this is "nightly business report" with tyler mathisen and sue herera. >> the data breaches were breathtaking. >> massive bust. and nal charges filed in the compromising the data of 100 million people. no frills. why one home builder's strategy to go back to basics is pa and $1 trillion price tag, that's what alzheimer's could cost the economy in the coming years. straining the finances of caregivers and medicare. all that and more on "nightly business report" for tuesday, november 10th.

good evening, everyone. ty is off tonight. it's one of the bigg cyber security busts of all time. and it involved the nation's biggest bank by assets. federal prosecutors allege that three men ran a sprawling cyber , hacked into jpmorgan and other institutions, stole data from 100 million customers, and generated millions in illegal profits. emonth javers has more. >> reporter: on tuesday, u.s. attorney announced the take down of the sophisticated cybercrime ring. it was a globe spanning criminal enterprise the u.s. government .ays with defendants living it included an alleged corrupt bank account in azerbaijan and hundreds of millions of dollars routed through banks in cypress and switzerland. it involved hacking into jp

morgan, media companies like "the wall street journal," software firms and investigative firm hot on the trail of the hackers themselves. the cybercrime ring was involved in illegal online gambling, illicit credit card processing and an unlawful bitcoin exchange. the three men allegedly in charge jerry shaloan described as the founder and his principal deputies, who were arrested in israel earlier this year and await extradition to the united states. also u.s. citizen joshua samuel aaron charged with helping in computer hacking an security markets manipulation. the u.s. fugitive, whereabouts unknown. >> the conduct show cases a brave new world of hacking for profit. it is no longer hacking merely for a quick payout, rather it is hacking in support of a

diversified criminal conglomerate. it is hacking to locate victims, it is hacking to spy on the competition. it is hackin. in short, it is hacking as a business model. >> prosecutors said that most globally complex hacking schemes go unsolved. but today thanks to the cooperation of the fbi, the secret service, u.s. intelligence agencies and law enforcement officials around the world, this alleged criminal enterprise is out of business. for "nightly business report" i'm eamon javers. >> apple pres cited growth concerns. the dow climbed just 27 points to 17,758. the nasdaq dropped 12 and the s&p 500 gained three. dow component mcdonald's won't spin off the real esta

assets, a move some shareholder had pushed for. in an investor meeting today the ceo of the world's largest restaurant chain said spinning it into the real estate property trust would add excessive risk to the business model. the company is increasing the number of franchise owned restaurants. separately there were demonstrations. fast food workers and others demanded pay of $15 an hour. organizers want to draw attention to the 64 million workers who earn less than that. strikers also hoped to gain union rights. in all 270 demonstrations were planned. not only outside of mcdonald's, but also at wendy's and burger king and kfc restaurants as well. wages and spending of course are important parts of t and today the labor department reported that imported goods fell for fourth straight month in october and the decline was

half a percent. it was sharper than expected and it's being attribu the strong dollar, slow global growth and cheap oil. well, cheap oil may be here for quite a while to stay. according to the new report from the international energy agency, prices are forecast to remain y hit $80 a ow until 2020 wh barrel. now granted that level is above where prices stand today at around 44. but still, it's below levels of last summer. jackie deangelos has more on the world energy outlook. >> the recovery in oil prices . the energy information agency saying that the market is rebalancing and prices will tick higher, but won't surge any tim. the current low price environment is actually slowing supply. because the low prices have caused some producers to curb production, taking supply off the market. on the demand side, china is the main driver. the iea forecasting global

energy demand to grow by one-third by 2040 and this takes into account the more energy efficient technologies. but that's not enough to get the prices rallying. the report looks at several scenarios where prices stay lower for longer. but exxon mobil and bp may must be able to hold out and weather the storm of a low cost environment. t scales back pumping. the bottom line -- $80 oil in four to five years well some alysts were calling that price at the end of this year. the main theme here is lower for longer and that seems to be here to stay. for "nightly business report" i'm jackie deangelos. >> those falling commodity prices are hurting the railroads in particular declining demand for coal has resulted in less volume being shipped. as we reported last night that's on reaso why a major rail company is reportedly looking to for consolidation in the industry.

