>> announcer: this is "nightly business report" with bill griffeth and sue herera. talks break down. president trump declares a shutdown meeting with congressional democrats a total waste of time, bringing it to an abrupt end. >> shutdown stress. the partial government closure is starting t casthill over business with warning signs coming from a number of different industries. that's a ap. u.s. and chinese officials end three ds of trade talks. while there's optimism, differences still remain. those stories ande much m tonight on "nightly business report." it's wed ve good evening,one, and welcome. a dramatic day at the white house. a p meeting betwesident trump and house speaker nancy pelosi and senate minority leader chuck schumer seemingly

ended almost before it began.go ations to reopen parts of the government that are closed have stalled. the shutdown is now in its 19th day, one of the longest in hi ory. and fitch says if it drags on much longer, the u.s. risks losing i aaa credit rating. ylan mui is in the nation's capital. >> reporter: it's a shdown breakdown. president trump calling a aeting with democrats at the white house today total waste of time. he tweeted that he asked if he would approve his border wall i they reopened the government. when nancy pelosi said no, he said bye-bye. vice president mike pence said trump won't back down. >> i think the president madeos hision very clear today, that there will be no deal without a wall. >> chuck schumer, the top democrat in the senate, accused he president of literally walking out of their closed door meeting in the situation room of the white house. >> again, we saw a temper

tantrum because he couldn't get his way and he just walked out of the meeting. >> reporter: the both sidesday when sought to shore up their base. democrats said that president trump is manufacturing the a cris said that he cares more about the border wall than federal workers. meanwhile, trump paido visit capitol hill today to sell his shutdown strategy to gop lawmakers. there had been some grumbling amongst moderates who were eager to get government workers back on the jo the president is still weighing whether to call a national emergency in order to build a wall without congressional approval. day trump said that republicans have his back. >> the republican par i can say, and i just left an hour meeting, we had a great time.wa ther no discussion about anything other than solidarity.e ant national security and voter security for our country. eporter: tomorrow the president will head to the southern border to continue his public appeal, while the government shutdown enters day

20. fory "nighsiness report," i'm ylan mui in washington. the shutdown is also threatening the ipo market. the partial closure isci f some companies that wanted to go public to push back their plans, which meahat there could be no ipos this month, making this just the thi time since 1995 that there were no new stock issues in the month o january. 2019 has been expected to be a strong year for itial public offerings. it's not just the ipo market, the partial shutdown is alsotarting to pressure business more broadly, rippling through tous itries you might not expect, likebrewers. frank holland is in hackensack, new jersey.te >> rep seeing the glass half full after a strong 2018 -- >> we're running a good business, and business is very good. >> reporter: this brewing in hackensack new jersey decided to make a million dollar investment to more than triple brewingpa

ty. >> we never expected that this would be the hiccup. >> reporter: but the government shdown is stopping blake crawford and michael roosevelt drom getting the licenses they need to exp and meet the growinir demand for t signature hackensack lager. >> we're paying almost $1,000 a dayo occupy that building. between the lease and the property taxes and t utilities and the payments on the muipment, it is costing a lot ofey every day. every day that the government is shut down means one more dayat i don't know when i am going to start getting revenue to offset those expenses. >> reporter: staff in the alcohol and tacco tax bureau of the treasury department are among the 380,000 workers deemed non-essential during the shutdown. the office issues licenses to makers of alcohol, including the 6300 craft breweries in the u.s. >> the term non-essential government staff is kindf interesting, because it's only non-essential if your business doesn't depend entirely on that

department being open. >> reporter: they also approve new formulas and new labels. the brewers association says it's a big deal because brewers make roughly a trd of their income during summer months. it's also impacting wine and spirits makers. the spirits trade group saying distillers are in the o midst planning seasonal offerings which is completely impossible wielout the prompt l and formula approvals. >> there's no reason why businesses like ours should be stopped from growing because of any government policy tebate. >> rep before the government shutdown, the owners expected to get their approvals thismonth. now, instead of bottling their beer, they're worried about a bottleneck at the ttb. >> with this eutdown, i h no idea how long it's going to take even after the shutdowd is over he workers are back reviewing applications, how long it's going to take them to work through their backlog. >> reporter: for "nightly business report," i'm frank holland in hackensack, new rs

. so where else are the ripple effects of the shutdown going to be felt? joining us tonight,e welcome back eric gordon. happy new year,eric, welcome back. >> happy new year to you, bill and sue. >> it seems every day we learn a new industr or business or enterprise is affected by this shutdown where you never would expect it. franklland's story is a good example of that. it really points to theri sung relationship the government has with the privateg sector now, right? >> yeah, it turns out that the government is involved insll sof things that we don't think they're involved in. and when the re shutdown, it means industry after industry is in trouble. >> you gave us a list of some of the things that you see on the horizon, one of which ise h sales could be hurt, partly because if you deal with the ou government for mortgage, that's not going to be processed, but also and this surprised me, the drug review by the fda.

