>> this is nightly business report with tyler matheson and is you herrera funded in part by hss. >> our valued principles are patience first. we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting patient at the center of the equation. the purpose of this organization is to help people get back to what they need and love to do. >> shifting gears, the president-elect was not at the detroit auto show. >> patience, my dear. business friendly policies, but

how long will investors be able to wait? >> a growing problem? what happens when farmers don't have enough workers to harvest their crop? it's something many are trying to figure out. those stories and more on nightly business report. good evening, everyone. the auto industry may be coming off a record industry for sales. few expect a smooth ride ahead. donald trump has been royaling the sector with tweets about production in mexico and threats offa i big border tax on vehicles made abroad. fiat chrysler trumpeted a billion dollars and drew praise from mr. trump. the auto maker insists it is part of an already established strategy. ford canceled plans to build a new plan south of the border, but general motors ceo said she is not changing a thing and production will stay where it is.

in mexico. it's the back and forth with mr. trump that has overshadowed the glitz of the detroit auto show. >> beyond the bright lights and big production introducing new models, the biggest presence at the detroit auto show is president-elect donald trump. he is not visiting, about you on the mind of everybody here who realized trump wants more auto jobs created in the u.s. and not overseas. they announced plans to hire 2,000 fore workers as it expands jeep production in michigan and ohio. president-elect trump tweeted about the decision, saying it's finally happening. fiat chrysler announced plans to invest $1 billion in michigan and ohio plants and 2,000 jobs. >> the timing may have coincided with the emphasis that trump is making on american-made products and american production.

backing the substance of the announcement was not happening for months. >> it comes a week since they added a plant in mexico in favor of expanding a current in michigan. they will build a new version of the bronco suv. >> there is a lot of love out there and going to lots of websites on bronco advocates and we are bringing that back in 2020. >> the ceo said her company has no plans to change where it builds vehicles which includes mexy coe. gm and fiat chrysler are one of the biggest importers from south of the border. the question is how quickly the numbers can change if the president-elect can succeed in getting a border tax. >> the next few months will be asking about it will be difficult for the industry depending on what the flavor of the day is. >> for all the talk about executives trying to figure out how they will deal with

president-elect donald trump, one thing has not changed in the auto industry. record high sales. one executive put it, sales are great. what's not great is trying to figure out where we will build the cars and trucks in the future. >> meantime at trump tower in new york city, the president-elect met with jack ma who said he plans to create a million jobs in the u.s. by getting more small businesses to sell to china and other asian countries. the two talked to reporters when mr. trump commented on the upcoming confirmation hearings for the cabinet picks. >> they are going great. >> i think they will all pass. every nomination is at the highest level. jack was even saying they are the highest level. they will do very well. >> one day before the confirmation hearings begins, mitch mcconnell met with the

president-elect to strusz strategy and late today new reports that donald trump's pick for secretary of state, exxon-mobil ceo rex tillerson did business with iran while under u.s. sanctions. in washington we have more. amen, will mr. tillerson face the toughest grilling and there are a number of them scheduled. >> tilson has been viewed as the most broad of the appointees. we will have to see how the hearings go. the new story from "usa today" this afternoon, reporting that exxon-mobil did business with iran through a sib sydiary when tillerson was an executive at the company. that will attract a lot of attention here in washington. tillerson was facing skepticism from republican lawmakers including senator john mccain who sat down with "meet the press" over the weekend with

lindsey graham to express to chuck todd exactly why he was still scenticle after he met with them. here's what he said. >> mr. tillerson's relationship with putin and russia raised concerns with me. i met with him and i still have additional questions. >> did he have any concerns? >> yes. i think there are a couple of areas i feel better. >> he feels better in a couple of areas and still has additional questions. >> there are picks for commerce, defense, housing, labor, that comes basically on thursday. some of these picks are controversial. what can we expect? >> absolutely. wednesday and thursday will be big days and on wednesday, you will see a bunch of people up there at the same time donald trump has his press conference on thursday. rex tillerson might have a second day. james mattis for defense

