this is "nightly bus with tyler mathisen and sue herera. >> an investor adding to the board. executives are ousted. potentially signaling a big shift at the company. but investors are downbeat. >> this score in d.c., republicans squabble with republicans. what's going on here and could the ran kor be a stumbling block. >> those stories and more on "nightly business report good evening, everyone. welcome. general electric had a rough day and it is on track now for a

ge's new chief executive is making a lot of changes. he's giving an activist investor pushing for cost cuts a seat on the board. and late friday it was announced that several top executives are a new chief financial officer is on her way in. the stock closed at a two-year low amid concerns about what the changes could mean for the company's upcoming earnings due out next week. so far this year, the stock has lost more than and that's not good news for a lot of investors who either own it outright, or in a mutual fund or retirement account. morgan brennan fakes a look at the changes >> shares of general electric tumbling today after the industrial giant announced sweeping leadership changes. among the biggest, the departure of cfo sorenstein replaced by transportation head jamie miller. in march, the latest example yet of the strategy taking shape under new ceo john flannery.

but the move stunned wall street. especially since flannery had supported borenstein at least until recently. analysts worry it could signal more bad news. >> he's viewed as being able to roll up his sleeves with john flannery, the new ceo, to effect change. so i think there's a concern here that with him leaving, that maybe the underlying earnings of the company is a little worse than expected. >> but the changes are also overshadowing another development. activist investor will finally join the board. trian owned nearly 20% of the company when it invested $2.5 billion. trian has lost money. but today it said it continues to, quote, believe that ge represents an attractive long-term investment opportunity with signifi the stock has tumbled by 25% this flannery has begun cutting costs ahead of his first major meeting

with investors next month, a meeting that he'll outline his strategy and update the forecasts. >> what the investors are looking for from flannery is a realistic view of 2018 and beyond. also, the view that 2018, again, we will see some sort of reset. but that will come along with, again, a more streamlined, more cost-conscious ge. and we could see growth off that reset. >> but ge isn't the only industrial behemoth facing investor pressure. honeywell has also been reviewing its segment, including its biggest business aerospace. that company is reportedly poised to announce the spin-off of some assets as soon as this >> so let's turn now to mike bailey for more on the executive shakeup at ge, and what he thinks it coul he is director of research at fbb capital markets and owns ge shares. welcome, pleasure to have you here, mike. >> thanks for having me. >> give me a grade, if you will,

on what mr. flannery has done in terms of shaking up the executive ranks, and also, there's an activist investor now on the board. what do you think? >> yeah, so in terms of grades, we would give ge about a b-minus in terms of the new management, some of the shakeup. you might say, why not a higher grade? we're trying to be fair. flannery has done a fairly good job, showing nice moves early on. but he's an insider. we think ge really needs some sort of a major shakeup. we would have given them a higher grade if they had an expert from the outside. having said that, what else has happened. we like the new cfo. we think she adds agenda diversity. in terms of an outsider, she spent nearly two decades at other companies. we think that's the attitude that can maybe shake things up more at ge. with trian coming in, we think they've been involved in the last couple of years, we now

think is a pretty good time, potentially hitting on all cylinders, with a new ceo, cfo, activist on the board. >> let's talk about one of the reasons you said you were overweight the stock. you're comfortable owning it because in part of the 4% dividend. is the dividend safe? >> we think it is safe. if you look historically, ge's done a pretty good job keeping their dividend and actually growing it. they cut the dividend during the great recession. you could argue a lot of companies did. at that time ge was very different. it was almost a bank. many banks were in difficulties, so ge cut their dividends along with other companies like that. we think at this point a cut is fairly unlikely. now, there's a couple of ways to look at that. some folks have argued that one of the things ge might do is break up. so there could be a way you could see sort of a self-dividend cut. let's say, for example, ge shaves off parts of the business that aren't doing well. and that new business, perhaps they do tram, or dividend there,

before the bulk of the company. we can get into some of the pieces that are doing pretty well. we t keep the dividend as is. >> in your view, is the company more valuable whole? or more valuable broken up? >> we would break it up. so basically, there are three really nice pieces at ge. a health care business, aerospace, and power. think of utilities. that's about three-fourths of the business. that's doing pretty well. if you look at the stock this year, it's off more than 25%. you could argue that the street is already basally giving up on the other piece of business that's struggling. we would look at the company, take a hard look at the financials and say, okay, you've got three nice businesses here, let's them, grow them nicely. the rest of the business, perhaps let someone else do a turn-around there. we think that would be one way of improving things for shareholders. >> we'll keep an eye on that. thank you so much, mike.

