>> b.p. will be a slightly smaller company. we've announced asset divestments between $25 and $30 billion, out of a company that has $250 billion worth of assets. >> tom: a changing of the guard at b.p., the british oil giant taps an american to lead a reorganization. >> susie: we'll ask the experts if robert dudley can fix b.p.'s mess in the gulf. you're watching "nightly business report" for tuesday, july 27. this is "nightly business report" with susie gharib and tom hudson. "nightly business report" is made possible by:

this program is made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt >> tom: good evening and thanks for watching. the new c.e.o. of b.p. said today his first priority is to "clean up the beaches" and "restore the gulf." robert dudley was named c.e.o. of the british oil giant, replacing tony hayward. as we reported last night, susie, dudley is an american and longtime b.p. insider, and the change in leadership will happen october 1. >> susie: tom, that announcement came as the embattled company reported a second-quarter loss of $17.2 billion. the massive red ink was due to the more than $32 billion b.p.

is setting aside to cover costs from oil disaster in the gulf of mexico. excluding the charge, b.p. earned $5 billion, compared to nearly $3 billion a year ago. >> tom: b.p. also announced plans to sell $30 billion of assets before 2012 to help pay bills from the spill. suzanne pratt has more on what's ahead for b.p. and its new boss. >> reporter: three months after b.p. began polluting the gulf of mexico and u.s. coastline, the company has a new leader and new strategy. the company's new chief executive, bob dudley, said change is coming, even though he's a longtime b.p. insider. >> we're going to learn a lot, and the industry's going to learn a lot, and there's no question that we will change as a company and from those learnings. >> reporter: included in those changes is an accelerated plan to raise cash by selling b.p.'s

non-core assets, or less than 10% of the company's total business. the company is guessing it will need $32 billion to cover costs and liabilities from the spill, well below some worst-case estimates of $60 billion. still, analyst cathy milostan says, by disposing of assets b.p. hopes to show investors it can pay for the mess. >> we're starting to see what i call building blocks of being able to demonstrate that there is cash that they can access to cover oil spill costs. the issue here is, there's still a good deal of uncertainty as to what the future costs could be. that uncertainty continues to dog b.p.'s stock. the shares have plummeted 36% since april 20, the day the deep horizon rig exploded in the gulf. experts say investors are still worried the company may be found grossly negligent, a decision that would sharply up liability costs for years to come. analyst fadel gheit, who owns

shares in b.p., says, assuming it avoids that legal quagmire, the company can win back shareholders by bringing back its once-hefty dividend. >> and now, b.p. has to restore dividend. and, the sooner they restore the dividend, in my view, the sooner they will restore investor confidence and the stock will move much higher. >> reporter: others say the company also needs to repair its much-tarnished image before customers and investors are going to want to do business again. crisis management expert richard torrenzano says that tall task begins and ends with b.p.'s new leadership. >> what he really needs to do now is, not only show he's managing the company financially and operationally, but, he has to look forward and say see "gee there are things we should be doing in monitoring this situation and seeing if it doesn't work, here are some other options we have, and oh, by the way, we're going to look at all our operations globally. >> reporter: just as cleaning up the massive spill is a process,

experts say so is salvaging the company and its reputation. by most estimates, it will take years for b.p. to regain the trust of customers, investors suzanne pratt, "nightly business report," new york. >> susie: while b.p. was focused on its reorganization, washington lawmakers focused on the b.p. disaster's effect on the tourism industry. the u.s. travel association told the house energy and commerce subcommittee that gulf communities will lose nearly $23 billion in revenues over the next three years. the group wants b.p. to earmark half a billion dollars to promote tourism, and it wants kenneth feinberg to oversee that money. feinberg's already running b.p.'s $20 billion compensation fund, he says figuring out tourism-related damage claims won't be easy. >> proximity is going to be the problem. how far from the beach does a

steakhouse that's lost 30% of its business... what constitutes an eligible tourism claim?" >> susie: and it doesn't appear the tourism situation on the gulf coast is improving. when n.b.r.'s jeff yastine visited the region last month, tourism boosters in places like panama city, florida were still hoping for the best. now, one resort operator told him the outlook for august is "grim," and that visitors who do decide to come usually book at the last moment, demanding deep discounts. >> tom: here are the stories in tonight's n.b.r. newswheel: fresh worries about the consumer had stocks little changed. the dow rose 12 points, the nasdaq fell eight points and the s&p 500 was off a point. volume direction, compared to yesterday, was split.

