heading to the hilt to explain why the company ignored a this is "market makers" with erik schatzker and stephanie ruhle. defect that killed 13 people. you will hear for live from the chairman of the committee holding today's hearing. defense. a high-frequency trader is here to tell us why the system is not rate and why he says michael lewis's new book is dead wrong. >> cautious proposals. if you thought ballpark hotdogs were expensive, you will not believe what

Transcripts For KQED PBS NewsHour Weekend 20140908

customized individual and group retirement products. that's why we are your retirement company. additional support is provided by: and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. from the tisch wnet studios in lincoln center in new york, hari sreenivasan. this is pbs newshour weekend. >> sreenivasan: good evening, thanks for joining us. the united states has intensified its bombing campaign in iraq against fighters from the islamic state extremist group. the pentagon said the latest attacks occurred late last night on several militant positions near the haditha dam, about 175 miles from baghdad. at a news conference today, defense secretary chuck hagel explained the risks of extremists seizing or destroying the dam. >> the damage that would cause would be very significant and it would put a significant additional and big risk into the mix in iraq. >> sreenivasan: arab foreign ministers, meeting in cairo today, backed a resolution calling for action against the extremists in iraq. and several senior muslim clerics have now issued fatwas against the islamic state in an effort to stop young people from joining the radical group. that ceasefire announced friday in eastern ukraine is starting to come apart. violence erupted overnight near the cities of donetsk and mariupol. a woman died and four people were injured in the latest clashes between pro-russian separatists and ukrainian government troops. rebels said several of their fighters had been killed after ukrainian forces fired on six of their positions. we'll have more on the crisis in ukraine in a moment. a 24-year-old american, matthew miller, who has been detained in north korea since april, will be put on trial next weekend. this, according to north korea state media, which did not specify the charges. two other americans are also being held there. in afghanistan today, seven men were sentenced to death after the robbery and gang rape of four afghan women. an incident that provoked widespread protests. the victims were driving back from a wedding last month when they were stopped and dragged out of their cars by the men, who were armed and dressed as police officers. violence against women is believed to be commonplace in afghanistan. but trials of this sort are very unusual because rape victims often are considered disgraced and typically don't bring charges. in an interview broadcast today, president obama explained his decision to postpone executive action on immigration reform. >> i'm being honest now about the politics of it. this problem with unaccompanied children that we saw a couple weeks ago, where you had, from central america, a surge of kids who were showing up at the border, got a lot of attention. and a lot of americans started thinking, we've got this immigration crisis on our hands. >> sreenivasan: democratic hispanic members of congress criticized his decision. >> i'm deeply disappointed that the president hasn't acted where house republicans have failed to act. >> it's clear that playing it safe is what is going on at the white house and among democratic circles, and playing it safe means walking away from our values and our principles. >> sreenivasan: police forces around the nation are more racially balanced now than a generation ago. this, according to an associated press survey conducted following the shooting of a black teenager by a white police officer in ferguson, missouri. the survey suggests that more progress has been made hiring black officers than hispanic policemen. several officials quoted by the ap say the hiring of minority police officers doesn't guarantee an end to tougher policing of minority communities. and a new survey confirms what most sunday talk show viewers likely already suspected. arizona republican senator john mccain has been the most regular guest during the past five years, followed by south carolina republican senator lindsey graham, former obama administration strategist david axelrod and illinois democrat senator richard durbin. the 13 most frequent guests were all men. >> sreenivasan: for more about the situation in ukraine, we are joined now by kimberly marten. she is a political science professor at barnard college and columbia university. v and so putin was able to send in forces right before this cease-fire. and then create this kind of almost no man's land and there weren't any new rounds of economic sanctions this week. seems like he was in a much better position coming out of that. >> i think everyone realizes that whatever political settlement is going to be one that favors putin's interests. russia-- russia has the abilityo control as a result of the gas pipeline link. >> frozen conflict i mean in the region in georgia, and then in moldova, we found transnistra and eastern ukraine as this long standing conflict? >> people have been feeling that for the last several months that that's what the end result is going to be in putin's interest because he would like to have more interest in ukraine, he would like to have ukraine always knocked slightly off balance so they don't know what he's going to do next. he would like to demonstrate that he has more power than the ukrainians do. where ukraine never really has a definitive sense of sovereignty over its own territory. that's in putin's interest. >> putin has no incentive to keep this in status quo. >> probably being broken on both sides, the cease-fire and