this is "nightly business report" with bill griffeth and sue here. the mouse chases the fox. disney upsets offer for fox's assets escalating the bidding war with rival comcast. drama in vienna. why the meeting with globalil producers is shaping up to be one of the most contentious in years. new factory opens. foreign automaker puts down roots in the united states but it comes at a rather unusual time. those stories and more tonight on "nightly business report" for wednesday, june 20th. good evening, everyone. i'm contessa brewer. bill and sue aff tonight. disney is raising the stakes in the fight for fox's assets. now increasing its offer to $71 billion toppings comcas all cash bid at 65 billion. that sent shares of all three

companies higher in trading today, and the bidding comes as media companies look to strengen their own positions against the likes of netflix. julia i boorstin at an advertisg conference in cannes,hefrance, where tight for fox was a big topic. >> reporter: fox and disney agreeing to a enew, m expensive deal. disney paying $10 more per share thre it hadously agreed to with fox for a deal worth over $71 billion. disney's new deal, a pl50-50 s between cash and stocks. about $6 billion more than hcomcast's all cas offer made last week. disney ceo bob iger saying on an investor call that the company has become mor committed to the deal. >> distribution in terms of direct to consumer distribution has actually become an even more compelling proposition in the six months since wee announced deal.

there's been a tremendous amount of developmee, in that sp but clearly the consumer is voting loudly that these new platerorms are compelling. >> iger saying on the call that he's confident the deal will gain regulatory approval and that disney has a meaningful bad start on comcast. >> we'ven working with regulatory authorities,he not jt innited states but in jurisdictions across the world now for six months, and we've made a lot of progress towards obtaining the r approvals that are necessary. >> disney saying the higher cost deal does not change their plans to invest in disney's businesses, but that short term they planned a more conservative approach t share repurchases and will not complete the $20 billion share repurchase announced in december. rupert mourdock, executive chairman of twenty first century fox says we remain cthvinced the iconic assets, brands and franchises with disneys will create one of the greate, most innovative companies in the

world. as w for what's next, d back from comcast on whether it plans to offer more. i'm julia boorstin in cannes, france. the media merger lifted the mood on wall reet. while netflix and facebook closed at new highs, but lingering trade tensions weighed on the dow and stocks finished mixed. the dow jones industrial average fe 42 points to 24,657. the nasdaq rose 55 and t s&p 500 was up 4. shares of general electric fell today as the company enters its next chapter. after more than 100 years of the dow component, ge will be removed from the blue chip index as we reported lastnight. during its time as a member of the dow, g esaw someig very h highs and some very low lows. ge literallyhanged the world from light bulbs to locomotives to household appliances,ower generation and jet engines. with a market cap of $594

billion in the year 2000, it was the world's most valuable company,ut its removal from the dow jones industrial index next week i the latest symbol of how far it's fallen. >> is clearly a sign of the difficulties ge has had. >> the index haseced that it was irrelevant. >> reporter: now valued at 113 billion, ge is still bigger than united technologies, which is staying in the dow, but ge's share pricee is down m than 50% in a year. ge embraced change in the 20th centurev and grewoping computer technology, and after jack welch took over in 1981, it acquired nbc universal and later became one of the country's biggest banks, but under welch's successor, jeff immelt,anhe co stagnated and began to shrink. it shifted away from baing, ld off nbc universal and bought oil services giant baker hughes just as oil sank. with john flannery in charge its

once coveteden divhas been cut in half. no wonder the company barely shrugged when its impending removal from the dow was announced. ge's statement says we're focused on t executing again plan we've laid out to improve ge's perfmance. it doe nothing to change those commitments or our focus in creatingro er, simpler ge. icons like gm and aoa have left the dow and survived. now investors wonder if ge can find a way to bring itself back life. >> while now that general electric has been removed from the dow, let's talk about whether that iajorex is still as representative of the u.s. economy as i oncewas. we're joined by david blitzer andhaman of the s&p dow jones indisease. it's great to see you today. >> goodafternoon. >> can you tell me what's behind the change? why walgreens? >> well, our change is based on what we feel the index needs and how we wil t make index even

