>> announcer: this is nigly business report. with sue herera and bill griffeth. new talks the u.s. is reportedly reaching out to china to resolve trade tensions while businesses and farmers sound the alarm against tariffs. supersize revenue. apple sho off its biggest and most expensive iphone ever, betting consumers are willing to pay up. shifting gears. to makers with plants in the south are rushing to export vehicles as hurricane florence closes in on the carolinas those stories and much more tonight on nightlt business rep for this wednesday. september the 12th. indeed. and good evening, everybody and welcome. investors were remind once again that trade matters. a report that the u.s. is reaching out to chi for a new

round of trade talksaud an immediate spike in stocks. the trade talks it appears would be high level led by the treasury secretary. that helped left shares of boeing and caterpilla but it wasn't enough for big gains in the broader markets. so the dow jones indl average closed the day with just a slight rise of 27 points to 25998. the nasdaq down 18 and the s&p 500 rose 1 point. however th threat of the new u.s. tariffs on cheyennes kbords are imports does exist and that makes the greater business community nerves in the u.s. today a number of different industries joined forces to let the white house know about the concerns. washingtonore from >> >> reporter: retailers, the fishing industry abtech companies and more, all coming together under the bannerer ans for free trade to sound the alarm against president trp's tariffs and are spending millions of dollars to make sure the message is heard across washington.

>> it's a campaign directed certainly at the ultimate cisionakers in the administration. by know that there are others out there that can be and persuaded. and really it's about informing people of the real negative coffequences of ta >> reporter: in a letter to congress today, the coalition calledrgoncernst. it's planning listening sessions with small business owners hurt by theiffs starting next week in noinl, pennsylvania and tennessee. tv and digital ads are in the works. also today, farmers fanned out across capit hill to push the issue with lawmakers. >> we are concern that the tapproach taking on trade war is going to hurt us essentially at a time when we areeeing farm income down 50%. >> reporter: the trump administration has already imposed tariffs and $50 billion in chinese goods. anothernd rou on $200 billion of imports is in the works. and the pre tdent has said rest of what we import from mcis at risk but business leaders hope that hearing about the impact of the

trade war is alreadyaving on main street will make a difference. >> it's one thing to talk about those in aypothetical sense as has been done for the last year. it's another thing to actually have t people being hurt by the tariffs tell their stories. and that's reallyhat in campaign is all about. >> reporter: businesses hope the white house iste lng. for nightly business report, fl wrkt. and businesses express concern over the trade tensions. according to the fed's beige book companies are grappling with rising input cos due to tariffs. and in some cases those concerns resulted in postponed business investment. that said, the survey suggests e econo overall grew at a moderate pace at the end of the summer, alongh hiring and wages. but for the first time in a yearnd a half a key inflation gauge actually posted a decline. the producer price index unexpected fell.1% last month as

lower food prices offset higher energy prices. and despite the moderation last month, inflation overallte has beenily rising, thanks to the tight labor market, a strengthening economy and the rise i tariffs. that strengthening economy is leading to more money in the pocketsf americans. according to the census ups bureau, median household income increased to the heit highest on record due to the change in the way the figures are calculated. and the poverty rate inched lower. we have been commemorating the ten anniversary of the financial crisis spawning the recession. the economy looks different from what it was ten years ago at the beginning of the crisis. at the depths of the dark days, three men in particular took a raordinary steps to save financial system that some say was teetering on insolvecy. andrew ross sorkin spoke with them today. >> ten years after the financial

crisis today we sat down with hanke paulds, tim geithner and ben bernanke, three men center of the storm. we talked about policy making and the policies that may have led to the crisis and those that rescued us. one of the things all three men talked about was theifficulty they felt they had communicating to the public what they were tryi to do. re is what mr. paulson had to say. >> it is very, very hard to explain that -- that the system was so complex, so interconnected that we had to go to the source. and wall street was -- was like the heart. and we had to stop- what with he had to go to the heart, the source to stop the otbleeding. rwise it was going to kill the economy. and what we were doing is puing the tarp, the things we didik was a tourenket.