that's not surprising because both sides really have an incentive to try to get more from the military situation before they sign a final peace agreement. >> have the sanctions created any kind of disincentive or strong enough disincentive for putin? >> i don't think so. the sanctions probably will have long term negative effects on the russian economy. but the general sense is the sanctions were put into place because nobody could figure anything else to do. showing the united states and its european allies were angry and not going to let this pass but have very little ability to influence what russia does. >> europeans have more to lose than united states does. >> yes,. >> obviously has courtroo crimee didn't have before. a couple of days ago it is not going to recognize crimea. the west needs the oil fields and as long as there's no recognition it doesn't bring him any economic gain. he doesn't gaining in economically on this. it is more a gain of what he can say as president and so pretty much more an individual gain for putin politically than for russia as a state because over the long term russia is not going to particularly benefit for this. >> what about the russian territories that are part of nato, how do they see this? >> the other members, estonia latvia and lithuania have been concerned about the possibility of russian aggression, and putin's aggression against ukraine have made nato more focused on those areas and desirous of showing that they are nato member states that will be protected in this case by a new rapid rations force that will be a subgroup of nato member states that will rotate around the territory and be prepared to retaliate if necessary. >> kimberly marten, from bar nard university, thank you so much for being on. >> thank you for having me on. >> sreenivasan: and now to our signature segment. it's early september, and after their long summer break, millions of children and teenagers are back in the classroom for the first time in several months. but that's not the case for some students. about 4% of schools across the nation are on a different calendar. one that has them in school year-round. students in those schools get a much shorter summer vacation, but more breaks throughout the year. does it help learning? newshour special correspondent alison stewart traveled recently to charleston west virginia to take a closer look. her report is part of the american graduate initiative. >> reporter: when bryan and laura cooper moved to charleston from beckley, west virginia, two years ago with their young sons, they were apprehensive about the local school in their new neighborhood. it was on a year-round calendar, where kids start school just after july 4. >> it sounded to me like the kids were in school constantly, you know, with maybe just three- day weekends here and there. >> i wanted to stay away from a school district that involved year-round. >> reporter: why did you want to stay away? >> i thought the kids wouldn't like it. i thought that, you know, me thinking back as a child, i thought, "man, i would have hated to be in school all year round." i would have missed summer, hanging out with my friends, doing those activities >> reporter: but once the coopers-- who both work full- time-- learned more about the calendar at piedmont elementary school, they quickly became converts. here's how the schedule works: instead of one extended summer break, the same 180 days of school are divided into 9 week quarters, which are then followed by three week breaks in fall, winter, and spring. there's also about a month off for summer. it's sometimes called a modified or balanced calendar. and here at piedmont elementary school in charleston, west virginia year-round schooling has been the norm for almost 20 years. >> once we got a sense of what the schedule actually is we just thought, "man, that's great." we can go on vacation in september instead of in the middle of summer. >> they never get that feeling of, "oh, i'm so sick of being at school," because they get so many breaks that they're always refreshed and ready to go back to school. so that was the wakeup call to me, to see how different they felt about it. >> hi, have a good day. >> reporter: principal beth sturgill is a big believer. she says in addition to preventing student and teacher burnout, less time is needed for re-teaching at the beginning of the year. and for piedmont, which is a diverse inner city school with a high poverty rate, having shorter breaks throughout the year can provide more stability for at-risk students. >> there's lots of families that sometimes we have concerns about and we like to check in with and make sure everything's going well. and just to have that consistent flow without having that long, summer break helps them. >> reporter: practically, the calendar also gives the school flexibility to make up snow days during spring break before annual standardized testing, instead of waiting until the end of the year. >> i need everybody facing me and listening. >> reporter: but the biggest benefit to running on a year- round schedule according to principal sturgill and other educators we spoke to is the possibility of adding more time in school. by bringing kids back during the first week of each three week break. it's called intersession. >> reporter: what is intersession? what's its purpose? >> so it's a variety of review and re-teach for those kids that need it. a little, extra boost and it's also some enrichment activities just to give them some fun things to do. >> reporter: the extra week is optional and paid for at piedmont using federal money known as title one funds, which are designated for schools with high populations of low-income students. the coopers' kids, seven-year- old zene and nine-year-old tayan, have always attended the intersessions, which are also weeks that their parents don't have to worry about child care. >> finding