Transcripts For KQEH Nightly Business Report 20160401 : vima

For 2016 was over. Tipped off stocks did with their worst start to a year ever. Correction territory for the dow and the s p 500, almost a bear market for nasdaq. Then, like that texas a m Basketball Team last week, a furious, miraculous comeback. Oil price s rose, recession feas receded, china settled down, stock investors started hitting threepointers. Today the First Quarter ended and you as the coach of your portfolio should feel relieved that the game didnt get away from you. Those big early declines for the s p and dow, theyre gone. Those indexes are now both near their highs of the year back in positive territory after posting their second straight quarterly win. This the final day of q1 ended quietly. The Dow Jones Industrial average lost 31 points to 17,685. Nasdaq rose fractionally. The s p 500 was off 4. As for the nasdaq, it remains negative for the year but by less than 3 . A thoireepointer in the Second Quarter and the nasdaq gains all even for the year. The quarters most glittering performance, gold. Best there in 30 years. Bob pisani at the New York Stock Exchange had a front row seat to all the action this quarter. Reporter the conveyor ended on a quiet note but there were plenty of fireworks along the way. The s p ended essentially flat for the quarter. But not before a roughly 10 decline from the 1st of january to midfebruary on concerns about a recession. That never materialized but it gave everyone a scare. One factor driving the turnaround in stocks was a weaker dollar and large gains in oil which boosted commodities across the board. Metals and mining stocks, for example, are up 39 this year. And golds up 16 , its biggest quarterly gain in 30 years. The news was not rosy for the biotech sector. The nasdaq biotech epf, a basket of stocks, down 23 year to date. Many of the biggest names seeing a slowdown in sales and earnings after years of torrid growth. Momentum investors have been getting out. Another problem for biotech is the issue of drug pricing. Highpriced drugs have drawn the ire of many groups including congress and thats an issue highlighted for the whole valiant fiasco. Its unlikely there will be wholesale Government Intervention in drug pricing but with the election coming up and the possibility Drug Companies could become punching bags for politicians, many investmenters are sitting on the sidelines. Bob pisani at the New York Stock Exchange. While biotech stood out for all the wrong reasons the opposite story fare industrials amazing alreadiry that sector went from laggard to leader with shares of big manufacturers outperforming the broader market. Raising hopes that their profits will follow. But can this industrial comeback be believed . Mike santoli takes a look. Reporter the stock market is warming to the idea of industrial revival. Shares of big american manufacture others a roll. Industrial stocks as a group up 4 year to date compared to a flat s p 500 indelks. Since industrial giant 3m reported upbeat results two months ago the sector is up 14 , more than twice the gain in the s p 500 since then. The largest, ge, climbed to an eightyear high. The question now is it simply fleeting rebound for industrials . Or is factory activity poised for an upswing . Economists see cause for optimism. A key gauge of manufacturing due friday is projected to show the first monthly expansion since last summer. Goldman sachs economists suggested manufacturing is indeed turning a corner. Pointing to higher volumes and firmer oil prices. The pullback in the u. S. Dollar has also eased pressure on american producers to sell goods. Any manufacturing rebound would likely be fragile given slowing auto sales and a possible rebound in the dollar. At least for now investors are willing to bet that the worst is over for the industrial economy. For nightly Business Report, im mike santoli at the New York Stock Exchange. Leaders from two of the Worlds Largest economies, the two largest, president obama and chinese president xi jinping, pledged to cooperate on major issues including the north Korean Nuclear threat, human rights and Cyber Security. John harwood joins us from washington. John, welcome. Were the leaders able to narrow their differences on Cyber Security . A topic of supreme interest to businesses. I dont know that theres evidence they narrowed differences. President obama going into the meeting said they were going to have candid discussions on those issues among others they disagree on. The main focus of trying to reach agreements today was on the nuclear issue. As part of the regular dialogue, white house aides call it hightempo engagement with the chinese, those subjects come up on a regular basis. Any breakthroughs on other issues . The nuclear one is very pressing, particularly in the korean peninsula. The two sides did say they were going to accelerate their work on climate change. This is something they cooperated on leading to that Paris Agreement last year. They also said that on Nuclear Security, they were going to hold annual bilateral meetings. They held one in february to