. 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, 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. >> hiring surge. the private sector added nearly 300,000 jobs since february, shattering expectations and raising the stakes for the federal reserve. >> digging in.

details on a new report accusing cat pillar of deliberate fraud. >> plugging in. how tesla's battery pack are generating power for the island of kauai. those stories and more for tonight, wednesday, march 8. >> good evening. welcome. a blowout month for private sector job creation. the nation's employers went on a hiring spree in february, beefing up pay rolls by a lot more than expected. private pay roll processor adp says 298,000 jobs were added last month. the estimate was for 188,000. that makes february the third best month for job growth since the recovery began back in 2009. now as steve reports, the bar is high for the labor department's report due out friday. and of course, next week's meeting of the federal reserve policy makers. >> it's the jobs market getting

a trump bump. economists are trying to figure out whether it is a temporary glitch or faster interest rate increases. it expects it to rise by 298,000 in february. the much followed estimate on friday was more than 100,000 higher than what wall street estimated. >> it is three time rate expected. so any slack in the labor market, it will mark a reversal of the slowing trend from earlier in the year and it comes when claims for jobless insurance have been running at levels not seen since the early 1970s. it raises the question. is confidence brought on by the expected policies of the trump administration already showing up in hiring? >> i do think businesses are feeling, anticipating a lot of good stuff. tax cuts, less regulation.

the bottom line is the economy is fundamentally strong. it was foilly strong before the election. another factor, warm february weather leading to lots of construction hiring. it looks like growth is helping. it means the fed will have to get more aggressive. you have the potential of what will happen regarding new policy that's the trump presidency puts in place. that means the feds may be raising interest rates four time this year, or a full percentage rate. double what had they were looking for in january. >> with the increasing likelihood and concerns that this bull market may be getting a little long in the tooth, what should do you to protect your retirement savings. >> here with us to talk about it. good to see you.

>> thank you. >> you've been one who has been expecting higher rates for some time now. we're finally beginning to get a little inkling of it. but does the move, the possible move by the fed to raise rates, does that translate to higher interest rates? >> had not necessarily. we've been the rates to increase for a while to the natural courses of events for the economy. no relationship between this. we've seen the federal overnight target rate about, 0% for many years. and 2013 without any movement, we saw about 100 basis points. or a 1% in the treasury. likewise, we saw about 80%, ten-year treasury without any change in the federal funds rate. and in mid december, we saw the federal funds rate go up and no reaction from the bond market. >> so the fed may not be

influencing the marketplace rates for bonds. but what do you expect the market to do to those rates? if i'm a saver and an investor and i have bond funds, what should i be doing? >> well, first, a big proponent of using bond funds. in a balanced portfolio, that is a natural function. when people are kerneled about fox, they fly to quality. quality will be, we stay sweet spot of bonds. is the three to five-year duration bond. high quality government. triple a rated. that's where the money goes. >> yes. at all times. knowing full well if interest rates go up, and they will, they get a slight effect of that. a little risk there. >> a lot of people who are nearing retirement, the old formula was that you moved out of a large equity position. paired it down and moved into fixed income. but you've made the argument

that with interest rates as low as they've been, perhaps that owed formula needs to be revisited. so if you're getting closer to retirement, in this market environment, what would you recommend people do? >> so we think it is an antiquated solution to depend on fixed income for your lifestyle. peep are living longer today. although innation is low, it is a real thing. theon thing that would help you keep space to have exposure to stocks. so again, a balance type portfolio with high quality bonds, as the stocks go up over time. what we recommend people to do. find out the income you need. segregate the amount of money for two years worth of income. keep it in a reserve. keep your portfolio. it dpoenlds a liquid cash account to pay your income. we call it income distribution planning. using the reserve account. the balanced portfolio is never taken more than two years to recover. >> quickly, this has been a

brutal time for savers. do you expect savings rates to go up in any meaningful way? on cds and bank accounts? >> they will eventually. they lag. the federal overnight rate will go up in time. they'll use to it mandate the economy. essentially, those will start affecting short and intermediate term rates. banks, they're the last to lag. >> so we'll probably see our mortgage rates go up. >> they'll charge you more before they pay you more. >> thank you. >> with highland financial advisers. >> on wall street, the strong report on jobs was not enough to lift the market. it was lower by energy shares. oil prices declining sharply. after a new report shows that production cuts by open sxek other exporters have not been enough to reduce supplies. the dow jones industrial average down 69 points.

