this is "nightly bu get investors ready for a rate hike without rattling the market? cutting the fat. the fda bans the use of trans fats but is the agency just already doing? paying out of pocket. insurers want to merge and hospitals are getting bigger. but ines all that and me good evening. i'm sue herera. >> i'm bill river in for tyler mathis once again tonight. welles mo makers began the

two-day meeting today and while most do not expect the central bank to announce a move on rates tomorrow many are expecting the fed to signal very clea historic rate hike will occur and maybe soon. and janet yellen has to choose and jar the ma steve liesman takes a look at what some of the top money managers strategists and economists are expecting. >> as the federal reserve began a two-day meeting, a new survey showed wall street firmly believing th central bank would hike rat. 92% of respondents to the cnbc fed survey see a hike coming in even when the analysts see the fund increasing short term interest rates only modestly in the next several

years. >> i think they'll start to hint it will be in ra should raise. for the next 18 months the incree to 3.25% but stocks are faring relatively well rising almost 10% over the peri folks on wall sn the fed rate hikes so it's not expected to be a big deal. >> typically the market does dip every year. and corrections usually don't occur when inflation is low. and economic prospects are still pretty encouraging so look i think we'll get turbulence. i do think it's likely to be a dip to buy. >> the challenge for the u.s. economy is the dollar. higher rates usually cause more flows in to dollar-based assets and strengthen the green back. a stronger dollar can then hurt

exports and mano effects of higher interest rates rates. i'm steve liesman. well stocks rebounded ahead of the fed meeting as investors put growing concerns about the greek debt crisis on the back burner at least for now. the dow joig rose 11 points. > a sharp drop in housing starts in may after that big surge we saw in april. according to the commerce department builders broke ground last month on almost 1 million privately owned homes. but that was down about 11% from the prior month. there were some encouraging signs though applications for new building permits rose by 11%. that was better than estimates. u.s. government debt held by the public is expected to rise to more than 100% of the economy

by 2040. the congressional budget office says that's up from 74% this year. the cbo says the trend could be harmfu changes to tax policies and y to extend the deadline on a key trade related vote. the house to reconsider the part of that trade package that supports workers that are hurt by trade. this is the same bill that failed dramatically last week. >>ed trans fat from foods. the fda calls it an important step forward f towards healthier eating. >> t food manufacturers to phase out the usm in margarine and fried items and they have been

linked to hearn the food industry like panera which banned them back in 2006. >> we have been on this journey to serve chicken raised without antibiotics. today you have pe nonnaturally presenting itself trans fats f the menu. today, you have the u.s. government literally today announcing all restaurant chains and all the food must do ite thi with caloric information five years ago. >> panera is pushing the food angle even harder opening a pop-up store in lower manhattan emphasizing fresh, natural ingredients, with no artificial flavors. afs the company's 2,000 stores nationwide. >> the tomato mozzarella flat

bread, a year ago it was a big heavy panini. it's meatless, to make it more contemporary? so flat breads came on this time last year. as a way to make sandwiches a little lighter and healthier. >> chipotle has gone a step further, removing all genetically modified organisms fr taco bell has pledged to cut the use of antibiotics in their meats and chickens. food as it should be. complicated and costly for those big supply chains. and if they lead to higher consumer prices it can hurt sales in an effort to drive grnod companies like panera is hoping to attract

consumers health conscious, young millennials. for now we have to see if tr money where their mouths are. well a possible way of e consumers' pockets. anthem is looking to merge with a smaller rival, but what will let and professor of strategy at kellogg school of management. good to see you. thanks for joining us tonight. >> it's a pleasure. >> you know those who are in the managed care business, the stocks have been rising sharply on talk of possible mergers in the sector. so w antitrust regulars feel about this? >> i t the antitrust regulators when insurers consolidate,

premiums go up and the antitrust enforces have t look closely at what happens to consumers. it's not only the costs go up to consumers but providers technically or usually get paid a little bit less. they don't as much clout. >> there is some evid that providers that to the price decreases to providers, tha these get passed on to consumers. so i would expect reguhard-h questions, particularly in those geographic markets where the combining firms would have significan market share. >> so i'm confused. if t go up they get paid less why merge in the first place? >> the providers might get paid if