talk about this issue. They discussed it again today. Theyre going to make that a regular thing. This is all part of the administrations attempt to pivot u. S. Foreign policy to asia and Nuclear Security is of shared interest to both sides because of that volatile regime in north korea. Turning to politics, donald trump met with gop Party Leaders in washington today. What did they discuss . This was not a meeting set up about the Donald Trumps statement that he might not support the republican nominee if its not him. This was about the convention. We could be facing a brokered convention. Fights over delegates. Its about how that would work. Also about general election coordination. Because remember, donald trump still is the front runner in the race. He thinks hes going to be coordinating with the Republican National committee this fall. Well see if voters give him the chance to do that. All right, john, thanks very much. John harwood in washington. Also in washington was canadian Prime Minister justin trudeau. In an interview he was asked about his countrys economy and being the u. S. s largest trading partner, whether he would be open to renegotiating the north American Free trade agreement which has been a contentious issue this election cycle. I think we have to understand that trade is ultimately good. Not just for our countries but for our businesses and for our workers. We know that engaging with the world in a constructive, positive way leads to good jobs and good growth. Im not worried that were going to suddenly reopen nafta or other trade deals. The challenge once you reopen it a little bit, they all tend to unravel. Its too important for both of our economies to continue to have a strong trading relationship. And a report today showed the canadian economy grew by the most in three years in january, driven by a rebound in the manufacturing sector. Latest data being interpreted as a sign the economy may be emerging from the weight of the commodity rout. Reagan National Airport in washington, d. C. Is one of the ten airports across the country where Service Workers set up picket lines and walked off the job today. The protesters say they are being grossly undercompensated and on the eve of the monthly jobs report tomorrow theyre demanding higher wages. Hampton pearson has our story. Reporter the protesters are workers hired by private contractors to work as wheelchair attendants, baggage handlers, and sky caps for the airlines. Many of whom earn less than 4 an hour plus tips. The 24hour strike is the first time workers at Reagan National have tried to make the traveling public aware of their desire for higher wages and better working conditions. We get paid 2, some people get paid 3, and 6. 75. Which is not fair to us. With living costs we cannot afford to be getting paid 2, 3. We want 15, we demand to get it. Reporter help is on the wa its all part of a nationwide organizing campaign by the Service Employees union. The strike today is part of a National Push by airport workers standing up with other underpaid work e worke workers and to do whatever it takes to have dignity and respect on the job. Reporter minimum wage critics say the real goal is to boost union membership. For years the sciu has realized that there are segments of some of these Service Industries that they think think of an inroad in. So fast food is one of those. I think contracted airport workers are another. Reporter for now the Major Airlines are keeping their distance from the labor dispute. A statement from their trade association says, we continue to believe that the appropriate way to address minimum wages is at the statewide or national level. The airlines also emphasizing contingency plans, minimize the impact of todays walkout on the traveling public. For nightly Business Report, im Hampton Pearson in washington. Jobless claims rose for the Third Straight week. The number of workers who applied for unemployment benefits, a proxy for layoffs across the economy, increased 11,000, the highest level since the end of january. But it is still consistent with a strengthening labor market. The governments Monthly Employment report will be released tomorrow. Expectations are for a 213,000 person increase in nonfarm payrolls. The Unemployment Rate forecasted to main right where its been at 4. 9 . Economists on average expect a modest rise in average hourly earnings. Despite what the job data tell us, tomorrow new research out today says that temporary and contract workers were the drivers of job growth in the labor market over the past decade. According to a New York Times article americans using alternate Work Arrangements rose to 9. 