Transcripts For KQEH Nightly Business Report 20141209 : vima

KQEH Nightly Business Report December 9, 2014

What some experts say is the better way to build wealth. All that and more tonight on nightly Business Report for monday, december 8th. Good evening, everyone. A one, two, three punch today from energy te, technology and , burgers. Stocks fell as oil prices sank. We begin tonight with that dow component. Mcdonalds. The Worlds Largest restaurant chain reported a steeper than expected drop in global sales across all regions including a sharp decline in the u. S. Thats the sixth straight month of falling worldwide sales, and that, along with a strong dollar and supply issues in china, the company warned will hurt its Fourth Quarter earnings. The stock got fried, losing almost 4 , making it one of the worst performing stocks on the Dow Jones Industrial ave. So whats behind mcdonalds slump and what does the company have to do to get back on track . Sara eisen reports. Reporter the fast food giant reporting samestore sales falling much more than expected for the month, dropping more than 2 globally. Europe and asia are now showing signs of weakness. Thanks in part to slowing economies and a supplier scandal in china. The outlook at home even more bleak. Increased pressure from the likes of chipotle and wendys as well as changing Consumer Preferences taking its toll on mcdonalds. Sales in the u. S. Falling nearly 5 , more than twice the decline analysts predicted. The issue here is mcdonalds more than the industry and right now this is a company that needs to probably reinvest in food value or do something to stimulate traffic. But that may be easier said than done. Figuring it out falls on mcdonalds ceo don thompson who has faced a difficult market since taking charge. The company delivered an annual rate of 5 . But the last few years have not been nearly as kind to the company. In 2013, mcdonalds share of u. S. Fast food hamburger chains revenue slipped below 50 , and this year analysts predict the company will post its first year of negative global samestore sales since back in 2002. The challenge for them is not only turning around the u. S. But you got to turn around japan, you got to turn around germany, get france going and russia as well. Its not just a domestic story. You got to fix a lot of different markets. What do we want . Reporter the company also facing labor pressures, being thrust into the spotlight by campaigns to improve wages and working conditions for the nations fast food workers. All of that taking a toll on mcdonalds stock over the last six months. Underperforming the s p 500 by about 15 . With consumers in the u. S. And abroad moving farther away from the golden arches, it remains to be just how much longer investors can stomach the slumping fast food giants performance. For nightly Business Report im sara eisen. The senior equities analyst at s p capital iq. You got a hold on mcdonalds. What do they need to do to jumpstart business and is don thompson the right guy to do it or does he have to go . It will be a challenge to turn around the business, as has been indicated earlier in the story, its a global issue. If you look at china, thats something that should hopefully resolve itself. The supplier issues later in 2015. In europe you have issues of weakening economy plus politics is hurting the russian sales. That could correct itself too. The real challenge is the u. S. Where were seeing weakness in the sector where people are going more to the Quick Service i mean, the fast casual restaurants taking away share from mcdonalds. And you know what do they need to do . What do they need to do . Thats what im about to get to. Theres not a lot they can do. They have to experiment to customize that people can order the burger they want. But a lot of the customers just want the quickness and the burger. As far as trying new products, theyve tried Healthy Products and that really hasnt stuck. Theyve got to try things and see what works and its not easy. Don thompson is supposed to be having a conference this wednesday. What do you and other investors need to hear from him now that will make you feel better that they have a plan in place . Well, really, thats it, that they have a plan that sounds like its executable. Like i said, its not going to be easy turnaround. First, theyve got to stabilize it, then figure out how to grow it. The good news is they have a lot of cash flow that supports the initiatives. You got a buy on starbucks, ephraim. Why and what are they doing right that mcdonalds is missing . Well, theyre in a different category in terms of their brand placement. Theyre more upscale. Its not 50 cents for coffee, people will pay 4 or 5 for their coffee. Theyre able to grow their global business, theyre still in a smaller stage than mcdonalds is. But theyre adding fresh not fresh food but food