but it's hart to explain that nance is the life bloo of the economy. >> one of the other issues debated was the o rise pop lymph after the crisis. >> financial crisis didn't help. we know historically financial crises do precede populist politics but people have been saying the country is going in the wrong directi 240 years. there's been a long period of slow gains in wijs, increasing inequality. slow upward social mobility. we have had rising coucerns trade, china's entry to rae wto in 2003. immigration, cul issues. the whole gamut of things that feed in the popular mood. and i think the financial crisis obviously exacerbated that.t t was not i don't think the primary source of the politics that we see today. >> for nightly business report andrew sorkin in washington. >> after experiencing that crisis it's difficult to think another could happen. but of course anything isib po.

and in an interview the head of the world's largest hedge fund says the next crisis could be more severe. >> i think the next downturn is aifferent type. i think pension problems, health care problems in terms of obligations, that are not funded, whether or not. >> morevere next time. >> more severe in terms of cial political problems and more difficult to handle >> dalio said he believes the current economic cycle has two more years let's talk about this turn to art hogan to talk more abo the next financial crisis, what it might look like. art is chief market strategist as b riley fbrp thank you for joining us t.toni >> thank you. >> cyber-attacks on banks, high debt levels in the fracturing industry, too many subprime auto loans. i have heard those just this week as possible seeds for a

future financial crisis. we never know where it's going to come from, do we? >> we really don't. the next crisis is never going to look like the last ke etsz. it's le military trying to fight the last war. we have to look forward and see where the cracks are. in my mind all of those things cybersecurity is obviously goi to be a large concern forever, because theolks thatractice cyber crime get better faster than the people stopping it but i think the biggest concern in the near term for me would be the amount of dollar denominated debt, especially in some emerging markets if we continue to see a strength in the dollara because continues to become a negative feedback loop. we see emerging market countries taking on debt over the last five, ten years. that being denominating denominated in dlarps gets would worse asr the dol strengthens. >> do you think we are ready, idthough? whate learn from the 2008 financial crisis? has it made main stre and wall

street perhaps more hyperaware ofhe fact that the crises do happen and different every time. >> for sure. you think about banks. look at lehman before it went you said. 30 to 40% leverage ratio pb the highest any bank has the most extreme is like ten. the balance sheets are stronger stronger for banks. we learned that extreme level of leverage is bad and we ve a ameliorated that. we have learned that gichg mortgages to peopleho won't pay them back, wrapping up i a derivative investment product is a bad idea. l those left as the last cries crisis. what we have to learn movingd forws what happened is the euro zone falls apart a an experiment. when you see italy, the brexit, turkey for example. dhings that are in front of us instead of beh are things that we are quickly going to have to grapple i th. ink being prepared for that means certainly paying attention

to that in >> art hogan with b riley fbr goodo talk to you with you thanks. >> thank you, which will. let's look at the upgrades and downgrades plp micron was ground dwraded to nurt from buy at goldman sachs. the analyst sites weakness in certain semi conductor chips,if spally d ram accounting for more than three-quarters of gross profit. the price target $50 the stock fell 4% to 41.7437 fellow chip maker was ground graded to hold at cecil. th say certain thip dhip markets may have peaked. fraction toll a $88.80. tiffany was upgraded to outperform from perform over ann heimer. the analyst sites the stock's valuation follow an 8% drop in shares over the past month. the price target is $152.os the stock 1% to 124.74. still ahead, preparing for

hurricane florence. >> i'm on a pilot ship now responsible for getting the car carrieree that you out to sea away from the danger of storm surge and floodg that could come with hurricane florence. i'm contessa brewer with more oe therations being made in the low country, south carolina, ahead on nightly business report. the worst performing stock in the dow index t after a company executive tempered expectations about its growth outlook. the chief financial officerte raw material costs and said automotive demand in china

particulay not be as robust as thought. the stock fell 2% in trading today. as expected, apple's flagship product is getting a ettinger, the iphone is bigger in some cases pricier too. but the stock had a little smaller today falling 1% in today's session. john ford has a recap for us from cupertino, california. >> reporter: arthrothree now iphone x's and watch approved ev medicale that's what was announced. for the last couple years apple ngsn't been selli more iphones but has been able to charge more. the new lineup t will testt trend. the new iphone x is more expensive and more affordable. the xs max has a larger screen and price tag. but the entry level xr is less expensive. >> they take the size of what was an a plus and because of the way the screen is going edge to edge you hav what is going to look like the biggest screen

that they have. is is a new effective size in terms of the screen. that could induce alsoome additional people to consider upgrading phones. >> ape's iphone makes about 60% of the company's revenue but the world's larst publicly traded company is looking for the next leg of growth in wearables. >> apple watch is not only the number one smart watch in the world it's the number one watch period. >> with the new series 4 watch a new electric card gram feature. ecg can detect irregular heartbeats. the chief operating officer said the watch is the firsto t receive fda approval. health data will be incontraceptived on the devthe and i cloud. the new watch has a screen 30% landmarker and a new feature that can decadent detect if the wearer has fallen. it's a growing business for apple. tim cook mentioned on the earnings call that wearables generated more $10 billion in sale for the company.