4 million from 2005 to 2015. Neil irwin, senior economics correspondent and author of that article, joins us now. Good to have you with us. This is a study that came from a couple of very prominent economists. Tell us what the numbers said. Yeah, the key idea is that ten years ago, 2005, only about 10 of American Workers had these different independent contractor, freelance, oncall, different arrangements that arent a traditional job. That had risen to almost 16 by 2015. So last year. So thats a really remarkable increase in a short time. Thats a sign that the very definition of what is a job seems to be shifting beneath our feet. Of all the job growth that has taken place since the end of the recession, is most of it from people who have contracting or temporary gigs . Or not . More than 100 . Nip. 4 million is the gain in these types of alternate nontraditional jobs, independent contracting, so forth. Total job growth or total growth in employment in that same span, 9. 1 million. That means more than 100 of the jobs gained over the 20052015 period were in unconventional kinds of arrangements. Employers like this because it keeps people off the permanent payroll, but there are strong implications here arent there for benefits and all of the things that typically come with a fulltime, onpayroll job, whether its a pension, rare, or worke erers comp, oth lots of other things . We sometimes forget a job in a traditional sense is not just about the paycheck. Part of what youre getting with the job is a kind of understanding that your employer will take care of you in certain ways. Whether its sick leave if you get sick, Health Insurance, retirement funds, workers comp, jobless benefits. So those are things that kind of protect you. Its a form of social insurance that employers provide in the modern economy. These less conventional independent contractor type of arrangements are often missing those layers of protection if youre an employee. If you work for a temporary services firm, however, sometimes you can get some of those benefits from that firm, correct . Thats right. Also the Affordable Care act, obamacare, has changed the equation a little bit. Its made it easier if youre one of these independent contractors living from gig to gig as a freelancer, whatever it may be, you do have a pathway to get Health Insurance thats more clear than it was a few years ago. That said theres a lot of stuff traditional employers do that youre not getting if youre running around independent. How many of these contractors are uber drivers . Not as many as people think. Theres this buzz around the gig economy or apps. Uber is the big one. This research at harvard, its actually suggested its only 0. 5 of the workforce are in these gigrelated, appdriven jobs, compared to 16 are in some kind of independent contractor arrangement. Neil, thank you very much. Fascinating story about the changing workplace. Neil irrin with the new york types. Five top female members of the u. S. Womens National Soccer team have filed a federal complaint charging the u. S. Soccer federation with wage discrimination. The filing alleges the women earn far less than their male counterparts on the Mens National team, despite winning on the field and higher anticipated income. According to the complaint female players earn sometimes as little as 38 of what the men earn on the national team. Still ahead, the challenges now facing an industry that is usually a strong performer even when others falter. The head of American International group sees an opportunity to shed his company of the too big to fail designation. But following yesterdays court ruling that threw out metlife itemcally important able, aigs ceo said he would prefer to work with regulators rather than taking them to court. Ive been watching this case closely. Its obviously not over. It will get appealed. Well watch how it progresses in the higher courts. And much of the ruling is sealed. So well wait to see what emerges when that gets unsealed. Aig as you recall took a 182 billion bailout from the government when it was near collapse in 2008. That was the driving force behind the systemically important designation. Ge capital says the government should drop its too big to fail tag on it since it has significantly reduced its size. The unit filed a formal request with the Financial Stability Oversight Council to have the label removed. Ge capital is exiting consumer and leveraged lending and has reduced its Real Estate Debt and equity holdings. Hindsight as they say is 20 20. Today we learned 20 years ago, General Electric was presented with the opportunity to buy apple for just 2 billion. Today it is worth 600 billion. In an interview, former Nbc Universal chief bob wright described what happened during a meeting with then apple ceo michael spindler. He gave the pitch in 1996 and he kind of broke down during the presentation. He was telling us that the stock is killing them, the investors were on his back, he cant get this thing rolling. The consensus in the room was, we cant. We cant do anything with this. This is way outside of our game. We were not a Silicon Valley company or an orientation at that point. It was there was no supporters at all. That meeting occurred the year before steve jobs returned to apple and of course transformed the company. Anbang is walking away from starwood hotels. Market focus. The Chinese Insurance Company pulled its bid for the chain citing various market conditions. Marriott and anbang have been vying to take over the hotel and resort company. Marriotts more than 13 billion takeover offer still stands. Shares of starwood fell sharply in afterhours trading on the news as you see on that graphic finishing the regular session down a tick at 83. 