thats available. You can add to your ticket, you can get a snack. Theyre also changing the looking for new formats for their store to grow. Finally, theyre staying ahead by technology. Pretty soon youll be able to have a coffee delivered to your office. You cant do that at mcdonald. The young millennials, the 20somethings, theyre looking for quality, healthy food. No matter how much mcdonalds seems to be offering healthy items on its menu people think of the brand as ham burgers and french fries. Is this a problem they have with their brand name . Exactly. They have a core, people that want to buy that, who want something cheap, something fast, but if you want something more upscale like a chipotle. They have a different atmosphere there. Theyre able to charge higher prices. Its healthier, at least perceived to be. And thats helping chipotle be able to not only raise prices but have more customers at the same time. If mcdonals raises their prices theyll probably lose customers. I read an article that some critics thought that mcdonalds too many member u choices. Thats part of an issue. Theyre trying to catch up and give more choices so they can get every consumer, but they lose their Quick Service reputation. If it takes a delay for their order, people wont come back who otherwise would. Mr. Levy. Thank you, Senior Analyst at s p capital iq. Chevron and exxonmobil were also a drag as Oil Prices Fell to fresh fiveyear lows. One reason for the decline in prices, weak data out of two of asias biggest economies. Chinas exports grew at a lower than expected pace and imports dropped while japans economy shrank more than expected last quarter. Another reason, Morgan Stanley cut its forecast for brent crude next year citing oversupply. By the close the dow fell 106, the nasdaq slid 40 as investors sold Large Cap Technology shares. Over the Oil Markets Prices fell more than 4 to settle at its lowest level since july 2009. Because of those Falling Crude prices Conoco Phillips plans to spend less next year. Its Capital Budget for 2015 will drop 20 and that it will defer significant investment in two fields in canada and other less developed shale oil sites in north america. Conoco phillips is just one of Many Oil Companies scaling back. Jackie deangelis reports on how Lower Oil Prices are changing companies plans. Low crude prices are causing Oil Companies to rethink their operations in 2015. This week bp announced it would speed up job cuts in the u. S. And overseas because of recent price drops. Others suspending the building of three drilling rigs. And it doesnt end there. Research firm is expecting to see oil and Gas Exploration in 2015 take a hit as well. As a matter of fact, the firm said that we could see onethird of projects being cut accounting for 150 billion of investment. Where can we expect to see cuts . In the highest areas of cost operations including arctic russia, canada and alaska but also in other complicated deep water projects. Shale oil could be impacted but sees more flexibility if crew sings over 60. Many looking at the credit markets where money was raised for these projects wondering if there will be increased bankruptcy risks for smaller shale drillers. The analyst i spoke to said he thinks most of these companies will survive by cutting spending on drilling to balance cash flo flows and some are comfortably hedged for 2015. Deutsche bank says while Capital Spending should slow with oil prices remaining depressed for a significant period of time, it may only impact inflation adjusted outputs by 2 . Its less significant than the boost will economy will receive as a result of cheaper oil. Im jackie deangelis. As oil prices fall, the push to lift the 40yearold ban on oil exports grows. Texas republican congressman joe barton plans to introduce such a big tomorr bill tomorrow. The measure is given almost no chance to pass as lawmakers worry about fuel prices and cost to refiners. The export ban was passed in the 1970s after the Arab Oil Embargo created food shortages. Cheaper oil means cheaper gasoline. The latest survey shows a gallon of gas has dropped a whole dollar since early may. Thats the lowest price in more than four years. In the past two weeks regular gasoline prices have fallen another 12 cents, says lumberg. And aaa found that the average price for a gallon of regular today, 2. 