captioning sponsored by wpbt >> susie: greece's prime minister sends shock signals around the world by putting his country's cost-cutting up for a vote. >> i think it seems as if the greece news has thrown a monkey wrench into the negotiation process. >> get rid of all of the loopholes and >> tom: and at home, republicans presidential candidates lay out their plans for fixing the economy. it's "nightly business report" for tuesday, november 1. this is "nightly business report" with susie gharib and tom hudson "nightly ss

this program is made possible by contributions to your pbs station from viewers like you. thank you. >> tom: good evening, everyone, and thanks for joining us. i am reporting tonight from iowa where today i talked with several g.o.p. presidential candidates about ways to fix the u.s. economy, susie. >> susie: well, tom, here on wall street, the focus was greece. turmoil there triggered sharp sell-offs in stock markets around the world and another steep dive for the dow. greece's prime minister stunned global investors and his european partners, announcing he would hold a public vote on a new aid package. >> tom: that announcement raised questions and fears as to

whether europe would be able to resolve its financial crisis. on wall street, here in the u.s., the major averages lost 2.5% or more. the dow tumbled almost 300 points, the nasdaq lost 77, and the s&p 500 off 35. in europe, german stocks plunged 5%; in france, down nearly 5.5%; and in britain, markets there fell more than 2%. >> susie: the leaders of the g- 20, or the world's largest economies, meet thursday in france to finalize a rescue plan for greece and the euro-zone. but as suzanne pratt reports, investors are disappointed that november got off to a bad start. >> reporter: at this td ameritrade office in midtown manhattan, it was hard to tell today was the start of the stock market's bullish season. not only was it quiet, but few customers were buying stocks despite the bargain prices. manager jeff goldberg says most investors don't pay attention to stock market seasonality, but

plenty watch headlines. >> the news doesn't stop, the news out of europe doesn't stop, the news out of washington doesn't stop, and this is all driving the market. so, to think that there is a disconnect there or a time when investors can be complacent is wrong. >> reporter: no one really knows why stocks historically do best during the november through april period. some experts believe it's because bonuses get paid and invested at yearend. but there are concerns we won't see gains in stocks in the coming six months. >> the market has not advanced during every observation since world war ii, and certainly if the problems do not resolve themselves sooner rather later in europe, then that could definitely hold back price appreciation, in my opinion. >> reporter: for those investors who bought stocks in november and held them through april, it's been a good move, at least in the past. in the last 50 years, the s&p 500 has gained on average nearly

7% in the period. that compares to a minuscule 1% gain in may through october, and resulting in the adage "sell in may and go away." history is, of course, no guarantee of future performance, but if there ever was a stretch to question past seasonal trends, this could be it. in addition to the fallout from europe's financial mess, the stock market is likely to battle an unimpressive u.s. economy in the coming months. nevertheless, for every ten nervous nellies, there's at least one investor who still believes. >> i have a lot of faith and optimism about our country, about the european union, about the long-term political stability that will emerge from all this. >> reporter: suzanne pratt, "nightly business report," new york. >> tom: the fourth quarter is off to a slow start for u.s. manufacturers, but activity may pick up before the end of the year. the institute of supply management's index fell slightly in october from september, but any reading over 50 represents

a growing manufacturing sector. manufacturing and the economy was the focus of a discussion i hosted today with five of the republican presidential candidates in pella, iowa, a discussion dominated by talk of lower taxes and more trade opportunities. >> now, i want to talk about my jobs plan first, about getting americans back to work on the energy side of things without having to go to congress without asking anything. >> tom: texas governor rick perry pointing to energy exploration in north dakota, pennsylvania and texas as examples of creating jobs and encouraging domestic energy production. those energy jobs need highly skilled workers, which are in short supply according to some. former pennsylvania senator rick santorum is among those candidates endorsing the end of u.s. corporate taxes on profits companies make overseas. >> if you repatriate profits-- and there's estimated that there's $1.5 trillion potentially sitting in overseas accounts in profits-- you bring those back and you invest them in plants and equipment in america, and you pay zero. you pay nothing.