mike bailey with fbb capital partners. >> slide in ge shares a drag on the broader mark the bond market was closed on this columbus day holiday. the dow jones industrials fell to 22 points. nasdaq off 10 and s&p 500 dropped 4. some markets say it was taking a >> markets were a bit muted today. but no shortage of catalysts for investors to watch in the week ahead. earnings season will kick off this week with citigroup and jpmorgan reporting on thursday and bank of america and wells fargo rounding things out on friday. as usual, the big banks starting earnings season. third quarter earnings are expected to rise about 4% over last year. financials are set to suffer the lowest growth rate of any sector, actually earnings could be down 6% for the financials.

it's large by because of the impact of hurricanes harvey and maria on the insurers and re-insurers. oil and gas, equipment services companies, and exploration names again, apache, all of which are rising. on the economic front, we'll get minutes from the federal reserve's latest meeting and data on retail sales and consumer sentiment. a lot of people watching the in. the drama in washington is heating up, gauging what the feud between the president and senator co >> it increases everybody's reservation. i think it does make it some. but we never have a weekend without a surprise out of washington. >> keep an eye on the solar stocks. the trump administration is set to sign a rule of withdraw from

the clean plant power tomorrow, obama's centerpiece bill to fight climate change. bob pisani at the new york stock exchange. >> with tax reform on the line, investors are watching that discord in d.c. that bob just mentioned. ayman javers reports from washington. >> president tru began the day extending an olive branch of sorts, a trip to his golf coue for lindsey graham. president trump has called graham a nutjob and a disgrace in the past. on this columbus day, the two men spent several hours together. all that comes after a weekend in which the president engaged hi a twitter feud with senator on twitter, the president wrote, senator bob corker begged me to endorse him for reelection in tennessee. i said no. and he dropped out. said he could not win without my endorsement. he also wanted to be secretary of state. i said no thanks. he's also largely responsible for the horrendous iran deal. the senator fired back writing,

it's a shame the white house has become an adult day care center. someone obviously missed their shift this morning. later senator corker gave an interview to "the new york times" in which he said the president is running the white house like a reality tv show and said he could be putting the nation on a path to world war iii. all of this coming at a time when the president will need republican votes on the hill for the ambitious tax package and controversial immigration reform proposal. >> if attacking members of your own part in the vicious way, it's a strategy i've never seen work. i don't see it working today in washington. >> there are always distractions. ordinarily when you're in the white house and you're working on your day-to-day issues, the distractions are coming from the outside rather than from the inside. th. but officials here at the white house say the administration hasn't really lost any votes on the tax agenda, or the immigration plan, because corker and the other senators that the president has insulted this year

will vote the right way for their constituents, whether or not they've been in a feud with the president. for "nightly business report," ayman javers at the white house. >> expectations on wall street were high that the trump administration would be able to get a number of its priorities through congress. but so far, that hasn't exactly played out. and the president frustrated by congressional republicans' inability to move on health care, said over the weekend that he's open to cutting a one or two-year deal on that topic with democratic rivals as a way to kick-start reform much the nation's system. in response, senator chuck schumer said he was willing to improve the existing health care delivery system, but not repeal and replace ob on immigration, another major part of the president's agenda, the white house is playing hard ball, making a number of demands in exchange for any deals to protect young undocumented immigrants commonly known as dreamers. according to "the new york times," the president is insisting on a border wall. hiring more border agents,

tougher laws for those seeking asylum, and denial of federal grants to sanctuary cities. the democrats were quick to reject this. >> so how will all of the discord in washington from hard ball on immigration to no health care deal to insulting tweets impact tax reform and the stock market. jeff bush is a partner at the washington update and now here to discuss. what do you make of this, jeff? it is, as tony said, unusual to see the distractions coming from within, not from without. >> you're absolutely right. the gop has had this problem throughout 2017. tax reform is a little bit unique compared to the affordable care act for repeal and replace effort. i think you'll see more togetherness on the tax reform issue compared to the other issues they've dealt with thus far. >> what about health care then? >> health care was a different issue. when you have health care, you have republican senators in states that expanded medicaid, republican governors in the same states, all of which were saying we have citizenry who will lose

coverage if we change the expansion of medicaid. so is it taking away of a benefit. whereas tax reform if properly positioned from a marketing perspective should be a broad-based benefit to the middle class and across our country. >> what do you make of what ayman javers suggested is the sort of internal view in washington, namely, that the gop members who may squabble with the president personally, whether it's mitch mcconnell, or lindsey graham, or now bob corker, when push comes to shove, they will go along with tax reform because they see it as good for their constituents. >> generally i agree with that. that was the same philosophy that the republicans thought they had with the affordable care act repeal and replace. however, it got caught up in e thor issues. it's a complex animal, but there's more of a cohesive thought around the broad benefits of a tax reform.

