♪ ♪ this is "nightly business report" with bill griffeth and sue herera. let's talk turkey. turkey's currency plunges against the dollar, raising concerns that the country's fragile economy is on the brink of a financi crisis and sparking fears it could spread, sendin the dow dow almost 200 points. foundation? the two new reads on the housing market suggests they may be paying ahead for the industry. me and a whole new ball ga how pro sports have found their next best way of making money and it's not on game day. all that and more on ht"n business report" for friday, august 10th. >> and we do bid evening, everybody, and welcome on a beautiful summer day here in new the word on everyone's lips

not the turkey, and thanksgiving kind, either. the country that straddles europe and asia sent shivers throughout markets around the world. turkey's currency plunged 20% in aingle day igniting fears of a financial crisis similar toon we've seen in the past in greece and cypress and that sent european markets sharply lower and our stock market then felt the heat, as well. >> michelle caruso-cabrera tells us now why the turkish currency maeaers. >> ther of turkey has increasingly spooked investors since he became leader of the country in 2003. as a result, more and more foreign investors have been leaving and when those investors leave they don't nd the turkish currency anymore so they sell it. whenever you have more than buyers, prices fall. that's what's been happening to the turkish lira for months and even years and it's gotten much worse more recently after the

u.s. imposed sanctions on turkey after the country refused to release an evangelical pastor from prison as president trump has demanded. president erdogan made aery defiant speech where he seemed did not want to acknowledge things that needed to hapn like a hike in interest rates and it's led to fears of possible contagion from turkey's economic drama perhaps thanhe rest of the world. that's because turkey and the businesses in the country owe a lot of money toer as banks which they'll have to pay bk in dollars or euros, if turk owe can't pay those banks, thosenk will suffer losses on those loans. hobad thoseosses will be is the key question and could it lead to some kind of banking crisis in places outside of turkey. few analysts think right now that's a probability, but theas possibility enough to get investors to get a little risk out of their portfolio today. for "nightly business report" i'm michelle caruso-cabrera. >> exacerbating the lira's drop,

presidg t trump tweetat he would double steel and aluminum tariffs for turkey alone. this followe the turkish president telling his people change their dollars, euros and gold into lira. kayla tausche has more. >>et tweet from president trump sent shock waves, 50% on steel just forturkey, calling relations not good. the informal ord coming as tensions between the two countries boiled over, a causing steep drop in turkey's currency and a call from turkey's president that it wo prevail in what he called an economic war, hiking tariffs which turkey says is illegal and potentially salt in the wound. this does create more problem, and i think that'sub what ts the market so much. it's not just what's happened. it's the fact that thwo leaders are now trying to work out somhing toampen down the problem. they're, in fact, taking t measur exacerbate it. >> the company buying steel and

aluminum from turkey are now caught in the mid evaluate mayhem. frank runs metal partners international which processes and distributes rebar. he faced rising bills from tariffs on european partners. >> i would buy all my steel if i n.d the opt the real is that the capacity isn't the place to need it. >> today it has f cargom turkey on its way to huston. he say turkish supplier is in an array of panic at the ment and no one knows what the steel will cost when they get there and what the escalation means for future business. >> for "nightly business report" i'm kayla tausche in washington. >> the drama rattled investors, adding to tho jitters, inflation. consumer prices rose slightly last month, but the 12-month core reading rose nearly 2.5% and that was most wooe seen in nearly a decade, stocks d come off their low, but it was

still a friday solidly in the raed and it was 126 when the bell rang at 313 and snapping the win streak and the s&p was off by 20. for the heweek, nasdaq was the only positive index. seema modi has more on today's action. >> financial affairs swirling around turkey shook u global markets today after the turkish lira plummeted 20% to a record low against the u.s. dollar. financials lag on the session, banking stocks like goldman sachs and j.p. morgan took a hit on fears that turkey's financial chric is could spill over and bond yields also tumbled to session lows as investors poured money into treasurys in a flight to safety play, but ended lower on the week. the big questiondin the t floor is what international risks mean for fed policy. today's latest read on inflation looks like it would put the fed on course to continue raising rates and that would dollar even higher against the

turkish lira further exacerbating turkey's financial thes and president donald trump added fuel t fire announcing he would double the tariffs as the lira remains in a free fall. rial stocks took a hit o that news and boeing and caterpillar are often seen as classic proxies for trade warer co. for "nightly business report" i'm seema modi at the new york stock exchange. let'surn now to artogan for more on turkey and why we should care about what's happening in thatart of the world. he is chief market strategist at f.b. riley f.b.r., good to see you again. ack.ome >> thanks, sue. good to see you. >> it's good to see you. let's talk about strategically how important turkey is and this f a he beginning of a more global trade war including china and maybe russia.>> yeah. unfortunately the global trade war, or the we're having right now doesn't seem to be going away any time soon and this doesn't help that.