better and more representative of the u.s. markets and the u.s. econy, so t change is not about general electric. looking at the index, it is with ge, where it is now somewhat overweighted in industrials. the more indusials represented in the index than would be balanced to the market. less consumer staple companies, somewhat less health care companies and all that suggested to swap an industrial for something that was in consumer staples and maybe a tinge of health care.f on top that, ge price at about $13 a share has a very low weight in the dow. less tn 1/2 of 1%. ge wasn't doing very much. was nh having m impact on the dow, so rather than leav tit there, lete the opportunity to balance the index better, add a stock that will have a bigger impact on it, that's in part or largely because the dow is price

weighted. an unusual way to do indices, but probably the long-time standard way.n >> david, w you're talking about which of the 30 companies should make up the dow, do you also have conversations about whethe weightingse companies by share price is still an accurate reflection of e americaneconomy? is that still the right way for a modern index t run? >> well, clearly in the last week we had a lot of these conversations. we -- first we do many other indices, including the s&p 500, which is weighted by market -- market cap, amount of shares, the value of the shares that are in the market, and that is the more typical way to do it. to change the dow, we'd be tossing away about 5 years of financial history, longer series of history than just about anybody else has that's consistent andreliable. we'd also havto rejigerate substantially and it would come out looking much more different

and looking like the s&p 500. we're happy with the way it is. it's not the t only way run an index, but it is a tried and true way to run an inde >> do you think that the fact that you're operating the dow jonesut industrial wit giant like amazon or netflix in it still represents the american economy? >> yes, i do. we have -- we have a lot of technology representation in it, we have a lot of consumer --ns er oriented representation so i think we're doing a very good job representing the u.s. economy where it looks right now. amazon, if one looks at the financials and everything, most of their business is retail. it comes from their website. maybe the exciting stuff for amon 10,15, 20 years from now is all going to be web services, but right now it's a retail company. belongs.ere it so i think the representation is good. t amazon a dow, because of the price weighting, if we added

the amazon, itould becomehe amazon index, not the dow index and i don't think thatould serve anybody. >> david blitzer with s&p dow jones, thank you, sir. >> thank you. have a good evening. does ge's removal from the dow provide an opportunity for investors to make portfolio changes? we're joined by chad,he portfolio manager. this is held widely in index ua funds, m funds, iras. what happens now? >> well, there may be rmshort- selling pressure as it leaves the index, but overall for t long run the company is going to be trading based off of its fundamentals, and theam futals for this are somewhat cloudy at this point. this company neverfr recovered the great recession. >> this is a stock that my grandparents have owned, my parents haveowned, i have owned. so what indicors do you look for now to say, yes, hold onto it, no, cut your loss and sell

or now is a great time to get in? >> management has to show that they'rping it simple, that they're going to reduce debt, they're going to change the properties and perhaps spin a couple of them off so it's easier for portfolio managers and individual investors to understand the business. that's partf the problem. e business model is too confusing. yes, the health care business is running on full speed as well as the engine siness, the jet engine business, i.e.,, boeing, but y also have troubled groups within that property like, for example, oil and gas. we need to see them sn those troubled groups out, the companies that don't -- that are not really profit annuable or at ve predictable. >> what's your advice now, sell? >> i would hold if i was a ng-term investor, and if you start to satisfy a transformation of the, compa would be more enticed to buy it at higher prices knowing that there's stability. they really need to reduce their debt burden. it's over $100 billion.

>> thank you so much, chad, for giving usour expertise. >> thank you. >> chad morganlander with washvigton cross rs. it's time to take a look at some of today's upgres and downgrades. citigroup is upgraded. the price target is $76. shares closed up nearl 1% to $67.38. starbucks was downgraded a number of firms here, atcluding morgan stanley, which lowered itsg to equal weight from overweight. the analyst points to the company's sales warning. we told you about it y terday and asked whether management is really doing enough to turn around this business. the price target was cut to $59. the stock dropped 9%, its biggest one-day decline in nearly six years. and today starbucks ceo admitted the coffee's chain growth has slowed, but he says there's a plan to get things back on track. >> at our scale i think we've

got to be muchore disciplined in setting our priorities. we've g to be more data driven in terms of how we're allocating resources and tuning t model, and we've got to be much more agile as innovators. what we did yet was sethe stage for that transition to a company that's really focusedthn grt scale. >> and as we reported, starbucks will open fewer stores in the united states while closing many in larger cities. still ahead, w the price of oil is at the center of a landmark meeting. i'm brian sullivan in vienna,austria. coming up, why the fate of oil pricese may b determined behind the doors of this 700-year-old patlce up next on "ni business report."

