business report" with bill griffith and sue herera. chip ip. the red hot sem conductor sector cools. and the white house blockswo wh d have been the biggest tech dealing ever. new progress noisis gn krsk and aetna shareholders approve their merger, paving the way for a new era in health careve impactingthing from coverage to costs. remodelling returns. which projects pay you backig. ose stories and more tonight on "nightly business report" for tuesday, march 13th and we bid you good evening, everybody. these day it seems aztec goes so goats the mabt. hat happened.y the tech sector which was up double digits ts arter, three times that of the s&p 500

day fell sharply. the nasdaq shapd its seven day majorreak and brought the indexes down with it. the dowent down 171 points. the nasdaq lost 77 and t 500 fell by 17. within technology the focus today was on theseconductor sector. the white house late yesterday you may have heard blocked broadcom's hostile take over of qualcomm for natnal security grounds. and that sent today's chill through the roof that investors had been flocking to in thein meantime. dominic chu picks up our story. >> reporter: one of theigger exchange traded funds that tracks these -- and some experts

think the upside momentum can contin. >> there i a lot of growth opportunities for all of them. if you thinkhe aboutnternet of things, where more things are connected think about autos, where more and mor sem conductcondt -- semiconductors are being usedut even wit driverless car we are seeing more technology variety of a different products. i think that's a growth opportunity for all of the semiconductor companie >>omputer chip stocks have been one of the bigger driving forces behind the bull market leader coming from the tech sector. of the five s&p 500ompanies th have seen their stocks at course of e over the the past one year, two are tied to kripps. micron, with a market value around $70 billions that gained around 137%. nvidia is worth around $150 a billiond has gained a whopping145% in that span but

there are reasons for caution. >> many investors probably need to pull backn techot because the opportunities aren't good but because pru portfolio management says never let one sector get above 20% of your portfolio. >> the technology sector is organize arguably the most important part of the market making up around a quarter of the entire s&p 500's market value. while stocks like apple, facebook, alphabet a microsoft get much of the attention these chip stocks could be one of the bigat inds for whether the overall bull market can continue. for "nightly business report" i'm dominic chu. as bill mentioned, the white house blocked singapore-based broadcom's hostile takeover of qualcomm citing national security concerns. the $117 billion bid would have made it the biggest tech dealing inor hi that sent both stocks lower in trading today. david faber h moore on this failed merger. >> reporter: it was an unexpected end to a hard fought takeover battle in which broadcom has been trying for months to acquire qualcomm n.

steps the committee for foreign investment in the u.s. about a week or so ago and last night,h well, delivered the order that will stop the deal. the president also signing that order. and so it becomes a presidentl ree saying that broadcom cannot, under any circumstances acare qualcomm because, according to the u.s. government, there are national security concerns involving broadcom's potential acquisition of qualcomm sh that the national security of the u.s. might be compromised by that deal. as i said it was a deal loninin the m and it was unclear whether broadcom would succeed regardless. but when cfius stepped in a week ago right before the company was about to hold its annual meeting changed it. yesterday we reportedn a letter from consistious to blood come saying you have already violated the interim order we

issued or march 5th three different times. if trust is the thing at issue hereti vio that trust didn't help. has the u.s. created a national champion in qualcomm? a company key in rolling out 5g the next generation of cellular services not just here in the u.s. but potentially around the wouldecalled and that is in competition with a chinese business that does business around the world but not here in the united states. the tech sector could also be impacted into areport late today. according tut 's, the white house is looking to impose tariffs on $60 billion ofe chinimports targeting technology and the telecom ctors among, among others. we have a lot to talk about now with daniel flax,e is talking about the semiconductor sector and what it will mean for the overall technology industry itself. he is a senior research anyst.

good theee you. thank you for joining us. >> good to see you both. thanks bill. where to begin. first of all, just why have the hot?stocks been so what's going on these days that has people driving into them. >> whades ay, bill, and it's been going on for the past several years is that these semiconductor companies are finding theirnt way lots of different and new markets besides the traditionalne such as personal a computers smart phones. whether it be on the factory o floor within automobiles there are a whole wave of new areas thathese semiconductor companies are likely to grow in. we think that is likely to be sustained well into the future. >> one of the thihat i have noticed is the push into artificial intelligence and virtual reality. so there are actually not just in tech. they are in entertainment. they have really broadened out the base. >>su think that's right, part of what's going on is that there is enormou compu power that is available in the cloud.