67. And it should keep falling now to fiveyear lows pretty soon. And now to some merger news. Drug company and dow component merck announcing a major acquisition today of drugmaker cubist pharmaceutical. In a down market, the news sent merck shares up fractionally and cubist stock soaring 35 . Meg terrell explains why the deal is putting renewed attention on an often ignored part of the drug market. Drug giant merck is making a big move in an area abandoned by many large drugmakers. The companys paying almost 10 billion to acquire cubist pharmaceuticals, a maker of antibiotics. Its been a tough area for Drug Development in recent years as regulatory hurdles and low return on investment has driven Many Companies away. All big farm ma companies eliminated their discovery capabilities and very few of them even market antibiotics. Reporter as bacteria become restibt to existing drugs becoming what are known as superbugs policymakers and companies are responding to a growing Public Health threat. Every year in this country about 2 Million People have a form of infection thats resistant to conventional antibiotics. About 23,000 of those people die. Reporter with cubist merck gets the billion dollar a year antibiotic cubison. Cubist is expected to receive approval of another experimental antibiotic this month which analysts esfimt could draw more than 1. 5 billion annually. Mercks move in this space should signal optimism for companies focused on antibiotics. I do think antibiotics are a good place to be invested in right now. Reporter the question is as the threat of superbugs looms, do other large drugmakers agree . In San Francisco for nightly Business Report im meg terrell. Still the sector that could benefit when consumers have a little more money in their the u. S. Is selling Deutsche Bank over an alleged scheme to avoid federal income taxes. The government hopes to recover more than 190 million in taxes, penalties and interest. Also named as a defendant wells fargo, which acted as a trustee for Deutsche Bank in the matter. In a statement, deutsche says that its fully addressed the governments concerns. A top Federal Reserve official says he expects the central bank to stay on track to begin raising Interest Rates in the latter half of next year. Atlanta fed president Dennis Lockhart says the weak Global Economy and low inflation remain a risk to the u. S. Economy and hes worried that inflation hasnt picked up yet despite labor market improvement. But he still expects the economy to grow at about 3 in 2015, now lockhart isnt a current Voting Member on the feds policy committee, but he will have a vote next year. The wild and crazy members of the National Association for business economists say they doubt the fed will raise Interest Rates above 1 by the end of 2015 as Central Bank Officials currently project. They expect the Gross Domestic Product to expand under just 3 next year, very close to the feds own expectation and members are more upbeat about overall u. S. Growth in this survey than they were this past summer. Maybe its lower gas prices, maybe a new job, but americans seem to be buying things they want again rather than just necessities. And thats done wonders for a much maligned sector of the stock market as Morgan Brennan reports. Reporter it looks like consumers have a little more money in their pocket, and theyre spending it on things they dont necessarily need. So after lagging the s p 500 all year, Consumer Discretionary stocks have rallied. One of the best performing sectors over the past month. The holiday has helped fuel the gain s with target one of the biggest winners. But home and Leisure Companies have done well. The big boost can be chalked up to several economic factors. When you look at Lower Energy Prices you see a tremendous pullback in growth in gasoline prices that affect consumers confidence and extra spending power over the next several months. Thats starting to feed into those equity that are behind those consumer companies. Reporter rising employment also helps. Hogan expects restaurant stocks like buffalo wild wins s towin benefit from all those factors first since people tend to eat out more regularly when theres more money to spend. What about retailers . Aggressive holiday stratys are at risk of profit. Best buy and Urban Outfitters are expected to see double digit online growth yet both have fallen so far this month and experts say that could continue. But others will stand out. Were big fans of deckers that make uggs, we like worldwide wolverine, they have a whole host of shoes they make and handbags, kate spade, vera bradley, theyre really reinventing themselves so as michael kors and coach are losing market share, kate spade and vera bradley are picking up market share. Auto Parts Companies and auto retailers are enjoying a lift on a surge in car sales. Goodyear tire and rubber, delphi and Oreilly Automotive have risen double digit. Many expect those to drive further gains next year. Im Morgan Brennan. Wells fargo is now the most valuable u. S. Bank ever. Thats where we begin tonights market focus. The firm surpassed citigroups 2001 market record. With a market cap of more than 285 billion. The company, which counts Warren Buffett as its largest shareholder has doubled in size since 2008 with its purchase of wachovia. Shares were off a fraction. Vail resorts says sales of new ski pass grew. The Company Also Announced a 50 Million Investment plan. Part of that will fund a connection between two of its utah locations to create what it says will now be the biggest single ski area in the u. S. Despite that vail was down sharply today at 89. 