this is "nightly business report" with tyler mathisen and sue herera. >> power plan. the white house issues historic new regulations that could change not only the energy industry but also the potential cost for american consumers. >> rolling along. why the boom in auto sales no signs of slowing. >> on the radar. want to know if the federal reserve will hike rates in september? there are a few things you need to watch for in august. all that and more tonight on "nightly business report" on monday, august 3th. welcome, the hot month of august got off to a very cool start for stocks. more on today's market decline in a moment. we begin with sweeping new rules from the white house that could change the energy industry as we know it. the president today released an

ambitious set of regulations design to cut power plan emissions and emphasize the use of wind and solar and other renewable power sources. the land mark action could alter the way power is generated and consumed. the measures are even tougher than earlier drafts. in this report, that has opponents vowing to fight. >> president obama said this generation is the first to feel the effects of climate change and maybe the last to stop it. >> if we don't get it right, we may not be able to reverse. and we may not be able to adapt sufficiently. there is such a thing as being too late when it comes to climate change. >> the plan requires industry to reduce carbon emissions 32% below 2005 levels by 2030. by using incentives. to invest in renewable energy

and away from coal fire and electricity. the coal industry is already struggling with falling prices and regulation. alpha natural resources with 60 mines in five states filed for bankruptcy. the fourth in the last two years. attorneys general from coal producing states vowed to go to court to block the federal government plan. >> we'll be mobilizing a coalition that people haven't seen before. miners, consumers, businesses, a large bipart sandal of state attorneys genetic will be standing up and fighting this lawless proposal. >> according to the epa data, if it is implemented, coal share would fall to 27% by 2030 versus 39% last year. renewable energy use would rise to 28%. natural gas would remain at roughly 30%. manufacturers say that shift

away from coal and other fossil fuel will impact the global competitiveness. >> if you're manufacturg in china, in india today, if you're manufacturing in brazil today, some of our largest global competitors, you don't have any constraints like we do in the united states right now. >> what happens to power bills? the administration predicts it will 34 average energy bill by about $85 in 2030. but energy producers say the costly conversion to renewable energy will most likely mean higher utility bills. >> nothing will happen overnight. states could get up to five years to finalize their emissions plans. in the meantime, the clean power plan will fuel the environmental debate in the 2016 presidential campaign. for "nightly business report," washington. >> and those power plant proposals will have a very big impact on some very vital sectors of the economy. jackie breaks down the potential

winners and losers. >> president obama's plan to cut carbon dioxide by 32% over the next 15 years going to help some and hurt some within the energy industry. the coal producers will take a hit. this group has seen coal prices plummet and have been bleeding cash. we've been seeing bankruptcies on the rise over the last 25 years. the stocks to watch, some of the biggest producers. pea body energy, arch coal and just filing for chapter 11 bankruptcy this morning. meantime, steel producers, they use a lot of energy for production. the affordability, the reliability of this energy production could be put at risk for the steel producers. some of the name to watch there. u.s. steel, steel dynamics and new core. but there is always the canary in the coal mine. some alternative energy could benefit from this plan. consider the solar stocks for solar, solar city, and the ets as well.

these could be a good investment. natural gas producers could see it as well. there's plenty of supply on hand and more innovatively to use that every day. some of the name, dominion and ultra petroleum as well. but remember, this is not the kind of bill that will pass immediately. there are opponents to it. they are gearing up for a big fight. the industry is expecting to see litigation surrounding this issue. >> today's power rules and the far-reaching implications, the talk of washington today. john harwood has been following it all for us. two questions, the president has broad, broad authority to impose these regulations. was there anything surprising about his announcement today? >> the main thing that was surprising was that the final target of 32% reduction from 2005 levels by 2030 was actually more far-reaching than the draft proposal had been in a year ago.

