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Transcripts For KQED Nightly Business Report 20151117 : vima
Transcripts For KQED Nightly Business Report 20151117 : vima
KQED Nightly Business Report November 17, 2015
Narrow. The
Dow Jones Industrial
average rose 237 to 17,483. Nasdaq notched a 56point gain. And the s p 500 was 30 points higher. Some say that time since the attack may have allowed for a less emotional response by investors. Meantime, as of this evening the manhunt is still under way for two suspects as france and the world continue to mourn the lives that were lost and develop a response. Michelle carusocabrera is in paris tonight. Reporter were here at the place de la republique, the plaza of the republic, which is serving as a gathering point for those who want to mourn the victims of fridays attack. Very close tom of the place thats were shot at by the terrorists. At the base of the statue, which is a symbol of liberty of france, thousands of people have been coming all day to place flowers and candles and mementos, homages to the people who died. Just three blocks from here the kosa knost rah italian restaurant. Bullet holes still visible in the window and on the sidewalk where there used to be outdoor tables and chairs you can now see a makeshift memorial, a cross, flowers, candles, and on the window someone has painted a pink heart, and it says courage. Our team spoke with the owner of this restaurant, dimitri mohammadi. He told them that he sat outside on friday night and watched a black seat circle the block for more than an hour. It made him very nervous. As the night grew colder, he went home. He received a call from one of his employees very panicked. When he came back, he discovered what had happened and he was horrified. Miraculously, no one at his restaurant died, but across the street at a different restaurant, five individuals did. In response today french president
Francois Hollande
made an historic address to the nation from the palace of versailles. Hes asking for more power, a change to the constitution, so he says he can better execute the war against isis. Hollande will meet with u. S. Secretary of state john kerry tomorrow morning here in paris, and during his speech today hollande said he would also meet with president obama and the leader of russia, vladimir putin, to see if they can come up with a concentrated response toward isis. In paris michelle carusocabrera, nightly
Business Report
. The market day began with moments of silence at the
New York Stock Exchange
and also the nasdaq. Before the opening bell both exchanges went silent to honor those killed and injured in frances capital friday. And when stocks began trading they did what few thought they would. They rallied. Bob pisani at the
New York Stock Exchange
explains why. Reporter it was a surprisingly quiet trading day. After opening down 1 , all the european markets recovered, with most ending in positive territory. U. S. Stocks were split right at the open, with defensive names like utilities and telecom leading. But as oil rallied midmorning the entire market lifted, with
Energy Stocks
taking the lead. Stocks ended at their highs. Now, there are several likely reasons the mark did not go into panic mode over the paris attacks. First, stocks were very oversold. Global markets had a terrible week, with much of europe and the u. S. Down about 3 and big declines in energy and retail stocks. Now, this morning when the european markets opened down 1 but then immediately recovered, it likely forced some participants who were short going into the weekend to cover their positions. Second, many traders and strategists have come to believe that the
Economic Impact
of terrorist attacks is more muted than many expect. Prior attacks indicate that consumption is usually postponed rather than abandoned. So the longterm
Economic Impact
has been small. Third, the
European Central
bank is likely to continue its easy money policy. Indeed, the day before the paris attacks ecb head mario draghi hinted he may continue to buy bonds beyond the autumn of 2016 when the
Current Program
will expire. Finally, and this is a delicate issue, one possible contributor is as the frequency of terrorist attacks increase the emotional impact is decreased as well. Were getting inured to these events. Look how fast paris is trying to get back to normal, reopening the eiffel tower. For nightly
Business Report
im bob pisani at the
New York Stock Exchange
. Defense stocks largely higher this day after western leaders said they would accelerate efforts to defeat the terrorists and french president
Francois Hollande
said his country is at war with isis. Lockheed martin, northrop grumman,
General Dynamics
all higher along with drone maker aerovironment and thermo imaging manufacturer anywhere systems. One question being asked is whether the attacks in paris will keep the
Federal Reserve
from raising
Interest Rates
in december, something many have been predicting. Steve liesman tells us what would have to happen to give the central bank pause. Reporter the gruesome attacks in paris have called into question whether the