even within some moderate democrats as well. >> how much do you think, though, all of this squabbling in washington is delaying the agenda? i mean, have you put an analysis together at all, jeff, about, like when we might expect some progress? because it keeps getting derailed and pushed back. >> it does. that's a great point. we were quite surprised that the republicans having had eight years to talk about the repeal and replace effort didn't have the replace effort on the table ready for republican president to sign. i think that was a missed opportunity. if they could have gotten out of the gates a little faster with that issue, we'd be much further down the road as it relates to tax reform. right now, our best estimate, based on everything we're looking at, is that we're a lot likely to get tax reform done in 2017. but it's slightly more likely than not that we'll see moderate tax cuts this year, and then revisit the reform issue in 2018. >> is the market thinking

everything is all aok, or is it being maybe a little naive? senator corker said we may be leading the way on a path to world war iii. that would mess up your portfolio, jeff. >> it would surely mess up everyone's portfolio, without a doubt. but i think going back one step, the reality is our country has been on this path for some time. the republicans have drawn this process out. that's not unusual in the president's first year as they get their footing and so forth. but i think the market initially, there w from an idea of a republican president. but i think that played out pretty much by may and the market is based more on fundamentals right now. i think it's a little bit fragile, looking for opportunities to make tweak here and there. but i think overall, it's still on a fundamental trajectory from now on. >> thank you, jeff bush, with the washington update. >> thank you. california signs into law a bill that the drug industry is

wildfires are ripping through wine country. the governor of california has declared a state of emergency in napa, sonoma, and yerba counties. firefighters try to stop the advance driven by strong winds. and california's governor jerry brown approved a measure today that will give the state's residents more information on what's driving prescription drug prices. as meg terrill reports, that bill was surrounded by controversy. >> r the price of prescription drugs is a major campaign issue during

>> they're getting away with murder. pharma has a lot of lobbyists, a lot of power. >> reporter: since then, it's been states enacting laws around the cost of drugs. the latest is california whose governor jerry brown today signed a drug pricing bill into law. >> californians have a right to know why their medical. especially when the pharmaceutical profits are soaring. >> reporte the law doesn't control the price of drugs. it requires drug companies to provide notification, 60 days before increasing the price of their medicine. the requirement applies to more than 16% over a two-year period of hikes. and justification for the hikes. and mandates that health insurers report information about drug spending. >> transparency will provide information, but the hope is that by providing that information, making it public, the companies will be less likely to raise the prices in the ways that they have. >> reporter: price increases of more than 16% in two years are

not uncommon, according to the university of pittsburgh's professor. >> we just saw one drug today for spsoriasis had a 30% increae over the past two years, and 12% this year. it's happening more and more. >> reporter: the law focuses on the drug's list price. that's one reason the pharmaceutical industry railed against it. with industry groups pharma saying, quote, there's no evidence that sb-17 will lower drug costs for patients, because it does not shed light on the large rebates and discounts insurance companies and benefits managers are receiving that are not being passed on to patients. it's california's second major attempt to address the price of medicine. last year, a valid initiative, proposition 61 sought to tie the drugs in california tied to the department of veterans affairs. after a strong lobbying effort, prop 61 failed to pass. a similar version of that bill is expected to be voted on in

ohio this fall. legislation has also been passed recently in vermont, maryland, new york. it contributes to a recent rally in biotech stocks. for "nightly business report," i'm meg terrell. amazon is reportedly getting serious about taking on youtube, and that is where we begin tonight's market focus. amazon is working toward creating more advertising friendly initiatives to compete against youtube. one program could potentially give advertisers more data on what viewers are watching and doing online. amazon is up today. and walmart wants to make online returns easier. the retail giant said customers will be able to use the walmart app to speed up the process, cutting down return time to 30