43. Marriott down following the news after closing off slightly at 71. 18. Mcdonalds wants to expand its presence over in asia. Within five years the fast food chain plans on adding more than 1,000 franchiseowned restaurants in its Mainland China market and additional locations in hong kong and south korea. Mcdonalds currently has more than 2,000 companyowned restaurants in asia. Shares fell a fraction to 125. 68. Chipotle apparently wants to get into the burger business. The fast food burrito chain said it filed an application to trademark the name better burger. The company says the move into making burgers is a growth seed idea. Shares sprouted 1 . The fitness tracking Company Fitbit has shipped 2 Million Units of its latest devices which were launched just this month surpassing Company Sales expectations. That news sent shares higher. Fitbit spiking 13 to 15. 15. Movato is raising its Quarterly Dividend by 18 to 13 cents a share, lashlging a 15 million buyback program. However shares fell on weak Earnings Guidance for the year. Movato ticked 9 lower at 27. 53. Consumer spending makes up twothirds of Basketball Team<\/a> last week, a furious, miraculous comeback. Oil price s rose, recession feas receded, china settled down, stock investors started hitting threepointers. Today the First Quarter<\/a> ended and you as the coach of your portfolio should feel relieved that the game didnt get away from you. Those big early declines for the s p and dow, theyre gone. Those indexes are now both near their highs of the year back in positive territory after posting their second straight quarterly win. This the final day of q1 ended quietly. The Dow Jones Industrial<\/a> average lost 31 points to 17,685. Nasdaq rose fractionally. The s p 500 was off 4. As for the nasdaq, it remains negative for the year but by less than 3 . A thoireepointer in the Second Quarter<\/a> and the nasdaq gains all even for the year. The quarters most glittering performance, gold. Best there in 30 years. Bob pisani at the New York Stock Exchange<\/a> had a front row seat to all the action this quarter. Reporter the conveyor ended on a quiet note but there were plenty of fireworks along the way. The s p ended essentially flat for the quarter. But not before a roughly 10 decline from the 1st of january to midfebruary on concerns about a recession. That never materialized but it gave everyone a scare. One factor driving the turnaround in stocks was a weaker dollar and large gains in oil which boosted commodities across the board. Metals and mining stocks, for example, are up 39 this year. And golds up 16 , its biggest quarterly gain in 30 years. The news was not rosy for the biotech sector. The nasdaq biotech epf, a basket of stocks, down 23 year to date. Many of the biggest names seeing a slowdown in sales and earnings after years of torrid growth. Momentum investors have been getting out. Another problem for biotech is the issue of drug pricing. Highpriced drugs have drawn the ire of many groups including congress and thats an issue highlighted for the whole valiant fiasco. Its unlikely there will be wholesale Government Intervention<\/a> in drug pricing but with the election coming up and the possibility Drug Companies<\/a> could become punching bags for politicians, many investmenters are sitting on the sidelines. Bob pisani at the New York Stock Exchange<\/a>. While biotech stood out for all the wrong reasons the opposite story fare industrials amazing alreadiry that sector went from laggard to leader with shares of big manufacturers outperforming the broader market. Raising hopes that their profits will follow. But can this industrial comeback be believed . Mike santoli takes a look. Reporter the stock market is warming to the idea of industrial revival. Shares of big american manufacture others a roll. Industrial stocks as a group up 4 year to date compared to a flat s p 500 indelks. Since industrial giant 3m reported upbeat results two months ago the sector is up 14 , more than twice the gain in the s p 500 since then. The largest, ge, climbed to an eightyear high. The question now is it simply fleeting rebound for industrials . Or is factory activity poised for an upswing . Economists see cause for optimism. A key gauge of manufacturing due friday is projected to show the first monthly expansion since last summer. Goldman sachs economists suggested manufacturing is indeed turning a corner. Pointing to higher volumes and firmer oil prices. The pullback in the u. S. Dollar has also eased pressure on american producers to sell goods. Any manufacturing rebound would likely be fragile given slowing auto sales and a possible rebound in the dollar. At least for now investors are willing to bet that the worst is over for the industrial economy. For nightly Business Report<\/a>, im mike santoli at the New York Stock Exchange<\/a>. Leaders from two of the Worlds Largest<\/a> economies, the two largest, president obama and chinese president xi