this is "nightly business report." fuelling the firestorm the white house unveils an ambitious plan to slash power plant solutions. the controversial new regulations could have a big impact on companies and consumers. in the spotlight, apple unveils new features for its 60 product, iphones, ipads and macs, but were investors proud neighborhood, showing promise, investigating the new cancer treatments and the companies getting to work them to market. we have all that and more tonight on "nightly business report" for monday, june 2nd. >> good evening, welcome. not everyone believes in global warming or climate change, if it exists, is largely caused by humans. but the obama administration,

like most scientists is not among the skeptics. today the white house and the environment am protection agency proposed game changing rules aimed at slashing carbon diamondbacks island emissions from power plants over the next 15 years. the proposed limits are sure to have a far-reaching impact on companies and communities that generate power using coal, which is the electrical power sector's single biggest source of carbon dioxide emission. so what do the emission targets mean for the coal producers, for the utilities that burn it and states where it's the cornerstone of the economy and will it mean higher utility bills for electricity consumers like you. morgan bren fan takes a look. in a controversial move, the epa is proposing a sweeping new regulations to dramatically cut carbon dioxide emissions. it's the crux of the climate emissions and one that would impact consumers.

bp is using its administrative authority to bypass congress, after similar rules failed to pass several years ago. the plan would slash power plant emissions 30% from 2005 levels through 2030. the space would create plans to oversee the cuts, pushing companies to adopt more alternative energy and recent cap and trail programs to sell unused allowances. the electric industry is the biggest producer of c 02 in the u.s., coal power plants produce roughly 80% of the industry's total. >> the writing is on the wall for coal fired generation that has to bear the brunt of these cuts, the beneficiaries will be in the volume output the natural gas fire generators. >> non-profits recently found a handful of companies accounted for the most emissions. american electric power, duke energy, southern company nrg and tennessee valley authority together produced a quarter of the electric sector's c 02 as

they shipped a i what way from coal, miners, alpha natural resources and peabody energy could also feel the pressure. but utilities already using other energy sources, companies like cal pine, exelon and nrg are better positioned plus the natural gas producers that will provide the fuel and random solar companies. coal has typically been the least expensive. >> the epa estimates you will probably see a rate increase of something like 7 or 8% but that bills will go down and that reflects their belief that a large portion of these emissions cuts will be achieved through energy efficiency gains, ie, consumption. >> they predict electric bills could go down 8%. they estimate it could cost consumers an additional $289 billion in 2030 as companies

move away from coal and whack up expenses sure to be passed on to end users. the proposal is expected to be a rule next summer, but it faces opposition from politicians facing mid-term elections and businesses, expected to file lawsuits. for "nightly business report," i'm morroccan brennan. andrew freedman joins us now to talk more about why the new climate rules are so important. he's the principal at the washington update. andy, based on our reporting there, there is no question this is a very controversial issue, but aside from that, will this new rule solve the problem? >> well, i think that's a great question, susie. if you believe climate clang is an issue, then you need to cut greenhouse gas emissionles. all the does, it's really all the administration could do is cut emissions from power plants, which is about 40% of total carbon emissions. of course, it doesn't address what happens overseas. we don't have fences at our borders that keep our air here. at some point, our cleaner air

ends up over in china and their dirtier air ends up here. it's a start, whether it does enough i think is opened to question. >> andy, what are the other sources of co 12 emissions and why can't the administration adjust those of blumpbting perhaps the criticisms from some people this seems selective and aimed particularly at coal and coal fired plants? >> well, the administration was a little tied up here. you know, you have things like trucks, buses, other types of manufacturing that emit car bonne. the administration had hoped early in the obama years to get a proposal through congress, of broad cap and trade proposal that would have allowed it to address everything, but the republicans didn't want that. so they're left only with the clean air act of 1970. that's kind of an antiquated act. >> that could be aimed at power plants. that's all they could do here. they did as much as they could without congressional approval. >> the other thing i want to get your views on is critics say

