. >> announcer: this is "nightly business report" with tyler math i sene and sue herera. war of words. investors are rattled as a north korean official says the u.s. has declared war. hitting their limit. home prices have acted like there's nowhere to go but up. but are they getting so high that no one wants to buy? new game plan? how do you please both your employees and your customers when your brand is at stake. those stories and more tonight on "nightly business report" for monday, september 25thth. good evening, everyone. kell women. tyler math i sene is on assignment tonight. stocks fell, gold rose as tensions escalated between the u.s. and north korea. earlier in the trading day north

korea's foreign minister says hess country has the right to shoot down strategic u.s. bombers even if they're not in north korean air spas. stocks dropped sharply. the major indexes did recover some of those. the dow jones industrial averag dropped 53 points to 22,296. the nasdaq was off 56, and the s&p 500 was down five. well, north korea got a lot of investor attention, so did something else. bob pisani explains. >> tensions are on the rise once again after a war of words between president donald trump and north korean leader kim jong-un escalated today. north korea's foreign minister said trump has effectively declared war on the rogue nation, and that north korea now, quote, has every right to take countermeasures, including the right to shoot down u.s. bombers even if they're not in north korean airspace. we've had hear similar exchange

of threats now, the markets have mostly shrugged them off up until now. the gold was up. bond yields dipped to lows, lifting real estate, defensive nails, and the vix rose to the highest level in two weeks. so it's still low, around 11. despite these moves, the bigger story lately has rotation. there's been plenty of sector rotation in september. we saw it again today. just take some of the dow leaders and lag guards. chevron and exxon, who have been under pressure all year. meanwhile, apple and unitedhealth, two of the year's best performen dow components are down more than 4%. apple is down 8%. tech stocks are slumping today. facebook, nvidia, as investors are taking profits off the

table. bob pisani, new york stock exchange. tax reform as we've been reporting is another issue important to the market. this week republicans plan to outline their tax reform plan, offering the first concrete details of a proposal they hope will accelerate the economy. congressman kevin brady says the plan will offer specifics. >> we're going to see details around a broader range of the simplified tax plan for families, where nine out of ten americans will be able to use a simple postcard-style system to file their taxes and lowest rates on businesses in modern history. ylan mui is here is here with us. good to see yo do we knew about so far? >> the formal plan will be unveil on but i'm told to expect a 20% corporate tax rate as well as a 25% rate on so-called pass-through

businesses, many of which are small businesses. one point that seems to be under contention, though, is what the top rate for individuals will be. the white house i'm told has been pushing to lower that top rate to 35%, but there is some concern that that could be seen as violating the president's pledge to focus any tax cuts on the middle class rather than on the wealthy. >> speaking of tax cuts, do bev any idea how they plan to pay for tax cuts? >> that is literally the trillion dollar question, sue. so what representative brady has said is that they are seeking as much permanence as possibility. that's important, because in order to ensure that tax cuts last beyond ten years, they have to find a way to pay for those tax cuts. it's likely that some of the provisions might be temporary in order to ensure that the numbers can work. >> you know, the republicans have really been struggling to unite around health care. is it looking better for tax reform? >> they're taking a very different approach when it comes

to tax reform. the ways and means committee, the tax-writing committee has been having a two-day retreat. the broad ever conference of how republicans will be meeting on wednesday in or to talk about this, and the president is making a speech on wednesday in indiana, so they're doing a lot more to lay the groundwork for those discussions and to get everyone on board. we will see if it makes a difference. >> we will see, thank you, ylan. and a hearing on the graham/cassidy bill was disrupted while the demonstrators were taken out of room after chairman orrin hatch repeatedly called for order. when the hearing went under pay lindsey graham testified, as did democratic senator masi hirono, who was recently diagnosed with stage 4 kidney cancer.