Federal Reserve
will follow through on the markets expectation of a rate hike in december. The uncertainty centers on the question of how governments will respond militarily and how markets and the economy will react. If markets see the attack as a reason to exit risky assets like stocks and plow into riskfree assets like u. S. Treasuries and buy the dollar, it could give the fed pause. The strength of the dollar has been a major concern for many fed officials. As it rises, it pushes down prices for imported goods and hush hurts u. S. Exports in manufacturing. Doves on the rate setting federal
Market Committee
could seize on another leg up in the dollar as a reason to pause. The dollar is certainly a factor in the feds decisionmaking. So if we saw a very sharp and abrupt move in the dollar, that potentially could give the fed pause. Reporter so far there have been only muted stock currency and bond market reactions to the paris attacks, providing no reason to derail the december hike possibility. The economics, though, could turn out to be more important than the markets. A fed thats concerned that
European Growth
could weaken in the wake of the attacks would be less inclined to hike. It would fear the knockon effects to the global and domestic economies. While the history of such terror attacks is to undermine
Consumer Confidence
at least for a time, they seem to have little lasting
Economic Impact
s. What would be more likely to deter the fed is largescale to the middle that includes east. But because of the optics and the surrounding uncertainty, the fed would seem likely to delay a hike under such circumstances. For nightly
Business Report
im steve liesman. The terror attacks in paris have millions around the world rethinking travel plans to visit the french capital or europe. Those concerns pressured
Airline Stocks
today here in the u. S. They saw declines of 1 or more. But so far there are only anecdotal reports of tourists canceling or delaying trips. And as phil lebeau tells us, airlines say they are not seeing a wave of cancellations as many feared. Reporter at
Charles De Gaulle
airport in paris there is heightened security as the french government makes moves to ensure there are no more trar attacks in the french capital. So far there have been anecdotal reports of tourists canceling or delaying trips to paris following the horrific events of last week. But
Airlines Flying
into the city say most flights have remained on schedule, and in general the planes are full. The three
Largest Airlines
in the u. S. , american, delta, and united, all have several flights to and from paris every day. While the carriers havent canceled flights or modified their schedules, all three are offering waivers to passengers who want to change their itineraries. Still,
Airline Stocks
were under pressure for most of the day in anticipation that travel to europe will eventually slow down. And because airlines remain a prime target for terrorist attacks. Phil lebeau, nightly
Business Report
, las vegas, nevada. It was an unpredictable day in the oil market. Crude prices initially fell on concerns that the paris attacks would slow
Economic Activity
by reducing travel in that region at a time when theres already a 3 billion barrel
Global Supply
glut. But prices then reversed course as the market tried to make sense of what the paris attacks and their aftermath might mean for crude. So by the settlement
Domestic Crude Oil
rose 2 1 2 to 41. 74. U. S. Warplanes attacked the trucks that isis uses to smuggle oil. It is one of the ways the terror group funds itself. And today president obama said part of the strategy to fight isis involves cutting off the supply lines. We have a military strategy that involves putting enormous pressure on isil through air strikes, that has put assistance and training on the ground with iraqi forces. Were now working with
Syrian Forces
as well to squeeze isil, cut off their supply lines. Weve been coordinating internationally to reduce their financing capabilities, the oil that theyre trying to ship outside. Eamon javers joins us from washington with more on how the terror group generates revenue. Eamon, these were wellequipped perpetrators. That takes money. Where does isis get its money . Well, tyler, isis gets its money from what we can tell from all sorts of bad activities throughout the area that it controls including things like extorti extortion, kidnapping. Were also seeing thefts from the
Iraqi Central Bank
of hundreds of millions of dollars. And of course as you mentioned earlier the sale of illegally produced oil outside of syria. So they are able to refine and ship the oil and those a10 warthog strikes you talked about today are one of the first instances weve seen of the u. S. Military moving against those oil convoys. Earlier theyd been a little bit worried about civilian casualties, but apparently in this attack today they were able to drop leaflets to warn the drivers of the convoys and potentially innocent civilians that they were coming. And that convoy was going to be destroyed. Thats one way to limit isiss ability to gather money. But this is an organization that has a rudimentary tax
