♪ this is "nightly business herera and biue griffith.pp >>g the ante. investors turn cautious and send stocks lower oep at that washington is ready to escalate trade tensions with china again. >> i've been in stocks since march 11, 1942. >> and he hasn't stopped yet. the oracle of omaha says he's buying more even as the indexes sit at near record levels. >> going for a ride, why santa monica is at the center of the battle over the fast-growingoo scr business. >> those stories andore tonight on "nightly business report" for thursday, august 30th. good evening, everybody, and welcome. i'm sue herera. i'm tyler math son in tonight for bill griffith. well, wall street's win streak

snapped. the reason, in a record, trad a report midday said that the president was considering moving ahead with additiona tariffs on chinese imports as early as next week. the tariffs would cover an additional $200 billion worth of goods. that would be on top of the billions already affected. th report added that the president has not yet made a final decision, but no matter, the marketsmoved. the dow industrial average dropped 137 point to 25,986. the nasdaq fell 21, even as shares of amazon closed above 2,000 a piece, and the s&p 500 was down 12. bob pisani has more on today's drop. >> stocks were lower much of the morning, but took a dive as trade war fears once k again t hold. both stocks and bond yields immediately sell the session lows on a report saying that esident donald trump says he wants to move ahead with the plan to impose tariffs on $200

billion of chinese imports. that's not good news for the markets. the problem here is the markets levitated itself into believing that in the long run there reallyouldn't be any damaging trade issues on the horizon, but today's neheadhow that the president, in ct, is planning to double down and apply even more trade pressure on china. triple digitsl and of course, it was led by global industrial names lik boeing and caterpillar and they drop on trade war fears. we did see a sudden reversal in momentum names that were pulling the nasdaq to new highs earlier and tech names like apple and nvidia came with new highs along with broader semiconductor china and u.s.-based internet stocks moved lower and alibaba and j.p.com, they dropped and emerging market drops took a turn for the worst like brazil ander mexico u pressure thanks to rising dollar interests and they dropped even

more. most commodities are priced in dollars and they make commoditiesore expensive to buy currencies and thatlo with tariffs with aluminum and e eel with metal stocks. in the last cou weeks they're dealing with trade issues. from the new york stock exchange, i'm bob pisani from new york stock exchang ahead of tomorrow's deadline being pushed by washington. as negotiations intensify, the canadian foreign minister says she's optimistic. >> we continue to b encouraged by the constructive atmosphere that both are bringing to the there is a lot of good will. there's a lot that we're trying to do in a short period of time. wooe working very intently. >> separately, the president reatened to withdraw from the world trade organization if it doesn't, quote, shape u in an interview with bloomberg, the president criticized the treatmen of the u.s.

>> the effects of the trade disputes are being closely watched by warn buffett, but what does the influential billionaire investor have to say abt stocks as they sit near record levels. in aon one-o interview with becky quick, she asked mr. buffett if she thinks the market looks expensive. >> there is no question you will do better, only stocks. it's considerably more attractive thanixed income securities. that doesn't mean they'll go up or down tomorrow next week or next year, but over time, a bunch of businesses that are earning high returns on capital are going to beat a bond that's fixed at roughly 3% for 30 years, and it's not my field especinly, but the ameri businesses, 30 trillion worth of them and they look cheaper than generally real estate. >> 5% of the shares outstaing of apple. it's the biggest holding of berkshire vethaway. ou continued to buy ever

since the filing? just a little. about 6 million of the shares are attributable to another fellow in the office that's owned it for a considerable period. the rest are my portfolio, but i bought just a little bit. i like to buy them cheaper. we started buying or i started buying. i was buyins fast as we could and i ended up buying some as high that are a whole lot higher and a whole lot higher. i would rather have it go down. for one thing if it goes down apple will buy a o lot stock back and if it goes down 10% it meanshey get to buy 10% more shares and my interest will go up 10%th mor spending that money. i am benefited by going down. if i were to talk it, i would >> the economy is firing on all cylinders and one issue that people are worried about iap

what'sning with trade and tariffs. have you seen any impact on berkshire businesses or higher costs associated with tariffs? >> definitely. we buy steel, for example, at high tech and we buy it on other places and we are seeing some effects from that and some effects from >> we've seen more in the way of cost increases in the last year, if you go across all of our businesses, but particurly building materials. we sell paint, the mechanic comes ind it was much more expensive than it was a year ago. >> the interview with m buffett was done before he joined the winning bidder of his annual charity lunch. the meeting with the oracle went for more than $3 million. the proceed goes to the glideti foun which serves the poor, homeless or those battling substance abuse. e lunch came on mr. buffett's

