>> announcer: this is nightly business report with sue herera and bill griffeth. >> renewedti sm, stocks rise on hopes for a u.s. china trade truce days before ati key m between the world's two largest economies. e of an era. united technologies is splitting businesses into tee. marking the end of one of the countryndustrial conglomerates. >> giving tuesday. it's a day to give bk. t could the new tax law put a dent in donations? those stories and more tonight on nightly business report for tuesday, november 27th. and good evening, everyon an welcome. from the white house to wall street, the focus today was on trade. the u.s. and china have reengaged in talks aheadf

high stakes meeting between president trump cndnese president xi jinping at the g20 summit later this week. this around, the white house national economic council director said the talks were happening at all levels, that optimism helped lift trade sensitive stocks like boeing. after beingn d most i day of the the dow jones rose to 24178. the s&p added 8. but talks are just that. and many say there is a lot of work to do before any sort of deal gets done. ylan mu y starts us off from washington. >> reporter: new hope from aed trade deal with china. we are days away fro the big meeting between president trump and president xi at the meeting in argentina. drry kudlow s a deal is possible but only on america's terms. >> if china will come to the table or in this case the dinnew

tableh some new ideas and new attitudes and some new cooperation, as the president said, the is a good possibility they could make a deal. he is open to it. nothg is written in cement or stone. >> reporter: on the agenda fore eeting are forced technology transfers, intellectual property theft, ownership of american companies in china and cybersecurity. you did kudlow says the next step on tariffs will be a presidential decision but he says the u.s. kissimmee is strong enough to withstand the fallout. >> it's just a fraction of the economy. it's just a fraction of the economy. i'm not suggesting that there aren't winners and losers in it's a complicated game. but on the other hand, i think we are in far better shape to weather this than the chinese are. >> reporter: meanwhile china's ambassador to the u.s. is o warnin dire consequences if in trade war turns into economic separation between thewo

countries. he said he wants to see a negotiated settlement to this dispute. for nightly business report, ylan mu y in washington. elsewhere aus momen day for united technology, announcing it's breaking apart. united tech will split into three separate publicly trudied companies, marking the end of an industrial conflomt in america. but wall reet seemed unimpressed for a time. the stockowas d 7% closing down 4%. morgan brenn has more. >> reporter: united technologies announcing it splits up the theis elevator and carrier hvac businesses in three companies. a process taking up to t years. greg hayes will continuing to run the aerospace business, discussioned the decision today. >> we can look at any point in history and say t commercial businesses outperformed the aerobusiness.

over time we always had balance works at utc. as i've spoken to investors over the last year there is almost unanimity that these busins perform better as separate businesses. >> the move was not unexpected. after the in-depth portfolio review and as the company closed on a $23illion rockwell purchase. but it doe continue a trend of industrial conglomerates breaking up, what some analysts call t t urge demerge. honey well-johnson controls, as investors favor pure play companies over the bigger manufacturers. the move comes as larger uncertainties loom, namely the trade relations. a topic affecting multinational manufacturers including united technologies. >> tariffs benefit no one. we are spending $150 million in the coming year to pay additional tariffs. ultimately tariffs are a tax on

consumers. we raised prices three times in carrhir cover the tariff costs coming in. tariffs don't bring back jobs. >> but despite the long awaited news the tde concerns sent shares in dow tumbling as investors digested the details of the latest break up plan. i'm morgan brennan. >>resident trump food is still fuming at the country as biggest auto maker he. in a tweet he threatened to cut subsidies to general motors. the warning came after "g" announcing closing plants andas ng jobs. pushing shares of gm lower. pough it's not immediately clear how mucher the president has to revoke the company's tax breaks. s in atement gm defended its saying, gm ructuring is committed to maintaining a strong manufacturing presence in the u.s.s evidenced by our more than $22 billionn