jinping, pledged to cooperate on major issues including the north Korean Nuclear<\/a> threat, human rights and Cyber Security<\/a>. John harwood joins us from washington. John, welcome. Were the leaders able to narrow their differences on Cyber Security<\/a> . A topic of supreme interest to businesses. I dont know that theres evidence they narrowed differences. President obama going into the meeting said they were going to have candid discussions on those issues among others they disagree on. The main focus of trying to reach agreements today was on the nuclear issue. As part of the regular dialogue, white house aides call it hightempo engagement with the chinese, those subjects come up on a regular basis. Any breakthroughs on other issues . The nuclear one is very pressing, particularly in the korean peninsula. The two sides did say they were going to accelerate their work on climate change. This is something they cooperated on leading to that Paris Agreement<\/a> last year. They also said that on Nuclear Security<\/a>, they were going to hold annual bilateral meetings. They held one in february to talk about this issue. They discussed it again today. Theyre going to make that a regular thing. This is all part of the administrations attempt to pivot u. S. Foreign policy to asia and Nuclear Security<\/a> is of shared interest to both sides because of that volatile regime in north korea. Turning to politics, donald trump met with gop Party Leaders<\/a> in washington today. What did they discuss . This was not a meeting set up about the Donald Trumps<\/a> statement that he might not support the republican nominee if its not him. This was about the convention. We could be facing a brokered convention. Fights over delegates. Its about how that would work. Also about general election coordination. Because remember, donald trump still is the front runner in the race. He thinks hes going to be coordinating with the Republican National<\/a> committee this fall. Well see if voters give him the chance to do that. All right, john, thanks very much. John harwood in washington. Also in washington was canadian Prime Minister<\/a> justin trudeau. In an interview he was asked about his countrys economy and being the u. S. s largest trading partner, whether he would be open to renegotiating the north American Free<\/a> trade agreement which has been a contentious issue this election cycle. I think we have to understand that trade is ultimately good. Not just for our countries but for our businesses and for our workers. We know that engaging with the world in a constructive, positive way leads to good jobs and good growth. Im not worried that were going to suddenly reopen nafta or other trade deals. The challenge once you reopen it a little bit, they all tend to unravel. Its too important for both of our economies to continue to have a strong trading relationship. And a report today showed the canadian economy grew by the most in three years in january, driven by a rebound in the manufacturing sector. Latest data being interpreted as a sign the economy may be emerging from the weight of the commodity rout. Reagan National Airport<\/a> in washington, d. C. Is one of the ten airports across the country where Service Workers<\/a> set up picket lines and walked off the job today. The protesters say they are being grossly undercompensated and on the eve of the monthly jobs report tomorrow theyre demanding higher wages. Hampton pearson has our story. Reporter the protesters are workers hired by private contractors to work as wheelchair attendants, baggage handlers, and sky caps for the airlines. Many of whom earn less than 4 an hour plus tips. The 24hour strike is the first time workers at Reagan National<\/a> have tried to make the traveling public aware of their desire for higher wages and better working conditions. We get paid 2, some people get paid 3, and 6. 75. Which is not fair to us. With living costs we cannot afford to be getting paid 2, 3. We want 15, we demand to get it. Reporter help is on the wa its all part of a nationwide organizing campaign by the Service Employees<\/a> union. The strike today is part of a National Push<\/a> by airport workers standing up with other underpaid work e worke workers and to do whatever it takes to have dignity and respect on the job. Reporter minimum wage critics say the real goal is to boost union membership. For years the sciu has realized that there are segments of some of these Service Industries<\/a> that they think think of an inroad in. So fast food is one of those. I think contracted airport workers are another. Reporter for now the Major Airlines<\/a> are keeping their distance from the labor dispute. A statement from their trade association says, we continue to believe that the appropriate way to address minimum wages is at the statewide or national level. The airlines also emphasizing contingency plans, minimize the impact of todays walkout on the traveling public. For nightly Business Report<\/a>, im Hampton Pearson<\/a> in washington. Jobless claims rose for the Third Straight<\/a> week. The number of workers who applied for unemployment benefits, a proxy for layoffs across the economy, increased 11,000, the highest level since the end of january. But it is still consistent with a strengthening labor market. The governments Monthly Employment<\/a> report will be released tomorrow. Expectations are for a 213,000 person increase in nonfarm payrolls. The Unemployment Rate<\/a> forecasted to main right where its been at 4. 