this is nightly business report with bill rivers andue king dollar, the president accuses china and the european union of manipulating therr cies and the market respond. power outage, general electric turn around hit the electric snag and profits drop by cancelled contracts, why the soybean business may be struggling to survivor. those stories and more tonight on nightly business report fort friday, july 20th. we bid you good evening everybody. is off one more time tonight. the market as you know has been focused trade for sometime now, today that focus shifted to currencies. specifically the dollar, which

fell during the toda trade, and the reason for that decline is partly due to comments from president trump during a cbc interview, somf which we aired last night. >> in china, the currey is dropping like a rock, and our currency is going up. it puts us at a dizzy advantage. >> then became a tweet the president wrote, a china the european leaders and others have been manipulating their currency interest trait lower while the u.s. raises rates. thela d can stronger and stronger every day. the comments have been rattling the global markets with some concern that a trade fight could turn into an a out currency war. even though it's too soon to tell wha others might do. we ask to explain how a currency war could potentially impact

investigators. >> reporter: a currency war has competing nation purposely devouri devouring the currency to perpetrate a trade advantage. how did the weaker currency create a trade advantage? as the exchangeate fall, the goods and exports also fal increasing the zplad abroad. there are many waysnt a c central bank can devalue its currency and lowering interest rate. there are risks with evaluation. instab in the value of a currency can discourage investments. currency wars create economic ou tension, which lead competing nations to punish each other with tradetariffs. they can also increase market swings and uncertainty because ultimate it wraps on the wings of central bankers and policy makers.

the move can be dmatic, unpredictable and dangerous. i'm sarah eisen. some current investigators see currency swi as a big risk to the mark. it was echoed this week at t cbc conference. >> the risk we haven't tked about. where you deploy assets as currencies. i would say that's one of the thgs that weigh heaviest on our minds. these currency moves andng becomi more pronounced and violent. >> we're joined by erick goheon. l talk about why it's important for investors to keep an eyen the dollar. he's the proffer at university school of business. welcome back and nice to have you in the study. >> thank you. >> for investigators, how much should they take into consideration currency swings when they make their investments? >> it's become important, it's become more important. it isn just about the trade

balance. that trade balance flows through to the company. if the dolla is lower people buy more of our goods. better.anies do if you're an investor you would like to be in those companies. >>pi lly, people will say, stay away from multinationals, those that do a lot of best overseas, when the dollar i strong, for example. goods are more expensive that way. is it that simple? >> well, it's never quite that simple. when the dollar is strong -- althgh multi-national companies do worse and you don't want to be in their spot -- strong dollars attract money from overseas, that goes our stocks and causes more demand. it's a particular thing, force going in one direction, and the force going in ather directions. >> and interest rates goes up. but you bring up an interesti point, most people don't talk about. as far a currency fluctuations and investing. you're looking at exchange trade

funds. what role do they play? >> aot of us have pension money or other money in etf and index funds. we think we're not participants in the war, it turns out, we are participants in the war. these index funds contains well, lots and lots of over the last ten or 20 years, lots more of thees compao lots more of their business abroad. we tend to think, well i'm not involved in this multinationalf st it turns out, my retirement is involved. >> and if that's thecase, do you try and hedge? the bignvestors they will hedge their currency risk. what can the little guy do? >> it's hard for somebody like me, and the typical individual to hedge. urif thency war disfavor multinationals, then you invest in companies thato most of the business domestically. hospital chains don't have hospitals in other countries.

when there is competitive devaluation and our currency goes down, beaming those multinationals is a very good idea. >> very good. eric, always good dto see you. >> my pleasure. o wall street the dow was able to post its first three-week win streaks since january. the industriat average l six points. close at 25,058. the nasdaq was down five. s&p felly two. a familiar problem continue to hang over general electric during the the most recent quarter, that would be its power union. weakness there force the former down component to cut a financial rget. and shares fell 4% in trading today.d better expec earnings in renue over all. morgan brennan has more on ge's

result. >> reporter: powering for the team. that was the message from ge today on the 30% drop intarget. continues to off set growth in ge's otheror my units especially healthcare and aviation. the strugglin company has made significant progress in what he describes as a ret year. >> we expect the second half to be better than the first half. ge is on a multiyear trans far national journey. we feel good about our execution.h we have strencross the majority of the portfolio. weremain focus on -- while making sure ourcuicro eon in each business continues to improve across the company. >> reporter: while ge suffers, i18 goal did say free cash flow from itsustrial businesses will be about $6 million. or the low i know of previous guidance.