nasdaq did get a gain in of about 3 points. .06 of a%. the s&p lost 5. let's talk about crude. the worst day for oil in more than a year. it was off 5.4%. >> a tough day for caterpillar. shares fell after a report of tax and accounting fraud. it was published by "the new york times" and it comes days after law enforcement officials raided the headquarters of the fortune 100 company. the stock was the worst perform he of the blue chip index. morgan brennan has more on the latest twists and turns. >> "the new york times" reviewed the report which is not yet been made public and says it was commissioned by the u.s. government which has been investigating caterpillar's activities tied to a subsidiary for years. account thing professor at dartmouth's school of business conclude caterpillar did not

comply with u.s. tax law or u.s. financial reporting ruse adding, quote, i believe the company is not in come blinls the rules with deliberate and primarily with the attention of maintaining a higher share price. these actions were fraudulent rather than negligent. >> you're supposed to pay tax on it with a credit for whatever you paid overseas. and the professor's analysis in her view, cat pillar brings billions back to the u.s. without paying tax and without accounting for it for tax purposes, in its financials, even though it didn't have the ability to do that based on her analysis of what was good on offshore. the bottom line is that her position was the company owed billions in tax and didn't pay for it and didn't account for it. >> no charges have been filed. it is unclear whether the government agrees the findings

or even intends tookt on them. for its part, caterpillar has yet to comment. saying it hasn't yet sustain report itself. though just last night, they reiterated the company's stance on the investigation. >> we were surprised by the actions last week. we've been cooperating with authorities and we are cooperating and we look forward to a resolution of these matters. we're caterpillar. we've been in business almost 100 years. we live by a code of conduct and a set of core values. if something appears to violate that code, we take appropriate action. >> and it begs the question, what will happen next. will caterpillar pay a penalty? what will happen next? >> rebuilding the nation's infrastructure. one of the topics of conversations today in the nation's the capital. the president met with a number of business leaders to discuss the need increase spending on

roads, bridges and airports. >> reporter: the president held a lunch with business leaders today to discuss infrastructure investment. he has a trillion-dollar plan to include america's roads and bridges. and among attendees was elon musk, also real estate developers, and a representative from the environment of advocacy groups, nature conservancy. sean spicer did give some details about how it went during white house press release. >> the government has wasted too much of the taxpayer money. >> he talks about the importance of rolling back regulations. one big unanswered question is how to pay for it. so there's plenty of money waiting in the wings. there are 69 infrastructure funds already set up. they have a fund worth $15.8 billion. and another one worth about $8

billion. so a lot of potential money to go into these public/private partnerships. now there is pushback, however, from capitol hill from conservatives worried about the impasse of these public private partnerships. they talked to senator john barrasso and he is worried that rural flablds get left behind in the proposal and senator rubio said he is concerned that this could explode the debt. so everyone is in favor of improving america's afraid 42. but no one can agree on how to pay for it? had still ahead, jobs at risk. why a number of lawmaker are urging the president to take a stand with one airline.

productivity of the american work force recorded its smallest annual gains since 2011. it comes despite the recent pick-up in manufacturing activity. for all of 2016, productivity which measures output per hour work, eeked out just a increase. the smallest in five years. economists are struggling to understand reason for the slowdown which are considered important for economic prosperity. in theory, when workers are more productive, employers can afford to pay them more. >> with mall traffic, dense results. that's where we have market focus. discounts, lower profit and revenue. despite the decline, sales still beat estimates while profit was in line. but same store sales did not impress. they fell more than expected.

planned product launches and the reintroduction of the customer loyalty program will help drive future results. shares down 10% at 9:51. on the other hand, higher than expected profit and doubled the quarterly dividend to 40 cents a share. the revenue missed the targets but same store sales were better than expected. shares spiking more than 18% to $118.15. >> bob evans farms missed estimates. the gained market share in key product category. the company selling its bob evans restaurant business sees strength ahead and raised its earnings outlook. shares up 3% to 58.59. >> mgp ingredients, a supplier of premium distilled spirits, had a better than expected fourth quarter. stronger demand of premium alcohol offset a drop of a lower

margin industrial alcohol. shares were up 10% to 29.16. despite swinging to a profit in the latest quarter, the net company missed expectations. they also said revenue grew but wasn't at a pace analysts were expecting. the shares fell. and camping world said strong demand for recreational vehicles drove the latest results. the company earnings and revenue rose but only profit was good enough to top expectations. after hours, the shares dipped initial are you following the news. but they ended the regular session a fraction higher to $35.49. >> politicians from new york ask new jersey are calling on president trump to stop gulf based emirates airline from starting a roundtrip light between newark, new jersey, and athens, greece, this month. in a letter released, they said emirates and other gulf airlines have an fair advantages because

they receive millions in government subsidies, they say are costing americans jobs. the signature is on that. welcome. good to have you with us. >> thank you for having me. >> i assume lots of airs get some form of government six did i or another. and it is not new news that emirates may or may not get those six dis. sue will follow one that in just a moment. why now? why are you objecting to this one if emirates has been doing business? i flew from new york milan two years ago. >> it is really a serious issue for us. i have the airport in my district. and we feel it is unfair competition that they are subsidized. $50 billion is quite a subsidy. and it really gives unfair