9 . Economists on average expect a modest rise in average hourly earnings. Despite what the job data tell us, tomorrow new research out today says that temporary and contract workers were the drivers of job growth in the labor market over the past decade. According to a New York Times<\/a> article americans using alternate Work Arrangements<\/a> rose to 9. 4 million from 2005 to 2015. Neil irwin, senior economics correspondent and author of that article, joins us now. Good to have you with us. This is a study that came from a couple of very prominent economists. Tell us what the numbers said. Yeah, the key idea is that ten years ago, 2005, only about 10 of American Workers<\/a> had these different independent contractor, freelance, oncall, different arrangements that arent a traditional job. That had risen to almost 16 by 2015. So last year. So thats a really remarkable increase in a short time. Thats a sign that the very definition of what is a job seems to be shifting beneath our feet. Of all the job growth that has taken place since the end of the recession, is most of it from people who have contracting or temporary gigs . Or not . More than 100 . Nip. 4 million is the gain in these types of alternate nontraditional jobs, independent contracting, so forth. Total job growth or total growth in employment in that same span, 9. 1 million. That means more than 100 of the jobs gained over the 20052015 period were in unconventional kinds of arrangements. Employers like this because it keeps people off the permanent payroll, but there are strong implications here arent there for benefits and all of the things that typically come with a fulltime, onpayroll job, whether its a pension, rare, or worke erers comp, oth lots of other things . We sometimes forget a job in a traditional sense is not just about the paycheck. Part of what youre getting with the job is a kind of understanding that your employer will take care of you in certain ways. Whether its sick leave if you get sick, Health Insurance<\/a>, retirement funds, workers comp, jobless benefits. So those are things that kind of protect you. Its a form of social insurance that employers provide in the modern economy. These less conventional independent contractor type of arrangements are often missing those layers of protection if youre an employee. If you work for a temporary services firm, however, sometimes you can get some of those benefits from that firm, correct . Thats right. Also the Affordable Care<\/a> act, obamacare, has changed the equation a little bit. Its made it easier if youre one of these independent contractors living from gig to gig as a freelancer, whatever it may be, you do have a pathway to get Health Insurance<\/a> thats more clear than it was a few years ago. That said theres a lot of stuff traditional employers do that youre not getting if youre running around independent. How many of these contractors are uber drivers . Not as many as people think. Theres this buzz around the gig economy or apps. Uber is the big one. This research at harvard, its actually suggested its only 0. 5 of the workforce are in these gigrelated, appdriven jobs, compared to 16 are in some kind of independent contractor arrangement. Neil, thank you very much. Fascinating story about the changing workplace. Neil irrin with the new york types. Five top female members of the u. S. Womens National Soccer<\/a> team have filed a federal complaint charging the u. S. Soccer federation with wage discrimination. The filing alleges the women earn far less than their male counterparts on the Mens National<\/a> team, despite winning on the field and higher anticipated income. According to the complaint female players earn sometimes as little as 38 of what the men earn on the national team. Still ahead, the challenges now facing an industry that is usually a strong performer even when others falter. The head of American International<\/a> group sees an opportunity to shed his company of the too big to fail designation. But following yesterdays court ruling that threw out metlife itemcally important able, aigs ceo said he would prefer to work with regulators rather than taking them to court. Ive been watching this case closely. Its obviously not over. It will get appealed. Well watch how it progresses in the higher courts. And much of the ruling is sealed. So well wait to see what emerges when that gets unsealed. Aig as you recall took a 182 billion bailout from the government when it was near collapse in 2008. That was the driving force behind the systemically important designation. Ge capital says the government should drop its too big to fail tag on it since it has significantly reduced its size. The unit filed a formal request with the Financial Stability<\/a> Oversight