to put this in perspective, first and foremost, it's a friday in the summertime and any news will be larger and we've ended reaction which certainings and we've put the macro concerns behind us and you can see the switch over i today and you get news out of turkey and it escalates and the market takes advantage of it in the low-volume friday. in terms of trade it feels like there are spots that are getting better like north america, mexico aad c in the eurozone in particular where we have escalated things and china for sure hasn't seensc deation and that's the biggest headwind for the market right now is trade tensions and how bad they can get. >> and the strengthening dy'lar and t trying to improve things for multinationals in this country when itomes to trade, but it doesn't help when the dollar continues to strengthen, rht? >> it sure doesn't, bill and clearly that goes hand in glove. both the monetary policy clearly strengthened the u.s. dollar and that adverse'sts aff emerging

markets and clearly turkey is the poster child for who hurt with the stronger dollar and that's the offsho this and until we get to some point where there's an exit ramp on the thwde war h and start to get to the negotiations and see an easing and we' see more situations where that strong dollar is adversely affectinggi em market countries and turkey seems to be in the hot spot right now. >> the european banks which some have quite a bit of exposure to turkey, when will we know whether or not they'll be hurtti by this sit here? >> yeah. i think you will know pretty quick and i would offer up tha we would probably hear from the three largest of those banks and they'r in italy a they're in spain and they're in france and so clearly, those are the three large banks that hadhe most exposure and we'll get a statement out of them in terms y where t stand and what the overall exposure is because starting to s are get hit and we know where the players lie and that will be next week's business when they

say that's the net exposure and quickly, art, before we let you go, the fed has made it cle w thld like to raise rates two more times before the end of this year. do you think they might be rethinking that given going on right now? >> that's a good question. they've certainly bgnning a lot of the global events and flattening ring a yield curve and plotting along, and leading a strong economy and i'm not surehiis going to be enough to get them to blanken ge one more tnd that's the question we heard all day long. >> art hogan, as always. thank you. he is with b. riley fbr. bill? >> oil prices posted t straight weekly decline and today domestic crude was able to rise 1% to above $67 a barrel, but the fear is that trade disputes could slow growth and therefore dampen demand for oil.

but as jackie deangeles tells us, there is more that peoe are watching in the oil patch. >> with the national average for a gallon of regular gasoline at $2.87 just under the $3 mark, oil prices continu to ben everyone's mind. global producers, consumers and th president. the international energy agency issued its monthly report today saying the markets are calm, but that could change. iran is in focus now as a second round of sanctions will be put in place in november. that could remove as much as a million barrels a day, a supply offline and maybe more. if that were to happen prices would go up, but it is unclear how u.s. allies and purchasers of iran's oil will respond to the sanctions and that's why analysts believe saudi arabia has been cautious about adding barrels back online. today the iea said opec's outlook was flat in july even when the cartel said in june it would add supplyo make up for iran. what we know right now is that the glut that the market was worried about has slowly worked

itself out and demand is more balanced and in a tight market prices can move quickly, so a clear picture can emerge and for now, prices can dip as the summer driving sean comes to close. for nightly business report, i'm jackie deangeles. it is time to take a look at some of today's upgrades and downgrades. intel getting its second big downgrade of the week. this time goldman sachs taking it from neutral to sell. the firm cit manufacturing issues could hamper intel's ability to grow earnings. the price target was cut from 53 to $44 a share. today's shares closed at $48.85, down 2.5%. oppenheimer thinks the trade fight with china could hit ffany and the firm is downgrading the jeweler from outperform t perform. the analyst still likes tiffany's long-term prospect, but is concerned about short-term currencyluuations particularly a devaluation of the yuan, which could impact tyi

power of chinese tourists here in the u.s. the price target was kept at 1.45. tiffany finished at 134.34, down 2% today. j.p. morgan is shares of campbell's soup from neutral to underweight. the analyst there sees a potential sale of the company as an unkely outcome. you may remember last week a report surfacedaying that kraft heinz had started exploratory talks about buying campbell'soups. campbell closed at $41.35 off more than 2% today a suntrust is initiating coverage of online personal shopping service stitch fix. it's got a buy rating now. the firm says stitch fix is the leading pure play in the sector and should contie to outperform expectations. priceart set at $38. in a down day shares finished at $33.31 up about 5%. tesla is reportedly lking for a wide pool of investors to