big board volume rose while the pace of trading on nasdaq fell. the conference board's consumer confidence index fell again this month, hitting its lowest level since february. it raises new concerns about spending in the rest of the year. the research group also said its expectations for economic activity over the next six months tumbled on worries about the job market. meantime, a slight uptick in home prices. the s&p case shiller home price index rose 1.3% in may from april's levels. s&p downplayed the gain, saying since reaching a low in april 2009, home prices appear to have stabilized without a sustainable recovery. and with financial reform in the rearview mirror, the administration is moving on to fannie mae and freddie mac. the treasury will hold a strategy session august 17 to figure out what to do with the mortgage giants and their bloated balance sheets. so far, taxpayers have spent $145 billion stabilizing fannie and freddie.

>> tom: still ahead, will apple's success rub off on its business partners? tonight's "word on the street" has three under-the-radar stocks tied to the iphone maker. >> susie: as we mentioned, b.p.'s new c.e.o. says cleaning up the gulf is at the top of his agenda, and congress wants make sure that happens. today, senate majority leader harry reid rolled out new legislation requiring the oil giant to clean up its mess and pay for damages. it's all part of a much-smaller- than-expected energy bill that leaves producers of clean energy out in the cold. darren gersh has more. >> reporter: the president called the slimmed-down energy bill working its way through the senate "a first step," and he vowed to continue pushing for a broader bill addressing climate change and renewable energy. >> we cant stand by as we let china race ahead to create the clean energy jobs and industries of the future. we should be developing those renewable energy sources, and creating those high-wage, high- skill jobs, right here in the united states of america.

>> reporter: but renewable energy producers say the u.s. is already falling behind the rest of the world. new installations of wind turbines are down 70% from last year's level. the senate energy bill does not include the kind of national renewable energy standard that is in place in europe and china. american wind energy association c.e.o. denise bode says, without that requirement, investors are beginning to doubt the u.s. commitment to renewables >> a lot of the investors are looking and saying "should i invest here, shall i invest in the european union, shall i invest in china?" and so what they have done is pull back. >> reporter: solar energy producers are also disappointed. industry lobbyist dan adamson is pushing to modify the bill to extend tax credits and a treasury-run stimulus program for new projects. >> there's thousands and thousands of megawatts, hundreds of power facilities all over the country being built right now because of the treasury grant

program. we want to see that extended. >> reporter: the main focus of the bill is oil-- cleaning it up when it spills and paying for the damages. the senate bill requires oil companies to develop new technology to clean up and prevent spills. it increases the oil spill liability trust fund to $5 billion, and lifts the current $75 million limit on economic damages for oil spills, leaving offshore facilities responsible for unlimited damages. independent oil producers own most of the leases in the gulf of mexico and dan knaats says the industry can't operate facing an unlimited liability. >> it's going to impact the economy and jobs in the gulf. moratorium. and, second of all, it will drive those producers out of the gulf. either they will go to other parts of the world to produce, or simply shut down. >> reporter: one big winner in the senate energy bill: construction workers.

it includes $5 billion for home energy efficiency upgrades under a program nicknamed cash for caulkers. darren gersh, "nightly business report," washington. >> tom: as lawmakers hammer out new energy legislation, general motors finally put a price tag on its long-awaited gas and electric car. the chevrolet volt will start at $41,000, but many customers will qualify for a $7,500 federal tax rebate. the volt can also be leased for about $350 a month. g.m. says it goes 40 miles on battery power alone, then uses gas to power an electric generator for another 300 miles. general motors began taking orders for the car today on its website. tony disalle, the volt's marketing director, expects the car to electrify the automotive industry. >> the reason why we're so confident about it is that a customer can buy a volt, drive gas and emissions free, save on average-- per our calculations-- about 500 gallons of fuel per

year versus a gas-powered only 30-mile-per-gallon vehicle, and not have to sacrifice their day- to-day lifestyle. >> tom: disalle was likely talking about the other electric car, the nissan leaf. unlike the volt, it does not have a gas engine. the leaf will go up to 100 miles on a charge. nissan said today 17,000 people have placed orders so far in the u.s. deliveries start in december.