>> tom: minnesota representative michele bachmann echoed the idea, but without limiting how companies use that cash when it comes back to america. >> i support zeroing out the repatriation. if we would zero that out, because profits are stimulus, that's the true stimulus. so we want to bring that $1.2 trillion overseas here to the united states. >> tom: and would companies be able to use that money for any purpose they see fit? >> without a doubt, it's their money. they should. >> tom: texas congressman ron paul blames reckless federal reserve policies for weakening the u.s. dollar and hurting u.s. job growth. on the eve of a news conference by federal reserve chairman ben bernanke, what do you want to hear from bernanke tomorrow? >> that he was resigning. ( laughter and applause ) that he's going to throw in the towel and say, "i'm very sorry, keyseian economics and price controls on money really don't work and everything we've done in the past couple of years

really hasn't solved our problems." >> tom: one of the two mandates the federal reserve is required to work toward is full employment. about half of unemployed americans have gone at least six months without a job, a record number of long term unemployed. former house speaker newt gingrich wants to use that time to retrain american workers. >> and you say, "if you need unemployment compensation fine, then you have to sign up for a business-offered job training program." if you had 99 weeks of unemployment, that's an associates degree. in 99 weeks, you can train virtually anybody. you establish the principle "we do not give people money for doing nothing." >> tom: while election day is one year away still, caucuses here in iowa are held in just two months. >> susie: another big sales month for chrysler: it led the big automakers in october. thanks to strong sales of its fiat 500 and its jeep brand, chrysler posted a 27% gain in sales. at ford, sales rose 6%. but general motors was way behind; its sales edged up only 1.5%.

as for the big japanese automakers, toyota continues its bumpy comeback from the spring's earthquake-related supply chain issues. its sales fell almost 7%. but toyota says it hopes to exceed year-ago sales levels in the u.s. during the fourth quarter. already, for toyota and other auto companies, showroom foot traffic is picking up speed. as diane eastabrook reports, its the result of new products and pent-up demand. >> the interior is absolutely fabulous. >> reporter: for toyota dealer kurt schiele the new redesigned camry, which sports a high-tech multimedia system, is the best thing to happen to his dealership in awhile. last spring's earthquake and tsunami in japan left many japanese auto dealers scrambling for inventory just as consumer demand for new vehicles started improving. schiele was down to one 2011 camry when the new models rolled onto his lot a couple of weeks ago. >> the problem was, if someone was very particular-- "i'm looking for a silver sedan with

x-gas mileage, whatnot, a toyota"-- it was harder find. but we would find the cars and do the trades and find people the vehicle they were looking for. >> reporter: u.s. auto sales seem to be back on track again after japan's disaster threw a monkey wrench into vehicle supplies and sales last summer. analysts say new products and pent-up demand are behind october sales. u.s. consumers have been delaying purchases, driving vehicles that are now an average 11 years old. there's also a shortage of used cars and light trucks with low mileage. morningstar auto analyst david whiston says if you're lucky enough to find one, it might be too expensive. >> so that is going to get consumers at a tipping point where more and more will say it's not worth it to buy used. "i can spend just a little bit more and buy a new car," or, in some cases, the used car costs more than the new. so you're better off buying new. >> reporter: whiston thinks the tailwinds for sales are the strongest he's seen in years, but there are potential potholes. recent flooding in thailand threatens supplies of some

parts, and the weak economy is spooking some economists. still, u.s. auto sales are expected to top 12.5 million units this year. that's a million more than last year. some analysts, including morningstar's whiston, think u.s. auto sales could reach close to 14 million units next year, barring any supply shortages. diane eastabrook, "nightly business report," elmhust, illinois. >> tom: starbucks is putting up $5 million, hoping to brew up more jobs in america. the coffee company has teamed up with the opportunity finance network. the venture is called "let's create jobs for u.s.a." here's how it works: donations are accepted online and at starbucks locations. for a $5 donation, customers get a red, white and blue wristband with the word "indivisible" on it. starbucks chairman howard schultz says, with unemployment in double digits, it was time to act. >> even though we're a corporation, and we're not a political organization with

stublt and respect let's make a statement we can make a >> tom: 100% of donations go to the opportunity finance network. it consists of 180 community development financial institutions which lend to many organizations, including small businesses. the network says, for every $5 donated, it will be able to lend $35. the idea is that if small businesses have capital, they will hire. >> susie: for all of human history, energy has come in one basic form: fire. for engineers like amory lovins, energy means opportunity. lovins was named as one of "time" magazine's most influential people in 2009. as we continue our series, "how to fix the economy," darren gersh talked with lovins about his thoughts on reinventing fire, and how energy innovation could spark an economic recovery. >> three quarters of the nation's electricity is used in buildings. to a engineer and entrepreneur lime amory lovins that's a huge

opportunity. he says more efficient buildings will save the country $2 billion. >> the savings are four times what they cost. internal rate of return is 33 percent. you get side effects like heathier prochymal duck tiff people in the buildings but we don't count that. in industry we don't do quite as well. we can only double in industry. >> another economic opportunity. weaning cars off oil saves $4 trillion. lovins says that's not dreaming that's engineering. >> what we found was quite startling. you could run a 2.6s -- >> yes bigger than 2010, no oil, no coal, no nuclear energy, a third less nuclear gas, five trillion dollars cheaper in the present value. then business as usual.