that this new, these new rules will cost hundreds of thousands of jobs, that consumers will have to pay higher electricity bills and we can expect more power outages. a report suggests the opposite, actually, the electricity costs will come down. it will increase energy efficiency. who's right? >> well, i think you are comparing apples and oranges here, susie. if your goal is to clean up environment for future generations, then that's a goal. but that's not, that is going to be ain't thetic am by keeping jobs low. common sense, you will see coal producers have as to retool, pay new taxes, have to use other energy sources and that means they will have higher costs. when you have higher costs, you hire fewer people. you don't use as much raw materials and you raise prices. now, that doesn't mean it's wrong. it means you have to choose between helping the economy and worrying about climate change. i think putting one in terms of the other doesn't work. there is no reasonable answer to

that question. either side can differ, but you can't say it's going to create jobs or lower costs. it seems to me it's obvious it's going to have an ad verse effect on the economy, but maybe that's worth it, if you are worried about climate change. >> let's talk a little about the political implications of this move, even some democrats from coal producing states like congressman rahal from west virginia are very unhappy with this proposal. how bag political issue is this potentially in the mid-term elections? >> well, it's like the keystone pipeline, timer. again, the people from the senators running in alaska and in louisiana were not happy with putting off if keystone pipeline decision. because they want it. they're an energy producing state. it makes their re-election more difficult. i think this has some of the same issues in west virginia. we will probably see the senators from west virginia switch from democrat for the republican and that doesn't help the case there. i think it just makes it more complex and i certainly think

that they would have preferred if this had to come out now, push off the date when comments could come through until after the election. right now, we were supposed to wind this up before the election. >> in a word or two, any chance this does become law? >> does it become law? there is going to be a lot of challenges, for instance the clean air act allows the administration to go at power plants by power plant. it doesn't allow necessarily this state wide type of solution. so it's going to be a lot of challenges. then will you have congressional challenges. it's, we don't know the end here yet. that's for sure. >> to be continued. thank you is much, andy, andrew freedman at the washington update. the major averages gained just enough for fresh records on the dow and s&p 500 to check off a new trading month. stocks were initially lowered after the manufacturing index for may were lower than expected. but after a software error was defected. the measure was revised higher

than even after it was changed a second time. here's how things looked when all was said and done. the dow added twoics to finish at a new record high t. nasdaq went down 5, s&p up 1. still good enough for a good time closing high. investors were encouraged about hearing a positive outlook on what's next for interest rates from chicago federal reserve bank president. speaking at a conference in turkey, charles evans says the increase in u.s. interest rates will depend on the outlook for inflation which is well below the fed's 2% target. so a rate hike might not come until next year or maybe not until the year 2016. this is the day, a day a lot of investors and techies have been waiting for. today marks the start of apple's world wide developer's conference, where company engineers and execs welcome thousands of code writers and entrepreneurs for updates on apple's software, updating mobile apps available to users. we have more from the big event

in san francisco. >> reporter: it's a familiar sight, lines of people gathering early, hoping to get a glimpse of apple's latest products. it wasn't the latest iphone or ipad that got these apple fans revved up. instead, introducing its latest mac operating system yosemite. >> they set off on what was a more fortuitous task. it took them to a place that embodied the beauty and power of os-10. we discovered os-10, yosemite. >> reporter: the goal, make an eco system that's more integrated, allowing apple devices to communicate seamlessly with each other. something they deteriorated for the crowd when he calls dr. dre the newest apple employee after last week's beat acquisition. on stage from his mac computer. >> is craig there? >> hey, how are you doing? this is dre. >> reporter: the other big

announcement. the mobile operating system ios-8. it will allow programmers create apps aimed at home automation. but the news didn't go over well with investors. shares fell slightly on the announcement, many saying apple's success built on its devices. >> software is a key component because of the stickiness of the apple ecosystem burks in our view, it's not the overall driver of the pnl. >> reporter: most agree it won't be enough to send customers flocking to apple's stores, some believe it could be a signal of a bigger announcement later this year. >> when you look at apple, i think it's wetting the appetite for the main any e entry which i think will be iphone 6. ro that lines up when apple is expected to introduce its newest lean of devices. last week neq one of appetizing oom's senior executives says the product pipeline is the best he's seen in 25 years. that's a time frame that

