this is "nightly business report" with tyler mathisen and sue herera. funded in 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. at nasdaq, we connect the world, its ideas, it's 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. >> new vision, house republicans unveil their blueprint to repeal and replace key parts of the affordable care act potentially changing health care as we know it. target trimmed, china

expects slower economic growth and there's one thing creating uncertainty for the world's second largest economy. losing fizz, why soda sales may be slipping in the city of brotherly love. those stories and much more tonight on "nightly business report" for monday, march 6th. >> good evening, everyone, and welcome. washington promise toes play a very prominent role on wall street over the next few days, not that it hasn't been already this week. president trump started this week by signing a new im fwra immigratio order. the labor department releases the employment for february. but we begin tonight with late breaking news on health care late today investors got their first look at the white house -- at the house, excuse me, republican plan to repeal and replace the affordable care act. kayla tousche reports tonight from washington. kayla, this is not even yet a bill, really.

it is more a blueprint. what's in it? >> tyler, it will get marked up this week, so it is a language that two important committees in congress will use as their starting point for discussions over exactly what this new health care law that the republicans are putting forward will look like. as many of the tenants that previous leaked draft had, they were leaked to start discussion and conversation about what house republicans could actually support, they interestingly transitioned to a tax credit for customers who would qualify under this plan between $2,000 and $14,000. interestingingly, it will depend on the customer's age and the customer's income. also, states will get about $100 billion in an innovation fund is what the house is calling it, but it is expected to go towards covering patients that have pre-existing conditions. customers will be able to nearly double the amount that they

contribute to health spepgd accounts to go toward their health care. one of the more controversial points is exactly what the transition out of a medicaid sxand expansion would look like. expansion would be frozen in 2020 and changes to the medicaid program would kick in at that point. expect state governors to weigh in vocally about what that looks like. >> kayla, you walked us through a little bit of what happens next, but what are some of the see the hou ways and pect this means committee as well as the energy and commerce committees do what they call a mark up of the bill. that's where people weigh in, they have a debate about exactly what is in it and what emerges between those two committees will go to the budget committee. you will see potentially the congressional budget office release a scoring of the bill or exactly what it would do to the financial situation in this country. that is something that conservatives are watching very closely for. house republicans say that their

hope is to have a bill on the president's desk by easter. >> so tell us about the president. has he weighed in on this in any weigh? i assume that much of what is . >> he very much deputized house republicans to put this legislation together. it is at the top of the administration's agenda, but they largely put the responsibility in the hands of congress. last week, house speaker paul ryan said that the white house, the senate and the house are all in sync on this, but there has been some opposition from the senate. we'll see exactly once they get their hands on this language what parts of it they want to pick apart and whether senate support for this is actually there. if not, you could see the president hit the trail to drum up support, guys. >> kayla, thanks very much with late breaking news from washington. president trump signed a new executive order on immigration today. the action temporarily suspends immigration into the u.s. from

six precome the instantly muslim countries. citizens from yemen, syria, libya, sudan, somalia will be subject to a 90-day ban on travel in this country. iraq was part of the first order, but removed from this >> iraq is an important ally in the fight to defeat isis. with their brave soldiers fighting in close coordination with america's men and women in uniform. this intense review over the past month identified multiple security measures that the state department and the government of iraq will be xwlemth to achieve our shared objective of preventing those with criminal or terroristic intent from reaching the united states. >> separately, the department of home will temporarily suspend the fast tracking of appear capitals for h-1bv visas. that means that applicants can no longer pay extra to have their paperwork expedited.

let's turn now to andrew freedman to talk more about that immigration order and the possible changes coming to the affordable care act. and how he sees it all playing out in the financial markets. oh, incidentally, he's a principal at the washington update. andy, welcome. good to have you with us. >> thanks, tyler. >> let's talk first about health care. there's a lot more we don't know. we really just got this massive blueprint within the last half hour. no penalties for o covera people who don't have it. it's going to be a heavy lift in congress, even on the house side. >> yes. >> especially on the senate side. can they do it? >> i think it's going to be hard. i mean, they can pull the financial underpinnings from out from under the affordable care act, as you know, with 51 points in the senate because there's a procedure that let's tax and fiscal legislation pass with 51 votes. but to replace the whole law requires 60 votes in the senate and, more importantly, to

actually replace it with something requires an affirmative vote. so i think it's going to be hard to get something through exactly as it is. i think the most concern for the markets here, though, is something we don't know, which is how much is it going to cost. >> right. that's what i was just going to say. how do you think wall street will view it? obviously, they're going to pars through the language such as we have it tonight and probably react to it tomorrow. what do you think? >> i think, for now, it's going to be a wait and see approach. i think if it comes down to is this really going to balloon the deficit, which is what i think businesses are most concerned about. there's a tangential concern. it's a little bit ironic. but i think businesses want to get this out of the way so that congress can focus on the most important thing, which is tax reform and government stimulus. so i think if the process is able to move smoothly and the