these insurers can reduce cost through scale and that's a big if why if they have less competition in the marketplace would they pass on any of those reductions in costs? what is the market imperative to price competitively whe rivals? >> what abou quality of care is there any indication that the quality of care changes we just know that when there is less compe is. and we would potentially a reduction in quality of plan as well simply becauss with these motivated by the potential to really bring down cost and improve quality and what

mechanisms in pla to make sure that some of those benefits accrue to consumers? >> it is clear they. thanks for joining us tonight. >> a pleasure. still ah kirk kerkorian who built some of the biggest hotels in las vegas has died. the billionaire investor was 98 years old. mr. kerkorian was an eighth grade dropout. he became the largest shareholde mgm resorts

internationa he founded the 1990s. three times during his he also famously tried to take over but failed to take over chrysler. > the is some big money in video games and it's all on display at e-3. that industry's biggest trade show. this year the big topic of discussi julia boorstin has more. >> big game names are in focus like "star wars" battle front. expected to sel well across the platforms but both microsoft xbox and sony's playstatio microsoft's xbox has halo 5, guardians and sony's ps 4 for blockbuster franchises including call of duty black ops 3. microsoft announcing it wil

holidays. help it catch up to the playstation 4 which sold twice as many consoles. >> i thi it will be a big deal. i thk we're on the edge of people whot over sony talking up ps 4, announcing the individual service, rather than bundled subscriptionn peo are playing games they're watching tv. so we want to have that opportunit the platform here at e-3. sony showing off its virtual reality headset with a multiplayer headsets.

>> more fees you bris to gaming wha goggles prind they're partnering with ok you louse risk. >> we fo and make it this is your hand inside of the -- and hands presence is something tha really believe in. >> but some game makers cauti reality revolution overnight. electronic art ceo said it will be years not months beforer impacts ea's bottom line. box and microsoft are teaming up. and that's where we begin tonight's market focus. the cloud storage provider is integrating with microsoft office and enabling users to

br service. it will drive business productivity. shares rose today vox was up to $17.90. shares oe profit forecast for the full year saying that sales and profit were hurt by bad weather in the third quarter. and because of a delay in launching a product. oshkosh tumbled by 8% as a result to $46.26. and cody is close to a deal to buy three business billion. th according to reports. the deal would make the cosmetic company the world leader in perfume and hair care. shares of cody surged by 19% to $31.08. proctor & gamble was up by one cent. and wait black stone and carlyle group are making a joint

bid for mcr. the leveraged buyout of the computer company woue the year's biggest at more than $10 billion. shares rose almost 11% to $34.73. as we told you last night, gap is closing 175 stores and eliminating 250 positions. today the company's ceo explained the thinking behind the and we frankly eliminated some of the complexity and the fleet that wasn't giving us -- gette're proud of. >> and the stock closed at $38.75 a> adobe reporting an increase in profit and revenue as more subscribedo the cloud services. bu they issue an earnings outlook that was below estimates soaf the bell though shares were up more than 1% to $79.94.

federal express is scheduled to release the fiscal third quarter results tomorrow. declining fuel prices are expected to help its bottom line and it's not jus. morgan brennan has more. >> this holiday season you can do away with discounts on some oversized packages. that according to "the wall changes in shipping rates that n mean higher prices for consumers. d say it is looking to meet customers' needs while quote also ensuring u. services we provide. customers and looking to pce business.

>> since the start of the year both u.p.s. and fedex have raised rates and introduced pricin u.p.s. has said it's considering shipping surcharges for the upcoming holidg delivering packages to local stores for consumers to pick up that's three times less costly than home delivery and particular u.p.s. is looking to maximize their sh means turning down some business. so that may sound obvious but it represents and how narrow returns typically are on e-commerce shipments. the new strategy is already beginning play out with u.p.s. but also with fedex. pric our expectations are that fedex will continue to push on