investments u.s. operations since 2009, end w quote. >>l it's no secret that vfrs pay close attention to alle statements m by federal reserve officials listening for hints about future rate increases. and today it was the central bank's vice chair richard clarida speaking out, saying he supports a gradual approach but diive an exact number of hikes he felt were necessary. mr. clarida d say he believes interest rates are close to so-called neutral level. meaning they neither stimulate nor slow growth. jerome powell is sed scheduled to speak tomorrow. >> the whisi house is pro a way to lower medicare prescription drug costs. in an effort to start he modernizing t government's flagship health health insurance program. bertha coombs has more. > the trump administration already proposing pricing changes for drugs prescrid by

doctors under part b. now it's aiming at the pharmacy drug pns. >> part d. >> what we proposed today is really historic changes to the medicare drug program to allow actuallyg plans to negotiate against drug companies in what are called theot six ected classes. >> right now, medicare is legally prohibited from negotiating with drug manufacturers for six major categories o drugs, including cancer and hiv treatments. if a doctor prescribes a drug regardless of cost medicare pace what the drug company charges. >> and in the commercial sector we would get about 30% discounts just using the normal ls negotiating that your plan and my plan have. >> house secretary allowheg insurers a benefit managers to actively negotiate could mean saving which by keeping the price hik in check. pharmacyof the opt up benefits unit praised the

proposal. >> i think overall we share with a common objective with the concern about drug affordability. we share an objtive about trying to drive to lowest cost. andore openness to figure out how to leverage the tools we in the e successfully commercial market into the government space. >> but analysts say benefit firms cou feel pressure from new proposals requiring them to ce out of pocket costs and pass on negotiated drug discounts or reebts to members at the pharmacy. drug makers have complained they set high prices because of the rebates. >> i think there is a role for government in changing the rules the road to reorient the incentives. the incentives are highist prices with high rebates. i think we need to change the rules of the road. we or congress, in order to break that open so that you allow lower list prices and lour patients to pay less out of pocket when they walk in the pharmacy as a result of that. >> the comment period on the new proposals runs into next year.

analysts say the a is pushing about as far as can it it can with regulation as one investor to make a bigger dent will require legs and rallying bipartisan support in the next congressus for nightlyess report, i'm bertha coombs. time to look now at some of today's upgrades and downgrades. we begin with disney which was upgraded to outperform from in line at imperial capital. the analyst citing catalysts into 2020 for the company including a strongilm ate, pricing power and its upcoming vio streaming service. prying price target $129. the stock re 1% to 113.90. marriott upgraded to conviction buy from guy at goldman sachs. the analyst says the slow substitution issues hampering the 2-year-old acquisition ofar stod hotels will be temporary. the price target now $153. he stock rose to 119.97 p and

us bank corp. was downgraded at deutsche bank with the analyst citing the valuation. the price target now $63. the shares there fell slightly to $53.72. still ahead, a tech powerhouse, that is thousands of miles from silicon valley. it's not often that lawmakers from nine countries get toget to question one company. but that's what happened in the uk today when officials gathered

to ask facebook about how it handles user data and priva. ceo mark zuckerberg was not there. instead a facebook executive in charge of policy was grilled about potential regulation. and he was gried intensely by a canadian official. >> when we are talking about regulation, would you be interested in asking for friend mr. zuckerberg if we should have a discussion about anti-trust? >> i would respond that it dependsthn we are trying to solve. >> oh. >> if the challenge is. >> the problem is facebook. that's the problem. we are talking about symptom but the problem is that unprecedented economic control. >> also at that hearing a british member ofam part cite add document that says an engineer at facebook warned of russian intrusion back i 2014. facebook says the document was cited out of context. well it's not only facebook undergoing scrutiny but google

as well with digital ads expected to rice they may find themselves under the microscope to areater degree. >> reporter: facebook and google are big and getting bigger. there was talk ever regulatory scrutiny brewing on capitol hill new forecasts could fuel concerns about the growing market dominance. emarketer forecasts total global digital ad spendin will rice 17% next year. and together facebook and google account for 52% of digital ad revenue with google grabbing 31% of the total. >> this data is representative of the power that google and facebook have had and the significance and the success they have hadak ing the smartphone and applying the right algorhms and artificial intelligence to serve u content that really sucks people in. >> and digital ads are dwroeg in power with digital ad formats track to draw over half of ad dollars in 2020. if the groesh conti as