well received. but in the short run, i think businesses will wait to see what the cost is and what kind of reaction they get from others in congress. >> where, from what you know, and forgive me because i know this is really just news out in the last half hour or so. >> sure. >> where would the cost ballooning come from in this proposal? >> well, it would probably come from the devil in the details of the tax credits. as you heard, the idea is to replace a public s subsidies with a private system where people get their own credits and go out and buy their own insurance. how large are those credits, how many people will accept them, how many people will still be able to get medicaid -- you're going to get rid of the major funding mechanism of obamacare, which is the 3.8% surtax on investment income. that's going to get repealed. so you're not going to have as much revenue coming in. how much of this money is going to be going out in tax credits? >> andy, thank you for being

with us again. >> sure. you bet. on wall street, stocks closed lower. financial and security stocks weighed on the broader market as investors analyzed the likelihood of a possible rate increase at the central bank's meeting last week. the dow jones industrial afghanistan fell 50 points. the nasdaq was off 21 and the s&p 500 fell 7. new u.s. orders increased for the second straight month in january. factory orders rose 1.2%, which is more than expected. the report is more evidence that the manufacturing sector is regaining its footing after being hit by weak overseas growth, low oil prices and the strong dollar. president trump wants to reinvigorate the nation's manufacturing base by renegotiate something trade deals. today, one of his policy advisers issued a stark warning on trade deficits. steve liesman is in washington.

>> imagine a future where foreigners own a significant part of the nation's food supply, why they can swoop in and buy cutting edge technologies in silicone valley. that's the danger for large trade deficits as we're told by peter navarro. >> if the current distorted market patterns continue, and to paraphrase cane, in the long run, we are all likely to be owned by foreigners. >> navarro was speaking to a group whose members are highly skeptical of trump's trade positions. >> so economists are not expressing a lot of concerns about immigration policies or trade policies as we're hearing from the administration. >> when the u.s. buys more goods and services from foreigners than they buy from us, foreigners accumulate dollars. they can use those dollars to buy hard assets in the u.s. foreigners currently own about 20% of u.s. assets. most of it is in stocks.

>> the kind of assets these foreigners have been buying have been things like u.s. treasury bills which have, in effect, lowered our cost of funding. >> navarro said the trump administration's plans are not necessarily to fix these with tariffs. he said the president seeks fair reciprocal trade agreements. >> one of the major goals of the trump administration is to regain all of the supply chain and manufacturing capables that wo otherwise exist if the playing field were level. >> many of the economist res skeptical, believing that automation is more responsible for job losses than trade and they argue trade helped boost productivity and lifted many around the world out of poverty. i'm steve liesman in washington. oil prices fell modestly today following a down feed

economic forecast from china. more on that in just a moment. now, that down beat outlook raised concerns about demand for the commodity, especially as production here in the u.s. ramps up. and as jackie deangelis reports, that was the topic of conversation at ceroweek, a major oil conference in hous >> it's a super bowl of the energy industry. attended by the movers and shakers in the global oil and gas industry. not just big oil, by shale players and representatives of the world's major oil producing nations. and opec. the central theme is how to operate at this delicate time when recent oil price hikes seem to be sticking. ceos are approaching this environment with caution, though they are enthusiastic about what's to come. chesapeake ceo doug lawler says it's important to remain nimble. >> what's very, very important, i think particularly for the u.s. producers, that the strength of the company, the

cost improvements were very well positioned in this $50 to $55 a barrel window to continue to invest and provide the energy that our country and the world needs. >> trump administration policies can also change the game. a pro energy and infrastructure driven policy stance is expected to help the industry thrive as the u.s. moves towards its goal of energy independence. policy aside, the technologies are making companies more efficient and competitive in some cases getting twice as much of out of each well than possible before. >> the technology and improvements have been great in the past two years. opportunities to reduce cash costs as well as our capital efficiency to make the u.s. more competitive. >> while generally confident about an uptrend in prices, most players are still cautious. policy changes and other surprises could disrupt the delicate balance of supply and demand. for nightly business report, i'm jackie deangelis in houston.

late today, exxonmobil said it will invest $20 billion through 2022 to expand its chemical oil and refining plants on the gulf coast. the investments should create 35,000 temporary construction jobs and 12,000 permanent jobs. exxonmobil said it recently plans to increase spending this year by 16% to expand operations. still ahead tonight, how north korea is bank rolling its puck here missile ambitions despite sanctions. china cuts its economic growth forecast to a 25-year

low. that country's government now expects the economy to grow at 6.5%. that's down slightly from last year. eunice eun in beijing takes a look at what might be china's most important source of economic uncertainty. >> china's leaders have gathered in beijing for the annual national people's congress, a time when lawmakers map out the economic agenda for the year. and looming over it all is the trump administration. over the weekend, i had an exclusive interview with the chinese vice minister and he tells me the biggest source of uncertainty this year is u.s. policy. >> internationally, i think the big challenge is -- so uncertainty with the trump administration economic policy as well as what impact that has for the u.s. economy and the global economy.