>> railroad industry may be ripe for another round of consolidation. at l union pacific has reportedly set the sights on a new takeover target. norfolk southern. according to reports the two freight railroads have held preliminary talks with cp starting to raise funding for a deal that can raise millions. since canada's number two railroads, csx, went off the tracks a year ago. hunter harrison has pushed for consolidatn. arguing it would reduce congestion, particularly in chicago a notorious bottleneck and improve service. analysts say it could spur growth and that at a time when environment, the muted gdp environment that we live in today and could live in for many

type of role in this. the reality of it is is that it's very difficult to grow the top line in an environment lik. >> a deal between canadian pacific and norfolk certain would create a transcontinental railroad with little overlap and almost 35,000 miles of track, stretching from vancouver, canada, all the but some have questioned whether major rail activity is even viable. including norfolk ceo jim squires who suggested earlier this year that transcontinental merger could be quote a mistake. >> step one is getting the norfolk southern board to agree that this is a good id. hunter harrison and cp i think correctly figured that they can't do a hostile deal in this environment, so it's imperative to get the other player to play ball. >> and now would be the biggest hurdle. getting a deal cleared by regulators. after several decades of massive

consolidation, there are only seven major ones left and that group accounts for m meaning a major merger could be vulnerable to derailment. the department of justice is suing to block a proposed slot deal between united airlines and delta. that would give united 24 of delta's takeoff and landing slots at liberty airport. such an agreement could result in higher prices and fewer choices for consumers. also in washington, the supreme court today took up a case that could change the landscape of class action lawsuits and it pits labor against management. at the center of the case is tyson. one of the world's leading producers of meat and poultry. hampton pearson has more. >> tyson foods wants the supreme court to overturn a $6 million judgment involving some 3,000 workers in iowa. at the heart of the dispute is

how much and how many workers should be paid for the extra time spent putting on and taking off protective gear. tyson lawyers argue those iowa workers had more than 400 different jobs and not all of them were eligible for the . >> the key to this case is whether or not you can bring together people who have very different jobs, very different donning and doffing of their sanitary work clothes and lump them together as a class and prove your ability to recover based not on any individual's assessment of the on the avera all of these activities. >> justice anthony kennedy oftentimes the swing vote on the high court challenged tyson not keeping accurate records. tracking the overtime issues. it's the third time in recent weeks that the justices have heard arguments seeking new limits on class action lawsuits.

pro labor groups and consumer groups however are cautiously optimistic about this case. >> it's potentially very sitting kachbts in both of those areas. if workers of the kind who sued here, that is factory workers who are doing very similar jobs under the same policy, can't and enforce their rights as a group then it's going to be very har for workers to recover their wages when they're unlawfully denied. >> the supreme court is being asked to decide what's the best mechanism for settling the claim. should it be just the few workers that might directly be involved or an entire cls? the difference for tyson's, millions of dollars in potential da for "nightly business report," i'm hampton pearson at the supreme court. still ahead -- adding up. why the cost of caring for someone with alzheimer's is so much higher

the former treasury department official who managed the $700 billion rescue of the banks in 2008 was named the next president of the minneapolis fed. he oversaw the tarp program during the financial program. he takes over on january 1. alibaba kicked off the singles day online shopping vent with millions of doln sales recorded almost immediately. the sales started at midnight and within the first minute, the chinese e commerce company recorded $150 million worth of

transactions that's the equiva tnts of 1 billion youen. $5 billion worth of goods were sold. singles day is held annually on november 11. it is similar to cyber monday here in the u.s. the nation's largest home builder dr horton exceeded expectations in the fourth quarter. new orders and closings all saw solid gains from a year ago and this sent the shares 8% higher. this home builder is tapping into the market that few others are. as diana olick explains it's paying off. >> they're turning a quick profit for dr horton which swung to the quarterly gain of 64 cents a share for the fourth quarter, an entry level no frills product launched in 2014 expressed growing in units, cot accounting for 2 the % of the company's sales. >> we love targeting the first time home buyer. and they did a phenomenal job of capturing the return of the