expected, we'll see how that impacts regulatory oversite. earliert trump saying this month he is looking into possible anti-trust violations committed byh the t giants such as facebook, google and amazon. now the questions whether recent negative headlines by facebook's mismanagement ofia ru manipulation and other issues start to impact those growth numbers. >> it's not a dramatic impact. but i think the way it plays out is the growth rates that facebook is going to have over the next few years won't be at the same level or near the same level it was the past two years. >> reporter: luke veterans gene munster warns because of the size google is more at risk f anti-trust regulation than facebook but both companies from an anti-trust perspective are n argue fighting for ad dollars with all formats. the negative headlines about the giants, the greater the regulatory scrutiny. for nightly businessor julia boorstin in los angeles

share of spirit airlines take off. that's where we begin the market focus. the budget carrier is forecasting stronger revenue in fourth quarter thanks to more planes and collection of fees. they are benefitting from lower fuel costs. the stock rose 15%o 58.76. tesla's sales in china reported fell 70% i october compared to a year ago a citi officials from a chinese trade group said the auto maker sold about 200 vehicles. tesla calls that report wildly inaccurate. the stock was off a fracture sh shun to 343.92. cracker bail reported increase in earnings and revenue in the recent quarter. e company cites my hoyer menu prices on average up 2%. they issued an upbeat outlook for growth. the shares to 183.29. and trooi end fund management

decided noto pursue an acquisition of papa john's. according to the "wall street urnal" other potential buyers are only interested in a stake in the company. that report sent the stock lower by 1 to 51.77. locks o on college received approval for a cancer drug last night. this drug targets a wide range of cancers basn shared genetic mutation rather thansi fo on the type or location of the tumor. the drug won't come cheap. list price could reach more than $32,000 a month. but the company believes most insurance companies will cover the cost. the stock fell to 139.10. bristol myers squibb said i leading cancer drug did not improve the survival rat of lung cancer patients in a trial. the late stage study was conducted on an aggressive form of the decease. an showed no survival benefit.

sending the stock lower to 51.15. and salesforce reported better than expectedr third quar results. up more than 25% thanks to the cloud business. she issued the upbeat revenue forecast. and that lifted shares in after hours trading. finished up a fraction t 127.54. it's billed at the place where tech meetsusiness. but it's not silicon valley. instead it's a region inchina, aiming to be a hot bed of innovation. it's also host to cnbc's first tech retreat in the country and reporter is there. >> a 90 minute ride fromhe asian economic hub it's theg guan province. it's an area that will be known as the bay area of the east if ehe chinese president has his

way. mcis trying to create a rival to the bay area. the mayor speaking from the east tech west conference calling it historical times foreg then. some of china's biggest tech companies already call the area home, including ten cent, and drone maker dji. one of the cities k iswn as china's silicon valley. new infrastructure is expected to hasten the growth. the longest sea crossing bridge eaopened this as did a high-speed rail. >> this morning i took the high-speed rail, only 15 minutes. and drove up here. it'sst so much infcture growth to start with. >> the project covers an area containing nearly0 million people with a $1.5 trillion

onomy. hsbc expects the region's economy to double to $2.8 trillion by 2025. >> the population is actuay ten times the population of the bay area. in the u.s. so certainly the whole landscape is a consumer c that consume a lot of the technologies smuch bigger. >> which could explain why nine of the top 20 internet compani in the world come from china. but future growth could rest on the outco of thi woke's meeting between president trump and president xi jinping on the sidelines of the i g argentina. for nightly business report, from china. >> how can you make the most of charitable giving t under new tax law.