seconds. shares of walmart up about 2% on the session to $80.53. honeywell reportedly will spin off the noncore asset and create at lieb two new publicly traded reuters said the company will resist calls by one of the influentia investors to spin off the space unit. the subprime lender one main is reportedly in talks to sell itself in a deal that could be worth about $4 billion. "the wall street journal said one main is said to be in advance talks with a number of interested parties, although there is no guarantee of the deal. one main shares jumped 10% to $31.82. bank of america reiterated its buy for apple. analysts said the company will surge under president trump's tax plan, which would make it less expensive for apple to bring money back to the u.s. from overseas, thanks to a lower repatriation tax rate. apple shares were up nearly half

a% to $155.84. alphabet received an experimental license from the fcc to create a network of balloons that would help restore wireless phone services in puerto rico after hurricane ma pri a wiped out much of the service on the island. alphabet shares down a fraction to $992.31. coming up, televisions may be getting bigger, even viewing on small phones is on the rise. first, how commodities and currencies fared today. the bond market closed for here's a look at what to watch tomorrow. the largest price ever, procter & gamble shareholders will vote whether pelt should get a sea.

executives at walmart expected to outline their strategy for the company. and th release of the nfib survey, what to watch tuesday. harvey weinstein has been fired from the movie studio he founde. the board which met yesterday cited new information about misconduct. the firing happened days after one-third of the company all-male board resigned. last week sexual harassment allegations were uncovered by "the new york times." allegations that go back decades from actresses and former employees of the weinstein company and miramax. a rough patch for movie theater stocks continues. this time the cause was a sof opening this weekend for the revival of the 1980 sci-fi cult classic blade runner. early estimates put sales at $31 million in box office, less than the $54 millio that weighed on shares of amc

entertainment, regal, sinemark and imax. a number of high-profile blockbusters have failed to live up to the hype. digital disruption looming all over the industry as well. >> the digital disruption is taking things from the big screen and moving them to the little one. and it's changing the entertainm julia boorstin has more. >> by 2020, half of all video viewing worldwide won't be on yo tv but rather on mobile devices. and half of that local viewing will be on smartphones. 160% increase in smartphone viewing since 2010, according to a new study by ericson consumer lab. the younger you are, the less likely you are to be watching television. in the u.s., over 60% of 16 to 19-year-olds' viewing is on demand, more than double the amount in 2010. while people near 60s, still spend more than three-quarters of their viewing with live, linear tv. >> first and foremost a

demographic shift. there's fewer and fewer folks who watch linear tv. the biggest demographic group of the millennials. and they tend to view content on a mobile basis. >> we're already seeing big moves to appeal to mobile viewers. turning to content to differentiate their cell service seen as a commodity. >> the mobile video growth is driving at&t's time warner purchase. the expanded hbo to the limited choice mobile subscribers. >> hbo is very hot, very popular content with a great creative at&t, with the acquisition of time warner, they're bringing that in-house so they don't have to write a check to a third party like t-mobile is doing for netflix. >> t-mobile started offering flee netflix to the family plan members. the future of video movie watching may lie in the reality.

virtual reality users by 2020, it finds that people want to see vr headsets come down in price. for "nightly business report," i'm julia boorstin in los angeles. >> and finally tonight, the nobel prize in economics was awarded to the university of chicago professor richard farlor, arguing people make choices that are often not in their best financial interests. >> economics is based on the assumption that everybody is super rational, has no self-control problems, never has a hangover, saves exactly the right amount for retirement, and invests it perfectly. the rest of the world is nothing like that. we're more like homer simpson than we are like spock from "star trek." and so really, we've built up an edifice, a world, a set of theories that apply to fictional creatures. and we don't really have an economic theory that applies to people. >> baylor's work extends to the

national football league. he found football teams routinely pay too much for the top draft choices. and undervalue the lower ones. the best value in the draft, according to baylor, the 27th overall pick. and that's how he would spend the $1 million nobel prize money he was awarded, he says, as irrationally as possible. good for him. >> congratulations to him as well. that does it for us tonight. i'm sue herera. >> i'm tyler mathisen. have a great evening and we'll see you back here again

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation. kovler foundation, pursuing solutions for america's neglected needs. and fox searchlight. >> it is about what tiggers eat. >> critics are calling "goodbye christopher robin" every bit as magical as winnie the pooh's adventures. it is emotional, heartwarming, and bursting with nostalgia.