and you then have software on top of it which is able to do tremendous things around analytics. and if you te a compa like google for example, or alphabet, they are really a leader in artificial intelligence. and helping to push the boundaries of what is available by analyzing data and deliverinn solu and outcomes to their users. and that's very exciting. >> all right. no what about this late word of the possibility of $60 billion of tariffs on chinese imports that could affect technology? how vulnerable for example, are thp stocks to those possible tariffs? >> i think in the shorter term,r bill, the vulnerable given that these are global companies with g supply chains. obviously customers all over the world. what i suspect will happen is as we see what some of the newon regula -- how they evolve, these companies, which have responded to changes, adverse changes in the - past i suspect you will see them do that again over time.

so it could shutly lead to mediumerm disruption but term i think they will figure out a way to get around or operate in thatroew enent. >> daniel flags from newburgher berman chinese tonight. appreciate it. thank you. to economic news. inflation rose slitly last month. consumer rices were up .2% last february which was in line with expectations. today's report tempered concerns that inflation is heating up and appears to kp the federal reserve on its expected path of interest ratese incr policy make remembers scheduled to meet next week. in washington, president rump fired his top diploma today. secretary of state rex tillerson, who as you know formerly served as exxonmobil's ceo. he will stay on through the end of the month.re some on wall see the move as nothing more unanimous a game of musical chairs at the white house. others, though, say tillerson's firing, along with the blocked q broadclcomm merger could result in increased tensions with china.

e president has nominated the cia chief, mike pompeo to be the secretary of state. there is a closely watched special election being held in westernod pennsylvania to fill the seat vey wait kated by republican tim murphy who refagned last . the district voted republican in recent elections and is home to a large numberf steelworkers. john harwooded is in scott a wnship pennsylva the. good to see you. how has the president's decision on steel tariffs possibly exacted this race? >> n sign of i so far, sue. both candidates have embraced the tariffs. land, the democrat, with a little more equivocatio than his republican rival, si cone. but it does not appear to have changed the late momentum in the race that landpeas deve si cone, as you noted in this republican area, had built a i large leadthe polls early in the race. land has been coming back. in the last surveys we've seen,

land is slightly ahead. if he wins this race tonight it will be huge upset that will send shock waves through the rest of the chain for congress this fall. >> there is tariffs. cuts.about if other t, tax does that necessarily benefit the republic, si cone. >> republicans have been counting bill for tax cuts to save their majorities in the fall campaign given all the political turbulence around. pey startedid advertising heavily in the eart of the race on tax cuts but it's notable that late in the race they have moved awa from that message, gone after connor land, the democrat,n crime and immigration. that suggests republicans don't have a great deal of confidence in theax issue in this race. we'll see how it plays out in other races acros the country. >> do we have any idea on turnout? has it been, norm heavy, light? >> well n the school right behind me, the poll workers tel me that they have had an unusually heavy turnout. about half of e registered

voters have shown up so far. polls are still ope for a while longer tonight. so that indicates that all the tens of millions of dollars that have been spenten this r have had at least some effect in arousing and getting voters out today. >> all right john. thanks so much. johnarwood in sco township, pennsylvania. >> you bet. let's look at some of adday's up and down grades. and we begin with jp morgan lowering its price target on general electric to $11. the firm citing kenr the outlook for ge's free cash flow and earnings. the analyst maintained underweight rating and ge shares fell more than 4% today to $14.43. jeffreys meanwhile raised its price target on amazon to $1850. the firm says that amazon's market cap to swell to that magical $1 trillion mark by th ye2022. the analyst sites amazon's

aggressive push to expand its advertising business. shares fell withhe rest of the marktd market today. it was down a fraction. jcpenney was niche waited with an underperform rating ats credit su the analyst there says the retailer could close more stores and is facing margin pressure. the price target is $2.50. jcpenney clo up nearly 1%, though, at 3.28. guggen time calls t-mobile e best idea in the telecom sector. the firm sites t-mobile's growtu ook, its conservative guidance and its shay of the handset market. thenalyst has a buy rating on the stock and a 80 price targe. shares w up a fraction to $64.98. still ahead, the former ceo of aetna and t head of the cleveland clinics discuss the rapidly changing health care industry and their vision of the future.