interesting trade nonetheless. consumer stocks really weaker while investors were looking for safety. let's begin with consumer disrediscretionary stocks falling. office depot seeing a flat year. the utility stocks were pretty strong, staging a bit of a breakout. with the rally with this utility, e.t.f. s fund is now behind its springtime level, and less than a dollar away from its brand new 52-week high. u.s. steel results missed estimates, not including a big impact from a rising dollar. with that rising dollar figured in, profits

vanished entirely. it warns the u.s. and european economies will be a drag during the current quarter. shares fell 7% on that outlook, and the stock has lost a third of its value since its april high. shares have not been able to stay above $15 a share since back in mid-may. it turned around its finances from a year ago, blowing away estimates with higher sales and higher prices. but it warned that prices likely will drop this quarter. one stand out among basic materials, dupont, the leading gainer for the dow jones industrials. the become line, 23 cents. higher revenues, better volumes, and higher selling prices provided the profit jump. dupont has had a remarkable performance, and the dow remains below the market high. one bright spot in technology meantime, printer company lexmark. demand continued to pop for the firm. it calls the quarter

significantly better than predicted, and clearly better than the street expected. lexmarx's outlook stronger than anticipated, helping the 8% rally. the investors have had a couple of sessions to consider the european bank stress tests. now they're getting a look at some european bank earnings. swiss bank u.b.s. continued to stabilize, shares jumping almost 9%. deutsche bank of germany, up almost 3%. it set aside less money to cover bad loans. and lloyds bank rallied at new banking rules are spected to be more lenient than first feared. u.s. banks from different parts of the country turned in their results. regions bank in the southeast. share prices up after taking a number of issues. a loss after putting money away to settle accounting problems. the oil spill will cost up to $100 million.

the chicago based private bank reported a smaller than feared loss. energy stocks couldn't find much energy ahead of coconoco-phillips. gasoline refiner valer or off 1%, and it turned around a year's worth of losses to become profitable. and a new 52-week low after disappointing results. after the close this evening, railroad northern southern was able to increase its dividend and stock market buyback plan.

with the street.com, ranging from mutual funds and e.t.f.s. we call it "word on the street," and tonight's word is apple. it's the hottest tech company there is, but you may not have to buy apple to take a bite of its success. joining us now from the nasdaq, james rogers. he's a reporter at thestreet.com. >> thank you for having me. >> tom: how profitable is it for these companies to provide parts or services for apple's iphone or ipad? >> i think it is an absolutely huge deal for these companies. apple is something of a modern phenomenon, with regard to consumer technology. but of the problem in working out who is working with apple, apple seems to have its suppliers locked into this almost murderous code of silence. basic many we have to break open the latest iphones and ipods to

see who is actually in there. >> there is a lot of reverse engineering that happens with this product launches with the iphone and ipad. how can investors be sure that an investment is in fact an apple supplier? >> it is tough, you know. as you move forward, apple is notoriously secret. and like a lot of major technology builders, it will change its suppliers. outside of the prototypes, it is a really, really tough call. i would say as we get closer to apple launches, some of this information tends to get to websites and to the street.com. so investors need to be checking those sources to find out what is coming next. >> tom: you have been checking with those sources, and you found three players inside apple products. beginning with sky works solutions, none for making chips for cell phones. the stock close to $19 a share. clearly has had a nice rally in the last 12 months. >> yeah, it has been a good, good story for sky

works. what they do -- they basically provide pier amplifiers for the ipod and the iphone. nobody is saying this technology is sexy, but it is very, very important for apple. the company put out good reports, and i feel quite positive on this stuff. i would urge investors to use a little caution and wait for a little bit of a pullback. >> tom: you spoke about some results you've seen from sky works, and sirius logic has had had phenomenal rise, and one in the last week or so has announced very positive results? >> yeah, there is a lot of attention focused on sirius. the stock has been on it's own this year. not just in terms of apple, but when i was looking at the most recent results, they're doing a lot of work with other providers as well. they're getting into areas like green technology, and this is something i think is common with a lot of the stocks we talk about