the transmission requiring no new inventions, no act of congress and lead fo by business for profit. it's easier than not doing it. >> one of the central insights of your book is that industry and everybody can basically use energy better and more efficiently if they stop looking at things piece by piece and look at the entire system of how people use energy. explain that, how does that work. >> credit the empire state building for example. with some partners we have cut the energy use by more than two fifths with a retrofit. it was a difficult old building. by remanufacturing the 6.5000 windows on-site to super windows perfect for letting in light without heat and fixing up lights and office equipment we cut the peek cooling load by a third.

instead of digging up fifth avenue we renovate in place and reduce the old chillers. that saves over $17 million which helps pay for everything ells. pay back is three years. that's optimizing the building as a system not the window as a component. >> lovins says a quiet revolution is fixing the u.s. economy. making it energ efficient and creating jobs. one drive is making cars with advance materials. light weight cars are easier to power with shawler electric motors. >> in the auto business it's the key to stunning competitive advantage. you can activate steep learning curves that reinforce each other. carbon fiber, structural manufacturing, and the power train. it's like going from type writers to computers. >> amory lovins.

>> susie: you can see the complete interview on our web site: www.pbs.org/nbr. you'll also find all the market data from the program, as well as our reporter packages and other interviews. >> tom: m.f. global, the now- bankrupt securities firm led by former goldman sachs executive jon corzine, violated crucial wall street regulations by failing to keep customer money separate from company money. an m.f. global executive admitted as much, according to published reports. it isn't clear whether the violations could lead to criminal charges. separately, the head of the chicago mercantile exchange and commodities futures trading commission are investigating millions of dollars in missing money. it's just the latest bad news for new york-based m.f. global. yesterday, it filed for the eighth largest bankruptcy in u.s. history. >> susie: a change of heart from bank of america today. it is abandoning plans to charge customers a monthly $5 fee to use their debit cards. the bank announced the fee a month ago, and the negative backlash was immediate. rivals j.p. morgan and wells fargo recently decided against similar charges. card issuers must now find other

ways to replace revenue lost after the regulators capped fees on debit card transactions last month at about half the previous level. that's good news for consumers, but not for investors, tom. the bank stocks were down again today. >> tom: ya, far from it another rough day. november off to a tough start after a difficult halloween. let's get to it with tonight's market focus. stocks took another beating today, extending the sell-off for the second straight session. while the month of october was big, the s&p 500 has seen some stiff selling over the past two sessions. today's almost 3% drop erases gains the index saw in the final week and a half of october. the selling again today was led by finance stocks on those greek worries that we told you about earlier. the financial sector shed almo 5%.

then we also saw selling in the economically sensitive areas of energy and industrial stocks. each of those sectors lost more than 3%. among the leading losers in the finance sector was futures exchange c.m.e. group. shares sank more than 8%, falling to its lowest price in about a month. while earnings jumped, the market is worried about the what the bankruptcy of derivatives trader big c.m.e. customer m.f. global may mean. life insurance stocks also weighed on finance. the "wall street journal" reports state insurance regulators are concerned some large life insurers may have made mistakes on how much cash they have for certain claims. genworth financial, lincoln national and protective life have acknowledged using the questionable formulas. those three stocks each fell by at least 5%. only one dow jones industrial component ended the session in the green: drug maker pfizer. the market bought after better than expected quarterly results.

pfizer reported 62 cents per share, six cents over wall street estimates. the company also boosted its full-year forecast and increased its stock buyback plan. all that helped push pfizer shares up by a fraction, but the company faces a big headwind at the end of this month. it's best-selling cholesterol fighting medicine, lipitor, loses its patent protection. losing energy were drillers and servicers. baker hughes reported a big pop in north american earnings but had weaker margins overseas. shares of b.h.i., rowan and nabors each fell more than 7%. yahoo has been under pressure to reignite its growth. today, the company was in a buying mood. yahoo shares dropped 5% after announcing it would buy online ad company interclick. interclick shares jumped 21%, closing just below the $9 closing price.