Collection System
inside the territory it controls, and that makes it unlike other terrorist organizations in that it has a state and it can hit up local businesses and individuals for tax money just like any other
State Government
can do. But how can they transmit it around the world if they dont have access to the
Global Financial
system . Do they use those smaller businesses to transfer the money for them . Reporter yeah. Its good oldfashioned smuggling is one way you can get the money around the world. You can send it with he referee jooez or terrorists who are posing as refugees as they slip into europe. And you can also do things in the digital realm that didnt exist years ago. Theres been a lot of concern among the u. S. Military and terrorist financial watchers here in washington that ice isis might be using things like bitcoin and cryptocurrenies in order to transfer values in a way that the
Global Financial
system cant track. How do they get money out of the central bank in baghdad . Do they control it . Yeah, often what youve seen is in the past youve seen problems at the central bank in baghdad with corruption. Officials,
Iraqi Government
officials have expropriated money for their own benefit. We saw right after the new york fed started shipping money to the central bank of iraq, we saw the prices of
Luxury Real Estate
in jordan skyrocket. The presumption there was iraqi officials were stealing the money and buying lavish fillas with that money, that was driving up the market in jornds. Weve seen a whole host of problems. But outright theft is likely one of the ways theyre stealing some of that money. Eamon javers in washington tonight. Still ahead, checking in. Why marriott wants to buy
Starwood Hotels
and create the
Worlds Largest
hotel company. A disappointing report on manufacturing. A survey from the new york
Federal Reserve
shows activity in that industry contracted in november for the fourth straight month. Factories cut jobs and new orders fell as the strong dollar and slow overseas growth weighed on manufacturing. The worlds
Third Largest
economy is in recession. Japans
Gross Domestic Product
shrank. 8 in the most recent quarter. One reason for the decline in
Economic Activity
was worsening
Business Confidence
and reduced investment. A recession is defined as two consecutive quarters of contraction. Marriott will buy starwood to create the
Worlds Largest
hotel company. The deal will combine familiar names like sheraton, westin, fairfield inn, ritz carlton and marriott. Shares of marriott rose more than 1 . Starwood hotels fell more than 3 1 2 . Simon hobbs has more on the acquisition and the timing of this deal. Reporter france remains under an official state of emergency. But with the reopening of the paris stock market, travel stocks exposed to any potential slowdown fell. Airlines, rail, and lodging stocks. Marriott might like to have delayed the announcement, that its buying starwood, but its ceo says that would have been impractical. Its a 13 billion deal. Weeks have gone into preparing this, months really have gone into preparing this. Youve got boards that are meeting to approve. And its big news. So you cant sit on this news and say were simply going to wait for a convenient day to come out and announce it. Reporter marriotts planning to buy starwood almost entirely with its own stock six months after its troubled rival put itself up for sale. Back in may marriott looked at a possible transaction and walked away. But over the summer as starwood failed to find a buyer and its stock underperformed marriott by another 15 ,
Arnie Sorenson
says he was drawn back. I think initially we were dissua dissuaded. We thought the company was expensive. And we initially sort of backed away from it a little bit. But as the months went by we saw a relative shift in the values of the company. It made it more attractive economically. And we became more and more convinced there was value we could create by having the two
Companies Pull
together. Marriotts deal catching many in the industry by surprise. Marriott thought the chinese or hyatt would do a deal to buy starwood. As it is marriott is paying a modest premium and ultimately hell run the
Largest Hotel
chain in the world. In this country starwood has only a 3 market share, to adds to marriotts 10 , its not felt theyll face competition problems. Were attracted to this deal in part because they accelerate our globalization. We have been obviously in the business a long time but starwood is more global than marriott is and we think its a good thing that we will have more sources from around the world. At this moment in paris that may not be ideal, but when you look at potential performance of the euro in the years ahead, you look at growth in developing markets like china and india and elsewhere, i think we will see in the long term that that contribution is fabulous. In the meantime hotel owners will be asking how marriott intends to juggle its portfolio of now 30 brands. In particular how it can reinvigorate starwoods allimportant sheraton brands, which has underperformed for slong. For nightly