cvs and aetna shareholders today approved the drugstore chain's $69 billion acquisition of the insurer. this merger is expected to close in the seconde half of year assuming it's okayed by regulators. in jot a moment we are going talk about how this merged company could usher in a or trantion of the entire health care industry. in the meantime, shares of cvsf by 1% today. aetna shares rose a fraction. the health insurer send teen is making an investment in rx advance, custom is a cloud based pharmacy benefit manager. pharmacy benefitanagers negotiate with the big drug makers to get better prices on prescription medications. the size of the deal not disclosed but the inv dtment comes after cigna made a

$52 million to buyexpress scripts. both deals are pat of a bigger wave of consolidation in the health care industry. >> let's talk about that. what will this wave of consolidation in the industry mean for the future of health care. both f providers and for patients? we have two prominent visionars with ustonight. both industry veterans here to share their thoughts. nn williams is the former aetna ceo. he chairman and ceo of r w-2 and toby cosgrove is former president and ceo of the cleveland clinics, h whereis now current lee executive adviser. ineat to see you bot. thank you for jous. >> thank you for having me. >> thank you. >> ron, let me start with you. here's what pussels me about the aetna/cvs deal. iteems their motivations are at odds with each other. when you raise drug prices it's better profitability for the drug companies and taers. but the insurance companies would seem to want lower prices they w lt to covers of the price of those particular drugs.

how is this merger going to transform and make health care better for customhes? >> i think underlying idea in my mind -- i have to say i'm noan insider. i have no inside information related to the transaction. it's really not aboutpricing. it's about creating more value in the health care delivery if we look at chronic patients, only about 50% of the prescriptions writtenor tients who have diabetes, hypertension, dirdiovascular ase -- only 50% of those prescriptions are filled. of the % that are filled in total about 20% of the patients are truly compliant with their medication regimen. if you can actually i medication adherence and compliance, you can reduce health ce costs fundamentally. you can create more value in terms of lower premiums and improved ality. so i think the pricing angle is looking at it through the wng ns. >> would you agree with that, toby? and weigh in on what ronust

mentioned. it seems as though getting patients under that one umbrella with annette in a/cvs m might actually form more compliance with the regimen they are assigned. >> i hope they do see morean comp. but what we are going to see in the future as far as health care is concerned. u are going to see major changes, increasing emphasis on keeping people well and people who are sick are going to be treated differently. they are going to have different disee, more chronic disease. they are going to be taken care of in different location more outpatient than inparent. and they are going to be looked after by a different group of peopo . it'se going tousr to be just doctors. it's going to be physicians assistants and nurses. the whole industrys changing. hae diseases are changing. the treatments are changing and we have to drive the efficiency and the value to have ealth care le delivery system. we hope this is going to be one of the steps in that direction. toby, i curious. your thoughts on the proposed what do you want to call it alliance that jeff bezos put

together with warren buffet and jamie dimon at jp morgan. they don't know what kindhef business want to get into but they want to know that they can bring cts town and improve services. what do you think they are going to do? >> isay i similarly don't have much insider information on this. but if you look at the po ntial, you have jeff base owes who clearly has a delivery syem and service for drugs and certainly a lot of i.t. that he can use. ksrtainly, berkshire knows about handling r through geico. and i can imagine that they can do something as far as a mutual insurance company. and certainly there is plenty of economic jcumen withmorgan. i'm delighted to see, actually, the private sector step in the way they have. i think tngy are go bring fresh ideas fresh approaches and new energy to the private sector and hopefully continue to drive us in new ways and to be very

innovative. >> you know, ro picking up on bill's thought, one of e things that mr. bezos said, and also warren buffett said when they formed that alliance is they feel the use of technolog will ultimately be the main driver to bring down costs, to bring up ficiencies, and therefore streamline what has been a very onerous health care system. would u agree with that? is technology is ultimate answer? or no? >> i thinkog techn as an empowering tool for physician is one of the answers. i think technology to empower patients and give them better data and betterecisionmaking. i agree with toby that these are ectual giants in terms of amazon, the ability for berkshire and the anltd fobty fp morgan to collaborate and bring their respective strengths and be able to help physicians, help patients, help hospitals. exactly how it's going to work i don't thinknyone knows. but i would say that there is

huge opportunity. the health care system really needs disruption, needs contuity. and t use of data, analytics, decision support tools can be a very important aribute in increasing value. >> ron, before we let you both gogi i can i the people watching, it's simple. they want to pay less. they want a simpler situation theirt comes to relationship with their insurance company. and the relationshipre tre with their doctor. is that where we are headed? are our expectations off base here? y i think the o thing i would add is that the patient and consumer themselves has to become aore active participant in the delivery of the health care. athink that they really do want and need simpler relationship through the whole system. our system is not rea system. it's a patchwork of activities. and ath lot o consolidation you are seeing is really efforts to integrate ihat syste a way that it can create more

