this is "nightly business report" with tyler mathisen and sue herera. fund in the part by -- >> all it takes is a spark. one idea to take flight. the courage to seek the unknown toxin over 58. to, i to innovate. to explore a different perspective. we detect world. its ideas. its capital. its businesses. the people that drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq. presidential pressure, intel invests $7 billion in an arizona plant even as other companies continue to move some of their operations to mexico.

washington whiplash. is it possible the way washington works is actually putting a floor under the market? made in the usa. why that is a complicated issue for some major pipeline projects. those stories and more tonight on "nightly business report" for tonight, wednesday february 8. good evening. my partner tyler mathisen is off tonight. the white house has been exhorting a lot of pressure over u.s. companies to keep jobs in the u.s. the it automakers are a huge example. today it was intel's turn. the ceo says he plans to investor $7 billion in an arizona semi conductor the plan. as the ceo announced in it an unusual way, from the oval office. >> it is an investment in intel but also the u.s.'s future in innovation and leadership in the semiconductor industry.

it will employ approximately 3,000 direct high wage, high-tech jobs at its peak. and over 10,000 people in the arizona area in support of the factory. >> but plans for the facility were actually put in place a while ago. in 2011, intel said it planned to invest had $5 billion in the arizona the plan. then intel pulled the plug on that and said it sat empty since 2014. will mr. kucinich said he is going public with it because of the potential regulatory changes. despite pressure from the white house,le companies have plans to move to mexico. caterpillar and steel maker new core are opening plants south of the border, as are general motors. rex nord is also going ahead with plans even though trump is

calling out viciously firing workers. they were waiting for a ruling on the immigration order. the court said the decision would not come today. so on wall street, activity was muted as the recent stock surge took a pause and financial shares declined. the dow jones industrial average 1235 points to 2754. the nasdaq rose 8 to a new high and the s&p 500 added 1. despite today's small moves, and challenge traded funds are having a big year and it could be a sign that retail and institutional investors are getting back into this market. flr. >> etfs are one of the ways they are reporting money back in the market. and according to the folks at black rock which manage as lot of money and funds and ets, we've seen it in the last two months. about $47 billion went into u.s.

etfs on the heels of the sxleks around $59 billion again in just the month of december. two of the biggest backed months on record going back to 2008. a lot of money pouring into these had u.s. based. some of the highlights carrying over into 2017 as well. in january we're seeing some interesting stats. globally they nook about $61 billion in assets. that's the best month for them overall since september of 2008. it is also the best january on record going back to 2008 and this is interesting part, guys. u.s. small cap stocks, it means over a fifth of all the money that went to u.s. exchange tradeded funds just in janel was in small cap stocks. the question is, can that run continue in the markets of course near record highs. back over to you. >> absolutely.

thanks so much. well, investors have been pouring money into it since the election and pr you're seeing the of results of normalcy. he joins us to talk more about this. good to see you. welcome back. what do you mean by a return to normalcy? >> after the election i think there was an expect participation we would have some quick changes. putting money into it. and we've seen that return where we've gone back to a period where investors have slowed down purchases of domestic stock funds had and gone back to where they were before. had. >> and how much of that do you think will continue if indeed things move a little more slowly in washington than everybody, as you pointed out, anticipated at first? >> i think we'll return back to some of the many strong demographics that have been driving demand. and they're kicking the focus out from washington. probably a good thing. and focusing on their own

futures. the retirement and what they're needing to do. >> there may be some changes under this new administration. one is this had fiduciary rule pr governing how brokers give advice to their customers which we've been covering here on nbr. the labor department late today sought to stay legal change to that rule. what would that mean? >> it means when you went to your financial adviser, they were making had decisions for you in your best interests. and one of the challenges that i think has been is out to implement this. so putting a stay on this would give as you little more time to make sure that no investors are hurt in the process of getting to that new standard. >> could it cause market volatility or not? >> it's been in the market. i think it is more about, will you be able to go to your adviser and get the help you

need? and in such a significant change, we want to make sure there is time for everybody to implement it. but doing so without being disruptive. >> you mentioned the bond fund flows. >> i think what it tells me about the mind set, they're looking for income in retirement. we have all the babyboomers with 401(k) retirements. they're shifting from stocks, putting they will into bonds. making sure there's had stability. and this is what you would expect with people entering retirement phase. >> one of the things you recommend people keep a close eye on is the tax reform. >> we don't know where this will go. let's say if we had a reduction in tax rate, that would make it more attractive. municipal bonds would look less attractive. because the yield on them wouldn't be as attractive as the