childcare for them for a whole summer is a lot different than finding childcare for them three weeks at a time throughout the year. >> it makes for a very expensive summer to have three entire months straight where you're paying for child care. >> reporter: despite the benefits of the year round calendar that parents and teachers cite, it's not clear that it has helped piedmont's academic performance. in 2013, only 38.1% of children scored at or above mastery on reading. and only 38.9% scored at or above mastery at math, below the levels from a decade ago when the state first started using this standard to evaluate students. >> what the research suggests about the actual positive effect is that if it's positive, it's not great overall. >> reporter: harris cooper is a professor of psychology and neuroscience at duke university. while research has documented how long summers can cause students to lose, on average, one month of instruction, he says shifting around the calendar to be year-round is not a definitive way to increase student performance. but where it has shown an impact he says is with lower-income students. and he also suggests that it could help children with learning disabilities, and those for whom english is a second language. but cooper cautions even programs like intersessions that can add extra days to the school year are not necessarily going to boost achievement. >> we shouldn't ever lose sight of the fact that time in school is a black box. working with the school calendar can influence a child's learning. but what's most important is how you fill the time that they're in school. >> reporter: people are stuck on test scores. >> oh, they are. yes. they are. >> reporter: until a balanced calendar can say, look, we make test scores better, you're gonna have some resistance. what do you think? >> i think that's a legitimate comment. but can we say the traditional calendar makes test scores better? i don't know. i don't know that that's the case either. so i think you need the look at the whole child and the impact that year-round education can have on the whole child, and not just does it make your test scores higher. >> reporter: in west virginia there is only one other school using a year-round calendar, mary c. snow west side elementary school, across town from piedmont. there, administrators are experimenting with two week intersessions and making the extra time mandatory. and around the state, year-round schools have recently become a topic of discussion. this fall a new law went into effect that mandated 180 days of school, but granted local school districts more flexibility about how to set the calendar, so that if a district wanted to adopt year round schooling it could. but not one did. >> i think people are really saying out loud, show me how this is gonna help my school system and the students in our school system. >> reporter: christine campbell is the president of the american federation of teachers for west virginia, a teachers union. and she's not sold on the idea. in addition to the new state law granting school districts more options on the calendar, she says schools in west virginia are in the midst of other major reforms: implementing common core, new statewide testing, and a new teacher evaluation system. >> i think people are overwhelmed with all the other changes that they're just not ready to take on that that much change or one more thing until they-we-- wrap our arms around all the other things that are happening in the state and the education system. >> reporter: while campbell acknowledges that districts should have the flexibility to try a year-round calendar if they want, she says there are logistical complications such as lack of air conditioning in many schools and scheduling issues for older students. >> sports is a huge thing when you talk about a balanced calendar because if you have one county that is, you know, in the system, they all play each other in their sporting events. so what does that look like when you go from this county to play this county and their calendar is completely different? >> reporter: so for people who say, "sports will adjust," you have to think about it bigger than just-- it's not just sports. it's the social aspect... >> i mean, that's part of... >> reporter: and the importance of... >> ...a child's development is being involved in those things. and it's a big part of our culture. let's be realistic here. >> reporter: she is also concerned year-round school would mean service personnel and teachers would be unable to keep second jobs, a necessity for many in west virginia, which ranks 47th in the country in teacher pay. but one of the biggest issues is that providing programs like intersession costs money, and despite federal funding for some lower income schools, it's not always clear who would have to foot the bill. >> does the community have to provide those services? is the state department going to provide services for the intercessions? if we're gonna talk to.. talk about how to bridge that gap in student achievement, what does that look like? >> reporter: for the coopers, the lack of year-round options for older kids is a big concern. in charleston there's not a single middle or high school on a balanced calendar. is there going to be a period for you guys when one of your kids is in a traditional school and one is on this "balanced calendar"? >> yeah. i dread it. and i'm very curious to see how that's gonna work out. >> reporter: what are you concerned about? >> i just... tayan will have days that he has to school that zene doesn't. zene'll have days off that tayan has to go to school. so i'm sure there'll be, you know, animosity both ways of who gets to do what. >> reporter: one of the concerns we heard from parents was that there's no middle school to go to... >> yes, correct. >> reporter:... on this calendar. there's no high school to go to... >> right. >> reporter: ...on this calendar. what do you think about that? >> well, i would love to see...