>> this is n.b.r. >> good evening. i'm tom hudson. susie is off this week. global financial regulators hold an emergency call on europe's growing debt crisis. disney said no more to junk food ads on its children programming and what it means for disney's bottom line and a view of the economy from the rails and speak with the boss of norfolk turn on nbr. financial leaders from the group of seven leading industrialized nation addressed the growing crisis in europe and tempering europe's ability to contain its problems but the g-7 did not issue a statement but the u.s. treasury did said the group

agreed to monitor ahead of the g 20s meeting in mexico june 18. after greece's election a vote could help determine whether it stays in the eurozone. the congressional budget said the u.s. debt will exceed the but several tax cuts are due to expire at the end of next year. u.s. stocks rising and an investors took a wait and see attitude and the dow in duf was. the farm bill headed to the floor. the u.s. senate and could grow billions in savings for the american taxpayer.

"nightly business report" is brought to you by: captioning sponsored by wpbt >> tom: the troubles in e5)pe certainly continue to be felt here in america. investors have piled into u.s. government bonds driving interest rates down to historic lows. it's made dividend stocks more attractive. as erike miller reports there's exposure. >> nearly half of the nation's using the euro are in recession. ireland, greece, spain, italy, cypress, the netherlands and portugal and threatens to hurt

u.s. companies doing business there. roughly 1400 of s&p revenues come from europe. >> the most affected in europe be the more cyclical company. the industrials, the material companies. they're more sensitive to the economic cycle. >> cisco, ford, honeywell get 20% of revenues from europe and pay 1.9% dividends but it's not clear the payouts are at risk. in many cases the good chunk of european sales come from germany with more stable economies and there are other factors that can help offset weakness like strong cash flow and bombing sales. >> we're not concerned about dividend paying stock for american companies. most have very strong balance sheets.

it's been well documented that cash is piling up to a very large extent. >> and there's also the matter of safe investment alternatives. the average dividend paying stock has a yield of 2.75% compared to 1.5% on ten-year treasuries and some are no overseas exposure have their own risk. >> if they want to avoid international exposure they need utilities when interest rates go higher they have so much debt. >> there are changes in the tax law that every investor should keep in mind before buying dividend paying stocks. the bush tax cuts are set to expire at the end of the year and that means the top rate on dividends will nearly triple. erika miller, nbr, new york.

>> tom: >> tom: walt disney company says so long to some junk food ads during the kids television programs. first lady, michelle obama and disney ceo bob iger announced the guidelines. it targets fast foods and sugary cereals and involves ads on tv stations targeted for children. suzanne pratt reports. >> introducing the taco.

>> reporter: you won't see these any more on the house that micky built. >> doing the right thing is the best for the company and it's businesses. >> disney is doing what no major media company has done before in the united states and what i hope every company will do going forward. >> reporter: since 2006, visitors to disney parks have had healthy food and drink options and the company says 60% of meals sold today involve those choices. the ban on junk food ads is an extension of the campaign and analysts say the move is unlikely to hurt disney much financially. >> for companies like disney it's possible they don't lose share with the likes of a kellogg but kellog kellogg kell have healthier messages. >> reporter: other companies are expected to follow their lead as child obesity rates rise and healthier eating becomes more

popular. suzanne pratt, nbr. >> tom: he's the founder of dean crutchfield with us at the nasdaq. you heard the disney ceo crawl it a smart business strategy. do you agree? >> it was a simple statement but a big move by disney i think will have huge ramifications for its business mostly i believe positive. i think this is a tremendous effort on their part and a very big surprise move whether they've leapfrogged an entire category and projected themselves to be the voice of health and wellness for children around the world. >> tom: how does that ad to the financials that disney may see post-2015 when it takes effect? >> what you'll find is other brands and corporations are going to look to create either new products, portfolios or look at what they have in their offers and look at what's better

four and work with disney to look at what those criteria are. there will be a progression and potentially modification in products given the power and momentum that this move will make it will have i am publi im for others. >> tom: we're talked about nickelodean and viacom or cartoon network. how does it impact their possible response in the years ahead? >> i think the best phrase that comes to mind is if you don't like change, you'll like irrelevance less. it seems brash for some major brands like nickelodean but we're talking about a wise and powerful plan strategy disney

has unleashed we haven't woken up to yet and made it easier for mum. it's all about making it easier for mum. she's confuse and doesn't know what to give her children and has little to afford. >> tom: are you talking with the mickey check strategy that will brand healthy food in the grocery aisle. >> i believe that's the trajectory and disney has shown it can manage assets and acquiring those it needs. here's a situation that's a new market but i believe it can pull it off. what more do you want, mum, disney a brand we all trust and now you have a character that is literally going to give you the confidence that this is good for your child. >> tom: is the role traditionally held by a

government agency quite honestly. >> i think it's the role of brands. big brands we've been requesting and michelle obama said have responsibility and consumer brands, environment brands, they have that role. they have that place and they are trying. they are trying. we know they are but in that malleaux confusion are running rampant. >> tom: thank you, sir. >> thank you, sir. >> tom: we also have this on food. the u.s. senate expected to vote on a farm bill to save that comes in way farmers are subsidizes from the government. >> reporter: for the past 16 u.s. farmers have gotten paid

whether they produced a crop or not and now cut from the 2012 farm bill. instead they'll be covered by crop insurance to compensate them if there's bad weather or market change and prices drop. economist dan bossy said it will help them manage production and risk. >> so if there is a drought and he loses 70% of his crop, the government will assure that farmer that that revenue per acre is still to the same on whatever insurance policy he decided to take out. this eliminates or should eliminate the need for the government to step in with additional subsidies. >> reporter: it will give farmers subsidies and they estimate it will save the government $11 billion over the next decade. the american farm bureau