included the ipod, iphone, o'ipad and itunes, so investors are all eagerly awaiting what apple can churn out next. josh lipton, "nightly business report," san francisco, california. a busy day for justices at the u.s. supreme court. they threw out two patented decisions from the lower court. the supreme court handed a win to nautilus in its patent battle with bio instruments over a heart rate monitor. the decision raised the bar on how clearly patents must be written. they ruled in favor of limelight network that it infringed on tech patents for managing web images and video t. justices said it didn't wage infringe on the patents in question. also today, they are asking the supreme court to hear a case involving the so-called swipe fee limit. the fed's rules allows banks to charge for interchange swipe

fees when debit cards are used to make purchases. retailers say that 21 cents per transaction fee, which is set by visa and mastercard to reimburse banks for the costs of providing the card is still too high, forcing customers to pay more than they should. well, investigators are looking into another type of possible swipeing. championship golfer phil mickelson acknowledges he's been questioned in a federal insider trading inquiry that apparently also involves a famous wall street investor and a las vegas gambler, all insist they did nothing wrong, but the case raises plenty of questions, also along with all the attention. scott coen has our story. >> reporter: phil mickelson has won three masters titles, but at this weekend's memorial tournament in ohio, he tied for 49th. >> at 15th hole, man, that hole has got my number. >> reporter: maybe he was also a bit distracted after being questioned on the course by the fbi. >> i have done absolutely

nothing wrong and that's why i have been fully cooperateing with the fbi agents. >> reporter: at issue, reportedly, trading in shares of clorox in 2011, just before investor carl icon launched a takeover bid that sent the stocks soaring. michal zorn bought option, so did a friend of his, las vegas gambler billy wamters who happens to know icon. >> even if he did not violate the law but his information was used by others to trade in the market, that's a clear insider trading violation. >> reporter: icahn says he's never given out information, walters says he's incident of wrongdoing. an attorney for mickelson says the golfer has been told he's not a target. the fbi and flal prosecutors refuse to comment. but the case draws even more attention to so-called activist investors like carl icahn who can move a stock just by buying it. knowing his moves ahead of time can be lucrative but not

necessarily illegal. >> there is nothing particularly legal from people who are acquiring stock in making that pub leg. >> still, federal torts have been looking more closely at activeness and the potential impact on trading. this may not be the test case, though. it's hard to do any other cover work after all now that the investigation has been revealed. scott coen, "nightly business report." . still ahead, the latest cancer report and the company's behind a break through drug. . last week we told you about today's meeting of the american

society of clinical oncology or asco, which brought 30 thousand executives and investment pros together for the latest into u.s. in cancer medications. meg was there and has more on the big scenes out of this year's asco conference. >> reporter: asco the medical world medical report on where we stand on the fight against cancer. this year is all about immun no oncology. merck, bristol-myers, astra zeneca are giving us a glimpse on how to change cancer treatment. >> for the first time, we have the sense that there is a general mechanism we could employ that could profoundly improve the lives of cancer patience of a whole variety of tumors. it's enormously exciting. >> reporter: if advances for bladder cancer, mile loma, in a market some say could approach $35 billion a year. it was the first big showcase of astra zeneca's pipe lean and

they alsoed that data on a combination of drugs and ovarian cancer, which analysts said it could lead to treatments that don't require more toxic lung therapy. a drug looks to be competing with a lower one. the truck shows similar efficacy, stocks took a hit on concerns. other advances came from leukemia. so where do we stand in the fight against cancer? the food and drug administration's director of the office of hematology and oncology has attended 34 straight asco conferences and gave us a test for how tar we have come. >> we have better drugs, a better understanding of the disease. with removing away from cyto toxic drugs, they were poorly understood to drugs that have a much better understanding of how the trucks work, how they interact with the disease and that gives us better drugs, trucks that give higher response rates, drugs that are better,

are more efficacious also. >> so we're making progress, but there is still much more work to be done. >> shares of qualcomm surged after the company says it might sell its cellular basis. it hired j.p. morgan chase to explore options as it focuses on its other core businesses. the chip maker estimates the move could result in savings of about $700 million a year t. stocks jumped to $34.84. the country's biggest real estate investment trust is about to get even bigger. they are paying $2.5 million. to buy health care trust. they specify in senior living facilities. shares of american realty were up 9 money 5 cents. and marathon oil is selling its north sea oil business in norway to a norwegian oil