- my personal opinion is i would love to see all of kanawha county schools go to the year- round calendar. >> reporter: all of them? >> yes, i think it would be very beneficial for students. >> reporter: for piedmont students tayan and zene cooper, their first break will be next week. >> ...one thing of this year's intercession... >> reporter: and while many schools are just getting underway; they've already got nine weeks of learning under their belts. >> sreenivasan: how did the idea of summer vacation really begin? join us online as newshour debunks a long-standing myth. visit newshour.pbs.org. >> sreenivasan: while the world's attention has been focused recently on gains by islamic extremists in iraq, another radical islamic group, boko haram, has been launching new attacks in africa. to update us about that, we are joined now via skype from ghana by drew hinshaw of the wall street journal. so drew we heard just yesterday again about more attacks in parts of nigeria. you know, instead of the hit and run attacks that we've seen from these guys before now they are capturing territory and flying their flags. >> that's right. that's right. what they've been able to do here is, in an entire country side, the very far northeast of nigeria some town after town is abandoned. boko haram is able to do that constantly like you said starting with hit and run attacks and moving entire units into these towns, scaring people oil out. you hear over and over again, the only people left in the towns are basically the elderly who don't really want to move or can't move and -- don't really pose a threat no boko haram. they are raising their flags in some places not all places. they aren't sticking around and governing like you had in northern mall -- mali. they go in the gaifs and mountains and forests -- caves and mountains and forests. >> to form another caliphate or a boko haram state in africa? >> that's right, that's right. people constantly misread what boko haram is all about. i think the government still use them as you know an islamic insurgency that is bent on denying the president reelection. boko haram has done for years what they want. they want to create this islamic kingdom in the northeast of nigeria. people don't take them at their word but that's exactly what they're going about and doing on the update. >> any update on the missing girlsd that captured world's attention? >> did spot group of 70 girls in one area. and 40 girls in one field when they came back they were gone again. it's important to say this. boarm boko haram has kidnapped hundreds and hundreds of girls, not just those school girls and hundreds and hundreds of boys. they were politically important, quite early on they had something they realized was a negotiating chip. boko haram is still holding these girls as a potential negotiating tool. i talked to other girls who were kid madam, and those girls, school girls haven't been good for anything you know, they haven't gotten any political concessions from them, the girls themselves aren't made for life in the words, you know, it's a burden carrying around hundreds of traumatized school girls for boko haram. so basically they are in a stalemate. the government can't seem to get the girls out and boko haram can't get anything for girls either. >> drew is hinshaw, joining us from accra, ghana, thank you so much. >> thank you, too. >> this >> sreenivasan: you might have heard a bit earlier this week about a remarkable discovery in argentina. the remains of a dinosaur that lived nearly 80 million years ago and weighed more than a boeing 737. it took years to unearth all the remains. i.t.n.'s richard pallot has the details. >> it is the most complete large dinosaur skeleton every found. such as the size it takes a second to comprehend. this is only part of its leg. this was a toe. so this starts the tail of dreadnaughtus. >> this is part of its 30 foot tail. the dreadnaughtus lived 70 million years ago. and despite its size was a herbivore. >> when you're 65 tons you're not going to really have any enienemies. and that made me think of the opportunity of the century ships, dreadnoughts. so i thought dreadnaughtus, fears nothing. >> the dreadnaughtus measures in at roughly the same size as the thrir meters in length which marks it out as one of the longest-ever dinosaurs. abouts it is its weight that sets it apart. spends most of its life eating just to keep alive. >> the dig in argentina began almost a decade ago, uncovered two different specimens, the largest of which may not have been fully grown when it died. a meter wide, lank in your to clob err anything opponent that attacks. richard pallot, itn news. >> some late news before we leave you tonight. palestinian protesters clashed in east jerusalem. teenager had been wounded by police during an earlier incident. bruce levenson is surrendering control of the atlanta hawks. black fans scared away whites. and fans turned out for the fine ral of joan rivers. she described her services this way, i don't want a rabbi crying on, i want, political divide in colorado. that's it for this weekend and this edition of pbs newshour weekend, i'm hari sreenivasan. thank you for watching. captioning sponsored by wnet captioned by media access group at wgbh access.wgbh.org >> pbs newshour weekend is made possible by: corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support is provided by: and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. "truly california" is a kqed production presented in association with... next on "truly california"... bob forrest was the creative force behind felonious monster. they weren't even comparing us to the chili peppers or to soul asylum, or stuff. they were comparing me to john lennon and bob dylan. his was a typical story of a rise and fall from fame.