>> my goal is to get money closer to where people live so they have a voice about the moe important thing in their life. >> health care is a right. it is a right. it's not a privilege reserved for those who can afford it, but graham/cassidy treats health care like a commodity that can be bought and sold. >> revisions were made to the bill over the weekend adding billions of extra dollars for some states and easing coverage requirements to win over wavering glop senators. while investors are hoping for a a burst of economic growth, but according to a new survey for business economics, most economists aren't so sure. steve liesman as the details. >> we're bringing it from 1% up to 4%. i think ked can go higher. i think you can go to 5% or 6%. >> reporter: that was candidate trump extolling the benefits of his proposed policy, but eight months into his economy, many

economists don't think that's the case. growth this year and next could be just 2.3%. far short of candidate and president trump's estimates. the total effect of fiscal policies, economists say they add just 0.25% to growth. >> if we get a tax reform that's revenue neutral, doesn't add significantly to budget deficits and does lower corporate tax rates, then over the next ten years, yeah, roughly at most as quarter point -- >> even conservative economists don't see much up side. >> if you look at the economic, you can get to the upper bound over the long term. it's rare that something as pure as those things gets through a congress by the nature of the political process, so you start scaling back from there. >> much depends on how much tax cuts boost deficits.

they could end up raising interest rates or strengthening the glare if they're not offset. but definite at this time-neutral tax cuts would get higher marks from economists, bud they're unlikely to mark those up as high as 3%. for "nightly business report," i'm steve liesman. the president of the new york fed says weak inflation won't last. that could lead to further interest rate hikes. bill dudley is the first among fed officials for speak publicly since the decision last week to hold rates steady at least for now. mr. dudley believes that inflation will rise and stabilize a round of the central bangs' target of around 2% over the medium term, and if it rices mortgage rates could follow potential reversing the rates that home buyers have enjoyed. lower rates with stiff competition have help fueled high prices for homes. but there may be a limit to how much prices can go up.

diana olick explains why. >> there's so much demand for housing, so few homes for sale, and rock-bottom mortgage rates are only addic to the inflation, but all those factors are facing something more fundamental. some people just can't pay that much for a house. >> first-time buyers are being priced out of the market and their share has fallen from traditional rates. we haven't seen any real inventory increases in starter homes. what inventory we do see come on the market is generall above $200,000, $250,000 price point, so it's an expensive market. >> reporter: national price gains month to month have been coming down. in july, which was the latest read on home prices, the game compared to a year ago stabilized at 6.2%. that annual price gain had been accelerating in every other metropolitan this year, according to black knights financial services. historically home price versus

always lagged sales, and sales have been falling for the last several months. >> what we saw earlier in th year is that the market was transacting about nine days faster than last year, now it's down to five days, so we are seeing a narrowing of that seller's advantage. >> reporter: while prices are not falling, the gains are cooling, and the competition among buyers is starting to ease. here in the washington, d.c. area, where home prices had been hitting new peaks for a year, they're not falling, down over 5% in july compared to a year ago. realtors in this d.c. neighborhood say they're surprised to see the lack of a post-labor day bump. usually both buyers and sellers get more active, but even the less pricey homes are now sitting longer for "nightly business report," i'm diana olick in washington. still ahead, this holiday season means shopping, and for some target workers, a big other

a cyberattack at one of the big four accounting firms may have revealed confidential client information. deloitte believes the hackers may have gained access through its e-mail server. the company contacted authorities immediately after it discovered the attack and said it notified each of the very few clients impacted. a global investor group is calling for an independent investigation into a cyberbreach at the s.e.c. the investment compute institute our ici is also urging the regulator to delay the submission of new monthly

performance data rules until it can assure investors that its systems are secure. the ici represents more thansh who told more than $20 trillion in assets. the s.e.c. chairman believes the software fix has been successful. target is raising the minimum hourly rage to $11 from a current rate of $10 and vows to push it even higher as the retail looks to retain and attract workers. courtney reagan has mo. >> reporter: target giving its employees an early holiday gift, a raise. the big box retailer is bumping the minimum wage to $11 in october with plans to pay $15 by the end of 2020. that means all $100,000 seasonal holiday employees will start at a higher wage. it's the third time in three years that target has raised