it was only30% then. we've seen this president across a range of fronts being very aggressive and trying to pursue things that he believes in before he leaves office and push them as far as he can go. he's pushed this as far as you can imagine it going. the question is can he sustain it? >> what kind of pushback can we expect in washington? >> well, a very strong pushback. we've already seen it from mitch mcconnell who single a letter telling states, ignore the president's plan. this plan is to be implemented state by state. we'll see whether the states take that point of view. but at the same time, the politics, and it will be not just in congress but in the 2016 campaign. hillary clinton has embraced this. republicans, you can expect them on the debate stage on thursday to take issue with the president's plan. we've also got a big legal fight that will play out over years.

will this stand legally? and number two, if the president is going to be this sort of aggressive with respect to environmental regulations, he handle ruled yet on the key stone pipeline. where does that stand and what does this suggest as to where his head may be on that? >> very interesting about key stone. that strikes me as one of the places where he has played the most politics with the decision. because there has not been from his own aides, a demonstration that this i'm that lineat made big difference one way or the other. he hasn't really said. he seems to have been holding this back. i have long been predicting that he would approve the keystone pipeline. but he handle done it yet. he has some time to go. notably, hillary clinton did not take a stand when he was asked the other day. >> thank you very much. >> reporting in washington. >> oil prices sank to near five-month lows on walker economic data here and in china.

the world's largest energy consumer. crude settled down 4% to 45.17. and below $50 a barrel for the first time since january. if oil prices stay at these low levels, aaa predicts gas prices could drop 15 cents more per gallon this summer. >> the lower oil prices put pressure on which in turn weighed on the dow index. the s&p 500 not helping things either, apple which traded today into correction territory. up more than 10% from its recent high. by the closing bell, the dow industrials were up 91 points. it was much worse earlier. well off the 200-point decline. nasdaq was off a dozen points and the s&p 500 lost 5. to that weak xhefk data we mentioned, the pace of growth slowed in july according to the institute of july management.

it is the latest in a set of mixed reports. that industry struggles with soft overseas glanld and the strong dollar. one positive sign in the report was an increase in new orders often viewed as the leading indicator of activity. and the construction sector barely budge in the june. rising 1%. that's the smallest rise since january. it offset a third straight increase. in home building. >> we did see a modest drive in consumer spending in june. the commerce department reported after jumping in may. many citing gains in the job market. the measure is closely watched because consumer spending makes up more than two-thirds of economic activity. wright spott, bright spot today. general motors and fiat be chrysler saw 6% gains.

ford's sales up 5%. that puts the industry on pace to pass 17 million sales for the year for the first time since 2001. as phil reports, pick-ups, suvs and crossovers were in high glanld thanks to moderate gas prices. pardon the pun but the american consumer is riding high once again. suvs, crossovers, picks-ups, models where we sit up higher push the auto industry to one of its best monthly sales for the year. take gm trucks. up 51%. sales of the ford explorer climbed 27%. regime was up almost as much. >> we all want as big of a vehicle as we can afford for a specific lifestyle as well. if you're out in the rural area, you'll love that bigger explorer. that large tahoe. the big suv. the compact suv makes a lot of sense for us folks living in the city where maybe parking is at a

premium. >> hope gas prices are a big reason why trucks and utility vehicles are in the demand. there's a wave of new models offering more space, features and more luxury. that's why people are paying close to a record high for new vehicles. we're paying more for our vehicles. on the luxury side or a bigger, more functional utility vehicle. we seem to be happy to do that. as we've been saying for months, the auto industry is leading the charge in the economic recovery. >> with americans steering toward bigger vehicles and worrying less about fuel economy, cars and specifically hybrids are falling out of favor. take the toyota prius which is the best selling hybrid in the country. sales last month were down 13%. "nightly business report," chicago. >> sales are up but so are prices according to kelly bluee book. new car prices have risen 2.5% from a year ago. the average price, for light vehicles in the united states is

about $33,000. today's economic data is just the start of a pretty packed week. tomorrow we get factory orders. wednesday, adp. international trade and ism. and friday is the big monthly employment report. the federal reserve will be paying close attention to that last one. along with a number of others. steve tells us now what the central bank will be watching. >> whether the fed hikes raise in september for the first time in more than nine years depends on the issues. two keys, jobs and inflation. making the july pay roll report coming this friday an important one. >> the biggest issue is employment. we need to see two solid months of employment improvement. >> economists expect one this week. the forecast for 215,000 jobs and for the unemployment rate to remain at 5.3% for july.