secretary. ben carson had all of those folks up there on thursday. this is going to be a very big week. a make or break week for the trump cabinet in waiting. >> reports that mr. trump's son in law will take a white house role. what about conflicts of interest on his part and his wife i vank a's part. >> we are told he will be serving as a senior adviser in the trump white house and trump officials are confident they can get around the anti-nepotism provisions. the white house is not subject to them, they argue. they are saying that jared kushner will divest assets and resign his position at the kushner company and the new york observer. it is clear heel make a big pitch to be a big part of the trump administration. not so clear about his wife,

ivanka, donald trump's daughter. we are being told that she is not expected to take a role any time soon in the trump administration formally, but we know that she is a very valued adviser to the incoming president-elect. >> indeed. thank you very much. >> you bet. >> the drug industry preparing if are a donald trump administrati administration. he wants to bring drug prices down and after a rocky 2016 and lots of uncertainty heading into the new year, the $5 billion deal announced he helped boost optimism and that comes at the start of the biggest industry event of the year. we have a report from the jpmorgan conference in san francisco. >> more than 9,000 investors and analysts and company executives braved storms to get to the health care conference in san francisco this week. they were greeted by news of the deal. japanese pharmaceutical company is paying about $5 billion to

acquire area pharmaceuticals, a 75% premium to the closing price last week. >> that means that we are not shy to look away when they are at the value we see. we look at the closing and we looked at the potential and the pipeline and the platform and we see this. >> the news buoyed hopes for a brighter 2017. they cheered an announcement on a collaboration with merck in immunotherapy, an important new way of treating cancer. >> we are excited about this. we believe it is foundational in the treatment of a lot of tumor types. we are pleased with having a first line claim with people who had lung cancer. we are interested in getting the right drug for the right patient. that involves different studies. the work we are doing with insight allows us to look at

that combination and to figure out which percentage of patients might benefit over that therapy. >> the industry has been urnds siege for thing of drugs and donald trump embraced the issue saying he will bring drug prices down. >> we would do this as any new administration. the chairman price is the incoming secretary. he knows a lot about health care. to try to solve the problem, how do we make medicine as affordable and more balanced with the rest of the services and products people consume. >> of course for all industry, the threat of a trump tweet. >> the president-elect goes straight to the american people by tweeting and at least for me, it's a normal condition now. this is the new reality, the new norm of bypassing a lot of filtered media and going straight to the american people. >> the impact leaves many open questions. investors by and large are

optimistic about new progress in treating disease. from san francisco. >> on wall street, a record by held by the biotech deal that we just mentioned. the dow retreated further with energy shares and utility stocks that fell. the dow jones fell 76 to 19,887. the nasdaq rose 10 and the s&p dropped 8. stocks rallied on the idea of tax cuts and infrastructure spending and a decrease in regulation. how long will investors have to wait to see the policies put in place? mike takes a look. >> wall 12r50e9 is eager for a package of accident-friendly tax cuts by the incoming trump administration. will the markets have the patience to wait for them to arrive after a tortured trip through congress? swift action and government regulations and undoing obamacare appear likely after trump's inauguration, corporate

tax reform measures may not come to a vote until the back half of 2017. they disappoint the investors based on what washington might do on taxes. the good news, the market seems not to be placing all its eggs in the policy basket just now. the trump trade favoring industries that gain from lower taxes and new infrastructure peaked about a month ago. manufacturing and bank stocks lagged since mid-december after sharp rallies in the four weeks following election day. they shared with the companies thought to be major beneficiaries have likewise trailed the s&p 500 the past several weeks this. suggests the index's levitation has been more about a rebound in profits and to pick up an indicator globally. earnings are projected to glow 12% with the strongest results in the second half. such estimates tend to be down a