12. Sony was hit by another cyber attack today. The Playstation Online store hacked leading to a twohour outage. Sony says its investigating the cause. The studio was hit by a massive attack that shut down its network for more than a week. Shares slumped today about a dollar. They finished at 21. 15. Shares of clubcorp also lower after the company says it wont convert into a reit or Real Estate Investment trust. Some activist investors had been calling for the conversion but the golf course and country Club Operator said its not a viable option, at least not right now. The stock tumbled 9 . American airlines reduced its forecast for a key Fourth Quarter metric, consolidated passenger revenue per seat. That means how much money it makes from each passenger on the flight. Also the airline reported its passenger traffic edged down slightly in november from a year earlier. Shares off slightly to 50. 82. The securities and Exchange Commission is seeking to suspend Standard Poors from grading commercial mortgage bonds. Thats according to a report from bloomberg. Companys parent mcgrawhill is still in talks with the s. E. C. Which is investigating whether the firm changed reading criteria to improve business back in 201. Shares fell to 91. 80. Verizon says its subscriber account is growing again but it said Promotional Offers will pressure its margins and earnings. Shares fell initially on that news that came out after the markets closed. During the regular season shares rose a fraction to 48. 90. And from the you think we might Learn Department easy terms for home buyers that helped lead to the crash last decade. But now regulators are once again tweaking the standards to boost Business Report<\/a> for monday, december 8th. Good evening, everyone. A one, two, three punch today from energy te, technology and , burgers. Stocks fell as oil prices sank. We begin tonight with that dow component. Mcdonalds. The Worlds Largest<\/a> restaurant chain reported a steeper than expected drop in global sales across all regions including a sharp decline in the u. S. Thats the sixth straight month of falling worldwide sales, and that, along with a strong dollar and supply issues in china, the company warned will hurt its Fourth Quarter<\/a> earnings. The stock got fried, losing almost 4 , making it one of the worst performing stocks on the Dow Jones Industrial<\/a> ave. So whats behind mcdonalds slump and what does the company have to do to get back on track . Sara eisen reports. Reporter the fast food giant reporting samestore sales falling much more than expected for the month, dropping more than 2 globally. Europe and asia are now showing signs of weakness. Thanks in part to slowing economies and a supplier scandal in china. The outlook at home even more bleak. Increased pressure from the likes of chipotle and wendys as well as changing Consumer Preferences<\/a> taking its toll on mcdonalds. Sales in the u. S. Falling nearly 5 , more than twice the decline analysts predicted. The issue here is mcdonalds more than the industry and right now this is a company that needs to probably reinvest in food value or do something to stimulate traffic. But that may be easier said than done. Figuring it out falls on mcdonalds ceo don thompson who has faced a difficult market since taking charge. The company delivered an annual rate of 5 . But the last few years have not been nearly as kind to the company. In 2013, mcdonalds share of u. S. Fast food hamburger chains revenue slipped below 50 , and this year analysts predict the company will post its first year of negative global samestore sales since back in 2002. The challenge for them is not only turning around the u. S. But you got to turn around japan, you got to turn around germany, get france going and russia as well. Its not just a domestic story. You got to fix a lot of different markets. What do we want . Reporter the company also facing labor pressures, being thrust into the spotlight by campaigns to improve wages and working conditions for the nations fast food workers. All of that taking a toll on mcdonalds stock over the last six months. Underperforming the s p 500 by about 15 . With consumers in the u. S. And abroad moving farther away from the golden arches, it remains to be just how much longer investors can stomach the slumping fast food giants performance. For nightly Business Report<\/a> im sara eisen. The senior equities analyst at s p capital iq. You got a hold on mcdonalds. What do they need to do to jumpstart business and is don thompson the right guy to do it or does he have to go . It will be a challenge to turn around the business, as has been indicated