tax bonds of a lower rate. we can see some of the carving back of some of the special treatment we saw right after the election, the investors pulling back. we're seeing money coming back in. i think washington works in its own way. >> it is going to be interesting to see whether we have that stability throughout the year as washington continuals to work. nice to see you again. er with the investment company institute. mexico is our third largest trading partner in export goods to the u.s., worth nearly $63 billion more than imports. that's what president trump keeps targeting but it doesn't tell the whole story. >> to hear president trump tell it, the u.s. is losing ground relative to mexico and china. >> we're redoing nafta, a lot of

our trader deals. and we're negotiating properly with countries. even countries, allies, people taking advantage of us. >> but the data team different story. the u.s. is actually pulling away from mexico and it will take decades for china to even guess close. the u.s. per capita is around $50,000. that compares to $10,000 for mexico and $62 for china. >> we have been the world's number one economy for over home run 100 years. and in that time we've accumulateder just enormous wealth. er china is becoming a very prosperous and advanced country. but she's had about 20 years in which she's been able to accumulate wealth. >> the gap with mexico, that's the blue bars.

narrowed from 200 stukes 2012. but it's widened. whatever the under fairness of trade deals may be, the u.s. is getting wealthier relative to mexico. same story with china. for mexico, it is a story of a bad education system and poor productivity of the average worker. the northern manufacturing areas that do the exports do much better but it is not enough to create convergence with u.s. and mexico had wealth. china has done better but they're on track on catch up. about it will be 20 years for per capita gdp to be on par. that is 20 years from now u.s. per capita gdp will still be five times greater than in china. >> had still ahead, the complexities of the president's america first energy plan.

the city of seattle has cut ties with wells fargo. they passed the measure last night because of the bank's role to the lender of the dakota pipeline project. they have said they won't renew

contract which continues through 2018. the bank manages more than on $3 billion of seattle's operating account. wells fargo says it is disappointed by the decision and is ready to support seattle with its financial services needs in the future. oil prices finished higher for the first time in three sessions. but it is the i'm that line industry that's getting attention. days after president trump issued an executive order to proceed with keystone's xl pipeline, the company building the project,s trans canada, replied for approval. there are big questions surrounding how quickly the project might proceed. >> in a storage field miles there downtown little rock, arkansas, more than 50% of the pipe, over 300 miles, needled to complete the keystone xl, sits

idle where it was manufactured. since before the obama administration vetoed the project in 2015. president trump said he wants pipeline pipes to be made in the usa. but he says the steel used must be sourced here as well. >> i want the pipe to be manufactured with united states steel. >> no one knows exactly what the president means. will all this pipeline be sold for scrap? or did you think it apply for future projects only? currently the steel for the large i'm that used for these times of projects is sorsd internationally. er still, u.s. steel manufacturers say they can make this time of pipe but they're not doing it right now. with more i'm that line approval expected, can u.s. steel copies neat demand? >> right now, they have some but they haven't had all of it. so we've had to source from italy and india.

most of the pipe has been delivered. the steel i'm that is already there. it would have to be new projects. >> an important issue that needs clarification. the president has vowed to move forward with an america first plan. it may be more challenging than he thought. little rock, arkansas. >> let's turn on john to talk more about what's happening in the oil markets and where he sees prices headed. >> jackie laid it out per se. you're looking at the had supplier/demand. >> that's right. this is a global market. maybe more so than ever drg increase and daily higher amounts of u.s. food being exported. our guys are in the game

globally. so now prices matter for everyone. so they're not as stranded as they have been. but you had to look at this on a global basis. and we are not still the low cost provider. as long as prices are home run $50 and are higher, and it is locked if a future price to guarantee a profit for every barrel, they'll keep going on the rise. if we tip over again like we did last year, or over the past 18th months, they'll be in trouble again. >> you're pointing to china. china's demand for oil has been going down. a lot of people thought it would go up and it has been going the opposite way. >> pts right. we can even see them had hitting an air pocket. they took a stand on building up their own refining industry. they started tea pot re15ories.

they started exporting record amounts of diesel, gasoline. they've woken up to there's a lot of pollution had in the industry. are they're going to cut back so much that it may go down as much as 900 many oorhundred,000 barr day. >> drivers had not driving as much as they were. maybe that's seasonable. has who knows? you're appointmenting to that as a factor. >> in a weekly report, the demand did pick up to more normalized levels. it had reached such a low level that it was kind of numbers, a break in demand that you would see during a severe recession. >> why do you think that happened? >> we believe that a couple of things happened. there is some consumer response to the slightly higher price. part of demand number government

has reflects exports and there was a big number in mexico. it was a head scratcher to a degree for a while. >> if it is a head scratcher to you, it would be to me. you see oil prices moving back down to the $42 barrel level. this is there one specific factor, do you think, that would drive it down that much? >> well, i think you have to applaud saudi arabia for their extreme efforts to support the price and rein in production. unfortunately, they've done all they can. and some of the other countries involved who did not sign up for the deal like iran and libya are ramping up production in a big way. and the other killer is that we're entering the spring, thankfully. even after a big snowstorm in the northeast. tomorrow on. and that's going to hurt the man and that will hurt the price, at least had for the time. they'll have to do more, roll over the deal at least on.

