>> announcer: this is nightly business report with sue herera and bill griffeth. >> rocky market. stocks post steep weekly losses as the concerns r te about global economy. and investors try to figure out what to expect in the weeks and months ahead. >> powerful rally. shares of the utility at the center of a california wil soar after a regulator eases bankruptcy fierce. >> frequent floodi, the rising risk facing one of the sites amazon picked t for second headquarters. the stories and muchore tonight on nightly business report for in friday,ovber the 16th. good evening, everyone.e' well sometimes glad it's friday especially after a volatile week like this. which left investors scratching

heads. today optimism overrade sent the dow and s&p higher but tech and the ndaq dragged lik they did pretty much all week. here are the closing numbers. the dow gained 123 points to 25413. the nasdaq fell 11 and the s&p 500 6 added for the we can, all of the marilyn averages were lower. and it wasn't just stocks. sixthices suffered the weekly loss in a row. some analyst believe the decline in oil prices reflects a slowing global economy. in fact the federal reserve number 2 official says he is turning cautious on worldwe growth. >> although our mandate is full employment and p bce tolding the u.s. to achieve that we have to understand and factor in global economy. there is some evidence of global slowing. i think it's early days. that's something that' going to be relevant as i think about the outlook for the u.s. economy. >> and dpiet his coern, h

doesn't think the fed is raising interest rates too the sentiments were echoed by the head of the european central bank who said the euro zone as slowed in recent months cloudy. outlook is >> we have recently seen a loss of growth momentum in both of the last two quarter cbd growth projections, our staff revised downstimates. actual data have also been we can. flash estimates for euro growth in the first quarter was 0.2%. the slowdown has raised questions about the strength of the growth outlook. >> he also said the ecb plans to raise interest rates late next year could change if inflation slows. so, a slowing global economy is just one emerging concern right now. the tech sector is under pressure. there ise trade sues.

and then there is the fed. joining us for a strategy session tonight kevin curran, the portfolio manager at washington crossing advisers thank you for joining us. >> good to be here. >> we've all been wondering why the sudden volatility in the markettarting in october and continues into november. is this a market anticiping a slowdown? is that what's going on, do you think? >> i think it in. i it's a market that's anticipating -- that's anticipating a global slowdown as you've just been discussing. >> ght. >> also pointing to the fact gnat united states can't skap the atgrapnle pull of the rest of the world. if you look at china, basically the hub of a lot of production on the planet, china has been slowing materially the industrial side has slowed recently. we see their market in bear mark territory. overall industrial metal prices have fallen dramatically. the united states is -- is now stuck beingte confr with a

environmentobal the in which to participate. >> which means that if investors want to participate you have given us highlightshef what really need to keep in mind. and one of the things is the s balanceet and how much debt a company you may benvesting in is carrying. >> yes. so i for example we had a continuation of deterioration in the outlook t you'd want look through the portfolio and do a number of things. number one look at the companies you own in terms of stocks. look at the debt on the balance sheets. many companies have taken on debt in the lt few years to do acquisitions, et cetera. and beef c that companies haven't gotten over their skis in terms of too much debt. >> as far as dividend payments, though, a lot of people want dividends. they are looking for that for income. but in a rising interest rate environment, we have talked in the past about how that's a dangerous strategy but where do yo go to get the income then.

>> a lot of investors looked for dividend income off the portfolio. and one thing you can do if you are concerned about a potential slowing from here over the horizon is loo at the earnings that a company generates. and let's say a company generates a 3/4's worth of dividend. maybe you want to see the generate $2 of earnings so that if earnings were to fall thede di would have less of a chance of being cut. >> so look for quality and look for higher earnings relative to their dividend. kevin corone thanks for joining us. >> now to a story we have been following all along, the cafornia wiechlds and the utility at the center of investigation. shes of pg&e rebounded sharply after losing more than 60% of the value in aeek. the surge comes after a regulator eased baneruptcy co and also hinted at state support for the embattled company. aidy roy has more from

francisco. >> as the death toll from northern california's campfire climbed. ioe president of the public utilities commi speaks out about the utility at the center of the investigation. in an unusual move, the regulator held a conference call with a group of analysts hochted by bank of thamerica. according to a source familiar with the matter. . during that call he told them the commission did n see pg&e go bankrupt if held liable for the fire. that prompted shares to soar today after six straight days of losses, despite both moody's and s&p downgrading the utility credit rating last night. some insiders say a pg&e bankruptcy would hurt customers who could shoulder the costs. >> for every dollar that -- that pacific gas and electric incurs in tms of these damaging wildfires, that's ultimately going to have be paid by rat payers in one form or another.