first time home buyer. they have a terrific geographic footprint in california, texas, florida, arizona, nevada but especially in the core texas market that's a lot of concern about the impact of lower oil prices on demand. >> other builders like mpetitive pulte homes are going after first time home buyers, but not necessarily low priced entry level buyers. >> a lot of the investment has gone into the move up category. in fact, we should a diversified d ilder but a lot of the buyer. you're talking price points of $500,000 in many cities. >> the average sale price for a home like these is just under $289,000 but its express price is $191,000. affordability in the existing home market is weakening as home prices rise faster than incomes and faster than inflation. and mortgage rates rise ahead of

a possible rate hike. it all ae s up to consumers watching the price tag ever more closely. >> there are some concerns. interest rates leading to construction delays but when you look at the order growth up 18% year over year that tells you the consumer is coming back to housing. >> or at least the consumer may want to come bac for "nightly business report," i'm diana olick in washington. we beg home builder that's surged in today's session. beazer homes saw the earnings rise. the builder was helped by higher revenun future quarters. monsanto is slashing the guidance for the fiscal year as it has been impacted by restructuring costs and pricing pressure. the troubled global pharma economy is taking a toll on the agricultural company.

the stock fell 1.5% on the news to $92.86. way fair posted a loss but not as steep as analysts thought. it surged in the most recent quarter and they improved the cash flow. despite shares tumbled 14%. sunedison posted a wider than expected loss. the results raising concerns operations and acquisitions.u the firm saying it would stop selling projects to the yieldcos companies.undles of the weight on the shares fell 22% to 577 and the yieldco's which are terraform tumbled today. dell's plan to take over emc may face a tax burden. the company could end up having to pay a tax bill of up to $9 billion. part of the problem could stem

from the structure of the deal as dell is proposing to use a new type of stock to help pay for the company. shares of emc fell more than 2% to $25.25 and dell is privately held. according to the alzheimer's association, there are now 5.3 million americans 65 and older living with dementia. the total direct cost of caring for someone with this disease has reached a staggering $226 billion, with medicare picking up half the cost. but research shows that delaying the illness by five years could help decrease med care spending. reesa sperling is director for the center of alzheimer's research at brigham and women's hospital. nice to have you here. those are stunning numbers. but as we try and solve the problem of dementia, where do you think we a >> well, i think we're making a lot of progress in treating the

disease, but the greatest progress has beet treatments be reach that stage of dementia that so expensive. so it's shifting to prevention of alzheimer's disease. i think that will have the greatest public health impact. >> if we put it in the five year time frame, i know there are a number of companies that are working on drugs and other s for dementia and specifically for alzheimer's. how optimistic are you we will see a break through or considerable progress in that five-year period of time? >> it we will have a treatment that at least bends the curve of decline within five years. i suspect that the first couple of drugs won't be a full break through. meaning we won't find a cure, but if we can slow progression, particularly if we start early that really will have an impact both financially and emotionally for families. we mentioned a of cost, lot of it is being picked up by

medicare, but there are a lot of experimental drugs. there are trials, all sorts of treatments that are in process, but there are also very costly. >> yes, it is true that a lot of the treatments that are being tested right now such as antibodies will be somewhat expensive. but if you compare that to t out of pocket expenses for the families it's a fraction that it takes to care for someone. again,we start tho early enough we can prevent the nursing home care and needing supervision. the radar of the major drug companies and the government? because that will have a how so breakthroughs or new developments or encouraging developments in this disease. is it high on the radar? or not so much? >> well, i think you're absolutely to

bring alzheimer's disease way up on the radar. it is increasing, i have seen that a i but if you think of this alzheimer's disease is the only one of the top ten leading causes of death for which we don't really have a successful treatment. and because our population is ageing at such a quick rate, we really have to bring this up to the top of the radar for public health problems. >> all right. we'll leave it there. thank you, dr. sperling. we appreciate it. reesa sperling with center for al and treatment at brigham and women's hospital. coming up tonight, the once hot art market. is it suddenly showing signs of cooling off?