Transcripts For WHYY PBS NewsHour Weekend 20140907

retirement company. additional support is provided by: and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. from the tisch wnet studios in lincoln center in new york, hari sreenivasan. this is pbs newshour weekend. >> sreenivasan: good evening, thanks for joining us. the united states has intensified its bombing campaign in iraq against fighters from the islamic state extremist group. the pentagon said the latest attacks occurred late last night on several militant positions near the haditha dam, about 175 miles from baghdad. at a news conference today, defense secretary chuck hagel explained the risks of extremists seizing or destroying the dam. >> the damage that would cause would be very significant and it would put a significant additional and big risk into the mix in iraq. >> sreenivasan: arab foreign ministers, meeting in cairo today, backed a resolution calling for action against the extremists in iraq. and several senior muslim clerics have now issued fatwas against the islamic state in an effort to stop young people from joining the radical group. that ceasefire announced friday in eastern ukraine is starting to come apart. violence erupted overnight near the cities of donetsk and mariupol. a woman died and four people were injured in the latest clashes between pro-russian separatists and ukrainian government troops. rebels said several of their fighters had been killed after ukrainian forces fired on six of their positions. we'll have more on the crisis in ukraine in a moment. a 24-year-old american, matthew miller, who has been detained in north korea since april, will be put on trial next weekend. this, according to north korea state media, which did not specify the charges. two other americans are also being held there. in afghanistan today, seven men were sentenced to death after the robbery and gang rape of four afghan women. an incident that provoked widespread protests. the victims were driving back from a wedding last month when they were stopped and dragged out of their cars by the men, who were armed and dressed as police officers. violence against women is believed to be commonplace in afghanistan. but trials of this sort are very unusual because rape victims often are considered disgraced and typically don't bring charges. in an interview broadcast today, president obama explained his decision to postpone executive action on immigration reform. >> i'm being honest now about the politics of it. this problem with unaccompanied children that we saw a couple weeks ago, where you had, from central america, a surge of kids who were showing up at the border, got a lot of attention. and a lot of americans started thinking, we've got this immigration crisis on our hands. >> sreenivasan: democratic hispanic members of congress criticized his decision. >> i'm deeply disappointed that the president hasn't acted where house republicans have failed to act. >> it's clear that playing it safe is what is going on at the white house and among democratic circles, and playing it safe means walking away from our values and our principles. >> sreenivasan: police forces around the nation are more racially balanced now than a generation ago. this, according to an associated press survey conducted following the shooting of a black teenager by a white police officer in ferguson, missouri. the survey suggests that more progress has been made hiring black officers than hispanic policemen. several officials quoted by the ap say the hiring of minority police officers doesn't guarantee an end to tougher policing of minority communities. and a new survey confirms what most sunday talk show viewers likely already suspected. arizona republican senator john mccain has been the most regular guest during the past five years, followed by south carolina republican senator lindsey graham, former obama administration strategist david axelrod and illinois democrat senator richard durbin. the 13 most frequent guests were all men. >> sreenivasan: for more about the situation in ukraine, we are joined now by kimberly marten. she is a political science professor at barnard college and columbia university. v and so putin was able to send in forces right before this cease-fire. and then create this kind of almost no man's land and there weren't any new rounds of economic sanctions this week. seems like he was in a much better position coming out of that. >> i think everyone realizes that whatever political settlement is going to be one that favors putin's interests. russia-- russia has the abilityo control as a result of the gas pipeline link. >> frozen conflict i mean in the region in georgia, and then in moldova, we found transnistra and eastern ukraine as this long standing conflict? >> people have been feeling that for the last several months that that's what the end result is going to be in putin's interest because he would like to have more interest in ukraine, he would like to have ukraine always knocked slightly off balance so they don't know what he's going to do next. he would like to demonstrate that he has more power than the ukrainians do. where ukraine never really has a definitive sense of sovereignty over its own territory. that's in putin's interest. >> putin has no incentive to keep this in status quo. >> probably being broken on both sides, the cease-fire and that's not surprising because both sides really have an incentive to try to get more from the military situation before they sign a final peace agreement. >> have the sanctions created any kind of disincentive or strong enough disincentive for putin? >> i don't think so. the sanctions probably will have long term negative effects on the russian economy. but the general sense is the sanctions were put into place because nobody could figure anything else to do. showing the united states and its european allies were angry and not going to let this pass but have very little ability to influence what russia does. >> europeans have more to lose than united states does. >> yes,. >> obviously has courtroo crimee didn't have before. a couple of days ago it is not going to recognize crimea. the west