earlier in the story, its a global issue. If you look at china, thats something that should hopefully resolve itself. The supplier issues later in 2015. In europe you have issues of weakening economy plus politics is hurting the russian sales. That could correct itself too. The real challenge is the u. S. Where were seeing weakness in the sector where people are going more to the Quick Service<\/a> i mean, the fast casual restaurants taking away share from mcdonalds. And you know what do they need to do . What do they need to do . Thats what im about to get to. Theres not a lot they can do. They have to experiment to customize that people can order the burger they want. But a lot of the customers just want the quickness and the burger. As far as trying new products, theyve tried Healthy Products<\/a> and that really hasnt stuck. Theyve got to try things and see what works and its not easy. Don thompson is supposed to be having a conference this wednesday. What do you and other investors need to hear from him now that will make you feel better that they have a plan in place . Well, really, thats it, that they have a plan that sounds like its executable. Like i said, its not going to be easy turnaround. First, theyve got to stabilize it, then figure out how to grow it. The good news is they have a lot of cash flow that supports the initiatives. You got a buy on starbucks, ephraim. Why and what are they doing right that mcdonalds is missing . Well, theyre in a different category in terms of their brand placement. Theyre more upscale. Its not 50 cents for coffee, people will pay 4 or 5 for their coffee. Theyre able to grow their global business, theyre still in a smaller stage than mcdonalds is. But theyre adding fresh not fresh food but food thats available. You can add to your ticket, you can get a snack. Theyre also changing the looking for new formats for their store to grow. Finally, theyre staying ahead by technology. Pretty soon youll be able to have a coffee delivered to your office. You cant do that at mcdonald. The young millennials, the 20somethings, theyre looking for quality, healthy food. No matter how much mcdonalds seems to be offering healthy items on its menu people think of the brand as ham burgers and french fries. Is this a problem they have with their brand name . Exactly. They have a core, people that want to buy that, who want something cheap, something fast, but if you want something more upscale like a chipotle. They have a different atmosphere there. Theyre able to charge higher prices. Its healthier, at least perceived to be. And thats helping chipotle be able to not only raise prices but have more customers at the same time. If mcdonals raises their prices theyll probably lose customers. I read an article that some critics thought that mcdonalds too many member u choices. Thats part of an issue. Theyre trying to catch up and give more choices so they can get every consumer, but they lose their Quick Service<\/a> reputation. If it takes a delay for their order, people wont come back who otherwise would. Mr. Levy. Thank you, Senior Analyst<\/a> at s p capital iq. Chevron and exxonmobil were also a drag as Oil Prices Fell<\/a> to fresh fiveyear lows. One reason for the decline in prices, weak data out of two of asias biggest economies. Chinas exports grew at a lower than expected pace and imports dropped while japans economy shrank more than expected last quarter. Another reason, Morgan Stanley<\/a> cut its forecast for brent crude next year citing oversupply. By the close the dow fell 106, the nasdaq slid 40 as investors sold Large Cap Technology<\/a> shares. Over the Oil Markets Prices<\/a> fell more than 4 to settle at its lowest level since july 2009. Because of those Falling Crude<\/a> prices Conoco Phillips<\/a> plans to spend less next year. Its Capital Budget<\/a> for 2015 will drop 20 and that it will defer significant investment in two fields in canada and other less developed shale oil sites in north america. Conoco phillips is just one of Many Oil Companies<\/a> scaling back. Jackie deangelis reports on how Lower Oil Prices<\/a> are changing companies plans. Low crude prices are causing Oil Companies<\/a> to rethink their operations in 2015. This week bp announced it would speed up job cuts in the u. S. And overseas because of recent price drops. Others suspending the building of three drilling rigs. And it doesnt end there. Research firm is expecting to see oil and Gas Exploration<\/a> in 2015 take a hit as well. As a matter of fact, the firm said that we could see onethird of projects being cut accounting for 150 billion of investment. Where can we expect to see cuts . In the highest areas of cost operations including arctic russia, canada and alaska but also in other complicated deep water projects. Shale oil could be impacted but sees more flexibility if crew sings over 60. Many looking