>> they say even if pg&e doesn't go bankrupt the skers would have to pay to help cover the liability costs under a california state law. and someonsumer advocates say that's not fair. >> customers don't share pg&e's profits when it's profitable. butms it see where expected to share againnd again to share liabilities when negligent. >> the law only applieso the 2017 california wildfires. and lawmakers would have to decide whether to extend it to this year fires as well. pg&e has been found responsible for more than a den fires raft year. could cost ts say $13 billion. in the the meantime the commission's president plans to launch a wide ranging review of pg&e examining the cporate governance, structure and operation of pg&e, including in light of the recent wildfires to the determine the best path forward. pg&e gave us a statementad essing the bankruptcy issue saying that the utility agrees

with the president's statement that an essential compone of providing safe electrical rvice is long-terminancial stability. for nightly business, adidi roy, elsewhere, facebook's latest are controversy has gotten the attention of lawmakers. as we reported yesterday an expose byim "the new york" pointed to mismanagement of the company including efforts to conceal gross mismanagement and negligence. facebook continues to deny the accusations. but as julia boorstin reports, washington a wall street and advertisers are watching very carefully. >> facebook c.o.o. sheryl sandberg denying theeports of mismanagement at the company, writing on her facebook panl, to suggest that westeren't inte in knowing the truth or we wanted to hide what we knew or that we tried to prevent investigions is simply untrue. but sator mark warner says he is disappointed with facebook's management. >> what they said is, yeah we want to workutith you when

we get to specifics there is not been a lot of give on the side. wild e notion that t wild west days of no regulation at all,rdo g rails, just ka can no longer exist. >> senator warr is isn't the only one calling for regulation. floor senators klobuchar, olummen that you will, corns and hirono wrote the department of justices urging expanded instigation into facebook and cambridge analytica.ac salging thatook took steps to undermine efforts to hold them resp sible, including hiring partisan political consultants to spread eosinformation aboute criticizing facebook. definers the d.c. based theunications firm to which senators refer,ed respond that it was not hired by facebook as ray opposition research firm. saying the main services we media monitoring and pr around public policy issues. >> aol investor the steve cade

says pressure is on for faceboo to mchanges. >> we have to understand that they do shoulder a great sponsibility. hopefully they will make the moves necessary. i think they have the right intent. they have been clear about the intent a lot of people are looking for. th actions following the bent in the coming weeks and months we'll hopefully see re. >> investors and analy watch to see the impact it has on the facebook bottom line. >> i think they are taking more serious steps than a yr or two ago. from a business perspective we ate signs of user in 3 q better disable stn. izon mediaagency h says they watch to see if consumers the start to retreat from the platform because negative headlines. for nightly business report i'm juliboorstin. >> and facebook shares fell today in trading down 3% to a multimeth low. tock is now down 35% from its most recent peak in july. and even if you don't like the shares outright, you mig own

them in an etf or mutual fund. the top holders including v guard total stock market index, the fidelity contra fund and the van guard 500 texas signal. >> time to look the upgrades and downgrades beginning with home depot downdwraded to neutral from buy at bank of america merrill lynch. the analyst says earnings will peak this year and sales probably peaked last year. price target,5. $ the shares fell fractionally to 177.02. michael kohrs downgraded to perform outperform at oppenheimer with the analyst citing inventory management issues. the firm said the substitution of the recently purchased ver sachy could prove costly. to $45.89. 2% morgan stanley removes the sell rating from qualcomm upgrading to equal weight from underweight. the analyst says the company'sa

risk r profile is more balanced now. target is $55 the shares initially rose fractionally to 5 a.88. target was givenn overweig rating at key bank in new coverage. the analyst cites the tailers investments and improved execution. the price target is $110, the shares fell 1% to $79.68. > still ahead, the rising risks facing one of the sites of amazon's new second headquarters. airbnb revenue breaks threw the $-1 billion mark making the third quarter airbnb best