value and hefully provide more assess, more affordable for the t. >> we could have done all 30 minutes on this tonight gentlemen but we must go at this time. thank you for your time. ron williams of aetna and toby cosgcuve the eve adviser at cleveland clinics. thank you both. >> thank you. >> pleasure. holiday sales disappoint at dick's sporting goods.'s thhere we begin tonight's market focus. despite strength in on lin sales the retailer reported a drop in same store sales and weaker than expected revenue but earnings edged past estimates. the shared finished up to $32.88 dsw reported weaker than expect sales but delivered a profit beat and improved margins. the shoe retailer gave upbeat forecasts for t year and increased dividends to 25 cent a share. shares jumped.

>> continental gave earnings guidance for the year that was inwi lin expect igss. shares of united rose to $72.60. industrial distributor hd supply saw a rise in sales and a smaller than expected loss. the company also gave upbeat guidance for the whole year and said it was providing employe bonuses thanks to tax reform. shares of hd climbed 3% today to $38.09. >> g coming up, how to the biggest bang for your renovation buck. today's pricey andit

compe housing market means more homeowners are staying put. they are remodelling instead of moving. that's great news of course for names like home depot and lowe as. what will your investment get you? diana olick takes look for us hanight. >> reporter: emma vision for heru family of four. it's getting there. she and her husband arehe enlarging kitchen, adding a family room, and an upstairs master suite. more space wasou pair even if the cost outweighs the return. >> it was balance because we always had the possibly of resale in our mind. but we think we are going to be here for a while. w mostwere focusing on the things that would make our life here with our family better or more coeportable. >>ter: homeowners are staying in their homes longer today thann the past. upgrading and remodelling more. and some projects nearly pay for themselves. garage door replacement will give you 98% of your investment back. according to remodelling

magazine's annual cost versus value report. it asks real estate agents how much a renovation would add to the sale of a home selling in the same year. manufactured stone veneer came in second. a steel door ranked third. others, a dec addition and kitchen remodel. >> things like kitchens, ythrooms, you are proba going to get 60 or 70 cents on dollar for those types of investments. and thing that are more decorative. generally you get ls on those. >> reporter: doing a simple remodel or upgrade will give you a better return than an addition or something fa cy. that'snge from last year. why? because the cost of labors and materials are both skyrocketing. that shifts t equation. of course value can be subjective depending on how long you planstay. >> if you are going to live in a place for ten or 15 years and raise aamily you are still going to get that money back, plus the intrinsic value of living there enjoying the additional space. >> reporter: as with everything in real estate location matters.

if home prices are rising faster in your market, then remodelling turns will behigher. but no matter where you are, remember before you pour your life savings into it your dream kitchen may not be someone else's. for "nightly business report" i amiana olick in washington. before we go, here's another look at the day on wall reet. the dow dropped 171 points. the nasdaq was off 77. and the s&p 500 fell 17. and that does it for "nightly business report" tonight. i'm sue herera. thank you for joining us. we want to remind that you this the time of year your public television station seeks your support. th>> i'm bill grif we do thank you for your suppor have a great evening, everybody. we'll see you tomorrow.

[ bagpipe playing ] steves: old edinburgh's main drag, nicknamed "the royal mile," leads from the castle downhill thr the old town to the palace. this colorful ju ele is the touristnburgh -- a dense tangle of historic buildings, fun museums, and cultural clichés on sale. edinburgh was a wonder in the 17th and 18th centuries. it was famed for its skyscrapers -- they say the first anywhere -- it was once the most congested city in europe. co its most wretchedn't even afford candles. they lived in darkness. it's said they knew each other not by how they looked, but by howsmelled. medieval skyscrapers towered ten stories and higher. frontage on high street was so limited that the buildings we narrow and tall, crammed shoulder-to-shoulder,

with little courtyards called "closes" branching off. these closes werdrconnected to the mai by skinny lanes or even tunnels. 400 years ago, edinburgh w." nicknamed "auld reek the entire city was a neack-stained mess of chim and reeked of smoke. the royal mile ends at the gates of holyrood palace -- for 500 years the official royal redence here in edinburgh.

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