wages, it puts target above the minimum wage in 48 states, matching washington and massachusetts rates, well above the federal minimum wage of 7.25. >> this is extremely good for the customer and extremely good for retailers, because it feels like they have finally gotten the message it is time to reinvest in the frontline sales associates. even in an omnichina world, the frontline sales associate is a very important position for retailers, and i think target recognized that. >> reporter: target hinted at invests in its team as part of the three-year $7 billion plan to improve its entire experience from the store to the website. the move has likely been in the plans for some time, as the big box retailer still plans to hit its profit forecast even with the higher cost of labor. but target is far from the first to announce pay raises for hourly employees. last year walmart began a nearly $3 billion two-year plan to bump

up hourly play for its workers. new employees start at $9, then bump up to $10 after trainings, plus annual raises. walmart's pay gets a lot of attention, but gap was the first major retailer to raise its minimum wage for store associates. at gap, old navy and banana republic. it's hard to know exactly how higher wages help increase sales for retailers, but some experts point to walmart's higher wages and its subsequent higher sales as no coincidence, suggesting happier employees are more helpful to both customers and their companies. while there are many retailers struggling, the number of store openings still outweighs those shutting. couple that with low unemployment and high turnover, it's a challenging environment to and hold on to good workers. targets hopes to hit a bull's-eyes with its employees

and eventually lead to happier shoppers, too. for "nightly business report" i'm a corti reagan. last week we told you that t mobile and sprint were reportedly in active merger talks. today bloom better set sprint shareholders shouldn't expect a big premium if the companies entered into a stock for stock deal. the report said sprint's largest shareholder, softbank would agree to a deal that valuing the company at current market prices. sprint shares fell. the fda has rejected johnson & johnson's rheumatoid arthritis drug saying it needs more information. j & j says it plans to work with that agency to win approval. johnson & johnson shares felt to 131.17. allergan said it's launching a share buyback and said the chief financial officer would

retired. le rose. out-front media says it was recommended to be awarded a new contract with the new york metropolitan transportation authority, the largest public transit authority in the u.s. the advertising company currently holds 9 licenses for ads in the mta's network of subways, railwayings and buses. the new deal would be for another ten years. the shares popped. after the bell, asenna posted a stronger profit. the parent company of ann taylor and dress barn did report a drop in same-store sales, but shares of the small cap unusually took off, and in after hours they ended a fraction to $2.17. preliminary ratings for sunday's nfl games were down from the previous year. that's true for nbc's prime tiism game as well as fox's afternoon matchup.

but on cbs ratings were up from last year's week 3 coverage. football ratings have been in decline well before yesterday's for the value of most is not football franchises. they've been rising. robert frank explains. a. >> reporter: televisio ratings for the nfl may be falling slightly, but the value of nfl teams continues to soar. driven by growing number of rich corporate sponsorship deals. the 32 nfl teams you now worth a combined $100 billion, up 8% from last year, and the top ten teams are up even more. according to the "forbes" list, the dallas cowboys remain the most valuable team in americans sports worth $48 billion. owner jerry jones' creative deal making of selling tickets and sponsorships at the practice facility generated total profits of $350 million last year. the new england patriots ranked second, now worth $3.7 billion

with the merchandise sales up 50% after the big super bowl comeback last year. the nfl teams maid $7.5 billion from media and tv deals last year, about half the league's revenue, and news platforms like amazon and verizon could add even more in the coming year. but stadiums remain the big cash cows, miami dolphins got a $250 naming rights deal with the hard rock u. and the falcons sayers their deal jump, after secures sponsorship for the new mercedes-benz stadium. all that explains why the team owners are billionaires. for "nightly business report," i'm robert frank. dean crutchfield joins us more about the sponsorships and he is a brand expert with his own firm. nice to see you again, dean. welcome back. >> thanks for having me. the nfl has frequently found

itself call the in the middle, whether it's social issues or other issues. this latest weekend event no exception to that, but if you are a sponsor, say a nike or, you know an anheuser-busch how do you walk the line between the controversy and your customers >> it's a great question. i think we have to -- we live in interesting times is one statement, but i think the other is we are living in a highly politicized culture, and for a lot of market deers, they don't want the brand -- so it's a big issue on how to handle themselves. the most important thing is there's no study that shows a political stance as to brand growth. if anything it can have a negative impact, so there's no