at the credit markets where money was raised for these projects wondering if there will be increased bankruptcy risks for smaller shale drillers. The analyst i spoke to said he thinks most of these companies will survive by cutting spending on drilling to balance cash flo flows and some are comfortably hedged for 2015. Deutsche bank says while Capital Spending<\/a> should slow with oil prices remaining depressed for a significant period of time, it may only impact inflation adjusted outputs by 2 . Its less significant than the boost will economy will receive as a result of cheaper oil. Im jackie deangelis. As oil prices fall, the push to lift the 40yearold ban on oil exports grows. Texas republican congressman joe barton plans to introduce such a big tomorr bill tomorrow. The measure is given almost no chance to pass as lawmakers worry about fuel prices and cost to refiners. The export ban was passed in the 1970s after the Arab Oil Embargo<\/a> created food shortages. Cheaper oil means cheaper gasoline. The latest survey shows a gallon of gas has dropped a whole dollar since early may. Thats the lowest price in more than four years. In the past two weeks regular gasoline prices have fallen another 12 cents, says lumberg. And aaa found that the average price for a gallon of regular today, 2. 67. And it should keep falling now to fiveyear lows pretty soon. And now to some merger news. Drug company and dow component merck announcing a major acquisition today of drugmaker cubist pharmaceutical. In a down market, the news sent merck shares up fractionally and cubist stock soaring 35 . Meg terrell explains why the deal is putting renewed attention on an often ignored part of the drug market. Drug giant merck is making a big move in an area abandoned by many large drugmakers. The companys paying almost 10 billion to acquire cubist pharmaceuticals, a maker of antibiotics. Its been a tough area for Drug Development<\/a> in recent years as regulatory hurdles and low return on investment has driven Many Companies<\/a> away. All big farm ma companies eliminated their discovery capabilities and very few of them even market antibiotics. Reporter as bacteria become restibt to existing drugs becoming what are known as superbugs policymakers and companies are responding to a growing Public Health<\/a> threat. Every year in this country about 2 Million People<\/a> have a form of infection thats resistant to conventional antibiotics. About 23,000 of those people die. Reporter with cubist merck gets the billion dollar a year antibiotic cubison. Cubist is expected to receive approval of another experimental antibiotic this month which analysts esfimt could draw more than 1. 5 billion annually. Mercks move in this space should signal optimism for companies focused on antibiotics. I do think antibiotics are a good place to be invested in right now. Reporter the question is as the threat of superbugs looms, do other large drugmakers agree . In San Francisco<\/a> for nightly Business Report<\/a> im meg terrell. Still the sector that could benefit when consumers have a little more money in their the u. S. Is selling Deutsche Bank<\/a> over an alleged scheme to avoid federal income taxes. The government hopes to recover more than 190 million in taxes, penalties and interest. Also named as a defendant wells fargo, which acted as a trustee for Deutsche Bank<\/a> in the matter. In a statement, deutsche says that its fully addressed the governments concerns. A top Federal Reserve<\/a> official says he expects the central bank to stay on track to begin raising Interest Rates<\/a> in the latter half of next year. Atlanta fed president Dennis Lockhart<\/a> says the weak Global Economy<\/a> and low inflation remain a risk to the u. S. Economy and hes worried that inflation hasnt picked up yet despite labor market improvement. But he still expects the economy to grow at about 3 in 2015, now lockhart isnt a current Voting Member<\/a> on the feds policy committee, but he will have a vote next year. The wild and crazy members of the National Association<\/a> for business economists say they doubt the fed will raise Interest Rates<\/a> above 1 by the end of 2015 as Central Bank Officials<\/a> currently project. They expect the Gross Domestic Product<\/a> to expand under just 3 next year, very close to the feds own expectation and members are more upbeat about overall u. S. Growth in this survey than they were this past summer. Maybe its lower gas prices, maybe a new job, but americans seem to be buying things they want again rather than just necessities. And thats done wonders for a much maligned sector of the stock market as Morgan Brennan<\/a> reports. Reporter it looks like consumers have a little more money in their pocket, and theyre spending it on things they dont necessarily need. So after lagging the s p 500 all year, Consumer Discretionary<\/a> stocks have