in washington president trump signed an executive order to keep immigrant families together at the border. that orderes addre what the white house has called an unwanted side effect of the 's administratiero tolerance policy on illegal immigration. >> it's about keeping families together while at t same time being sure that we have a very powerful, very strong heborder. >> executive order comes just hours after major airlines told government officials they did not want separated children transported onhe planes. the meeting of opec members and other oil producers are shaping up to be one of the most dramatic in years, and theoe gathering dsn't start until friday. brian sullivan reportnntonight froma. reporter: the amount you pay for gasoline in the future may be decided within the walls of this more than 700-year-old palace in vienna, austria. this is where opec is holding a

two-day seminar ahead of their big general meeting on friday. the big issue on the table, whether the opec nations willre to increase output which could possibly lower oil pricesa a and a half ago opec members agreed to cut production in an effor to firm up prices. that worked as crude oil jumped by $10 a barrel and boosted gasoline prices with it. now saudi arabia is pushing to raise production a longs with non-opec member russia. this coming onhe heels of the trump administration reportedlys requestingdi oil support and increased production in a phone call to the kingdom one day before pulling out of the iran nuclear deal. iran, which fears it will be huddled by upcoming sanctions, is calling on them to rebuff p' tr call for increased output. they're dealing with venezuela. iran's government in opec is

telling cnb that if the saudis and others want to walk away, it will be like president trump walking away from the nuclear deal. >> what saying is that it is a document. anybody wants to walk out -- we are going to stay. >> rorter: you will honor the current opec deal because you believe the deal is in place? what do you think about the people that are trying to change the deal? >> they can do that. they can walk out like trump. >> reporter: but it is drivers who fee the most if iran walks ay fromec any deal herese as economies around the world improve gas will rise and unless more comes to market, supply will get tighter. that's why we're told he expects a deal will get done. >> they t will have because we're taking all the million barrels a day off the market from venezuela declining, plus the iranian sanctions and now you have libya off 400,000

barrels a day. you ve to add more barrels and the permean is going to reach its capacity so the u.s. is going to grow. they have to add more supply to the market. >> reporter: the cartel will ultimately announce its decisiod on . the outcome right now is unknown, but what we do know is thathis is already shaping up to be one of the most contentious meetings in many yes. for "nightly business report," brian sullivan, vienna, austria. winnebago says demand is improving. stronger thand expec earnings as customers purchased rvs from the company's new product lineup. winnebago said its products are well positioned to grow and continue to be successful. >> we'g tak the material market share, especially in th towable section, grand design and winnebago, the product lines

are healthy and relationships with dealers are healthy and they're able to compete effectively in the m for the products. >> shares finished up to $14.35. after the bell, chip maker micron said small demand for the smartphone and computer memory chips helped overall sales rise and topped expectations. profits also climbed and beat estimates, but micronhares were initially lower in after hours and also ended the regular session down just a fraction t $58.95. and american outdoor brands formerly known a smith and wesson reported a drop in profits and sales but the resultsere still ahead of estimates. the company also gave strong guidance for the current quarter but seized performance for the year missing estimates. sharesnially were higher in after hours and also finished the regular tradi day up 1% to $13.23 german automaker daimler is issuing a profit warning and it's blaming the hiu.s.

trade fight. the company cited the potential for higher costsesulting in increased import tariffs for market.s into the dmies it also said mercedes be-benz ss have been softer than expected. they back the idea for abolishing all tariffs for cars between the european un be onand the united voates. v is the latest member to add a plant in the southern united states. the facility outside charleston will build cars and suvs that will be sold here in the u.s. andd expor overseas. phil lebeau is in ridgeville, south carolina. >> reporte . >> i would officially declare r thehmond plant open for business. thank you for coming. >> reporter: the pre-production work is just gettingstarted, but it won't be long until 4,000 volvo workers are cranking out

nished cars from th company's new plant outside of charleston. >> we need to come closer to customers to be able to continue growing. we need to know how they think and need to know their preferences and so it's very crucial to be here finally. >> reporter: volvo's expansion comes ath sales i u.s. have jumped 40% this year, thanks largely to e popular suvs. u.mpared to europe and china, the still makes up a small part of the global business. china i increasingly important to the the parent company is a large and prominent chinese aumaker, td then there is the growing tradesions between the trump administration and foreign countries who charge far higher tariffs on imported vehicles than the u.s., a situation the president is pushing hard to an ge. volvo's ceo says more uniform auto tariffs would ease the trade tensions.