88thda bir happy birthday. oil price essex tended their august climb. the price of domestic crude asettled above $70 a barr supplies as well as supply disruptions out of iran and alsd venezuela, there are also new reports that iran is threatening to halt the flow of oil through the straits o hormuz which is the route for 30% of seaborn crude. >> john kilduff joins us now to talk about iran a oil prices and where he sees prices heading. >> you again, john. i've heard conflicting stories that gasoline prices will stay roughly where they are for a while which is 4 cents a gallon higher than they were at this time next year and as we move into september and ontober, se changes, they may go down. what do you see for the rese of ear? >> think right now -- unfortunately, potentiallycahe before something of a storm. e are well supplied in

gasoline we are switching over to the winter blend of gasoline that is morer to make and more uniform and uniformly supplied and it gathers about a 10 to 15-cent discount just on the barrel versus the summer blend. between now and say the end o october, prices should stay relatively stable, but you are seeing them creep u from where they were earlier in the year because of the price of crude oil creeping up and because of just unbelievably strong demand out there. kis past w was the highest gasoline demand week all year, greater than even the fourth of july gasoline. >> which explains why i was stuck in traffic because everyone was on throad. >> everyone has the same idea, sue. >> what about the situation between the u.s. and iran specifically as it relates to sanctions and iran's threat, perhap to close down t straits of hormuz. how do you see that playing out and the effect on oil and gas. >> everyone is retreating to their corner and getting ready for thht and that's the rhetoric that you're seeing from iran about claiming ownership all of a sudden over the entire

strait which is split between it and qatar and narrow two-lane passageway, but everybody has to play to their home base. so the rhetoric is flying and what i said a moment ago aut is is the calm before something of a storm, that's what i'm referring to. the mket is getting tight already and we're seeing major international oil companies already pull back from buying iranian crude oil so as to run a foul of any way, shape or form of the reimposition that come in november. youave two major suppliers of oil. there's iran on the one hand and venezuela on the other, and that is now a supply squeeze, right? >> absolutely, tyler. and we can't make it up. the u.s. is pumping full out. venezuela is circling the drain. the numhers there and volumes there are falling much more rapidly than even some of the most aggressive analysi we had about how quickly they could the citgo here in the united

states is going to be taken over by a creditor in canada and we disrupt things >> so those factors point to an oil price later this winter of what? >> i'm not here to try to make an outrageous high-priced claim and it could go to $85 to $90 a barrel and the northern hemitehere w is peak demand. it's all of the winter fuels acking in on top of transportation fue the holiday shopping season. that's the squeeze and that's whyn we bump up against a high price and john winter. >> john kilduff, thank you. speaking of nezuela, could the final blow of the already-collapsing economy of venezuela come not in thera streets of s, but in a courtroom in delaware and some say it may because ohe fate venezuela's last great asset and the oil and gas company, we just mentioned, citgo may be decided within days. brian sullivan has the story. >> it's partf a decade-long

fight over aold mine in venezuela and hugo chavez nationalized the mine and gave it to venezuela's oil company known as -- and after a series of agreements and favorable court they now own more than $1 billion to crystal x. >> the u.s. marshals have served and we have the federal warrant or that served perveza in the unitedtates. it's called pvd holing and it owns citgo. so they hay actua been served with this $1.4 billion writ of attachment as they call it. so they have to pay now. the problem is that cash-strapped venezuela had the money to pay the debt with three big oil refineries and oil rminals and pipe leans, citgo is worth many tis that $1.4 million and debtors and possible buyers are now lining up. if ends up being sold off

in total or in parts, exper t say day to day operation of the company is not at risk, at least not for long and most of theanagement team i in houston and the gas stations are independently owned and not at risk either. cnbc reached out to citgo for comment, but did not hear back in time for the broadcast. the question is what happens in venezuela if it loses control. th country has other buyers, but may lose sething. the maduro regime needs more than anything else right now. cash? they do rely heavily on the u.s. market, but there are other companies in the u.s. citgo is not even the largest purchaser of venezuelan oil in the uted states. although citgo runs $750 billior bas a day through its three ma refineriesnd venezuela sends more oil to companies like pbf in the u.s., but t it is most ready source of cash. >> paper money is all, but worthless in venezuela. so if venezuela ends up losing citgo.