federation supports the bill but is some say it cuts subsidies to corn, rice and other growers. >> tom: the transportation business can be an important barometer gauging consumer demand. that's negative pressured by trucking and rail road stocks and with me is the ceo of norfolk. how's demand treating you so far for railway? >> so far we're having a

reasonable time of it. we clearly have some challenges in our coal business but other na than the the rest of business looks good. >> tom: the cool weakness has been dropping in the first quarter, 27% of revenues came from coal and intermodal and general freight was going. what's the risk as coal continues to drop. >> coal demand right now is dropping primarily in our utility coal franchise. power generation in the u.s. which is a large part of the coal franchise. it's gri driven by cheap naturas and the extraordinaryly warm winter. both will eventually revert to the main in our believe at the same time we're falling a lot of

frack and pipes and chemical and even waste water up into the pennsylvania-ohio region for all the gas drilling. >> tom: the intermodal business was driven by auto mobile demand. what do you anticipate as we're seeing job growth slow down and income growth slow down and lots of concerns about the u.s. economy turning around and going negative. >> we hear those concerns and surge haven't yet seen them in the car loading. as you pointed out the automotive business is doing well and americans are buying car. that drives growth in steel, plastic and intermodal the story there to a large extend is conversion of highway traffic to the railroad where we offer

advantages in terms of fuel efficiency and sustainable. >> tom: with oil prices moving to multi-month lows do you expect to enjoy the advantage over trucking? >> we certainly do. the rail industry has something between a 3 and 4x advantage in terms of efficiency and tons mer pile per gallon of fuel. that advantage has been there for a long time. it will continue to be there >> tom: finally, i have to ask you about the share price down ten percent over the past twelve months. does the market have it wrong? >> the market will be what it is and i never say the market is wrong. i think a lot of people have focussed on the coal story and have not really looked at the rest of the business. if you look at our volume overall they were down one percent year over year first quarter and we're about that pace in the second quarter and

have a broad franchise and think investors will see that and share price will act accordingly. >> tom: the world through the front shield of a locomotive. the s&p 500 today threatened to go negative and the non-manufacturing report showed a stronger than expected may and helped improve the mood. the index finished higher and just over 1.6 trading hands on the nasdaq. financial stocks taking the lead up 1.7%. other sector gains a bit more modest, materials and technology up less than one percent each. the intercontinental led the sector or a signal for buyout

and the exchange may consider a stock buy back and was the leading percentage winne in the financial sector up 5.3% in the session. volume more than doubled last week. the stock was at a five-month low. a deal may be coming for outdoor ad advertising business. they're selling ads and they sparked interest in shares and cvs wants $6 million for the business three times the sales for the unit. michael khan has more analysis on cbs shares on the website. you'll find it under the blogs tag at nbr.com. starbucks latest deal didn't go over well. the company announced a $100 million buyout of a small chain of san francisco based company. shared fell 2.8.

after the close tonight a separate deal. this time with starbucks and coinstar opening up coffee kiosks selling coffee for one dollar and it added another 3.5% after the closing bell. rising to over $61 per share in after hours action. watch this one tomorrow. the new vending venture with starbucks expands coinstar beyond the machine and red box dvd kiosks. and today was the lates latest indication of a weakening industry. it was weaker than anticipated. shares were falling fast today off 9.7%. lowest closing price since november. volume increased almost five-fold. in worries about industrial supplies hit others and mnc almost down 5%. yesterday we had economic data

pointing to slowing factory orders.ñi our exchange traded fund mark flash the top five most actively traitedwe%úx etfs tracking fund. that's tonight's market focus. >> tom: the define issue for the election year is the economy and jobs. they blame president obama

policies and president said republicans on capitol hill have not acted quickly enough. we look at the former governor of pennsylvania and his book entitled "the nation of wusses.. do you include president only in the indictment in your book title. >> i think the president has been a non-wuss. he acted courageously with the financial bail out and pushing health care quickly when he knew he could get coverage for 31 million americans. didn't think he'd have it down the road. i think he's been basically a very strong and courageous lead in taking difficult stem steps. >> tom: some point to energy regulations for holding back energy growth. you know this as you and your administration was in power in pennsylvania as natural gas

fracking took hold. 22,000 oil and gas extraction jobs have been done in the united states. who more can be done on the federal level to continue to encourage that kind of invest. >> we have to pass an act. we should convert every mid-sized fleet to natural gas and we have to build a distribution network and that will require an incentive. you can have economic growth with decent regulations. i'm in favor of the key stone pipeline but it should be done as part of a comprehensive energy bill. a comprehensive natural gas bill not as an add-on to an education bill. let's do it the right way. >> tom: to follow up on your idea of providing and pushing

incentives to continue to encourage more natural gas production when it comes to our fleet of vehicles. what kinds of role do you think the federal government ought to play? we've seen it get in trouble in terms much trying to pick winners in solar energy. >> you don't pick specific companies but say to anybody who wants to build a natural gas distribution center give them a tax incentive depending on how big the station has and what they're doing. you give incentives to converting fleets to natural gas and ow open and available to everyone. we can't discount wind and solar they're important to the future but have to make the production tax credit permanent. there are things we can do without picking winners and losers in certain companies but to spur growth in different

forms of homegrown american energy. >> tom: the tax credit runs out this year. the book, a nation of wusses. >> thanks. >> tomorrow jobs and the presidential election and the key swing state of virginia. >> tom: join us tomorrow for that and that's nbr tuesday june 5. these time of year your public television station seeks your support to make shows like nbr possible. thank you for supporting your local station. good night and see you back here tomorrow evening. "nightly business report" is brought to you by:

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