here a look at what to watch for tomorrow. as we mentioned, f chair jerome powell is scheduled to peek. investors wl be looking for clues on the pace of future interest rate hikes. the l.a. auto show is under way with a focus on global ses growth. we find out if the weak stretch hn the housing sector extend intoed october w the release of the home sales report. that's what to watch for wednesday. meantime, consumer confidence edged lower in november for the first time in about five months. as americans apparently felt less optimistic about muchmy of the eco and how it's going to grow in 2019 and their incom. prospe

even with the decline sentiment is still near historically high levels. consumers opened wallets foe s on cybermonday. according to adobe, the total online retail sales reached just under $8 billion, slightly more than what was expected. that number though is nearly 20% higher from a year ago. now that pecybermonday something over, today is giving tuesday. a day devoted to donating to different charities around the globe. last year a record $300 million was raised. but could the new tax law affecl the lf donations this year? joining us tonight is reed fresa, financial planner. welcome back. >> hello with, bill, sue. unthe new tax law the standard deduction is doubled and there are fewer people expected to itemize deductions maybe few than 5%. >> right. >> do you think that means fewer dona that's the concern people

lose the incentive. 30% useto use itemized deductions, 25% of the population may the concern is they lose the incentive to make the charitable donations. >> what's the best way if y intend to donate -- what's the best way to go about it? obviously check the regulations of the new tax law would be one step. but what else do you recommend to clients. >> basically three strategies that we tnk of at this time. we have done this this year with a lot of clients. for the average personenho has taking advantage of itemized deductions, a large number are taking the rd$24,000 stan deduction. they may not be incentivized to contributions. we recommend people to start bunching charitable contributions within one year. a basic example is somebody has the $10,000 proptety and s sales tax deduction. and $8,000 deduction

mortgage interest and they've been doing 5,000 charitable contributions. that's 23,000. 24,000. taking the if they take the 5,000 deductions put them together in oneear that's a $15,000 deduction, add that with the mortgage and the state tax - local taxes that's $3,000 deduction. that's another 9,000 in one aar. >> that's year you itemize. >> yes that year. the other two years you tak the standard deduction. >> what about the funds that bring together your charitable contributions and then distribute them for you. how does that >work. hey are wonderful tools for two reasons. one you make the $15,000 contribution you may not know where to put it right away. you can take that money and put it into a doaner advised fund think of it as a small inexpensive foundation. they don't cost money to set up but there is a small administration feeer year. usually a .5% per year. >> a minimum to get . >> some as little as 5,000. many around 10 to 25,000.

>> so you make that contribution. you get the immediate deduction but can you donate -- or theyt call grants over many years. >> what about stock? i mean if you have a goo year in the market, a lot of people think maybe i shouldn't donate stock, maybe i should but if you have a gd year it might be a way to go. >> absolutely. even the person wanting to doe 15,000 may not have 15,000 carbon hand but they may have the stock or mutual has appreciated considerably over the last say eight years and they can use that. and you get a triple win that which. tax deduction and you shelter capital gains taxes. >> good advice, thanks for joining us tonight. >> thank you. >> appreciate it. > and finally tonight broadway had the best ever for the seven-day period around the holiday. they saw record attendance and ticket sales bringing in more than $7 million dollars. harry potter and the cursed

child set a new hh. the broadway industry trade group attributes the topularity variety of shows now available. and before we go, a final look at the day on wall street. the dow rose 108 points. the nasdaq u a fraction. the s&p added 8. tomorrow ahead of the fed chair speech, the president is telling thee"washington post" not peen a little bit happy with jerome powell, adding the fed's policies damage the economy. a little dra and the speech by the chairman is tomorrow at noon eastern. >> indeed. that will do it for us tonight. i'm sue herera. we want to remind you this is the time of year your public television station seeks your support. >> and we thank you f that support. i'm bill griffeth. see you tomorrow.

>> this is "bbc world news america." funding of this presentation is made possible by the freeman foundation, icd kovler foundation, pursuing solutions for a's neglected needs. >> this fall, it is a season of revelatis, from the choice of america's favorite novel. >> it's 100 books we want people to take a look at. we are hing to get people to fall in love with novels again. >> to the fate of a hero's love. >> i'm still here. >> and i. >> from the secret lives of the most amazing cats to new discoveries about the firs