Business Report
im simon hobbs. We ginl market focus with another retailer posting disappointing results. Dillards saw sales fall. The
Department Store
chain said demand was down in its
Mens Clothing
and home and furniture units. Shares fell nearly 6 1 2 to 72. 52. Liberty global has agreed to purchase the
Caribbean Cable
operator
Cable Wireless
in a deal worth more than 5 billion. That move will help liberty expand in the emerging market. Shares of
Liberty Global
fell nearly 3 to 44. 10. And the
Television Company
media
Company Media
general has rejected a nearly 2 billion buyout offer from nextstar but said it is still willing to engage in merger discussions with the firm. This comes after a nearly 2. 5 billion bid from media general for
Meredith Corporation
. Media general fell a fraction to 15. 38. Next star rose 1 to 58. 63. And
Meredith Corporation
was nearly 2 higher to 45. 87. Constellation brands says it will buy
Ballast Point
for about 1 billion. It will give constellation a stake in the fast dwroeg craft beer market. Shares rose to 125. 36. Urban outfitters is entering the pizza business. Go figure. The
Dow Jones Industrial<\/a> average rose 237 to 17,483. Nasdaq notched a 56point gain. And the s p 500 was 30 points higher. Some say that time since the attack may have allowed for a less emotional response by investors. Meantime, as of this evening the manhunt is still under way for two suspects as france and the world continue to mourn the lives that were lost and develop a response. Michelle carusocabrera is in paris tonight. Reporter were here at the place de la republique, the plaza of the republic, which is serving as a gathering point for those who want to mourn the victims of fridays attack. Very close tom of the place thats were shot at by the terrorists. At the base of the statue, which is a symbol of liberty of france, thousands of people have been coming all day to place flowers and candles and mementos, homages to the people who died. Just three blocks from here the kosa knost rah italian restaurant. Bullet holes still visible in the window and on the sidewalk where there used to be outdoor tables and chairs you can now see a makeshift memorial, a cross, flowers, candles, and on the window someone has painted a pink heart, and it says courage. Our team spoke with the owner of this restaurant, dimitri mohammadi. He told them that he sat outside on friday night and watched a black seat circle the block for more than an hour. It made him very nervous. As the night grew colder, he went home. He received a call from one of his employees very panicked. When he came back, he discovered what had happened and he was horrified. Miraculously, no one at his restaurant died, but across the street at a different restaurant, five individuals did. In response today french president
Francois Hollande<\/a> made an historic address to the nation from the palace of versailles. Hes asking for more power, a change to the constitution, so he says he can better execute the war against isis. Hollande will meet with u. S. Secretary of state john kerry tomorrow morning here in paris, and during his speech today hollande said he would also meet with president obama and the leader of russia, vladimir putin, to see if they can come up with a concentrated response toward isis. In paris michelle carusocabrera, nightly
Business Report<\/a>. The market day began with moments of silence at the
New York Stock Exchange<\/a> and also the nasdaq. Before the opening bell both exchanges went silent to honor those killed and injured in frances capital friday. And when stocks began trading they did what few thought they would. They rallied. Bob pisani at the
New York Stock Exchange<\/a> explains why. Reporter it was a surprisingly quiet trading day. After opening down 1 , all the european markets recovered, with most ending in positive territory. U. S. Stocks were split right at the open, with defensive names like utilities and telecom leading. But as oil rallied midmorning the entire market lifted, with
Energy Stocks<\/a> taking the lead. Stocks ended at their highs. Now, there are several likely reasons the mark did not go into panic mode over the paris attacks. First, stocks were very oversold. Global markets had a terrible week, with much of europe and the u. S. Down about 3 and big declines in energy and retail stocks. Now, this morning when the european markets opened down 1 but then immediately recovered, it likely forced some participants who were short going into the weekend to cover their positions. Second, many traders and strategists have come to believe that the
Economic Impact<\/a> of terrorist attacks is more muted than many expect. Prior attacks indicate that consumption is usually postponed rather than abandoned. So the longterm
Economic Impact<\/a> has been small. Third, the
European Central<\/a> bank is likely to continue its easy money policy. Indeed, the day before the paris attacks ecb head mario draghi hinted he may continue to buy bonds beyond the autumn of 2016 when the