Council<\/a> to have the label removed. Ge capital is exiting consumer and leveraged lending and has reduced its Real Estate Debt<\/a> and equity holdings. Hindsight as they say is 20 20. Today we learned 20 years ago, General Electric<\/a> was presented with the opportunity to buy apple for just 2 billion. Today it is worth 600 billion. In an interview, former Nbc Universal<\/a> chief bob wright described what happened during a meeting with then apple ceo michael spindler. He gave the pitch in 1996 and he kind of broke down during the presentation. He was telling us that the stock is killing them, the investors were on his back, he cant get this thing rolling. The consensus in the room was, we cant. We cant do anything with this. This is way outside of our game. We were not a Silicon Valley<\/a> company or an orientation at that point. It was there was no supporters at all. That meeting occurred the year before steve jobs returned to apple and of course transformed the company. Anbang is walking away from starwood hotels. Market focus. The Chinese Insurance Company<\/a> pulled its bid for the chain citing various market conditions. Marriott and anbang have been vying to take over the hotel and resort company. Marriotts more than 13 billion takeover offer still stands. Shares of starwood fell sharply in afterhours trading on the news as you see on that graphic finishing the regular session down a tick at 83. 43. Marriott down following the news after closing off slightly at 71. 18. Mcdonalds wants to expand its presence over in asia. Within five years the fast food chain plans on adding more than 1,000 franchiseowned restaurants in its Mainland China<\/a> market and additional locations in hong kong and south korea. Mcdonalds currently has more than 2,000 companyowned restaurants in asia. Shares fell a fraction to 125. 68. Chipotle apparently wants to get into the burger business. The fast food burrito chain said it filed an application to trademark the name better burger. The company says the move into making burgers is a growth seed idea. Shares sprouted 1 . The fitness tracking Company Fitbit<\/a> has shipped 2 Million Units<\/a> of its latest devices which were launched just this month surpassing Company Sales<\/a> expectations. That news sent shares higher. Fitbit spiking 13 to 15. 15. Movato is raising its Quarterly Dividend<\/a> by 18 to 13 cents a share, lashlging a 15 million buyback program. However shares fell on weak Earnings Guidance<\/a> for the year. Movato ticked 9 lower at 27. 53. Consumer spending makes up twothirds of Economic Activity<\/a> in the United States<\/a> and despite questions about the lowerend consumer, the higherend has held up pretty well. Until now. Courtney reagan at a conference in new york city tells us why some executives are growing concerned. Reporter its an exclusive group. Typically operating in quiet secrecy. But today luxury brand executives came together at the french american luxury symposium in new york city to talk about the challenges facing the industry. Luxury is defined by a number of factors, including exclusivity, heritage, and of course price. But todays consumer and current Macro Economic<\/a> influences are challenging the industry. Participants at todays conference, Companies Like<\/a> Oscar De La Renta<\/a> and tiffany and co, most expect to see sales grow between 3 and 5 this year, even in the face of several factors that could derail growth. Tourism is particularly challenged. The price of a barrel of oil, couragely fluctuations, those two are related. Also uncertainty in the world. Whether its uncertainty about traveling due to fears of terrorism, uncertainty about a president ial election. Uncertainty is bad for our business. Reporter much like other consumer groups the categories that wealthy consumers are spending on is shifting more toward experiences. According to bane and Company Worldwide<\/a> luxury sales in hospitality outpaced overall luxury sales growth last year. Making it that much harder to convince even affluent consumers to spend money on material things. As some who know the industry well think the showcasing of luxury goods lacks excitement. I think retailers have to make their stories more interesting, have a little more vision. The brands need to be a little bolder in their confrontations with the Department Stores<\/a> about how consumers are shopping. Reporter and while high prices for true luxury items like chanel are accepted among affluent, he thinks it takes decades of history to earn that privilege. Meaning should brands prices are just too high. For nightly Business Report<\/a>, im Courtney Reagan<\/a> in new york city. And coming up, you wont believe what may be coming soon to a theater near you. Here folks is what to watch tomorrow as we reported the employment report for march is due out before the opening bell. Everybody watches that one. Auto sales for march also will be released. We will hear from the president of the cleveland fed, loretta mester, known to lean in favor of rate hibs. But only on april fools day. Thats what to watch tomorrow. Just kidding, april fools