thiin this feature. as soon as you get involved with apple, you get involved in other areas. i think it is still quite the compelling story moving forward. >> tom: the final one is omni vision. it is a long time semiconductor provider for cameras. known for imaging processing, and one that has a phenomenal price stock rise? >> yeah. we've heard so much about this new camera, and we can basically thank omni vision for that one. in terms of the company's future performance, the stock has really been on the rise. investors really need to be aware of that. and there are other things that could move the needle forward. apple is talking a lot about its international role out for the iphone 4, which is going to happen during the coming months. i think that could have an impact on omni vision as we move forward. >> tom: james, any disclosures, any ownership

on these three stocks? >> no, none whatsoever. >> tom: we appreciate james being here. he is a report for the street.com. >> susie: here's what we're watching for tomorrow. quarterly results from boeing, conoco phillips, hess, sprint- nextel and visa. we'll see durable goods orders for june, and the fed releases its july beige book survey. also, tomorrow's street critique looks at how moves in the value of the dollar affect profits at multinational companies. our guest is wolfgang koester, ceo of fireapps. >> susie: general electric will pay $23.5 million to settle charges it gave illegal kickbacks to saddam hussein's government. the s.e.c. says, from 2000-to- 2003, g.e. paid the iraqi government in cash, computer equipment, medical supplies and services. in exchange, the conglomerate won valuable supply contracts under the united nations' oil for food program. in settling the charges, g.e. did not admit or deny wrongdoing. >> tom: now that financial

regulatory reform is law, the s.e.c. is getting down to business, writing 100 new rules tied to the new law, and you may be able to help. chairman mary schapiro is asking for what she calls good faith input from both business and the public, even though that isn't required by law. the new rules will cover everything from over-the-counter derivatives to credit rating agencies and hedge funds.

>> susie: finding value in the overhaul of the nation's financial rule book. it's not easy, but it's there. here's tonight's commentator, justin fox, editorial director at the "harvard business review." >> the dodd-frank wall street reform and consumer protection act that president obama signed into law last week is 848 pages long. that's shorter than some earlier versions of the legislation, but mainly just because this time they used really small type. the new law is a monument to the bloated ways of modern washington. in 1933, congress transformed wall street with the 37-page glass-steagall act. today's lawmakers went on for 23 times as long to achieve what is likely to be a far less dramatic result. so, when a skeptic asked me the other day to name one good thing in the new law, i initially threw up my hands. then i reconsidered. sure, the dodd-frank act is flawed, but so was the state of affairs that preceded it. and there are at least three

aspects of the law that could make things better. first, the bureau of consumer financial protection. it's a watered-down version of the agency originally proposed by the obama administration, and its certainly not going to put an end to financial flimflammery. but the bureau will command resources that individual consumers cant muster and follow priorities that differ from those of banks and their current regulators. that's a healthy development. then there's the new resolution authority for winding down troubled financial institutions other than banks. you know, like lehman brothers and a.i.g. it's far from perfect, but it's a lot better than what we had in the fall of 2008. finally, there are rules that will force most derivatives into the open, on exchanges and in clearinghouses. that's likely to make the derivatives business less profitable for banks, and less dangerous for the rest of us. i'm justin fox. >> susie: it was a day at the beach here at the new york stock exchange. the jersey shore's "snooki" and mike "the situation" sorrentino brought their tans and big hair to wall street. nicole "snooki" polizzi gave traders a thumbs up before

ringing the opening bell, while her m.t.v. cast mates pumped their fists in the air. almost five million viewers watched the show's first season finale back in january. jersey shore's second season premieres thursday night. >> tom: and tom, as you can imagine, it was a bit of a "situation" here on the floor, with lots of traders snapping pictures of the cast that's famous for being famous. clearly no better illustration that they clearly have arrived on the scene. >> that's "nightly business report" for stiew.d, july 27th, i'm susie gharib, have a good night. >> tom: have a great evening, susie. i'm tom hudson. thank you for joining us. we hope to see you right back here torment. tomorrow night chargers "nightly business report" is made possible by:

this program was made possible by contributions to your pbs station from viewers like you. thank you. captioning sponsored by wpbt captioned by media access group at wgbh access.wgbh.org >> more information about investing is available in "nightly business report's" video "how wall street works". to order this dvd, call 1-800- play-pbs or visit online at shoppbs.org.