and most challenge situation is trade. >> the vice manager told me beijing wants and needs to have better communication with the trump white house and i specifically asked him if beijing is concerned about being labeled a currently manipulato >> three conditions. we have our judgment. we keep very close communications. >> anoth big concern among trump advisers and foreign visitors is the lack of american access. many american companies here feel the environment has many much more hostile. i asked the vice manager under there and he said under the leadership of president xi jinping that china would continue to embrace concerns and investors would soon see results. north korea wants the world

to know it's aggressively moving forward with its weapons program, after launching more missiles over the weekend. but how does a country like north korea afford something as expensive as a nuclear weapons program? a new report from the aye united nations may hold the answer. michelle caruso cabrera has the details. >> the new u.n. report details how north korea makes millions by sells arms to africa and the middle east and billions selling coal. one example, a ship seized in egypt was carrying 30,000 pounds of rocket launch grenades, destination unclear. they sell through a company called glo-com which advertises on the internet and makes almost no effort to hide its north korean roots. but not very well. north korean diplomates have

been repeatedly caught smuggling banned goods such as cars, watches, even this bentley. the swiss system, the international payment system still processes transactions for north korean banks even though some of those banks are supposed to be banned from using the global system by the u.n. i've reached out to the swiss and am waiting for an explanation. but north korea's cash came from selling coal or iron ore to china. china has promised to curtail those push chasrchases, but so hasn't happened. general motors pulls out of the european market and that is where we begin tonight's market focus. in a story we told you last week might happen, gm now will sell its opal and boxall brands and the european arm of its financial division to the french

automaker psa group. separately, the largest u.s. automaker said it would lay off more than a thousand workers in its assembly plant in michigan in may as it moves production of the vehicle to tennessee. shares of gm were a fraction at 37.91. meantime, delta cut its first quarter operating margin forecast because of rising costs. also delta sees the key metric of passenger revenue per available seat mile as flat instead of the 2% rise previously expected. shares fell 275% to 48.85. deutsche bank is lose to raise $8.5 billion and sell part of its assets management business in a major strategic overall. it comes as the bank posted a net loss of $2 billion in the fourth quarter following a settlement with the u.s. government over housing prices.

>> we were listen to go some feedback from the market where there was sll concerns which were to some extent shared by our clients and our counterparts bank shares fell 't hav nearly 4%, 1861. a strain of bird flu was found in a tennessee farm contracted by tyson foods. the usda says this is the first confirmed case in commercial poultry in the country this year. nearly 74,000 chickens have been destroyed to ensure the disease will not spread or enter the food system. shares of tyson off 2.5% to $61.99. and late today, railroad operator csx reached a deal with it investor to install industry veteran hunter harrison as the company's new chief executive. the founder of the activist fund will join csx's board along with new independent directors. the csx rose slightly in after

hours trading. coming up, soda tax spillover. is the price increase in philadelphia causing layoffs at pepsi? in its first month, the soda tax in philadelphia has brought in more than $5.5 million. that increase caused customers to change their habits and drink less soda. now pepsi is laying off some workers in the region. rosemary connors reports tonight from nbc's philadelphia st

>> this is what the philadelphia mayor's office says the sugary drink taxpays for, free pre-k. at the peewee prep educational center, the tax spurred ten new hires to accommodate the 70 new prekindergartners enrolled here since january. >> when you get programs helping you be consistent with your budgeting, you absolutely can offer better wages and many times above the city minimum wage which is very exciting to me. >> soda giant pepsi insists this is taking a toll on their bottom line. pepsi said today, unfortunately after the careful considerations of the recently enacted beverage tax, we have been forced to give notice that we intend to eliminate 80 to 100 positions. those jobs are based here at the pepsi plant on roosevelt boulevard. i did track down the head of the

teamsters union which represents the workers. >> eventually, i knew there would come this day and time that layoffs would happen. >> doesn't this seem premature, though? the tax went into effect at the beginning of the year. >> no. most of our companies have lost between 40% and 50% of their business between january 1st and end of february. that's an incredible amount of revenue that's lost. >> how much revenue are we talking? i don't know dollars and cents. i'm just saying the percentage that sales are off. >> a soda tax in cook county, illinois, which is home in chicago, of course, goes into effect july 1st. similar legislation has been passed in boulder, colorado, and three cities in california including san francisco. >> and that does it for nightly business report for tonight. i'm sue herera. thanks for joining us. we want to remind you this is the time of year your public television station seeks your report. >> and i'm tyler mathisen. we thank you for your support.

have a great evening, everybody. >> fightly business report has been funded in part by -- >> all it takes is a spark, one idea to take flight, the courage to seek the unknown, to enknow excavate, disrupt, to move us all forward, to explore a different perspective. at nasdaq, we connect the world, its ideas, it's capitals, its businesses, the people that drive global economy. the future isn't tomorrow, it's right now. all it takes is a spark. nasdaq.

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