the isa analyst says the ecg capacity is a big deal. saying it establishing theff increasingts to push the watch as a serious medical device. apple hoping to establish the watch as ahtinner. for n business report, john for the, cupertino,ca lifornia. the tb ratings company nielsen will reportedly consider selling itself that's where we begin the market focus. routers says nielsen was expanding review of strategic alternative following pressure from hedge fundanagement. other options are being considered, including going private or spinning off parts of the business. nielsen sharesose 1%, 26.72. beauty m be facing pressure from from an investor. thestalrel setays partners equity management owning a% in elf will concern encourage to sell or cut costs. the report added marathon is seeking new additions to the

company board. shares rose a fracture shn s to 13 power 44. united technologies was charged with violating the foreignup co practices act byin m the illicit payments in aircraft businesses. the s.e.c. says the united tech paid for trips and gifts for foreign officials to attract siness which is illegal under us law. the company will pay abo $14 million to resolve the allegations. the shares were up a fraction to 133.89. elsewhere chinese electric car makerrt neos trading on the new york stock exchange today. pricing at shares at $6.26. that was near the low end of the rangecind the p values the company at nearly $6.5 billion. neo, which plans to expand in the u.s. and in europe says i i believ has a better and cheaper product than rival tesla. neoshares finished up 5% to 6.60. then after the bell, taylored

brands reported a revenue miss, oeven as theer of men's warehouse and joseph a. banks saw sales rise across brands. earnings were in line with estimates but margins smaller. shar were volatilen the after hours session but finished the regular day up more than 1% to $23.94. also out after the ll tonight, pivot alsoftware topped earning expectations and gav a current qrter outlook in line with speckations but investors may have been look looking for more shares plunged in the extended session by pinned regular day up 3% to 28.78. hurricanee flore was downgraded to a capturing three. but remains in a an immensely powerful storm. most auto makers have critical operatns in the regionen and expect to ge hit. they are preparing for the worst but they are hing for the best. contessa brewer is at the port of charlestonor us tonight.

>> reporter: the preparations are intense here at the port of charleston at bmwes m thousand of cars on the giant car carriers heading out to sea and away from the risk o any storm surge or flooding that hurricane florence might bring. and they won't me any new karps in. the port is typically a very busy plac in fact in august it set records for the number of containers moved, up 16% over the previous august. annually this port accounts for $53 worth of economic activity or 9% of state p. >> the port is the economic engine of the state and one in ten jobs is connected to the port. every day we are down is day that the produce of south carolina doesn't have access to the world markets. >> reporter: the reak with the hurricane is not the wind. not even weather charleston is the bull's-eye. it's the flooding because charlestons in low country. it floods with just a few inches of rain in a regular rnfall.

and the prediction here is for inches or perhaps en feet of water. what's going to happen to the cars. >> the cars are being exported. and that's iortant for south carolina. that ship leaving to get around the storm. and have a safe voyage to its distinction. there is another ship coming in to t le anotherd this afternoon leaving tonight. and that will hopefully clear the docks so that those cars are safe onboard ships. >> reporter: other industries have shuttered as well. volvo idled the new plant which opened in june. mercedes-benz opened ate spr factory this month. it's closed because of the storm. cars have been deforted outside of atlanta, georgia. boeing has sent workers home to evacuate with families. and it's sending any finished 78 all way the to washington. ay what's your biggest concern standing here t about the next few days? >> really it's thenctainty

and in the forecast. this storm is going to be significant for somebody. and we have to be prepared for that to be us. >> reporter: the preparations continue until the effeche of storm starts to be felt here. the wind gets too strong, the seas too rough. and then of course comes the planning. how do you ghe port back up running once the hurricane paed? for nightly business report, contessa brewer in the port of naarleston, south caro meanwhile, home improvement retailer lowes is working all day and all night to get residents on the east coast the supplies they might need before and after florence makesnd fall. courtney reagan is in palmetto georgia looking at the lowe's command . cent >> reporter: disaster top starts here at clowe's emergencymand center in wilkes borrow north carolina with where weather is monired year-round but running around the clock starting up to a week before a storm hits and up to three weeks after.y invent requests from stores