needs the oil fields and as long as there's no recognition it doesn't bring him any economic gain. he doesn't gaining in economically on this. it is more a gain of what he can say as president and so pretty much more an individual gain for putin politically than for russia as a state because over the long term russia is not going to particularly benefit for this. >> what about the russian territories that are part of nato, how do they see this? >> the other members, estonia latvia and lithuania have been concerned about the possibility of russian aggression, and putin's aggression against ukraine have made nato more focused on those areas and desirous of showing that they are nato member states that will be protected in this case by a new rapid rations force that will be a subgroup of nato member states that will rotate around the territory and be prepared to retaliate if necessary. >> kimberly marten, from bar nard university, thank you so much for being on. >> thank you for having me on. >> sreenivasan: and now to our signature segment. it's early september, and after their long summer break, millions of children and teenagers are back in the classroom for the first time in several months. but that's not the case for some students. about 4% of schools across the nation are on a different calendar. one that has them in school year-round. students in those schools get a much shorter summer vacation, but more breaks throughout the year. does it help learning? newshour special correspondent alison stewart traveled recently to charleston west virginia to take a closer look. her report is part of the american graduate initiative. >> reporter: when bryan and laura cooper moved to charleston from beckley, west virginia, two years ago with their young sons, they were apprehensive about the local school in their new neighborhood. it was on a year-round calendar, where kids start school just after july 4. >> it sounded to me like the kids were in school constantly, you know, with maybe just three- day weekends here and there. >> i wanted to stay away from a school district that involved year-round. >> reporter: why did you want to stay away? >> i thought the kids wouldn't like it. i thought that, you know, me thinking back as a child, i thought, "man, i would have hated to be in school all year round." i would have missed summer, hanging out with my friends, doing those activities >> reporter: but once the coopers-- who both work full- time-- learned more about the calendar at piedmont elementary school, they quickly became converts. here's how the schedule works: instead of one extended summer break, the same 180 days of school are divided into 9 week quarters, which are then followed by three week breaks in fall, winter, and spring. there's also about a month off for summer. it's sometimes called a modified or balanced calendar. and here at piedmont elementary school in charleston, west virginia year-round schooling has been the norm for almost 20 years. >> once we got a sense of what the schedule actually is we just thought, "man, that's great." we can go on vacation in september instead of in the middle of summer. >> they never get that feeling of, "oh, i'm so sick of being at school," because they get so many breaks that they're always refreshed and ready to go back to school. so that was the wakeup call to me, to see how different they felt about it. >> hi, have a good day. >> reporter: principal beth sturgill is a big believer. she says in addition to preventing student and teacher burnout, less time is needed for re-teaching at the beginning of the year. and for piedmont, which is a diverse inner city school with a high poverty rate, having shorter breaks throughout the year can provide more stability for at-risk students. >> there's lots of families that sometimes we have concerns about and we like to check in with and make sure everything's going well. and just to have that consistent flow without having that long, summer break helps them. >> reporter: practically, the calendar also gives the school flexibility to make up snow days during spring break before annual standardized testing, instead of waiting until the end of the year. >> i need everybody facing me and listening. >> reporter: but the biggest benefit to running on a year- round schedule according to principal sturgill and other educators we spoke to is the possibility of adding more time in school. by bringing kids back during the first week of each three week break. it's called intersession. >> reporter: what is intersession? what's its purpose? >> so it's a variety of review and re-teach for those kids that need it. a little, extra boost and it's also some enrichment activities just to give them some fun things to do. >> reporter: the extra week is optional and paid for at piedmont using federal money known as title one funds, which are designated for schools with high populations of low-income students. the coopers' kids, seven-year- old zene and nine-year-old tayan, have always attended the intersessions, which are also weeks that their parents don't have to worry about child care. >> finding childcare for them for a whole summer is a lot different than finding childcare for them three weeks at a time throughout the year. >> it makes for a very expensive summer to have three entire months straight where you're paying for child care. >> reporter: despite the benefits of the year round calendar that parents and teachers cite, it's not clear that it has helped piedmont's academic performance. in 2013, only 38.1% of children scored at or above mastery on reading. and only 38.9% scored at or above mastery at math, below the levels from a decade ago when the state first started using this standard to evaluate students. >> what the research suggests about the actual positive effect is that if it's positive, it's not great overall. >> reporter: harris cooper is a professor of psychology and neuroscience at duke university. while research has documented how long summers can cause students to lose, on average, one month of instruction, he says shifting around the calendar to be year-round is not a definitive way to increase student performance. but