quarter yet. it krieks overseas markets and suburban areas. it comes ahead of a highly anticipated ipo next year. we told you yerler this week that amazon had selected long island city as onef e two locations for its second headquarters. well it turns out that site could be at risk of major flooding. as a result of rising sea levels and increasingly extreme weather conditions. diana olick has the latest installment of her series rising risks. >> reporter: long island city may seemal i for amazon, easying vows of manhattan, access to transportation and shiny new residential towers rising by tr. wa but there is also a rising risk of water. flooding at the proposed four to million square foot amazon office development. it's located in a flood plane. >> building on the lowest spot queens is not long-term thinking. this is a clearly building

square in the danger sfoen for frequent needing. >> new research for climatend central zillow shows the area could see significant coastal flooding by 2020. extreme projections of sea level rise he builds under water by 205. amazon could build sea walls and take other steps to make it resilient like at the navy yard dock 72 just south of long island city. also on the riverer and lally hanging over the water. it is a collaborati by boston properties and rooten management. ourobby is 8 feet above the water line. all the mechanicals are on the second and third floor. we are -- we are very focused on resiliency. >> theame is true of the massive hudson yards development and the manhattan west side alsb built a river but aiovern yards so it'ste eleva amazon could raise the fwround under the new offices and raise all theuilding systems. >> but then you have to ask how

easy will it be to get to and from the headquarters? what's happening for surrounding neighborhood? and they're going to need the city's help to fortify the whole area. >> from 2005 to 2014. queen youdd sawional 31 tais of coastal flooding due researchers say to chiemt change. if queens saw a six-foot flood which scientistin second by the end of the century that puts $13 billion working of property at risk about 34,000 times. it's highly likely amazon is factoring in the add the cos of water and storm resilience. we asked an amaze. spokesman about any plans but he said i couldn't comment. for nightly business rort, diana olick in long island city. and to read more about the growing flood risk to long island city hea to our website at nbr.com. mission impossible. powers viacom and that's where we begin the mechanic attention folks. e better than expected quarterly results were helped by

box office revenue from the tom cruise sequel.en viacomitted from a rice in fees paid by cable and satellite companies saying i expects revenue to growth are grow next yur. shares rose more than 3 to 32.99. blackberry is pushing further incybersecurity with its purchase of sigh lance for $1.5 billion in cash. the deal will expand the unit making software for next generation autonomous cars. they will operate as a separat business unit within blackberry. the shares 1s% to 8.97. ge's finance arm is selling equipment ca finance portfolio f t 1.5 billiot.i.a.a. bank. the deal comes a month after it sold a portfolio of energy investments to a private eity firm. ge shares finished down nearly 2% to $8.02. >> the astro accidentica reported disappointing results from a drug trial.

two experimental cancer medicines offered no advantage over chemotherapy in met static lung cancer patients. shares fell 1.5% to 40.67. pfizer plans to raise prices on 41 drugs ce january. that's about 10% of the lineup. most drugs will see a 5% increase. the company had previously rolled back price increes this summer under pressure from president trump. shares rose marginally to 41. today. and cancer drug company tisa. o is exploring a sale. the report comes about a weekre after s fell sharply on oi disaing drug trial results after being halted for a time in today's trade tisaro shares popped 31% to $34.96. it's time for the weekly marketonitor mo hasames of stocks he says are less vulnerable in anconomic downturn. joining sus tim courtney chi

investment officer at wealth viser. welcomback, nice to see you again. >>ch thank you very >> you have picked three ee eclectic pis, t first is starbucks you like it partly because of the expansion possibility anyplace china. >> yeah, they're opening about a store a day in china. that's a big growth venue for them. and als in the united states they're introducing new menu items and greater use of drive-rough which has been shone to increase steals in the u.s. >> another one we have -- i don't know how to pronounce this xoetis the we hea from money managers he liking companies inlved with pets, food or hoing. this is a vaccine company in animal health. >> with so many more dollars being spent for households on pets,- it's their earnings growth is low teens.

and so very good. any alsoonade an acquisif a company that does diagnostics primarily f livestock but also household pets. that continues to be a growth area as more money is spent in thosereas. >> we both have pets. bothnt bill and i we s a lot on them for sure. and the third pick is xylem, the broader infrastructure partly. why elseo you likeit. >> yeah, it's mostly that. i think a lot of peopleon't know exactly how much water is lost in municipalsystems. and a lot of municipalitie don't have the where with alto find leaks where they are happening and diagnose them and fix them. this company helps to fine the le ss, makee that water delivery is more efficient and they're -- they're hardware, pumps and meters able to provide helps companies all across the world, municipalities cross the world fupgs me efficiently.