rallied. One of the best performing sectors over the past month. The holiday has helped fuel the gain s with target one of the biggest winners. But home and Leisure Companies<\/a> have done well. The big boost can be chalked up to several economic factors. When you look at Lower Energy Prices<\/a> you see a tremendous pullback in growth in gasoline prices that affect consumers confidence and extra spending power over the next several months. Thats starting to feed into those equity that are behind those consumer companies. Reporter rising employment also helps. Hogan expects restaurant stocks like buffalo wild wins s towin benefit from all those factors first since people tend to eat out more regularly when theres more money to spend. What about retailers . Aggressive holiday stratys are at risk of profit. Best buy and Urban Outfitters<\/a> are expected to see double digit online growth yet both have fallen so far this month and experts say that could continue. But others will stand out. Were big fans of deckers that make uggs, we like worldwide wolverine, they have a whole host of shoes they make and handbags, kate spade, vera bradley, theyre really reinventing themselves so as michael kors and coach are losing market share, kate spade and vera bradley are picking up market share. Auto Parts Companies<\/a> and auto retailers are enjoying a lift on a surge in car sales. Goodyear tire and rubber, delphi and Oreilly Automotive<\/a> have risen double digit. Many expect those to drive further gains next year. Im Morgan Brennan<\/a>. Wells fargo is now the most valuable u. S. Bank ever. Thats where we begin tonights market focus. The firm surpassed citigroups 2001 market record. With a market cap of more than 285 billion. The company, which counts Warren Buffett<\/a> as its largest shareholder has doubled in size since 2008 with its purchase of wachovia. Shares were off a fraction. Vail resorts says sales of new ski pass grew. The Company Also Announced<\/a> a 50 Million Investment<\/a> plan. Part of that will fund a connection between two of its utah locations to create what it says will now be the biggest single ski area in the u. S. Despite that vail was down sharply today at 89. 12. Sony was hit by another cyber attack today. The Playstation Online<\/a> store hacked leading to a twohour outage. Sony says its investigating the cause. The studio was hit by a massive attack that shut down its network for more than a week. Shares slumped today about a dollar. They finished at 21. 15. Shares of clubcorp also lower after the company says it wont convert into a reit or Real Estate Investment<\/a> trust. Some activist investors had been calling for the conversion but the golf course and country Club Operator<\/a> said its not a viable option, at least not right now. The stock tumbled 9 . American airlines reduced its forecast for a key Fourth Quarter<\/a> metric, consolidated passenger revenue per seat. That means how much money it makes from each passenger on the flight. Also the airline reported its passenger traffic edged down slightly in november from a year earlier. Shares off slightly to 50. 82. The securities and Exchange Commission<\/a> is seeking to suspend Standard Poors<\/a> from grading commercial mortgage bonds. Thats according to a report from bloomberg. Companys parent mcgrawhill is still in talks with the s. E. C. Which is investigating whether the firm changed reading criteria to improve business back in 201. Shares fell to 91. 80. Verizon says its subscriber account is growing again but it said Promotional Offers<\/a> will pressure its margins and earnings. Shares fell initially on that news that came out after the markets closed. During the regular season shares rose a fraction to 48. 90. And from the you think we might Learn Department<\/a> easy terms for home buyers that helped lead to the crash last decade. But now regulators are once again tweaking the standards to boost Home Ownership<\/a>. As diana olick explains its about creating savings and an alternative investment to stocks. Reporter cant afford a down payment for a home . Well its about to get easier with new loans from governmentbacked fannie mae and freddie mac requiring just 3 down. I think theres a big problem with this because weve lived through it already. Reporter government is pushing Home Ownership<\/a> again claiming it is the best way for Middle America<\/a> to build wealth. But it is really . It would be perhaps smarter if wealth accumulation is your goal, to rent and put money in the stock market, which has historically shown much higher returns than the housing market. Reporter going back to 1987, when the s p stock price was invented, its a long shot. Longterm they yield owners more not only through appreciation but through dividends. Home prices do rise over the longterm. But you have to pay into a home in the form of property