here's a look at what to watch for tomorrow. it's the deadline for the potential merger between sab miller and anheuser-busch. they have to have a definitive agreement hammered out. apple's latest product, the ipad pro will be available to billions were spent in alibaba's singles day. that's what to watch for for wednesday. well, a painting that never sold at auction before did last night and it went for a near. the piece reclining nude was done by the italian artist mow dig leahny. others are not fetching top dollar, and as robert frank explains that has some wondering if hot market is starting to turn. >> the art market is experiencing extreme highs and extreme lows. sometimes on the same night. at a christie's sale last night, this painting sold for more than

$170 million. making it the second most expensive painting ever sold just behind picasso's painting sold by christie's in may for under $180 million. the reclining nude was estimated at $100 million but after nine minutes of bidding it was sold to a chinese billionaire who started off as a taxi driver and is now a billionaire. he and his wife plan to put it their private museum in shanghai. also fetching a stunning price was roy lichtenstein's nurse which went for $95.5 million more than expected. but of the including a lucian freud, and a picasso. the mixed results follows w seeing a slow deflation of the art bubble or the healthy

adjustment in prices as part of a longer term boom. >> we learn that the market is in flux. there's been a down round as evidenced by the softness in the talk dauben sale and what you're seeing is a very discerning market. >> more than $2 billion worth of art to be sold during the fall action season in new york. still to come, a prized portrait mao by andy warhol. that could fetch well over $40 million, a great irony for the founder of communist china. for "nightly business report" well, when you think of start-ups you probably think of silicon valley. but many small businesses ar also taking root in washington, d.c. kate rogers reports from an entrepreneurial nation's capital called iconic, a partnership between cnbc and inc. magazine. tonight she profiles three finding success and challenging conventional t

>> washington, d.c. isn't just for regulation and policy, but it's a hot bed for start-ups. from defense to health care and food delivery, entrepreneurs are finding success and inspiration in the nation's capital. start-up droneshield is helping clients track nearby drones just by listening to them. their products start at $2,000 and the company has raised just over $1 million to date. >> we have developed technology to detect consumer quadcopters and it's a microphone that's recording ambient noise and what we do is we take that sound t, to compare at to known drone signatures. >> the clients are corporations, governments, even citizens concerned about drones inv for expectant moms to be, there's baby scripps. they're using technology to

improve care for moms during their pregnancies. >> we do it through a mobile app and the other called the mommy kit in which we have blood pressure cuff and a scale and essentially remotely monitoron elements of pregnancy. through this process we're able to create a healthy pregnancy. happy patients and also happy doctors. >> the company's products are in 60% of the hospitals in the d.c. area. and for those who are working full-time and may not have the time to cook dinner each night, there's galley. the start-up is delivering hundreds of chef prepared healthy meals each day inspired by the cofounders' long hours and lack of free time. >> they're making the dishes from scratch, choose what you like. and in a 30 minute window or on demand we deliver it out the you, ready to do a quick e oven or microwave. it has the consistency of a home cooked meal without doing any of the shopping, cutting, cooking,

et cetera. >> they deliver to st of washington, d.c. and have since expanded to baltimore an. and while all three companies may have gotten their start right here in washington, d.c., they're looking to take their products and services nationwide in the future. for "nightly business report" in washington, d.c., i'm kate rogers. >> that is "nightly business report" for tonight. i'm sue herera. have a great evening, everybody. see you back here tomorr

>> the following kqed production was produced in high definition. [ ♪music ] >> when amy x. neuburg discovered electronics, she never looked back. and the musical places she goes to will surprise you. >> amy x. neuburg: i just fell in love with the sound of the electronics. not only are you creating all i mean, music, you're creating all new sound. >> the work of ceramicist shuji ikeda requires patience. this kiln will burn for seven days. >> shuji ikeda: through my work i want to communicate without language. >> and the floral work of stanlee gatti. those stories, this time on spark. [ ♪music ]