producer for about doctor 2 billion. the move is an effort by marathon to stream line its portfolio and assets and focus on the united states. shares were off a fraction to $36.procedure. tyler. >> google, susie, is reportedly planning to spend more than a billion dollars on satellite. the tech giant wants to spread internet access to unwired regions of the world. but despite the buzz, google class a shares were off more than a percent at $564.34. delta ordered 15 aircraft from airbus for delivery in 2018. the airline didn't say how much it paid, but the list price of the order is more than $1.5 billion. the new planes will replace similar ones the company just retired from its fleet. shares of delta were up 2% to $40.77. the do nut maker krispy kreme reported disappointing news, sales came in light. also the company lowered its 2015 earnings outlook.

shares took a dive after the report, during the regular trading day the stock was on a little sugar high finishing up slightly at $19 even. coming up on the program, why amazon's battle with a book pub learner is making it tough for readers to buy some best sellers. there's a major report due out this week on the missteps at general motors, in connection with a faultyic in addition switch linked to 13 fatalitys and the company's alleged efforts to contain the problem. this week, former u.s. attorney now chairman of the chicago law firm will releast his report on responsibility for the defect and why it wasn't corrected

years ago when problems first surfaced. . new car sales are moving right along, but u.s. auto buyers are borrowing now more than ever before and taking out more long-term loans. in the first quarter of this year, experrian automotive says the average monthly payment hit an all time high if you can guess $474 a month, topping $100 a billion in loans for the first time ever. it says 25% of new car buyers took out loans lasting as long as six and in some cases even seven years. that's the most on record. while some shoppers struggle to afford a new car, book buyers are having some trouble. that's because amazon and book publishers are locked in a battle over ebook prices. now office and consumers aren't happy. so who loses, who wins? as the two sides try to negotiate new terms. >> reporter: click to amazon to

order james patterson's best seller or to preorder j.k. rouling's novel. and amazon is not making it easy and not offering its typical discounts, saying delivery times are two to four weeks instead of overnight and it isn't taking preorders. saying it is unavailable. >> amazon wants to keep the discount level where it is, pub learners are concerned about this because amazon has a tendency to deeply discount ebooks much further than the price of the print books are. if that happens, publishers are worried it will put too much pleasure on retail book stores and you might start seeing more retail book stores starting to close. >> reporter: amazon won't comment. they say they will spare no effort to resume normal business relations with amazon, but under terms that appropriately value the author and publisher. >> the stakes are high because amazon controls more than a

third of total book sales and over 60% of ebook sales. amazon not a similar battle with publisher mcmillan in 2010, removing the buy buttons before agreeing to raise ebooks for sellers. authors are backing hesheet. they call eight quote national tragedy. >> i think i understand that the publishers are fighting for a diverse marketplace. again, you don't want your book shopping choices to be limited to ault only online and annualr only on amazon. >> the big winner so far, wal-mart taking advantage of the standoff and slashing prices by 40% for nearly 400 titles and speeding delivery time. so far it's working, with sales up 70% in just three days. >> and finally tonight, "fortune" imagination out with its top u.s. companies by

revenue. 5th place apple, which made a lot of news today, in 4th place, warren buffet's berkshire hathaway, in third, chevron, 2nd to exxon mobile. the top of the list the world's biggest retailer, wal-mart $476 billion in revenue. >> that's a half a trillion. some countries aren't that big. that's "nightly business report" for tonight. we want to remind you, this is the time of year your public programs seek your support. >> on behalf of your public them le vision station. thank you so much for your report. we will see you back here tomorrow night.

explore new worlds and new ideas through programs like this. made available for everyone through contributions to your pbs station from viewers like you. >>hi, my name is peter marshall and we are here to take a sentimental journey. a journey back to the '30s, '40s and '50s. you see it was called the big band era. we are at the beautiful avalon casino ballroom on the catalina island off the coast of los angeles. it was host to all the big band greats from a to z. now, the announcer might say, "from the beautiful casino ballroom overlooking avalon bay at catalina island, we bring you the music of - " just about everyone. >next, take a sentimental