still the lowest since 2007. >> it is moving more rapidly than at any point when they got to the first tightening other than early '80s. >> they said they only needed to see some improvement. even a moderately strong august employment report could seal the deal. the inflation data also has to cooperate. >> i think that's where the real movement will be. are they really comfortable it will makes it to 2%. >> what could stop the fed? many assume there could be a bigger impact from the chinese market that could affect the u.s. economy. it could combine to stay the hand of the fed in september. still ahead, china's push to stable ties stock market puts the hedge fund in the cross hairs.

at&t launches the first ever tv wireless phone plan after it has completed the $49 million acquisition of directv. they hope the promotion will attract new customers to the satellite television service. >> an easy earning speed for aig is where we begin the market focus. the insurance giant beat on the

bottom line and announced more good news for investors. it upped its share buyback plan by $5 billion and said it more than doubled to $28 per share. the stock was volatile in after hours trading. it was up a few cents to $64.15. health care also out with late earnings. the top consense us. they raised the full forecast for earnings as it treated fewer uninsured patients because of the expansion of medicaid for the poor you understand the affordable care act. shares were higher initially after hours in the regular session, the stock closed at $56.71. that's a slight gain. tyson foods out with earnings that missed estimates. they're blaming weak beef sales. they also missed on the top line. only it lowered its financial outlook for the full year. the shares tumbled down almost 10% to 39.96. opposite story for chlorox.

it was helped by reason price increases. the firm did issue guidance for the coming fiscal year because of currency head winds. nonetheless, the shares rose nearly 3% to 115. goldman saches with legal costs to about $6 billion. the extra set aside is to resolve possible mortgage security claims. the shares were a fraction lower at 204.69. city banc under investigation for the student loan servicing practices. it said regulators mayer to bank to pay a penalty. shares were off a fraction at 58.44. sears reported a profit for the first time since 2012 thanks to a gain from spinning off some of its real estate. that could not disguise troubling sales results. especially at its name sake sears and kmart stores. shares slid. and barnes and noble completed the spinoff of its college book

store unit called barnes and noble education. investors didn't share the trading debut however. competition puts positive pressure on what we do. i think that's one of the advantages of the spinoff. we have a separate board, a separate management team that's allowing to us really focus on education's needs and how we'll compete against these other companies. we compete very well against amazon on the campuses where we have the in store contracts. >> still, shares fell 8% to $13.19. greek stocks plummet hard. that country's index reopened after a five-week closer. greece's four biggest banks all fell 30%, the daily limit almost immediately after the open. by the close, the index shed about 15% of its value. stock market regulators

continue to try to stabilize the volatile market. one of the trading accounts includes one owned by the brokerage of an merge hedge fund citadel. citadel has confirmed that one of the trading accounts has been suspended in china. this is part of the ongoing investigation by the regulators to what it calls suspected trading irregularities. it counts as one of more than 30 that have been restricted in this way. the account is the only one coming from a foreign financial institution. they have not really disclosed what the issue is for the suspension. but the back drop here is that the chinese government has been pushing ahead with the very aggressive investigation into short selling and those a are betting against the market. citadel has said that they are working very closely with the regulators. they were quick to point out this was only one trading account and many more are operating normally.

and they said that this account was at the brokerage and not at the hedge fund and it does not involve client money. how this plays out is still up in the air. many fortune investors are concerned because they've been put off by the government's heavy handedness. for "nightly business report," beijing. in the u.k., a former trader was sentenced to 14 years after being found guilty of conspiracy to rig a global bench mark interest rate. this is the first criminal conviction of an individual for manipulating the widely used bench mark. the jury reached the unanimous guilty verdict after a nine-week trial. tom hayes was accused of manipulating to benefit his own trading position. puerto rico didn't completely miss that big payment that was due august 1. the island paid a fraction of what it owed marking the first default by the commonwealth. as kate kelly reports from san was, the island's financial problems run very deep.