back ceolo musk's plan to take it private. it would conntrate ownership among a few large stakeholders. >> well, elon musk has beco certainly a celebrity ceo who is closelis tied to company tesla, just like the late steve jobs was to apple and the beloved jack welch to ge, but is it a good thing for investors when the ceo becomes the brand? j.j. qanahan joins us. welcome. >> know you kp a close tab on what your customers buy month to month and sforth, and often tesla comes up as one of their top holdings. it's called betting the jockey when you want to buy the face of the ceo rather the company itself. is that a good idea, do you think? >> i don't think it's a bad idea. you talk about steve jobs as a ceo became sort of the

brand to people at some point and youh may start we ceo attracting you to the product and then the product itself as long as it's actood prond people start to become loyal to it it becomes a very nic circle if you're that company. you like the ceo and you like the product and you keep being drawn one to the other. so there's nothing wrong with doing that and of course, as with any investment you don't want to do i blindly and if you have a good product and a good ceo who seems tbe runni things in a very good manner, there is nothing wrong with that the problem becomes when the ceo goes off the nch, if you will, that's when things can get hairy for investors. >> you know, we purposely pointed out companies outside o the tech arena like a ge, you know. bill wasentioning earlier when we were talking martha stewart, her brand. she was so closely associated with , and is betting the ceo a phenomena morese common bec

of the innovation side of things? i think, sue, absolutely it is because using mr. musk as an example, he clearly thinks differently than other people do. he sees opportunity where others may not see it and it's amazing. you read his bog ravy and look at what he looks at in terms of solar and in terms of space travel, et cetera and he sees things others don't. that's amazing and ipehink le want to bet on the opportunity that he sees because they see opportunity with it. you kw, but one of the things that we have seen in the tech space again, m probablye than anywhere else is because there are so many entrepreneurs. being a great entrepreneur does not necessarily always mean you're a great. c >> back to jack welsh before we let you go. therwas clearly a welsh premium in general electric's stock when heir r and over the last 1 or 18 years or so it has definitely come out at that point. so there isf something a

danger there, isn't there? >> absolutely. when you have a ceoso associate closely with the brand and i will go back to apple for a second. tim cook had n only proved he was a ceo, he had to step in and take the pla of a beloved ceo so the test track for you is to be gher and you have the higher standard in order to take the company's stock price higher and once you do that you can become a beloved ceo also. >> always good to see you, >> than guys. coming up, why the housing market might be in for a rough second half of the year. he may be cracks in the housing market. two new reads are not painting a

rosy picture for the remainder o this year. dianalick e plains why. >> there are more of these out today than there were a year ago, but homebuyers are still puing back. last year the problem was no supply. now the problem is price. affordability fell to the weakest level in a decadest thi pring according to the national association of homebuilders and that was thanks to higher home prices and higher mortgage rates and just 57% of the homes sold were affordabl to americans making the median income. that's down from nearl62% in the first three months of this year. well, that is national picture in some markets,ishe situation orse. most of the least affordable markets are in pricey california, but in boston, seattle, miami, poland, oregon and reno less than 40% of the residents ming the median income can afford the me an-priced home. >> when i want to buy in the

neighborhood i can't afford. >> you can enter the lottery and that's the only way i can see myself buyg within the city. >> affordability is likely behind a drop in housing sentiment among consumers. a new report from fannie maes showewer americans think n is a time to buy or sell a home. fewer said they fell sure of keeping their job in the coming year. for millennials, that means waiting. >> what they're telling us is we have to have a good job. that jas to have a good growing income. we have to have our credit innd shapee're probably going to get married and have a baby before we're in a position to buy that house. >> none of this hodes well for sales in the second half of this year especially if mortgage rates move higher which the could potentially do, weakening affordability even further. for "nightly business report" i'm diana olickon in washin. >> general electric will sell its power conversion business

for much less than what we paid for it. that's where we begin tonight's market focus. >> ge is, workingisith credit bankers for $1.3 billion and ge bought it for more than $3 billion. shares oflwe f 1% at 1277. the fda has approved its first drug which is intendedo treat a rare and often fatal hereditary disease. it is also the first approved treatment in a new class of drugs that use what'sgealled silencing technology. the method targets a specific area to keep genes from prod hing amful protein. shares of alnylam roseo 3% finish the session aik$97.38. is being sued by a group of former female employees who allege that the athletic apparel maker fostered a hostile work environment and discriminated against women.