it's infrastructurend sg increases they should reap the benefits there. >> and again, very quickly, the there for these three -- these are companies that you feel can weather any economic slowdown right? >> that's right. start bucks last go around did slow down, assu crs slowed spending during the last cycle. but in general they're all growing low -- low teens in terms of earnings. they're growing high single digits in terms of revenu w anfeel like all of these should frly well weathou know a slowdown. >> all right. on that note, tim thank youo much. thank you. >> and to read more about tim's picks head to our websit nbr.com. coming up, an iconic t story. >> i'm courtney reagan in norksz an iconic toy store back just in time for the holiday toy war. i have the story coming up on nightly business report.

household debt is on the rise. a new report from the fed says the doelts indebtedness increasehfor the 1 quarter to $13.5 trillion. that includes mortgages, auto loans and credit cards. but economists say thats not yet a cause f concern since debt levels are still far below where they were t years ago at their peak and americans are mostly able to keep up with payghnts now. so with households appear and in a better financial condition, economists say that could be a good consumer spending. and the new fao schwartz store in new york hopes that's the case. courtney reagan has more onhe legendary toy store return

the big apple. >> reporter: iconic toy store o schwartz returns to new york city just in time for the holidays in a new location with a new owner. the the original new york city toylo stored in 2015. a year later 360 group bought it from toys "r" us. today the n store in rockefeller center opened for the first time, just down the street from the old location. >> today we make history. this fao schwartz store will be better than ever before and here . stay >> a true toy experience is the key at fao schwartz like at this baby adoption center you can't leave until interviewed by a nurse or dr. to prove you are a fit parent. i wanted mo i kid to experience this same thing. piano nice to see the and some of the stuff that was in the older f.a.o. schwartz.

>> really interactive really different from all the other toy stores where you pick it out a leav >> most of the toys are sold at other retailers like deparstent es but the popular toy roots can be traced to original new york store. it's the first holiday season without toys "r" us and retailers of all kinds are trying to grab the market share of the toy store left for grabs. department stores like kohl's and j.c. penny the expanding toy assortment along wit big box like target and wrrmt for holiday season and beyond. amazon put out the first toy catalog. even crowinger is getting into businestoy which will win? according to afri of former toys "r" us shoppers amazon is the first choice for toys. followed closely by wal-mart and target. even specialfitity tor like american girl and learning express have been able to gain share. the battle plans areet and the troops are in place to w the toy war. with black friday now just

week away. for nightly business report reagan in new york city. well, well some buy toys others by art. and laflt t buyers have been bidding prices up to records for the most part. hey were out in force again in week. despite the recent rough patch for the stockmarket. robert franke reports. >> reporter: it's known as golden week in new york. more than $2 billion worth of fine art and collectibles auctioned off this week. despite the stock marketitters and slowing global growth, the world's wealthy keep on spend. >> 18 million, 19 million who offers 20. >> at the start of the week with davidis hockney h portrait of an artist sold at christies for $90 million. at made it the most expensive ever sold at the auction for by a living a knit edward hoppers chop suey the the sold for $92n

million a w record for traditional americanwort. n and of coursen american artists are in huge nd. as museums diverse fay. this called 12 hocks at 3:00 went ator christies$14 million. jacob lawrence the businessman t off a frenzy and sold for $6,000,003 timesma the es. >> now there were a few misses where sellers overpriced works. this marshals ton hartley s estimated tol for over $30 million failed to sell as it did a van gogh. the fear was the stock market decline was spook the hedge funders and wall streeters buying. that chinese problems would dampen. marry antoinette's pearls went for $36 million about times the estimate one of the biggest pink indictments ever sold went for

$50 million. >> the chinese and asian customers, hong kong in , particulf course, very important to the art market, very important to the diamond market. ourthey have been some of biggest buyers and bidders for colored diamonds. >> the stone was nearly 19 carats told so harry winston who plans to sell it for more. zbloof. a >> before we gne like at the day on wall street. mix dade process dwou and s&p higher nasdaq down today. and that does it f us tonight. thanks for joining us. i'm sueherera. >> i'm bill griffeth. have a great weekend. see you monday.

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