Current Program<\/a> will expire. Finally, and this is a delicate issue, one possible contributor is as the frequency of terrorist attacks increase the emotional impact is decreased as well. Were getting inured to these events. Look how fast paris is trying to get back to normal, reopening the eiffel tower. For nightly
Business Report<\/a> im bob pisani at the
New York Stock Exchange<\/a>. Defense stocks largely higher this day after western leaders said they would accelerate efforts to defeat the terrorists and french president
Francois Hollande<\/a> said his country is at war with isis. Lockheed martin, northrop grumman,
General Dynamics<\/a> all higher along with drone maker aerovironment and thermo imaging manufacturer anywhere systems. One question being asked is whether the attacks in paris will keep the
Federal Reserve<\/a> from raising
Interest Rates<\/a> in december, something many have been predicting. Steve liesman tells us what would have to happen to give the central bank pause. Reporter the gruesome attacks in paris have called into question whether the
Federal Reserve<\/a> will follow through on the markets expectation of a rate hike in december. The uncertainty centers on the question of how governments will respond militarily and how markets and the economy will react. If markets see the attack as a reason to exit risky assets like stocks and plow into riskfree assets like u. S. Treasuries and buy the dollar, it could give the fed pause. The strength of the dollar has been a major concern for many fed officials. As it rises, it pushes down prices for imported goods and hush hurts u. S. Exports in manufacturing. Doves on the rate setting federal
Market Committee<\/a> could seize on another leg up in the dollar as a reason to pause. The dollar is certainly a factor in the feds decisionmaking. So if we saw a very sharp and abrupt move in the dollar, that potentially could give the fed pause. Reporter so far there have been only muted stock currency and bond market reactions to the paris attacks, providing no reason to derail the december hike possibility. The economics, though, could turn out to be more important than the markets. A fed thats concerned that
European Growth<\/a> could weaken in the wake of the attacks would be less inclined to hike. It would fear the knockon effects to the global and domestic economies. While the history of such terror attacks is to undermine
Consumer Confidence<\/a> at least for a time, they seem to have little lasting
Economic Impact<\/a>s. What would be more likely to deter the fed is largescale to the middle that includes east. But because of the optics and the surrounding uncertainty, the fed would seem likely to delay a hike under such circumstances. For nightly
Business Report<\/a> im steve liesman. The terror attacks in paris have millions around the world rethinking travel plans to visit the french capital or europe. Those concerns pressured
Airline Stocks<\/a> today here in the u. S. They saw declines of 1 or more. But so far there are only anecdotal reports of tourists canceling or delaying trips. And as phil lebeau tells us, airlines say they are not seeing a wave of cancellations as many feared. Reporter at
Charles De Gaulle<\/a> airport in paris there is heightened security as the french government makes moves to ensure there are no more trar attacks in the french capital. So far there have been anecdotal reports of tourists canceling or delaying trips to paris following the horrific events of last week. But
Airlines Flying<\/a> into the city say most flights have remained on schedule, and in general the planes are full. The three
Largest Airlines<\/a> in the u. S. , american, delta, and united, all have several flights to and from paris every day. While the carriers havent canceled flights or modified their schedules, all three are offering waivers to passengers who want to change their itineraries. Still,
Airline Stocks<\/a> were under pressure for most of the day in anticipation that travel to europe will eventually slow down. And because airlines remain a prime target for terrorist attacks. Phil lebeau, nightly
Business Report<\/a>, las vegas, nevada. It was an unpredictable day in the oil market. Crude prices initially fell on concerns that the paris attacks would slow
Economic Activity<\/a> by reducing travel in that region at a time when theres already a 3 billion barrel
Global Supply<\/a> glut. But prices then reversed course as the market tried to make sense of what the paris attacks and their aftermath might mean for crude. So by the settlement
Domestic Crude Oil<\/a> rose 2 1 2 to 41. 74. U. S. Warplanes attacked the trucks that isis uses to smuggle oil. It is one of the ways the terror group funds itself. And today president obama said part of the strategy to fight isis involves cutting off the supply lines. We have a military strategy that involves putting enormous pressure on isil through air strikes, that has put assistance and training on the ground with iraqi forces. Were now working with