but they have a lot of road to ho. >> into it cuts its earnings outputt. the maker of the had turbo tax software said a slow start to tax season would cost profit and revenue for the current quarter to come in lower handle the expected. shares fell fractionally to 116.55. home run you said results were held had hirs and strong this box office had sales for the movie will fantastic beasts and where to find them. had they said they still expect the pending $85 billion merger with at&t to close this year. shares rose. allerigan said the new drugs are beat street estimates. the biotech this reached levels

ahead of forecast. it was up to 241.17. humana swung to a loss in its latest quarter. the results were still good enough to top estimates. as the health insurer said, it been fits from higher membership in its medicare business. humana said would it provide an update next week its proposed merge we are etna. a deal blocked last week. same store sales at whole foods fell for the sixth straight quarter. the grocery chain posted lower than expected revenue, prompting it to cut its full year outlook. the company said it was planning to rethat fine its growth strategy. shares fell in after hours trading. they finished the regular session up 1% to $29.30. and mortgage applications rose

last week and interest fell. total application volume increased 2.3%. but they're still running more than 20% below year ago levels. on the couples of the all important on housing season, a h plarkts mismatched ask that's because a the listing is preventing would be buyers from the wish list. sfw >> what is a mismaxed market? we know supply is short everywhere. in certain local markets, potential buyers are worse off. had in others, due to the supply available and not available. a real estate company measured searches versus available listings and found it comes down to price point. starter, trade-up and luxury. there's a significant shortfall in trade-up and luxury and a

large surplus. only 21% of listings were in that category. on the luxury side, 44% of searches were in luxury and 55% of liftings were. now let's get local. the top ten most mismatched markets on average. four are in texas. dallas leads the pack followed by houston. then charlotte and the raleigh. t the bharkts the biggest short fall of luxury homes, philadelphia, detroit, memphis, new orleans and l.a. interesting that all of those markets have a surplus of start-up supply and they're pretty well matched on the trade-ups. so if you are a young buyer looking to get into homeownership, these your best bets. >> coming up.

wi dow component coca-cola is scheduled to report earnings. if it declines, it would be the seventh straight quarter. president trump will meet with airline ceos at the white house. the focus? jobs. weekly jobless claims is that a few speech there's provide insight into the economy and that's what to watch for on thursday. and prumpl lashed out at the

retailer nordstrom over its decision on stop carrying his daughter's brand. he tweeted, she is a great person, always push meer me to right thing. of nordstrom has said that its decision was based on sales results and not politics. shares of nordstrom dipped momentarily after the president's tweet but closed up more than 4%. 2017 could be a year of solid retail sales growth. the national retail federation says rising wages, lower under employment and a solid housing market are driving consumer confidence higher. sales are expected to grow between 3.7 and 4.2% last year. online, a nonstore sales could increase between sxaet 12%. but there is a major head wind. this industry group forecast does not include potential

legislation, including the controversial border adjustment tax. and pits borderer adjustment tax which is also an issue for potential cuervo investigators. before they take a shot at the appeal, there are a few things on consider. landon doubty has our story. >> his election to the oval, sent the peso to record lows and a slow down. >> the peso has gotten weaker the recently. but it is, you know, probably a good time to go public given the strength in their business and the strength in the categories. i the wouldn't argue with taking hoes h it public. >> it comes at a time when the tequila sales are on the rise. had it has grown more than 100%

with last month's sales outperforming the category of 10% in january. will this is a big piece of. commanding a third of the market share. >> the whole millennial consumption of alcoholic beverages including spirits has been a wonderful, wonderful thing. they're very into premium, were into crafted product. and i think that benefited the rise in tequila. the u.s. makes up more than 70% of its revenue and america would likely rather not see a tariff on the product. higher prices could drive consumers to other brands in what is already a highly competitive industry. and that is "nightly business report" for tonight. thank you for watching. have a great evening and we'll see you tomorrow. "nightly business report" has been fund in the part by --

>> all it takes is a spark. one idea to take flight. the courage to seek the unknown, to innovate, disrupt, to move us all forward. to explore a different perspective. home run we connect the world, its ideas, its capital, its businesses, the people who drive global economy. the future isn't tomorrow. it's right now. all it takes is a spark. nasdaq.

>> this is bbc "world news america." >> funding of this presentation is made possible by the freeman foundation, newman's own foundation, giving all profits from newman's own to charity and pursuing the common good, kovler foundation, pursuing solutions for america's neglected needs, and aruba tourism authority. >> planning a vacation escape that is relaxing, inviting, and exciting is a lot easier than you think. you can find it here in aruba. families, couples, and friends can all find their escape on the island with warm sunny days,