they also lose a big buyer of it oil, the case is complex and all, but a small group of attorney, but the bottom line is this. citgo's parent company, pvd holdings and it's a gast-minute miracle and they can find the moneyth to pa $1.4 billion debt to crystal x and rcitgo' is part of the nearly failed state will come to an end. for nightly business report, i'm brian sullivan. >> still ahead, soupy sales. campbell's soup is making big business, and the jury is out on whether that will work. ♪ ♪ ♪ ♪ >> the trump administrations canceling pay raises for civilian federal workers. in a letter to congressional leaders, the government must,

quote, maintain the nation on a fiscally sustainable course, e quote. an increase of 2% was set to go into effect in january >> it's a familiar story these days and sometimes distressingly so and an iconic american brase its way and today it was turn.ll's soup's weaker than expected quarterly revenue plans to sell some divisions in an effort to refocus the company. that sent the stock lower today, butpban cl move forward by scaling back. we take a look. >> campbell's soup, the 146-year-old company is trying reinvent itself. today announcing it's putting international businesses up for sale. boathouse farms and gden fresh, and kelsen brands. the company left open the possibility for a full sale of what's left over. so what is left? soups and snacks mainly. we're talking brands like campbell's own soup, pepperidge

farm goldfilh,o cookies, kettle chips and more. the upshot, wall street isn't impressed. >> they are lacking difficult periods where they lost bigns promott walmart and nothing like easy comps to get your numbers looking in the right direction we do believe that the long-term outlook that they reinforce in some lines today and raised in other lines today and it was too aggressive and w were surprised if they didn't look down to we wouhat company, and be hard pressed to be 2% in the lo term. >> they'rell in the oveough packaged food industry right now. organic sales for the latest quarter shrinking 2% and soup sales declining 14% and it's not paintingn optimistic picture of future growth either with an outlook of 1% to 2% organic growth. the company didost a long, 90-minute conference call with analysts today whereceo, keith mclaughlin did say the company lost focus and depended too much

on mergers and acquisitions. mclaughlin says all options are in play going forward which does leave the door open for a sale. we know that's what activistsh eholder third point and dan h loe reportedly been pushing for. two big questions, who would buy it and can campbell turn around its core busines that i very much unclear and skeptical.ts are for "nightly business report," i'm sarah eisen in new york. >> shares sign in cigna jewelers after reporting a surprise increase in same-store sales which was driven by strength in theewelry retail zales brand and the company raised its full-year forecast and cna's quarterly profit was ahead of expectations and the sales soed 23% to 67.68. dollarcount retail chain tree set a rise in sales at its namesake brand was offset by higher costs and flat growth at

its family dollar division. overall, the company delivered earnings and revenue in line with estimates and margins shrunk and dollar tree said it was trimming its full-ier earnings outlook. the stock dropped 15% to $79.78. its rival, dollar general fared better this quarter. same-store sales at the discount retailer accelerated more than expected and profits topped estimates. the companyid note that margins were pressured by an increase in sales for lomargin items. dollar general also lifted its sales guidance for the year. it fell to 5.66. abercrombie & fitch missed same-store sales estimates moved by weak demand by its hollister and a & f brands and it did deliver a surprise profit and that did nothing f the stock. shares plunged 22% to 22.55. consumers were buying up lululemon products.

tore sales strong growth and earnings that blew past estimates. the shares took off in afterur and they finished the regular day down 1% to $137 even. watch this on morrow. >> many market watchers had called for a breakout in the bank stocks since the fed is hiking interest rates and the economy is humming right along, but the sector is lagging the broader market so far this year, buts at about to change? >> marty mosley is the director of bank and equity strategies and he joins us to tbok that. marty, good to see you. welcome. you know, the banks have a 20 sxaen and seventeen 2717, is it really bad news for the banks. >> no, we have to calibrate what she said. the banks lagged in early 2016 and 2017o rebound in the second half of the year and outperformed in both of those years, and i think we have a similar pattern this year when

we'll lag in the first half of the year andy the end of the year we'll see the improvement lead into the possibility. there are banks and there are banks and ser regionals and there are little ones and which sector of this vast environment do you think is poised for the greatest profit growth and stock market performance? >> well, when you look at the banks that can benefit the mos for whee're at in the rate cycle and as well as deregulation and the employmoft apital it's only the super regional banks and the suntrust regions and it's even like citizens financial group or fifth third. these are all banks that have vaatous different sies and the environment is positive and they get the most pickup over the next six to 12 months. o >>course, those rising interest rate environments which have been helpful to the bat, e're also seeing a slowdown in mortgage orithnations and