taxes, insurance, maintenance, improvements, you do have to pay Capital Gains<\/a> on stocks, but it comes out to much less. On the other hand, Home Ownership<\/a> produces social yields. The point is that Home Ownership<\/a> is also a state of mind, it tends to produce people who are good citizens, who are involved in the community. They know the name of the mayor. Reporter shiller actually charted this back to the turn of the 20th century. It does hold up for over 100 year, but on the other hand, you could argue that a home pays you in kind. That is, you get to live in it. So its more of a consumption vehicle like a car than an Investment Vehicle<\/a> like a stock. What it really is, though, is a Savings Vehicle<\/a> because thats what youre doing when youre paying down a home loan. For nightly Business Report<\/a> im diana olick in washington. Coming up on the program, the government warns this flu season could be a bad one, and if thats the karks it could impact Certain Industries<\/a> and busi one of Bernie Madoffs<\/a> former employees was sentenced to ten years in prison. The director of back Office Operations<\/a> had been convicted for helping his former boss to orchestrate the massive ponzi scheme. O four other madoff employees are expected to be sentenced later this week. Its december. That means its flu soeb and the centers for Disease Control<\/a> warns that it could be a bad one. More people taking sick days and while increased worker absences and decreased productivity hurt some businesses others benefit. Bett Bertha Coombs<\/a> has more. R early but the cdc is worried this flu season could be a bad one. From what we know about the viruses were seeing, were concerned it could be a severe year this year particularly for people in the older age groups as well as for young children. Reporter the most prevalent influenza train this year is the h3n2 the same one that made for a severe season two years ago. Problem is vaccines are developed well in advance and this years formula is not well matched to that strain. That may mean the vaccine wont protect as well against severe outcomes such as hospitalizations or deaths. We dont know that. And so we still think that vaccination is the best first line of defense for people. Reporter two years ago the severe outbreak resulted in high demand for flu shots and at times tight supply. Demand for flu treatment tamiflu resulted in spot shortages of the childrens formulations. The cdc says there are ample doses of flu shots this year and the drugmaker roche says its prepared for a potential severe outbreak this winter with plenty of inventory. Analysts say a strong flu season like 2013 could be a boon to drugstore chains such as cvs and wal greens. This kind of got you into the mid to high single digits. Thats a pretty good trajectory change for this business and was helpful to their profits. Reporter for insurers, a severe flu season could be tough on the bottom line. More medications, more visits to hospitals and doctors drives up medical costs and that could weigh on the profits of providers of low margin medicaid and apa exchange plan. Bertha coombs. Call it the Party Economic<\/a> indicator. A new survey shows that nine out of Ten Companies<\/a> are planning holiday parties this year. A survey of Hr Professionals<\/a> by challenger, gray and christmas, found that almost 90 of their companies will have a holiday or yearend party. Thats way up from the past few years. Challenger says this years results are the roseiest since 20 thousand 7. Retailers are in the mood to celebrate thanks to a storm job market and stock market. Enjoy your party. Thats nightly Business Report<\/a> for tonight. Thanks so much for watching. Im susie gharib. Im tyler mathisen. Nightly Business Report<\/a> has been funded in part by thestreet. Com and action alerts plus where jim cramer and fellow portolio manager stephanie link share their investment strategies, stock picks and market insights. You can learn more at thestreet. Com nbr. Announcer explore new worlds and new ideas through programs like this. Made available for everyone through contributions to your pbs station from viewers like you, thank you. Julian davison snowcapped mountains and icy fjords with bearded warriors in horned helmets sailing forth in long boats. Those are the first images that come to mind when one thinks of norway. So perhaps its no coincidence that in the 19th century the descendants of those long ago vikings were also responsible for constructing. One of the most spectacular railways in northern europe","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600304.us.archive.org\/26\/items\/KQEH_20141209_023000_Nightly_Business_Report\/KQEH_20141209_023000_Nightly_Business_Report.thumbs\/KQEH_20141209_023000_Nightly_Business_Report_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240621T12:35:10+00:00"}

© 2025 Vimarsana