bit, it's probably a plus that most have not boosted forecast yet by adding benefits of possible tax changes. the market's 6% gain since the election has priced in recovery is a key process as the bull market approaches the eighth anniversary. the stock market is perhaps healthier than depending on help from washington that may or may not arrive. it does raise the stakes for the earnings season as it's about to get under way. for the nightly business report at the new york stock exchange. >> here to talk more about the markets is michael farr, president of farr, miller and washington. welcome and happy new year. >> in washington, i'm not sure i have the right airport. >> let's talk about what mike just mentioned. that was earnings that are going to start coming fast and furious. roughly at the time of the inauguration. do you think they are going to

this year be strong enough to support stock prices where they are? >> probably not on that 12 and 13% growth change that mike talked about. that was an excellent report. everybody should have listened to what mike just said. the markets priced in a rosy scenario and we need to see if it's going to deliver. out of the blocks we look at bank earnings and to see if the changes in the dollar, we saw a dollar spike that really went up a lot after the election. it went up significantly and when it does, it trims the gdp, but also can trim off of the profit margins of the multinationals. there are head winds in place and markets been looking for all of the good things that will come tomorrow in ignoring the tough things today. >> you argue that stocks are not inexpensive at these levels. >> we are flirting with dow. 20,000 and record levels on the

nasdaq and record levels here and there. when you are at highs and you are not low. if it's buy low and sell high, you have to be careful and i think this is no point where you start reaching for extra yield and a rising rate environment. you don't go to the thin branchs to get extra returns on the equity shares. this is the time to play it more safe until you see the whites of their eyes. >> one of the areas that you do like is health care. why? >> if you listen to the early reports and the scrutiny under which the pharmaceuticals are coming and another great report, you have to watch the nightly business report. you are learning a lot. this is really under pressure. the drug companies are under pressure after the election we saw a lot of the companies that could be negatively affected by a reform of the affordable care act started to drop. i think maybe they have overdone it. i think there is real value there. these are typically not economically sensitive and they

still benefit from the huge area of the demographic of the aging population. you look for things that look to be reasonable values. i look for the medical device companies that i think are very attractive and much safer place. solid dividends to put money to work. >> michael farr with farr, miller and washington. >> still ahead, the surprise move from the government that could lower cost for mortgage medicalers. fers. oers. lers. lers. . .

online shoppers helped holiday sales. overall spending grew more than 4.5% over the previous year. online purchases were up 12%. the data tracked payments for nearly a million merchandises from late october and early january. to real estate where future borrowers are about to get a break on mortgage payments from the obama administration that may or may not be returned by the incoming white house. diana has more. >> the federal housing administration, the government insurer of home loans is reducing the annual premium by 25 basis points which he said will save borrowers an average $500 this year. it expects one million americans to use fh alones to buy a home or refinance a home loan. the insurance fund was a major player in the housing bailout,

offering borrowers the only payment available. it came at a cost. the insurance fund fell into the red requiring a bailout of $1.7 billion. it since gained $44 billion in value since 2012 and has been above the capital requirements for two years. hud's secretary said this is a fiscally responsible measure to price the mortgage insurance in a way that protects our experience fund while preserving the dream for credit qualified borrowers. he will not expect they will scale it back, but republicans fired back. representative and chairman of the house phi fashl services committee said playing politics through cynical 11th hour rule changes is irresponsible and endangers the integrity and success of the fha. president-elect trump nominee for hud secretary ben carson will be on the hill for hearings

thursday. for a nightly business report, from washington. >> black stone doesn't want to pay for partners anymore. that's where we begin the focus. the private equity firm ended the talks about a stake worth $5 billion. last month they reported the two were in talks about a potential deal. the shares are off a fraction and energy franz for was off about 2.5% at $36.53. merimac will sell cancer treatments to inson in a deal worth up to $1 billion. they are cutting the workforce by 80%. the shares rose almost 2% to throw. $3.67. the chain surgical care affiliate will be bought for more than $2 billion. they will add 200 out patient

facilities and 3,000 physicians to the unit. unitedhealth group fell to $161.95 while shares of affiliates soared 16%. >> the food giant mars said they will strengthen the pet care division vca for nearly $8 billion. the owner of iams and whiskas will acquire more in this deal. they searched 28% to $90.79. goldman sacks is turning bearish on procter & gamble on soaka cola. they went from mutual to sell citing valuation concerns and the expectation that they will pose quarterly sales. soak was given a sell rating due to currency head winds and shares were off a fraction to $84.40. shares of coke fell to $41.32.