even so, the stocks fell. some analyst feared it's the finally bar that may be too hire of ard . the ge is influx. it avails the road map infrastructure, and exits itjo maty state. news that have been so far welcomed by wall street. >> generally handed a very difficult end. i think he's doing a good job, he knows he can create value by spending medical and oil and gas. and that will work. his difficulty is going to be digging out thereafter with still a big pension under funding. again, about 50% of the industrial revenues in power, which is a t decisionhat's going to struggle to generate organic growth. >> ge's pension is nearly $30 billion. the largest if the s&p 500. the other b topictoday, tariff giving ge's global

footprint. if over time, if necessary, it could always shift itsy sup chain. for your business report, i'm morgan brennan t athe new york stock exchange. it's time to take a look at me of today's up grades and down grades. we began with microsoft. $118 a share from nicolas, following the company's earnings that we told you about yesterday. the analyst cited momentum across microsoft clouds and gaining unit. the stock grows morthan 1.5% today to 106.27. six flags down graded the neutral to out perform red bush. weather and a high stock evaluation, price target, $70. the stock fell more than 4% today, $67.64. sketchers was also down graded to neutral to positive. the firm cites a negative

outlook following the company's very disappointing earnings report of yesterday. priels target, $26. ares drop by 21% to 6.27. still ahead. soybeans get squeezed. >> i'm contessa brewer in north dakota where the farmers are feeling the pinch from this trade war. soybeans cing into a bountiful harvest. more ahead on the business report.

now t w tradere the president says he's ready to go with tariffs on all $500 billion worth of chinese goods coming into this untry. he made this comment with cncb's joe kern anyone t >>y're down. and i said they can't match us because we're -- >> and it was that phrase, ready to go that grabbed investor tensi attention. asou know the trump administration has imposed tariffs on $34 billion on chinese products. and the white house threatened to impose another round on tariffs of $200 billion worth of chinese imports. one industry caught in the middle of this trade war between the united states and china is theoyan business.

it hasca ameri farmers scrambling to fine new markets. contessa brewer is in north dakota for us tonight. >> reporter: in north dakota, where country roads are paved and where neighbors live far apart. soybeans are a big business. >> it's a better opportunity. there's a little better market for it and it's expanded worldwide. >> reporter: soybeans production in this state has grun since 2000. exploiting me than 70% to other countries. the number one consumer, china.a buys much as $35 million worth of north dakota soybeans every year. this year, china slappedff a 25 on american soybeans. >> a lot of producers may not survivethis. >> reporter: in august when contracts are typically locked down with foreign byers, across north dakota all the soybean

contracts have been cancled. inese trade group scheduled to visit has pulled out or stopped communicating. >> it's just not china, it seems like we picked a fight with evoryone. >> repr: grain processer richland is e, 25% of the food bean exports are sent tohina. investing millions to expand his facilities and the chine computer base. the new trade war is threatening those plans. immediately celled when the tariffs went in affect. >> we redirected when en route to china to orr markets. >> reporter: lost -- loss $35,000 in the process. >> it's pretty difficult to really move er night and try to find a brand new customer.

these are relationships that ar ilt up over years and years and multiple visits and meetings. just to pick up and move and find somebody else, it's gung to beretty difficult. >> reporter: most farmers here can't afford a t lengtde war. in the three month or so since china started talking about tariffs, they've plummeted %. no they plummeted 8% bushels. >> we don't want to be in business to break even. this year alone, if the prices stay where they are a lot of people can suffer. >> reporter: while washington take a long view of trade issues, here, farmers wonder how lo they can sustain their amber waves of grain. contes contessa brewer, nightly business report. >> china is also a huge market for starbucks. the plan is to open a new store over 16 hours over the nex few

years. eunice eun is in beijing for us tonight. >> reporter: starbucks' newest competitor in china. the logo is of a deer native to client. the wit starbucks, that's what make it different than the others. it's totally home grown. i spoke to -- younlan pay through the app, no cash. and -- more chinese like to order food and drinks online. you get your coffee within 30 minutes or it' free. >> the old way people look for coffee, for us, coffee finds them. >> reporter: foreign companies compete on te. with drinks are 20 to 30% chper than starbucks.

it's aulo opely criticized starbucks. ites descr -- >> translator: we believe starbucks behaviorndmines their competition and prevents chinese customers from having con convenient access. the hard-quality coffee -- >> reporter: as for the trade war, he doesn't believe that lesson will benefit, just thewe the state media is interviewing customers to say they prefertarbucks because of the trade war. for nightly business report. beijing. honeywell raises its profit outlook for the third time. that's where we begin. euro space provide -- stronger demand for aircraft parts led to an overall earnings beating the qu tter. as fort tariff, honeywell says harted sours component from other countries other than china