proof of that, bud most importantly no brand should be getting involved in politics. they're not politicians. they don't no operate on a divide-and-conger strategy. 24e6 built success by building common ground. >> you say they need a crisis management approach, prepare for the worst and hope for the best. >> absolutely. what more can you say? think need a great plan, need to be thinking fast right now, a clear purpose in terms of what their response will be, and they need to be bold when they do it. that's pretty much the nuts and bolts of crisis management. they just need to be able to work that out. >> does it matter what the crisis is? >> no, crisis is the same thing. you have to handle the expectations. you have to have a team in infrastructure in place for when the crisis hits. you have to put together a purpose-driven plan that talks about you as a business as your brand, your purpose, not about the political climate.

then of course it needs to be bold. i think some stamtsds were made today from nike talking about the freedom of expression of the sports players in the game. so those statements are already coming out. >> dean, are you surprised that we haven't seen a more collaborative effort from some of these sponsors? they all sponsor, you know, pretty much the same types of events, sporting events, whether you're talking football or baseball, whether you're talking soccer, european football, i'm kind of surprised there isn't a more united front from them. >> i agree with you. obviously there are some that wouldn't do that's correct of course with the cokes and pepsis of the world. this would not be collusion, just people of big brands having a discussion whether it's the chief executive officer or the head of marketing, having a wholesome conversation about the situation and what, you know, what advice, what plans have others got in terms of their response to it. so i'm very surprised that that hasn't happened, but maybe you

might find behind closed doors conversations have happened. >> on that note, dean, always a pleasure. >> thank you. dean crutchfeld. coming up google and facebook tighten their grip on the digital ad market, but it comes as scrutiny with those companies intens s uber's ceo issued an apology to londoners today. he wrote -- while uber has revolutionized the way people have moved, on behalf of

everyone at uber globally, i apologize for the mistakes. london's transport authority said it would know rye new the license when it expires atd of . uber says it plans to challe decision. disney a planning to pull programming from the fourth largest cable provider. they are working on a new contract to replace the old one that expires. altice says that disney is asking for hundreds of millions in new fees to carry channels like espn and abc, even as ratings decline. >> disney disagrees with the character sykes of the fee increase. and at this week's advertising week, anxiety is running high, not just among television networks and their declining ratings, but also among some of the most powerful ad giants. julia boorstin is in new york

>> reporter: this year digit at ad dollars will grow 16% surmayesing all other types of advertising for the first time, but the tipping points sum as facebook and google face unpress dempsed scrutiny. the two companies are unattack for a range of issues, from audience mismeasurement to concerns about violent and extremist content being streamed on facebook and youtube, and russian ads that played a roe in the election. >> very much we invest in facebook. we think it's a fantastic place to advertise. we really focus about where people spend their type. >> reporter: despite the negative headlines, facebook's shares are up about one third over the past 12 months as it continually beats expectations. >> there are certainly brands that have threatened to pull advertising, but ultimately brands want to be where consumers are, and facebook,

youtube, they are really popular. >> reporter: after an advertiser boy coit, both google and facebook have introduced changes. >> we've expanded some of our measurements so the brand can better see the sales list of their platform. >> reporter: today's facebook instagram announced it's adding users to 800 million monthly active users and 500 million daily users. that helped grow its advertiser base to 2 million. with that reach, advertiser such an unilever are following consumers. >> we're increasing investments on digital, but it's more of a bounce than a major shift. >> reporter: one ceo tells me brands will continue to move tard digital, and -- maximum accountability from facebook and others. for "nightly business report,"

i'm julia boorstin in advertising week in new york. finally tonight, the world's most valuable brand, interbrand is out with its annual list, and technology dominates. in the top spot, you guessed it, appear 8 alphabet's google is number two. microsoft comes in as number three. facebook was number eight, breaking into the top ten for the first time. of the top ten, coke, toyota and mercedes-benz were the only non-tech brands. on that note, that will do it for "nightly business report." i'm sue herera. have a great evening, and we .ill see you right h

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, and kovler foundation, pursuing solutions for america's neglected needs. >> 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, cooling trade winds, and the