Syrian Forces<\/a> as well to squeeze isil, cut off their supply lines. Weve been coordinating internationally to reduce their financing capabilities, the oil that theyre trying to ship outside. Eamon javers joins us from washington with more on how the terror group generates revenue. Eamon, these were wellequipped perpetrators. That takes money. Where does isis get its money . Well, tyler, isis gets its money from what we can tell from all sorts of bad activities throughout the area that it controls including things like extorti extortion, kidnapping. Were also seeing thefts from the
Iraqi Central Bank<\/a> of hundreds of millions of dollars. And of course as you mentioned earlier the sale of illegally produced oil outside of syria. So they are able to refine and ship the oil and those a10 warthog strikes you talked about today are one of the first instances weve seen of the u. S. Military moving against those oil convoys. Earlier theyd been a little bit worried about civilian casualties, but apparently in this attack today they were able to drop leaflets to warn the drivers of the convoys and potentially innocent civilians that they were coming. And that convoy was going to be destroyed. Thats one way to limit isiss ability to gather money. But this is an organization that has a rudimentary tax
Collection System<\/a> inside the territory it controls, and that makes it unlike other terrorist organizations in that it has a state and it can hit up local businesses and individuals for tax money just like any other
State Government<\/a> can do. But how can they transmit it around the world if they dont have access to the
Global Financial<\/a> system . Do they use those smaller businesses to transfer the money for them . Reporter yeah. Its good oldfashioned smuggling is one way you can get the money around the world. You can send it with he referee jooez or terrorists who are posing as refugees as they slip into europe. And you can also do things in the digital realm that didnt exist years ago. Theres been a lot of concern among the u. S. Military and terrorist financial watchers here in washington that ice isis might be using things like bitcoin and cryptocurrenies in order to transfer values in a way that the
Global Financial<\/a> system cant track. How do they get money out of the central bank in baghdad . Do they control it . Yeah, often what youve seen is in the past youve seen problems at the central bank in baghdad with corruption. Officials,
Iraqi Government<\/a> officials have expropriated money for their own benefit. We saw right after the new york fed started shipping money to the central bank of iraq, we saw the prices of
Luxury Real Estate<\/a> in jordan skyrocket. The presumption there was iraqi officials were stealing the money and buying lavish fillas with that money, that was driving up the market in jornds. Weve seen a whole host of problems. But outright theft is likely one of the ways theyre stealing some of that money. Eamon javers in washington tonight. Still ahead, checking in. Why marriott wants to buy
Starwood Hotels<\/a> and create the
Worlds Largest<\/a> hotel company. A disappointing report on manufacturing. A survey from the new york
Federal Reserve<\/a> shows activity in that industry contracted in november for the fourth straight month. Factories cut jobs and new orders fell as the strong dollar and slow overseas growth weighed on manufacturing. The worlds
Third Largest<\/a> economy is in recession. Japans
Gross Domestic Product<\/a> shrank. 8 in the most recent quarter. One reason for the decline in
Economic Activity<\/a> was worsening
Business Confidence<\/a> and reduced investment. A recession is defined as two consecutive quarters of contraction. Marriott will buy starwood to create the
Worlds Largest<\/a> hotel company. The deal will combine familiar names like sheraton, westin, fairfield inn, ritz carlton and marriott. Shares of marriott rose more than 1 . Starwood hotels fell more than 3 1 2 . Simon hobbs has more on the acquisition and the timing of this deal. Reporter france remains under an official state of emergency. But with the reopening of the paris stock market, travel stocks exposed to any potential slowdown fell. Airlines, rail, and lodging stocks. Marriott might like to have delayed the announcement, that its buying starwood, but its ceo says that would have been impractical. Its a 13 billion deal. Weeks have gone into preparing this, months really have gone into preparing this. Youve got boards that are meeting to approve. And its big news. So you cant sit on this news and say were simply going to wait for a convenient day to come out and announce it. Reporter marriotts planning to buy starwood almost entirely with its own stock six months after its troubled rival put itself up for sale. Back in may marriott looked at a possible transaction and walked away. But over the summer as starwood failed to find a buyer and its stock underperformed marriott by another 15 ,
Arnie Sorenson<\/a> says he was drawn back. I think initially we were dissua dissuaded. We thought the company was expensive. And we initially sort of backed away from it a little bit. But as the months went by we saw a relative shift in the values of the company. It made it more attractive economically. And we became more and more convinced there was value we could create by having the two