nike was unfair when it came to pay, promotions and conditions of employment. it also alleges the company tolerated andt times ignored sexual assaults. nike shares were off a fraction today to 80.73. and vf corp is reportedly considering selling or spinning off its denim business which includes the wrangler and lee brands. "the wall street journal" says c vf weak demand in terms of increased competitio shares rose a fraction to $19.29. >> time now for the weekly market monitor who has names of stocks he says you may wt t own in an uncertain environment. the last time he was on in august of 2017 he picked valero which is up 71%, and ak serve our which is on up 21% and rootc is 3% higher. >> he is at spectrum management

group. welcome back. >> thank you, sue. >> let's start with our picks today and this is master limited partnership fundnd the symbol is amlfpx and its main gye. o you like it? >> i think the energy pipeline companies have been misunderstood for the lastle cof years. so at its essence they're trading at 7.5 times cash flow and it's growing 8 to 13% year and you can get a 7.5% dividend right nowsk you have good underlying growth and that should be growing with price appreciaon over the next several years. >> avery dennison, and i think of avery office supplies and they've gone high tech with the smart labels we have out there and how do you see that as an uncertain environment. it gets that they've got great positions, for one. their product makes global supply chain so much more efficient and that segment is

growing by 20% a year and it can do that f quite some time. i think they're immune from trade wars and b tariffsause they produce around the world and i think we've got a nice t long growtnd ahead of them. they're playing about a 2% dividend. i think they'll keep growing that dividend by ar10% a >> and we finish up with j.p. morgan chase, a large, stable blue chip. >> yes. a lge stablelue chip. the last quarter of the bank grew the revenue fro 9% from investment banking and from their trading services and asset management as wells just core loan growth. so about 80% of their business is in the u.s. we think they've got a great chanceo keep expanding international as other international banks have to pull back, and management just announced they'll raise the dividend 40% in the third quarter of this year and we believe they' keep doing that. i think bloomberg's projecting they'll grow the dividend 20%he

year forext three years so if you buy it today you have a 2.7% dividend. if you hold it for three years you will probably be getting 5% on your investment. >> all right. we'll keep track of it. bob phillips with spectrum management group and to read more on sdot, go to our website at nbr.com. how teams are their brands to bring in more fans. finally tonight. a number of sports teams are expanding into entertainment business and they're adding

their brands to almosthi everyt from hotels to amusement parks. eric chime has the details. ♪ ♪ me out to to be take the ball game, take me out with the crowd, but not anymore. professional sports teams are looking off the field for their next big way of making money. the texas rangers this weekend opening a brand-new entertainment complex outside their stadium called tas live and features dining, bars, music and entertainment venues. soon to come is a loews hotel. the rangers are the latest team to use land next to the stadium for bigger entertainment goals jocting projes in sacramento, st. louis and philadelphia. part of the trend shift is the fact that the teams are taking ownership stakes in these development projects. >> there's onl smany dollars that you can generate from ticket salesv and revenue. so this is just an adding revenue source. it comes down to one thing,

mang money. with media rights fees and ticket sales, seeing lot more challenging environments, teams are doingnything they can to take advantage of the value of their fans to bring in fans even when it's not a game day. >> what you see today opening is mammoth. couple of billion dollars of investment, but it's just the tip of the iceberg and it will become where people will come for the wbekend. so m now you used to drive to a range game and go back home and now you come for the weekend because of all of the things ynd can dohe hotel connected to the ballpark, y stay in. it's going to be a win-win-win. >> some teams only have eight, and that leaves the vast majority of the calendar open as an opportunity to makor money on the same land. in many way, modern sports ownership groups see it as one part of the broader portfolio, featuring, real estate, media and entertainment and one, two,

three different options at the new ball game. for nightly business report i'm eric chemi. >> thes turkish financial cri took a toll on the european markets and ours as well. the dow down 196 points and the nasdaq dropped by 52, snapping its eight-day wintreak, by the way, and the s&p was off by 20. for the week, theq nas was the lone gainer. that is "nightly business on report" forht for a friday. >> i'm bill griffith. thanks for watching. >> have a good weekend. i'm sueerera. thanks for joining us. see you on monday.

>> this is "bbc world news america."ng >> funf this presentation is made possible byda the freeman foon, kovler foundation, pursuing solutions for america's ncglected needs, and purepoint fil.o >> how shape our tomorrow? it starts with a vision. we see its ideal form in our mind, and then we begin to chisel. we strip away everything that stands in the wato reveal new possibilities.

at purepoint financial, we have