exelixis shares plummeted 40%. the company will launch experiments for a prostate cancer treatment, but without a deal with the f.d.a. on certain guidelines. the worry is that without the okay, it reduces the treatment's chances for regulatory approval. and that's tonight's "market focus." >> susie: this year's world

series is turning out to be more than just a hit for fans. the seven-game championship is also hitting economic home runs for the cities and for major league baseball. in tonight's "beyond the scoreboard," rick horrow steps up to the plate for a look at the financial perks of the fall classic. >> reporter: after putting together an improbable post- season run, the st. louis cardinals are world series champions. since the world series went the maximum seven games, st. louis projects economic impact from the playoffs to exceed $56 million. additionally, the cardinals could earn $30 million to $50 million over the next five years in incremental ticket, merchandise and sponsorship sales just by winning the title. not bad for a team that only made the playoffs on the last day of the regular season. the good news extends beyond the team level to the league level, as well. despite ongoing economic turbulence, league-wide attendance increased 0.8% over last season to nearly 74 million people. that's the most since 2008.

thanks to sponsorship renewals from bayer, chevrolet and others, m.l.b. gross revenues are at an all-time high of $7.5 billion. now the stage is set for a wild offseason. world series hero albert pujols is a free agent and could sign the richest contract in baseball history. the florida marlins prepare to open a new ballpark, and many doubt whether fans will show up. and most significant: the leagues' collective bargaining agreement expires december 11. unlike the n.b.a. and n.f.l., m.l.b. labor negotiations are moving smoothly, thanks in large part to a stable business model. even though baseball doesn't have a salary cap, the league's revenue sharing model has created more parity than in any other sports league. hopefully, coming off the success of the world series, m.l.b. doesn't follow the same lockout paths basketball and football went down this year. i'm rick horrow. >> tom: here's what's on tap for tomorrow: quarterly earnings

from molson-coors, mastercard and news corp.; and i talk economy, employment and education with iowa governor terry branstad. his state is growing faster and has a lower unemployment rate than the nation. also tomorrow, federal reserve chairman ben bernanke holds a news conference after the central bank releases its interest rate decision. >> susie: nearly four million homeowners may have suffered improper foreclosures in 2009 and 2010. those borrowers will have a chance to request an independent review of how their foreclosure process was handled. it's part of a larger enforcement action taken against 14 large mortgage servicers last april by federal regulators. the lenders include citibank, bank of america, j.p. morgan and wells fargo. a federal investigation found some lenders rushed the process without carefully reviewing documents. >> tom: meantime, the justice department is going after allied home mortgage. the government accuses the privately held mortgage broker of fraud.

according to the complaint, nearly 36,000 of the loans allied made from 2001 to 2010 defaulted, costing the government more than $800 million in insurance claims. that's about a third of all the loans allied granted. the civil lawsuit seeks at least $2.5 billion in damages. allied hasn't commented on the suit. >> tom: we spent the day here in iowa talking about how to improve the economy and make america prosperous again.

we're not the only ones talking about it. here's tonight's commentator, todd buchholz, author of "rush: why you need and love the rat race." >> it's been a tough time for america. shares of bank of america have been hammered. american airlines teetered and tottered with bankruptcy rumors. well, at least the movie "captain america" sold a lot of tickets. but with china appearing to dominate world exports, is there any hope for america? the answer is yes. u.s. manufacturing exports have been steadily climbing for the past 40 years. china has boosted its market share but mostly by snatching business from asian neighbors like japan. think about the world's top firms. reach for an apple iphone, fly on a new boeing 787. if you have to, get an m.r.i. in a g.e. scanner. heck, even if you drive a toyota corolla, you're steering a car made in kentucky or indiana. i'm not telling you that the u.s. economy's in good shape. the job market is lousy.

but would you rather invest in europe, where the parthenon is crumbling and germans must bail out all their neighbors? japan, with a shrinking population? china, with its one-child policy? no country has been shielded from the great recession. maybe "captain america" has taken a few hits, but let's reject that cartoonish view that we face an unstoppable decline. i'm todd buchholz. >> tom: that's "nightly business report" for tuesday, november 1. i'm tom hudson. good night, everyone. and good night to you, too, susie. >> susie: good night, tom. i'm susie gharib. we hope to see all of you again tomorrow night. ossible 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