lightings systems maker a cuity reported disappointing earnings due to lower demand and warned that it could linger. they cited manufacturing costs for the poor results. they sold more thfell more than. >> what is prompting farmers to do something they have never done before. the american labor market is as tight as well. they added millions of jobs, but

one industry is experiencing a labor shortage. ag kulthure. now farmers are worried that donald trump's immigration policies could make the problem even worse. we have a report from gilroy, california. >> this here is 70 acres. >> pete and his dad have been farming for 40 years on their 5,000 acre operation based in northern california. lately they had a growing problem. >> we are leaving crops behind. we are not able to keep up with harvests. >> they don't have enough workers to harvest crops. they are not alone. farmers are facing a labor shortage that some are calling a crisis. >> of course it's a financial burden. you have to make difficult decisions sometimes as far as having two fields to harvest and only being able to harvest one. >> partnership for a new american economy supports between 2002 and 2014, the

number of full time workers have dropped by 146,000 people, resulting in a loss of about $3 billion in crop productions. the american farm bureau federation came out with videos showing farmers forced to destroy crops or let them rot in the fields because they simply don't have enough workers to pick them. >> last year i had to do something i had never done before. destroy ten acres of good squash. >> some farmers are worried the problem will get worse when donald trump makes good on his campaign promise to deport undocumented workers. >> we are going to triple the number of ice deportation officers. >> more than half of the country's workers are undocumented according to the usda. the farm bureau estimates the policy that focuses solely on enforcement could cost $60 billion in production.

>> we are at the point that we are importing labor or food. farmers want to advise those who grow fruits and vegetables, we have to have access to the workforce to get that done. >> he calls the current system broken. she watching to see if trump can fix it. >> we need to come up with a system that works first and secure borders. >> on the solution side, the farm bureau sets up a current guest worker program. the visa program is full of bureaucratic challenges and delays. they believe any policy use said to reform that system. for nightly business report, gilroy, california. >> children don't come cheap. a new report out shows that raising a child could cost you nearly a quarter of a million dollars. according to the department of agricultu agriculture, that does not include college. housing is the biggest followed by food and child care.

as children age, so does the amount spoent transportation, food, health care and clothing. >> they eat more as they get older. >> finally steve jobs unveiled the first iphone in his trademark black turtleneck. he called it a revolutionary product. boy, did he know that. it had four to eight gigabytes of storage and it was valued at about $75 billion. the latest version has 256 gigs of storage and apple is worth about $630 billion, the most valuable company in the world. >> for did revolutionize. >> the product that changed the world. >> it changed my life. >> a computer in your pocket. >> that are does it for nightly business report. thanks so much for watching. >> have a great evening, everybody. see you back here tomorrow. >> nightly business report has been funded in part by hss.

our valued principles are patient first. we want to deliver the highest quality care. >> the goal of creating and sustaining value is all about putting the patient into the center of the equation. the purpose of this organization is to help people get back to what they need and love to do.

man: it's like holy mother of comfort food.ion. kastner: throw it down. it's noodle crack. patel: you have to be ready for the heart attack on a platter. crowell: okay, i'm the bacon guy. man: oh, i just did a jig every time i dipped into it. man #2: it just completely blew my mind. woman: it felt like i had a mouthful of raw vegetables and dry dough. sbrocco: oh, please. i want the dessert first! [ laughs ] i told him he had to wait.