where it has shown an impact he says is with lower-income students. and he also suggests that it could help children with learning disabilities, and those for whom english is a second language. but cooper cautions even programs like intersessions that can add extra days to the school year are not necessarily going to boost achievement. >> we shouldn't ever lose sight of the fact that time in school is a black box. working with the school calendar can influence a child's learning. but what's most important is how you fill the time that they're in school. >> reporter: people are stuck on test scores. >> oh, they are. yes. they are. >> reporter: until a balanced calendar can say, look, we make test scores better, you're gonna have some resistance. what do you think? >> i think that's a legitimate comment. but can we say the traditional calendar makes test scores better? i don't know. i don't know that that's the case either. so i think you need the look at the whole child and the impact that year-round education can have on the whole child, and not just does it make your test scores higher. >> reporter: in west virginia there is only one other school using a year-round calendar, mary c. snow west side elementary school, across town from piedmont. there, administrators are experimenting with two week intersessions and making the extra time mandatory. and around the state, year-round schools have recently become a topic of discussion. this fall a new law went into effect that mandated 180 days of school, but granted local school districts more flexibility about how to set the calendar, so that if a district wanted to adopt year round schooling it could. but not one did. >> i think people are really saying out loud, show me how this is gonna help my school system and the students in our school system. >> reporter: christine campbell is the president of the american federation of teachers for west virginia, a teachers union. and she's not sold on the idea. in addition to the new state law granting school districts more options on the calendar, she says schools in west virginia are in the midst of other major reforms: implementing common core, new statewide testing, and a new teacher evaluation system. >> i think people are overwhelmed with all the other changes that they're just not ready to take on that that much change or one more thing until they-we-- wrap our arms around all the other things that are happening in the state and the education system. >> reporter: while campbell acknowledges that districts should have the flexibility to try a year-round calendar if they want, she says there are logistical complications such as lack of air conditioning in many schools and scheduling issues for older students. >> sports is a huge thing when you talk about a balanced calendar because if you have one county that is, you know, in the system, they all play each other in their sporting events. so what does that look like when you go from this county to play this county and their calendar is completely different? >> reporter: so for people who say, "sports will adjust," you have to think about it bigger than just-- it's not just sports. it's the social aspect... >> i mean, that's part of... >> reporter: and the importance of... >> ...a child's development is being involved in those things. and it's a big part of our culture. let's be realistic here. >> reporter: she is also concerned year-round school would mean service personnel and teachers would be unable to keep second jobs, a necessity for many in west virginia, which ranks 47th in the country in teacher pay. but one of the biggest issues is that providing programs like intersession costs money, and despite federal funding for some lower income schools, it's not always clear who would have to foot the bill. >> does the community have to provide those services? is the state department going to provide services for the intercessions? if we're gonna talk to.. talk about how to bridge that gap in student achievement, what does that look like? >> reporter: for the coopers, the lack of year-round options for older kids is a big concern. in charleston there's not a single middle or high school on a balanced calendar. is there going to be a period for you guys when one of your kids is in a traditional school and one is on this "balanced calendar"? >> yeah. i dread it. and i'm very curious to see how that's gonna work out. >> reporter: what are you concerned about? >> i just... tayan will have days that he has to school that zene doesn't. zene'll have days off that tayan has to go to school. so i'm sure there'll be, you know, animosity both ways of who gets to do what. >> reporter: one of the concerns we heard from parents was that there's no middle school to go to... >> yes, correct. >> reporter:... on this calendar. there's no high school to go to... >> right. >> reporter: ...on this calendar. what do you think about that? >> well, i would love to see...- my personal opinion is i would love to see all of kanawha county schools go to the year- round calendar. >> reporter: all of them? >> yes, i think it would be very beneficial for students. >> reporter: for piedmont students tayan and zene cooper, their first break will be next week. >> ...one thing of this year's intercession... >> reporter: and while many schools are just getting underway; they've already got nine weeks of learning under their belts. >> sreenivasan: how did the idea of summer vacation really begin? join us online as newshour debunks a long-standing myth. visit newshour.pbs.org. >> sreenivasan: while the world's attention has been focused recently on gains by islamic extremists in iraq, another radical islamic group, boko haram, has been launching new attacks in africa. to update us about that, we are joined now via skype from ghana by drew hinshaw of the wall street journal. so drew we heard just yesterday again about more attacks in parts of nigeria. you know, instead of the hit and run attacks that we've seen from these guys before now they are capturing territory and flying their flags. >> that's right. that's right. what they've been able to do here is, in an entire country side, the