china lowered their tariffs a week ago, now they're back up. european union also, i think,sh ould follow america on the lower level. so if we will do that, i think se whole busin would be more strong and thesu crs would have it. >> reporter: right now the majority of vehicles s volvols in the united states are imported from europe with a remainder in china. many of the vehicles it sells will be built and exported. in the process, the brand intends to make a bigger impression with americans will become the latest foreign automaker to put down roots in the deep south. phil lebeau, "nightly business report," ridgeville, south carolina. coming inup, pla a trip for this summer? watch out for travel fraud. 's on the rise and it's costly.

sales ofomxisting fell for the second straight month thanks to a shortage of properties on the market. the lack of supply pushed thece median pf a home to an all-time high and while sales fell nationally last month, they are red hot on the tiny island of nantucket. this vacation spot off the coast of massachusetts is seeing record pces amid increasing . demand dye an na olick has more. >> reporter: this 60-year-old home on thedge of nantucket harbor is considered a tear a tear down with a list price of $24 million. that's just how much money is pulling into port on this historic island. the property has been in real estate agent edward sanford's family for decades. >> in the verth high end o market where this house is,

buyers don't care about the house. they -- they're looking for the location. we see perfectly good brand-new houses gutted and the -- because the buyer wants his vision. he has the money. >> reporter: with ult high e restaurants and retail crowding into the cobble stone streets, nantucket real estate is reaping the rewards of a robust eonomy. dollar volume of island homes sold inhe first quart t ter of this year was up 50% from a year ago. the 4 to $6 million range is a sweet spo with sales up 300% compared to a year ago, allco ing to gray point properties. >> when the markets are good, the equity ma aets, people obviously getting richer, making more money and so they're more inclined to, you know, want to spend that in nantucket. >> reporter: there are currently moreistings of homes priced over $10 million than there are homes priced under $1 million. and while builders here are

busy, there isn't much lan to build on so they're focused oni the end where they profit most. not only is the value of thean limited here growing exponentially, but docks like this one are adding to that value as wel because nantucket no longer allows anymore docks to be build here anywher ever. fis dock just across the harbor recently sold nearly $5 million. demand is largely domestic.m buyers f boston, new york, and texas, so it helps that thep islandperty taxes are incredibly low. just one more reason real estate is sitting pretty. if y're hoping toook a get away to nantucket or anywhere else at a discounte prn short notice, the combination could make you the perfect garget to scammed. senior personnel finance sharon epperson is where. do you protect yourself and your vacation time from travel

fraud. how big of anit issue is >> reporter: a recent study showed that 55 million bookings per year are done on a fraudulentwebsite, travel website or through a fike website. it's had 16% on consumers and the industry. this is between 300 and $500 and we're looking a airlines losing between 2 to nearly $5 billion a yearfro credit card d. if you're booking your hotel on the same day thinking you're going to get a great deal, you're four times more likely to be a victim of fraud. >> so i mentioned if'r y looking for that deal that makes you more vulnerae to it? what are youfo looking >> you get an e-mail that says you can get a great diskoublt on this airline, this resorter but are not a lot of details attached to it. the biggest one, it's going to

free. it doesn't give you a date or the name of the location of where this p tperty is going be. that's another warning sign to look out for. the other thing to look for is if you're pressured to do it right now, pay up front, and you're going to get this great offer, that is something that you really want to beea of. it's to get you to sign up right away, another form of fraud. you want to be sure you'rein lo at currency ranges.ng i'm g to use historic. that is not likely where you want to go. >> and what do you do if you spot a scam? >> if you spot aak scam, sure you get all the things in writing, that's how you can avoid it. that's one of the first steps always to take, and don't make seen itent until you'v in writing. make sure you're reading the fine print and makeure it's there and dispute it.

if you've made this booking months in advance and then discover later that there's something wrong there, you may be ripped off a t unable get your money back. >> how do you explain it to your family? >> exactly. >> thank you. sharon epperson. before we go, we want a look at theday, the dow fell 42 points. nasdaq fell and the s&p 500 was atup 4 points. "nightly business report" for tonight. i'm contessa brewer, thanks for l watching. wee you back here tomorrow.

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