access for emirates taking this flight from athens to newark. >> on the emirates website, they basically made a statement disputing your claims saying the thought that they were receiving six disis pat endly false. their words. they say what u.s. legacy carriers really want is protection from competition. what do you say to that? >> well, no. we're actually trying to make sure that there is competition. as we stated, these subsidies are dramatic. it are gives an unfair advantage. >> even though they deny it. >> they can deny it. the facts are the facts. they aren't subsidized to this degree and it cause unfair competition. and what it does for us really back here, for every flight that

distance that we lose, the men carrier, impacts 1,500 jobs. so that's very serious. we'll do everything we can to make sure that we have a fair playing field for our carriers throughout the globe. >> we have an open skies agreement with the uae. how does that figure in? number two, have you looked at the price differential between what emirates proposes to charge on these flights, which begins maybe even this weekend and what a u.s. carrier flying the same route would charge? >> i don't have the exact cost but he know it is not competitive. it goes back to once again, them being subsidized. so it just continues to harken back to that one point. but we are going to be at the airport this sunday to show our

support for american carriers. several members of the jersey and new york delegation will be there sunday and we'll continue to fight this issue because a it is very important for the gdp. >> thank you very much. and coming up, tesla's solar farm in paradise. >> is this giant solar farm an energy storage the key to cutting utility costs in hawaii? that story is coming up.

. >> here's a look at what to watch tomorrow. the bull market turns 8. making it the second longest bull in history. they will release the card on america's infrastructure and its estimates on how much money is needed to maintain roads and bridges. and jobless claims. the jobs data before the monthly report on friday. that's what to watch thursday. >> the state of hawaii is the first to challenge the president's new immigration order. attorneys are asking a federal judge to issue a temporary restraining order, the order's implementation. president trump signed the action monday. it bans foreign nationals from entering the u.s. for 90 days and bans all refugees for 120 days. >> in hawaii, the electric car maker tesla is powering up its plans for energy storage. in fact, the industrial battery packs are helping a utility in hawaii generate enough electricity for an entire

island. phil traveled to the island of kauai for our story. >> as energy projects go, kauai may be the perfect layout. just over 70,000 residents is that a utility trying end to its use of diesel generators when the island is not basking in the sun of. >> this is a prime example of being able to generate energy from clean solar and being able to deliver it at night when the consumer wants it. >> tesla says its power packs are cheaper to use than diesel generators. that will cut the generation costs. the key to test it, this huge solar farm. nearly 55,000 solar panels spread over 50 acres, generating plekt will be stored in 272 tesla power packs. those power packs are discharging electricity used by

hawaii's utility company. >> we can show that we can directly absorb solar power throughout the day and then diser chang it back at night. and stabilize it. even though we might have clouds coming over and it might not line up. this will solve that problem. >> tesla's factory where the company makes electric batteries for its cars and industrial power packs is at the heart of the ceo's vision for sustainable energy. including the company's acquisition of solar city. but analysts aren't sure the growth and clean energy projects like kauai will move the needle. compared to the rapidly growing auto business. >>er the utilities, for example, might be worth two or 6% of the value of the company. the company is so valuable already. by comparison, it just dwarfs it. >> i think he's wrong.

we see huge potential in this. and we think the chance for growing the satisfies and growing the number of projects we're doing here is incredible. we're the just at the beginning of the deploying storage and sole ever a as well. mass numbers of. >> storing solar energy to power an island in the growth of a company betting on utilities going green. "nightly business report." lihue, hawaii. >> today is being promoted as a day without a woman. rallies took place across the country to bring attention to the economic power women hold. here some numbers. weapon account for 47% of all u.s. workers. they he shall 79 cents for every $1 made by men on average, and only 4% of fortune 500 companies have a female ceo. that's "nightly business report" for tonight. thank you for joining us. this is the time of year your public television station seeks your support. >> and we appreciate support.

thank you for helping us a good evening. we'll see you tomorrow. >> "nightly business report" has been fund 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, its capital, its businesses, the people that drive global economy. the future isn't tomorrow. it's right now. you a it takes is a spark. nasdaq.

for several centuries, scotland was ruled from london. parliament hadn't met here since 1707. recently, the scots voted to bring their parliament home, and london didn't object. in the year 2000, edinburgh resumed its position as home of scotland's parliament. scotland's strikingly modern parliament building opened in 2004.

the catalan architect enric miralles mixed bold windows, wild angles, and organic themes into a startling complex that would, as he envisioned, "surge from out of the rock and into the city."