Companies Pull<\/a> together. Marriotts deal catching many in the industry by surprise. Marriott thought the chinese or hyatt would do a deal to buy starwood. As it is marriott is paying a modest premium and ultimately hell run the
Largest Hotel<\/a> chain in the world. In this country starwood has only a 3 market share, to adds to marriotts 10 , its not felt theyll face competition problems. Were attracted to this deal in part because they accelerate our globalization. We have been obviously in the business a long time but starwood is more global than marriott is and we think its a good thing that we will have more sources from around the world. At this moment in paris that may not be ideal, but when you look at potential performance of the euro in the years ahead, you look at growth in developing markets like china and india and elsewhere, i think we will see in the long term that that contribution is fabulous. In the meantime hotel owners will be asking how marriott intends to juggle its portfolio of now 30 brands. In particular how it can reinvigorate starwoods allimportant sheraton brands, which has underperformed for slong. For nightly
Business Report<\/a> im simon hobbs. We ginl market focus with another retailer posting disappointing results. Dillards saw sales fall. The
Department Store<\/a> chain said demand was down in its
Mens Clothing<\/a> and home and furniture units. Shares fell nearly 6 1 2 to 72. 52. Liberty global has agreed to purchase the
Caribbean Cable<\/a> operator
Cable Wireless<\/a> in a deal worth more than 5 billion. That move will help liberty expand in the emerging market. Shares of
Liberty Global<\/a> fell nearly 3 to 44. 10. And the
Television Company<\/a> media
Company Media<\/a> general has rejected a nearly 2 billion buyout offer from nextstar but said it is still willing to engage in merger discussions with the firm. This comes after a nearly 2. 5 billion bid from media general for
Meredith Corporation<\/a>. Media general fell a fraction to 15. 38. Next star rose 1 to 58. 63. And
Meredith Corporation<\/a> was nearly 2 higher to 45. 87. Constellation brands says it will buy
Ballast Point<\/a> for about 1 billion. It will give constellation a stake in the fast dwroeg craft beer market. Shares rose to 125. 36. Urban outfitters is entering the pizza business. Go figure. The
Retail Outlet<\/a> will buy the vetry group. They believe theres crossshopping potential between its stores and the pizzeria. This one eludes me. Shares tumbled 2 . General electric aviation says it has teamed up with textron aviation. The two will create a turboprop engine business. Ge said it believes it will generate up to a billion dollars in annual sales by the year 2020. Ge up a fraction to 30. 36. Textron 3 1 2 higher. It finished at 42. 44. And the
Speech Recognition Software<\/a> maker nuance reported late results. This came in better than expected. Its revenue forecast was below some estimates, but investors overlooked that. Shares popped initially after the close. During the regular session the stock was nearly 3 higher. It finished at 17. 05. Investigators are trying to figure out how the planning of the attacks in paris went virtually undetected by law enforcement. Officials told nbc news that one theory is the increased use of technology and devices like video game consoles and iphone apps that are highly encrypted. Nbcs jeff rossen has our report tonight. Reporter intelligence sources tell nbc news the french were caught completely off guard. Their agencies seriously weak at detecting terrorist chatter online. Tied investigators are honing in on this gaming system, playstation 4. Isis has been known to use it. This accused isis militant now in jail for downloading bomb plans on his ps4. So did isis use it to plan the paris attacks too . Officials believe the plot may have been hatched in belgium. Just days ago the interior minister spoke at a political forum. The most difficult communication between these terrorists is the playstation 4. Reporter
Cyber Security<\/a> experts agree. Why playstation . Its a playground where you can hide in plain sight. You can literally put together a working group of members such as a terrorist organization, communicate on your plans and then dissipate and its gone. Let me show you how this works. Im on a playstation right now and im inside of a game. Im connected directly to the internet. Which means i can play live with anybody anywhere in the world privately. I have to invite them to the game or they have to invite me into the game. And thats not all. You can text on the playstation 2. My producer stephanie is on another playstation in another section of the building. Hi, stephanie. Hey, jeff. Show me how this texting works. Ill send you a message. Hi, jeff. How are you . And remember, this doesnt go through your phone company. Okay. Sent. There it is. I just got it. And its literally that simple. Sony the maker of playstation telling nbc news we take our responsibilities to protect our uters extremely seriously and when alerted to suspicious conduct we are committed to taking appropriate action. And experts say its not just playstation. Terrorists can choose from any of the private messaging apps out there, apps including whats app, signal, and silent phone. Theres also this app called telegram. You go into it. And by the way, stephanie and i have download td. You hit new secret chat. Then you click on this little selfdestruct timer. You set it to ill have mine selfdestruct in five seconds. Done. I write hi stephanie. Send. Got. Count it down, five, four, three, two, one. Its gone. The secure privacy platforms are end to end. They selfdestruct. What needs to change . Increased information sharing across our allies across the world. That was nbcs jeff rossen reporting. Earlier today attorney general