's important to a number of different banks outes there. hat worry you at all? >> again, the mortgage industry is a little more sensitive because house payments are such a big portion to the househoe budget to higher interest rates and mortgage rates have ercentagep four points since rates started to go higher. when we look at the general business environment we're seeing consumers on credit card and other areas growing in of their lending and we see small businessesetinallyng into the act here. so we are seeing some benefits fromenhe businessng aspects as well. there are other parts of the economy they tonk can better than what we're seeing in the mortgages right now. >> mart thank you very much. marty mosley.in comg up, why santa mon a is ground zero in theattle ♪r motorized scooters. ♪ ♪

♪ ♪ ssembly fornia's state passed a bill that would require publicly traded companies in the state to have at least o on the board. the state senate is expected to approve it, as well. the legislation c for creating an extra board seat to accommodate a new female member instead of removing a male already on the board. the governor has not taken a position on the issue. >> in some cities, scooters are seemingly everywhere. that is especially true of santa monica where theylo areing the streets and apparently cluttering up the sidewalks a a citire moving aggressively to control the rap growth. aditi roy has the details ♪ ♪ >> santa monica is on the front lines of the scooter wars. companies like bird and line dropped the devices on the city a few months ago without warning

or permission. >> i think it's a good idea. i cannot sta electric scooters. >> they're an absolute menace. >> santa monica is trying to bring some order to the chaos announcing today that bird, lime, lyft and jump are operating under aro pilotam for electric scooters and bikes stting next month. >> you have no point to be here. earlier this month, bird and lid launc a day without a scooter protest after they recommended uber and lyft as top choices for t pilot program. the companies are fighting for a crit ial piece of the pie a rapidly grongindustry. in the last three month alone, bird is operating from five to six cities to 40 c commuters like josh bernstein say at a dollar to rent plus 16 cents per minute thereafter scooters are cheaper and a more convenient to cars and public transportation. >> it's perfect for going half a

mile it a mile >> the backlash of scooters noted with scooters across city streets and public spaces could have a snificant impact. cities are taking action. d.c. and dallas have put in place regulations on scooters. scooteregulations are also pending in san francisco, los angeles and miami. the regulions include helmet reentirements and lowering the speed limit which could force firms to make costly hardware changes and lose customers. bird is among the scooter companies working with regulators byanding out free helmets. as well as the cost of this program, they say it's baked into their business forecast. for "nightly business report" i'm aditi roy, santa monica. >> we've been talking about softening demand in housing in isrt because prices have skyrocketed and irue on the very high end of the market where we're seeing some of the biggest priced cuts. robert frankxpins. >> from johnny carson's former

malibu estate to warren buffett'sou beach and dick cav its's hamptons hideaway. some just got a little less pricey w the real estate properties under pressu the a nales is found that at the topf the market for homes listed 12 million or more 12% of listings had discounts in the second quarter and that's twice the level of 2016. price cuts total more than $1io bi for the 500 discounts during the quarter. for example, the zip estate in florida was originally listed for $195 milrion. the pce dropped to $165 million last year and it just dropped it again to $138 million. a total price cut of $57 million. the late johnny carson's estate in malibu which has stunning views of the pacific got price chop of 16 million now listed at

65 million and dick cavitt's hamptons dig is now listed for the biggest price cut of the past 12 months was 50is million house listed in 201 the price cut, $62 million. even warren buffett is lowering his prices. a beach house in laguna, california that he had listed for $11 million has just been reduced by 3 million, but he's still likely to make buffett-sized profits. he bought the home for $150,000 in the 19s. some of these originalri pces are pure fantasy, andig desd to attract attention and had to come down, but the market for trophy properties is also falling from the ersupply and lack of foreign buyers and tack changes that hurtx high- states, with prices still high at the top, they say the billionaire bargainel are l to get bigger this fall. for nightly business report, i'm

>> before we go, let's take a look at the final day on wall street and the numbers. the dow jones industrial average dropped 137 points. the nasdaq fell 21he and s&p 500 was off by 12 and that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> thanks from me as well. have a good evening, everybody, and we' see you right back here tomorrow. ♪ ♪

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