and s raised prices on some of its products. honeywell up nearly 4% tay to $153.13. stanley black and becker, that company cut its profit for the year, that's largely dueo the cost tied to the settlement to clean up toxic con ttaminati at a super fund sight. va cor expects prices to accelerate this year thanks to rises in its brand sneakers. rangeler jeans reported a higher revenue as ecommerce and international sales also grew. 4% on the day94 9 and buying private software for nearly $3 billion. stay street will now have access to a service platform thates g

clients greater flexibility. stay street says more valuable inefficiencies will also arise transaction. >> we're simplifying their own operation. lowering theirnd cost most importantly, giving them access to data in a way they can inject back into theiren own inves process. it's a highly flexible system that utilized either our capabilities or the capabilities of others,ut in a seamless way. >> the company did say though that it will have to suspend its $950 million share buy back fund this zpael. shares fell by 70% today to $85.87. galaxy koe smith client company is -- largest shareholders talking about creating a pharma and vaccine division which would be separate from it's consumer health business.

it rose to 41.47. digging for value. not an easy task in the growth market. pick shireince then up 6%. ncr which has declined by 13%. back with us. richard stein berg, president and ceffficer of stein berg global assets. richard good to see u, thank for joining us. >> we own all three, ncr i think will come along as the financials start to pick up. whether you buy these value stocks you have to look out three ars on them. >> you are classic investor. this e're in a mist like where we sit in the all-time highs, is it tougher to fin value right now? >> yeah, we've been digging deep. analysts scrubbing not only numbers but conference calls to see what names, kind of out of

favor but not broken. that's why we have three new names today tlt f into that special situations category. >> first up, n oovel cure. >> yeah, it's an interesting play, the device is called opportune. sci-fis almost like a cap that goes on the patient's head. and with chem the science has been excellent. we think the stock is worth 54 bucks or 40% higher here. if the fda gives them approval down the road for other tumors either below the nk or brain tumors, atlantic that could be sides to that. >> here's one that haser su -- and you have to -- again you're trying to fine one that has value n that's broken. >> yeah, this is not a fake name. it'ste bd but certainly not

ocbroken. the connects consume with companies. it's an ad play. many people have seen the yelp reviews either on their iphones or online. millennials won't make any decisions without lookg at an app. the stock has no debt. we think it's worth 64 bucks. a lot of up side to this. they've been growing earnings at 43% for at year over the l five years. we think it's chip. tion uld also be an acqui candidate down the road if somebody wants to be in the space. >> finally, american tower. it's a real estate investment trust. it's only 2.19%. >> it's also growth. they're constantly investing. theyave 160,000 sites

throughout the world. 41% of their businesses e.outs you have american power, you have s ba commu acations you have crown -- beneath there the 800 pound gorilla. the stock trade -- the stock's been beaten up because of some issues in consolidation in india. t we think stock's really interesting at these levels. we have $180 price target, which is 30% from year. i think it's a name you can put away forarhree >> all right. rich. always good to see you. enjoy the rest of your summer. >> take care, bye bill. >> richard steinberg. o read more about his clips head to mbr.com. coming up, a big wager on the future of sport betting.

sn right now, consumers paying more than $100 billion in credit card and fees.an 40% more when we were paying in 2013. part of the reason is because a interest rat taking higher and total credit card debt stands at more than $1 trillion right now. sports betting is changing. a recent supreme court ruling ushered in a new era for gamblers placing bets on their favorite teams. >> reporter: fist been juit's b few weeks since the supreme court opened the doo a for sports betting.

opened at -- and home to the nfl's giants and jets. it will be run by -- hoping to cash in with their firstorrick and mr location. >> it's a great wil to our brand and continue our ongoingo effortecome apart of people's sporting experience. particularly giving location yoght next to jets and giant stadium. can't get closer to sport than that. >> reporter: merger with european operate, they plano be in on every part of the action. business tha a has several lines of business. one is the fantasy business. two is the sport book. three is the online casino building, the second largest in new jersey. and fourth is the tvg, john l oe horse racing business.

>> reporter: morgan expected by 2025 there could be -- went from the billion dollars in t case to $11 billion. it all depends on how many ates legalize sports gambling and what kind of rules they put in place. >> we largely tackled t challenge. so we don't look at it to be that much of a challenge to operate in various states. it means you need to make sure u have great relationshi with all the regularity and have a flexible technology sloughsol, in which we have a lot of. >> reporter: combining a domestic company with a long list of customers. >> wexist in the position of about largest game leader in th u.s. we have a database of ky c

users. have a brand people trust and associate with money gaming and we think we ve great product. across tho t thing wenk that's a huge advantage that we'll be able toarlay and continued leadership as the market goes through. >> reporter: by the time thisn nfl sea kicks off in september, expect to see more action on the sidelines. for "nightly business report" i'm erick chum my. >> and that is nbr for tonight. we thank you for watching. have a wonderful weekeyo. we'll seon monday.

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