day. Daily Fantasy Sports<\/a> operators draft kings and fan duel are suspending contests on College Sports<\/a> indefinitely in all states. All contests will end after this weekends College Basketball<\/a> games. This voluntary decision is part of an agreement with the ncaa. Both of those companies, meantime, fighting numerous legal battles in the other states that argue the contests are games of chance and not of skill. Regulators are looking at the fastgrowing financial tech sector which is disrupting the Traditional Financial Services<\/a> industry. In a speech today, the comptroller of the currency said his department is considering new rules that would encourage innovation. But at the same time prevent undue risk to the financial system. The companies that have been creating more efficient Payment Systems<\/a> and lending platforms include on deck, apple, and google. A separate report from citi group says the rise of technology in the Financial Services<\/a> sector could result in a 30 decline in banking jobs across the u. S. And europe, about 2 million employees. Could potentially lose their jobs to startups. The report describes the industry as being at a Tipping Point<\/a> and it is in the early innings of a transition. The future of movie theaters has also been called into question. While total Box Office Figures<\/a> have been increased in recent years thanks to higher ticket prices, the number of tickets sold in the u. S. Has been on the decline. Thats because people have more options than ever when it comes to inHome Entertainment<\/a>. But as Julia Boorstin<\/a> reports, one theater is going to Great Lengths<\/a> to reverse that trend. Reporter this is the cutting edge of movie theaters. The threescreen panoramic theater with surround sound, called the barco escape, launching tomorrow at this regal theeter owned by aeg in downtown los angeles. There are new laser projectors, immersive surround sound speakers, the and lobby is outfitted with fastchanging highdef displays. We need to raise the bar. We need to do something that is so compelling that people put down the ipad, leave the couch, and actually go to the cinema. This is why we created barco escape. Reporter theres been an explosion of alternatives to movies, including more premium content available at home. From netflix, amazon prime, hbo and others. Theaters are grappling with the fact that the number of movie tickets sold in the United States<\/a> has declined 7 since 2009. And the threat posed by Home Entertainment<\/a> will only continue to grow. Sean parkers working on a new Company Called<\/a> Screening Room<\/a> to allow people to watch movies at home. The very day they debut in theaters. Plus nearly half of all u. S. Homes are projected to own a 4k tv by 2020. Thats why aeg, which owns and operates sports and Entertainment Venues<\/a> around the world, is investing in the most hightech experiences. This new barco escape technology joining the 4d theater here with seats that move, wind and smells piped in, which aeg says has been a huge success. If we can provide an immersive experience that theres a dema for it, people want that. Theres a young generation of moviegoers that want to be brought into the movie more. Reporter this triple screen behind me is accessible enough that moviegoers across the country will soon be able to try it out. It costs theaters just about twice what it would cost to install a regular screen. And barcos in talks with all the theater chains to roll it out to 1,000 locations in the next three to five years. So the more your living room feels like a theater the more hightech movie theaters will become. For nightly Business Report<\/a>, im Julia Boorstin<\/a> in los angeles. And that is nightly Business Report<\/a> for tonight. For sue herera and all of us at nbr, thanks for watching. Have a great evening, everybody. Well see you tomorrow. [male 1] we are on a roadtrip. [female 1] to stop off at different cities. [male 2] and talk to inspiring people. [female 1] did you have this space in mind, ever . [bob] no, not at al. I didnt have space in mind until i Start Building<\/a> it. But ive always wanted to build a fantasy world. [male 2] more and more in this conversation, im getting content with not knowing exactly where i am in my life. [male 3] i figure if youre not lost, youre not much of an explorer. [male 4] commit, and then figure it out. Because you cant get anywhere uns you commit to something. [female narrator 1] roadtrip nation would like to thank the College Board<\/a> for supporting this series. The College Board<\/a> connect to college success. [male narrator 1] this Public Television<\/a> series is supported by the university of phoenix foundation. Helping roadtrip nation build hope, discovery, and Educational Opportunities<\/a> in school communities","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia801209.us.archive.org\/13\/items\/KQEH_20160401_013000_Nightly_Business_Report\/KQEH_20160401_013000_Nightly_Business_Report.thumbs\/KQEH_20160401_013000_Nightly_Business_Report_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240624T12:35:10+00:00"}