pricing, throughout the rest of this calendar year and into the holiday season as well. with u.p.s. now supporting those pricing initiatives we actually think there's a lot more momentum for both of the small bear more of the cost of shipping as we move to the holidays. qu a logist company specializing in valuable jewelry and collectibles move to help manage growing ecommerce demand. but its parcel company's attempt to realize higher returns, other companies are upping the competition. for ex amazon which has reportedly consi paying ordinary peopl rather than the carriers to r destinations. for "nightly business i' morgan brennan. wall street bank goldman sas is reportedly making a push on to main street. experts reported by "the wall st they will offer

lines the stsh -- still in the early stages. well there's also a shift happening the retirement industry. ge this,ns according to brit scope investors pulled $11 billion from tax deferred savings plans in 2013 and the trend out of 401(k)s is expected to > the cost of higher education is only getting higher. tuition and fees at a four-year public college topped $9,100 on average for the 2014-2015 academic year. nearly triple what the cost was 25 years ago. over the st a four-year private university have doubled to almost $31,000. bu pretty alar basically outpacing other goods and

services? you look at the cpi over the last say 20 years, it's increased about 60%. you look at the cost of a four-year public education, tuition and fees alone has more than doubled. up 110%. so we'of expensive. inflation. >> what's your version of why? why the enoral t education, we're offering amenities and high-speed internet access all over the campus to rock climbing walls in some special locations. that's certainly happening but teaching salaries are basically flat. overall, the cost of delivering education has been pretty stable over the last several years. there's another factor and that of course is the price that you pay. that has a lot to do with subsidies and both private and public subsidies.

if you look at what's happening in terms of private endowment that they're receiving is $113 million. harvard, $36 billion. g many of those colleges to have to say, our funds have to come from tuition. >> tuition you know is there a way to cap some of are cometpetiti if tnt the students they have to keep upping the amenities you talked about. th impacting and throwing the costs on the students. i think what's happening is they have they're going to have to be educated on how much they can afford to borrow and whether it's wh the return on investment is worth it.

>> i'm glad i don't have to worry about it. >> you're done aren't you glad? we'll form a support group. >> exactly. >> thanks. well coming up imagine going where no man has gone before. even if you're just going to wo and here's what to watch tomorrow. to the federal statement, we'll get a read on the housing market wi will announce the earnings after the bell. that's what to watch on thursday. > honda has added more th to the potentially

faulty takata air bags. today s have expanded their own recall. several are fixing the air bags in nearly 43 million vehicles en explode. > a chinese ceo is exploring new frontiers. he is taking his love of "star trek" and millions of dollars to build the company's headquarters the shape of the le >> the star l or in this case the city of fugo in eastern china. it's actually the corporate headquarters pioneer liu.

>> thi he captains his company, net dragon. why d you want design the building to look like the star sh boldly going where nowhere has gone before. he got hooked on science fiction at the university of kansas. final frontier. anw,d it's sort of my way of having the same life. >> the $100 million headquarters can sometimes feel like the inside of a star ship. where sliding doors open to the united fly a bathroom. >> he has invited other famous space invade s your favorite character? >> captain picard. >> do you see yourself as

captain picard? >> i try to find out what's right in the world and stick to it. that's where i can be someone leading t net dragon ever since he founded it in 1999. he and his staff focused on online games, releasing hits like this one. generating r company. now, liu wants to branch out to online education and robots and push further overseas. the creation is more than an expensive tribute to a tv show. it's mea we have to think a little bit ahead of us try to accomplish something, the seeming impossible. a dream come true that could take his company into warp speed. eunice yoon cnbc beaming up from china. and to read more about the "star trek like headquarters

head to our website, nbr.com. finally tonight the 25 richest self-made billionaires are out according to by wealth x. warren buffett, who's worth list bill gates. somewhere aroun $86 billion. not bad for harvard dropout. >> that's "nightly business" for tonight. i'm su

>> tonight on spark ... we move to the rhythm of the beat ... with master percussionists who are anything but backup players. in our first story ... for centuries, the art of taiko drumming has occupied a sacred place in japanese culture ... and now ... it's taking america by storm ...

in our second story ... we'll meet tabla master zakir hussain. far from his native india, he's become one of the pioneers of world music ... fusing eastern traditions with western influences ... >> zakir hussain: when i'm playing music, i'm not just playing music, i'm dancing. >> and finally, beat boxing phenom kid beyond introduces us to the world of vocal percussion.