very far northeast of nigeria some town after town is abandoned. boko haram is able to do that constantly like you said starting with hit and run attacks and moving entire units into these towns, scaring people oil out. you hear over and over again, the only people left in the towns are basically the elderly who don't really want to move or can't move and -- don't really pose a threat no boko haram. they are raising their flags in some places not all places. they aren't sticking around and governing like you had in northern mall -- mali. they go in the gaifs and mountains and forests -- caves and mountains and forests. >> to form another caliphate or a boko haram state in africa? >> that's right, that's right. people constantly misread what boko haram is all about. i think the government still use them as you know an islamic insurgency that is bent on denying the president reelection. boko haram has done for years what they want. they want to create this islamic kingdom in the northeast of nigeria. people don't take them at their word but that's exactly what they're going about and doing on the update. >> any update on the missing girlsd that captured world's attention? >> did spot group of 70 girls in one area. and 40 girls in one field when they came back they were gone again. it's important to say this. boarm boko haram has kidnapped hundreds and hundreds of girls, not just those school girls and hundreds and hundreds of boys. they were politically important, quite early on they had something they realized was a negotiating chip. boko haram is still holding these girls as a potential negotiating tool. i talked to other girls who were kid madam, and those girls, school girls haven't been good for anything you know, they haven't gotten any political concessions from them, the girls themselves aren't made for life in the words, you know, it's a burden carrying around hundreds of traumatized school girls for boko haram. so basically they are in a stalemate. the government can't seem to get the girls out and boko haram can't get anything for girls either. >> drew is hinshaw, joining us from accra, ghana, thank you so much. >> thank you, too. >> this >> sreenivasan: you might have heard a bit earlier this week about a remarkable discovery in argentina. the remains of a dinosaur that lived nearly 80 million years ago and weighed more than a boeing 737. it took years to unearth all the remains. i.t.n.'s richard pallot has the details. >> it is the most complete large dinosaur skeleton every found. such as the size it takes a second to comprehend. this is only part of its leg. this was a toe. so this starts the tail of dreadnaughtus. >> this is part of its 30 foot tail. the dreadnaughtus lived 70 million years ago. and despite its size was a herbivore. >> when you're 65 tons you're not going to really have any enienemies. and that made me think of the opportunity of the century ships, dreadnoughts. so i thought dreadnaughtus, fears nothing. >> the dreadnaughtus measures in at roughly the same size as the thrir meters in length which marks it out as one of the longest-ever dinosaurs. abouts it is its weight that sets it apart. spends most of its life eating just to keep alive. >> the dig in argentina began almost a decade ago, uncovered two different specimens, the largest of which may not have been fully grown when it died. a meter wide, lank in your to clob err anything opponent that attacks. richard pallot, itn news. >> some late news before we leave you tonight. palestinian protesters clashed in east jerusalem. teenager had been wounded by police during an earlier incident. bruce levenson is surrendering control of the atlanta hawks. black fans scared away whites. and fans turned out for the fine ral of joan rivers. she described her services this way, i don't want a rabbi crying on, i want, political divide in colorado. that's it for this weekend and this edition of pbs newshour weekend, i'm hari sreenivasan. thank you for watching. captioning sponsored by wnet captioned by media access group at wgbh access.wgbh.org >> pbs newshour weekend is made possible by: corporate funding is provided by mutual of america-- designing customized individual and group retirement products. that's why we are your retirement company. additional support is provided by: and by the corporation for public broadcasting and by contributions to your pbs station from viewers like you. thank you. >> hi, i'm rick steves. thanks for joining us. to showcase the beauties of public television, we've put together a little festival of clips showing europe at play. in the next half hour, we'll experience festive europe. from prancing horses to well-trained sheepdogs to street parties in paris, it's hands-on travel today as europe embraces life with gusto, inspiring us to get the most out of our lives as well. our first festival is in spain. the festival of san fermin in pamplona is an example of how special events are well worth planning for, and how anyone can enjoy a front-row seat. and when you understand the historical and religious context, you realize it's more than just running with the bulls. enjoy this high-energy first segment, and i'll see you at the break. hold on to your castanets. this is festive europe. pamplona, the historic capitol of the province ofar

Ovarian cancer patient hails treatment as a 'lifeline'

Christine Campbell has lived longer than doctors predicted - and she's determined to keep going.

Caught In The Crossfire: State witness Joey O'Callaghan details run-in with mob boss Marlo Hyland in Crime World series

CAUGHT IN THE CROSSFIRE PODCAST: New Crime World podcast series investigates the murders of 'Marlo' Hyland and Anthony Campbell

CRAB Park encampment residents take concerns to Victoria - BC

World Ovarian Cancer Day: Belfast mum Christine Campbell with terminal diagnosis on her journey

Ahead of World Ovarian Cancer Day tomorrow, the Irish Network for Gynaecological Oncology is emphasising the BEAT symptoms of the disease.

Nova Scotia songsmith brings Canadian soul to Knox Hall

Charlie A’Court known for fierce guitar work, poignant lyrics

Nova Scotia songsmith brings Canadian soul to Knox Hall