are called in and the emergency command center plots the tgistics to get the right merchandise tohe affected areas. from regional distribution centers to vendors shiing directly to stories or from one of three coasting holding facilities like this in palmetto, georgia. the 250,000 square feet are dedicated to emergency response supplies at all times, including 15 prepackaged truck loads. >> we get emergency respons fr the command center telling us where the load needs to gooi and at that we start moving freight. >> they send the list to me. i make the pallets. >> like the comnd center the coastal holding facilitys open around the clock in an emergency. >> it's tiring. we're exhausted. the product keeps moving. it's -- it's -- it's hard to say yes you sleep in the car but i have a home when it's done. >> it took 30 minutes to load the truck up with things like ol tarps, ox, buckets,

brooms, anything you might need to prepare for srm. now it's ready to go to the stores. so far lowes sent more than 1,000 truck loads full of preand post storm products to more than 135s store in hurricane florence's anticipated path. >> we are starting to see post storm products roll in with nerators and water. i will tell you i went throughi hue irma. very similar as to what we did during hurricane irma and hurricane harvey as well. >> o. >> reporter: the preparation has been so far similar to past storms. florence has yet to make landfall. the retailer will keep doors open as long as possible. though it's already closed the coastal stores to follow local evacuation orders. for nightly busines report, i'm cotney reagan i palmetto, georgia. coming up, the push to protecrivacy on the internet.

another executive is out at cb jeff fager is lvingfter the company said i violated correspondent policy. his deparre follows a new yorker report that included allegations of sexual harassment.ga alons that fager has denied. as we have reported, cbs ceo les moonves left earlier this week amidns allegat of sexual miss conduct. last month a company called nosrum laboratories equitily increase pride of the antibiotic. and theove w defended called a moral requirement. the antibiotic in question by the way has listed by the world

health organization an essential medicine for basic health care system. in res nse thefda commissioner tweeted there is no more merely imperative to price gouge and take advantage of patients. the fda will promote cpetition speculators and those with no regard to public health consequences can't takag adva of patients needing medicine, end quote. the a commissioner is cracking down on ecigarette teenagers. the agency today declared yth vaipg an epidemic saysing it will halt the sales of fvored electronic cigarettes prove ner doing enough to keep them out of the hands of teens. but someall the crackdown not as bad as fierce and that sent the shares of tobago companies higher. >> tech companies are facing growin scrutiny from all sides. the latesttt fromney general

jeff sessions who is slowing the possibility of investigatesing social media compani well now the lobbying group representing most of the companies is trying to get ahead of any proposed federal privacy regulations. julia borsten has details. t representing largest tech and social media giants, the internet association releasing proposals to guide federal privacyon legisla toward the confusion of a patchwork of state rules and ged ahead of california's comprehensive privacy laws going into effect in 2020. >> it's important for individual and sta-ups and companieso have a national framework that patchwork.s imagine if you fly or drive across the country as you go from state line to state line you are covered by different privacy protections. the expectation u ar and for companies trying to innovate you can't have 50 different standards. . we want one robust standard. >> this group includes facebook,

twitter, microsoft,s als amazon and ub are onion pushing for legislation for transparency control over how have how information is use. consumer acces to data provided and the ability to delete or correct personal information or transfer to other companies. theocnternet ation is advocating for national data breach notification laws ta preempting the rules. to create a new standard for clear breach notifications. also saying privacy protections should apply equal to all tech companies awell as off line companies. such as retailers or credit card companies. recomm tding that ftc inference the laws at a federal level. >> ivehink people expect to the same privacy and the same transparency off line as they do online online the tools are great. and near constantly improving. bute want the entire economy part of this to protect people. >> the lobbying group says consumer data is valuable to help tech companies deliver better experience and they are working with the white house and congress toraft rul that will protect consumers without stifling

for nightly business report julia boorstin in >s angeles. nd before we go a look at the final numbers from wall street. the dow rose 27 points to 25998. the nasdaq was down 1 and the s&p 500 was up 1. and that will do it for us tonight. i'm sue herera thanks for joining us. >> i'm bill griffeth. see you tomorrow evening. have a great evening. see you tomorrow.

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