>> puerto ricans default questions. due to bond investors would be paid in b full, in part or not all. in a move like that, the first at a u.s. state sighed entity could well have ripple effects. puerto rico saddled with expenses they can't meet will likely lose access to the credit market as rating agencies like standard & pours and moody's degrades them. with unemployment sxhi the cost imported goods and taxes to deal with, some residents were already worried. >> i went to the bank to do a transaction and that was the subject of conversation in the lobby of the bank. it was all about how it is imthem. and how now apparently, there were people talking about how they would get $105. >> small business owners who sell rum in a family owned shop

in old san juan say they are getting squeezed. >> i'm worried. we have to take it day by day. right now we're getting hit by the economy, plus it's a slow season. we've only been here two years. we have to see what's going on. but yes. we have conversations all the time in the family to seep what will be our next step. >> some puerto ricans we talked on are looking for chapter 9 bankruptcy protection as a good option. >> that model is not working anymore. we've been lagging for decades. we should either take either of two paths. either the path toward national sovereignty or statehood. i believe statehood is the answer. we should be on equal footing with our fellow american citizens. >> that chapter 9 legislation is now under consideration by the u.s. congress. but some think it could be a long shot before it comes to pass. meanwhile, some people in puerto

rico would like to see a federal government bailout. the obama administration has given little reason for hope for that. late today, oppenheimer funds which owns a large. a puerto rican debt said it was disappointed that puerto rico didn't flake full payment. coming up, how many money is being poured into wine country? the numbers are eye popping. a pioneer in private equity has died. jerome coleberg, one of the

original architects and co-founder of kkr was 90 years old. he founded it in 1976 and became a major force when it took over rjr nabisco. though he left the firm a year before that deal was completed. the leverage buyout industry is now valued at more than $2.5 trillion. an update to a story we told but in april. the ceo of gravity payments made a splash, a radical move to raise his companywide minimum wage to $70,000 over the next three years. however, today, according to a new york times report, that plan has back fired. customers with drew their business, their clients that were attracted because of the new plan haven't started paying off yet. some higher ranking employees have quit since they didn't receive raises comparable to the huge jump for entry level staff. >> we've told but the rising price of housing in silicon valley, of course.

that pales in comparison to the real estate market two hours north of san francisco. josh lipton tells us what is driving the sky high listings in california's wine country. check money is flowing into wine country. in sonoma. listings for high end homes are surging. because of the success of so many start-up firms in san francisco and other businesses, there's a lot of ploib being manufactured in the bay area and a lot of it is going into real estate. >> the most expensive home on the margaret right now in sonoma county is this one. the property, which rests on 600 acres, is a 20,000 square foot estate created in the style of an austrian country villa. five bedrooms, 12 bathrooms, wine cellar, home theater,

infinity pool. the price? $32 million. the owner is ed, the former chief technology officer of cisco who also served on the board of yahoo! for many years. right now, buyers have their pick of mega mansions in the area. there are more than half a dozen homes on the market priced at $25 million or higher. >> san francisco's market, palo alto's market, the prices are pushing up radically. and we're feeling the ripple effect up here. it is increasing in materials of intensity. when those markets boom, it lags a little bit. we then boom too. >> luxury listings make up about a quarter of the market andnd they're up nearly 90% year over year, according to sutherbies. that might encourage talk of a bubble. but realtors we spoke to say it

is just the new normal here. for nightly business report. i could live in a closet there. just in the closet. >>osr the wine cellar. >> maybe that's better. >> i see. >> that will do it for -- not the whole time. for "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'm tyler math seisemathisen.

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