Loretta Lynch<\/a> discussed the issue of encryption and said the department of justice has been in touch with the tech industry. For us this is an issue in which we recognize not only the importance of encryption but the need to do everything we can to protect the american people. And as weve stated, we are pursuing a number of options. Were in discussions with industry looking for ways in which they can lawfully provide us information while still preserving privacy. Lynch said her department is committed to doing everything within its power to help bring those responsible to justice. Coming up, stocks may have shaken off terror fears today but what about the longer term . Top strategist at fidelity has some advice for your money. Here is what to watch for tomorrow. Dow components walmart and home depot report earnings. On the data front the
Consumer Price<\/a> index is out. And also a report on industrial production. And that is what to watch for for tuesday. As we reported earlier, few expected a day like today on wall street or in markets around the globe in the face of the deadly friday terror attacks in paris. U. S. Markets and
Global Markets<\/a> were pretty resilient. Yurian timer is director of global macro investments at fidelity. Mr. Timer, welcome. Were very happy to have you with us. How do you explain the fact the markets dipped a little at the open and stabilized and ended so much higher . What was going on . Well, sometimes investors expect the worst and then when the worst doesnt happen the opposite happens. People were basically expecting the risk markets or the stock market to essentially open sharply down. And when it didnt happen, especially after last week when the market was already down about 4 , maybe people were caught short and then the market starts to rally and all of a sudden you have an up 200 day. And so for me, you know, as an investor obviously what happened in paris is obviously very tragic on the human level, but from a market perspective the question always is is this a systemic event, is this going to affect the economy over the long term . And if the answer is no, you can expect some shortterm volatility but then its sort of back to looking at the fultz driving the economy. And i think the market, people collectively probably decided that this was not a systemic event, this is not going to affect the longterm fundamentals of the u. S. Economy and therefore the market sort of recovered fairly quickly. So given that, what is key to this market . What do you think does have the potential to move the market longer term . So for me this is about the u. S. Federal reserve and china. So the u. S. Economys doing pretty well. And the fed wants to raise rates. And presumably it is going to do so starting in december. But at the same time china and actually, i was just there last week. The economy there has slowed pretty significantly. And the chinese has sort of two almost seemingly opposing mandates to accelerate growth while reforming their key industries. So in china the currency is essentially pegged to the dollar. Its a de facto peg. So if the fed going to raise rates, then presumably that means the dollars going to go up and that puts the chinese currency under upward pressure against all the other currencies, and thats probably the last thing china wants to see because it needs to stimulate its economy and usually when countries do this, the u. S. , japan, europe has done it through quantitative easing, that usually involves devaluing your currency and that i think is the
Pressure Point<\/a> that is sort of this battle between what china wants to do and what the fed wants to do. All right. And i think thats what it comes down to. Mr. Timmer, thank you very much. Yurian timmer with
Fidelity Investments<\/a> joining you. That will do it for nightly
Business Report<\/a> for tonight. Look at that. The dow up 237 points on the trading session. The nasdaq up 56. And the s p 500 up 30. Im tyler mathisen. Thanks for watching. For sue herera, well see you back here tomorrow night. Announcer image makers is made possible by the members of kqed","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801301.us.archive.org\/31\/items\/KQED_20151117_030000_Nightly_Business_Report\/KQED_20151117_030000_Nightly_Business_Report.thumbs\/KQED_20151117_030000_Nightly_Business_Report_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240623T12:35:10+00:00"}