>> yeah. you know, you can't just sell new drugs, thank goodness, they have to be approved by the fda. that's a long, expensive kind of process. but here's something that i interesting. a blockbuster drug, the drugs that make or break these bigni drug com these days, they sell about $3 million worth a day. at means if the delay is 30 days, just 30 days delay in fda approval can cost you $300 millio if it's down for three months, it could be a billion dollars lost to drug companies. even the diggestg companies can't afford that. >> right. and even the workers, the government workers who are affected by this who are not receiving a paycheck, we're talking hundreds of thousands of people out there. they're not making home payments if they pe livingcheck to paycheck, and they may not buy big tickete items l cars down the road as well, right?

>> yeah. i think if you're worried about when you'reoing to get a paycheck again, you're going to hold off onke big t items that are discretionary items. if your car broke and you have to buy you have to buy it. but i tell you what, if i wasn't getting a paycheck, i wouldn't be buying anything big now. i think a lot of industries, everything from big screen tvs are frigerators to car going to be hurting. >> so does a business in the private sector need to rethink its relationship with the government, maybe change its business model or the way i does business or, you know, some of the products that it sellsumo the co as a result of this? is there a learning curve in this particular situation? >> sue, i think there is. i thinke've beenlerted to a risk we haven't thought about very much. even though there have been other government shutdowns, they have tended to be very short and not had a big effect when you consider risk factors now, you probably have to list,

gosh, we are dependent on government approvals. if we don't get them, it can hurt our business. >> indeed. eric gordon wit the university of michigan school of business. thanks for joining us tonight. >> thank you. >> o another examplethe shutdown's reach, the hubble space telescope is suffering some technical problems. nasa calls it a hardware issue, and there are reports that its repair could be delayed because some of the government employees needed to troubleshoot that problem are not working. to wall street now where the dow's win streak was extended to four days today. rade talks with china and the release of the minutes from the most recent fed meeting helped give stocks a lift. but the gains were pared when news surfaced that that shutdown meeting at the whise did not go well. the dow closed with a gain of abou p 91nts today at 23,879. the nasdaq was up 60, the s&p 500 added 10 points. and those trade talks that

bill just mentioned concluded today in beijing. while there's some optimism that ogress is beingmade, any deal is likely still aong way off. eunice yun has our report tonight. >> reporter: the u.s. delegation is on itsay back to washington, but that comes after an unexpected third day of talks. the discussions were supposed to wrap up onuesday but were extended by a day and the foreign ministry today said that that shows both sides are serious about the talks. now, as these negottions were proceeding, there was another sign of flexibility on the part of the chinese. beijing granted approvals for five gmocrops, and that paves such as or companies dow due paunupont to s sell its china. as has often been the case with china, the move was welcome but overdue. american companies have been waiting for these approvals for years. that gets to the core of these discussions. are the chinese rlly willing to go far enough to address american concerns and get a deal

done? there are reports tha h there been progress, but on the less contentious issues that are easier to resolve, such as greater chinese purchases of farm and energy products to reduit the defut it appears there's not much common ground on the tougher and structural problems. there's an expectation now that the next step will be higher level discussions between trade representative bob lianthizer the vice premier, possibly as early as next week in washington. for "nightly busieport," i'm eunice yun in beijing. boy the way, b there haven reports that president trump would talk about trade with chinese high-level officials on the sidelines of the world economic forum in davos later this month, b now that may not happen. late today the white house said the presint is considering cancelling his trip to switzerland if the par al governmeshutdown is still not resolved. now to the fed which today released the minutes of its last

meeting where policy makers decided to hike interest rates. as steve leasem steve liesman r everyone was on board. >> reporter: minutes of the december meeting where they controversially raisedouates for theh time in a year showed fed officials were thinking about bringing a halt to their hikes. nutes show some members opposed the rate increase. in the end theyecided to hike based on strong economic and jobs data. despite the sell-off in the market and rising volatility, ey expected growth to romaine above trend this year and more hikes could be coming. but fed officials tried to tweak the language of their statement then to indicate that future hikes were much more dependent on economicve data than they been. it didn't work at the time. in the wake of themeeting, the dow jones plunged 2300 points or nearly 10% over the ensuing weeks before clawing back most of the loss. it too soothing comments from fed chairman jerome powell just this past week sugsting the

fed is more flexible on rates than markets thought. akers on ed s wednesday emphasized this new patience. they said they're likely to hike, but we' wait to see whether the pessimism in the market or the optimism in the data wins out this year. i'm steve liesman. time to take a look at some of today's a upgrad downgrades. there are a lot of them. bank of america was upgraded to buy from neutral at ubs. hee analyst cited attractive valuation and healthy operating leverage. the call comes one week before the bank reports its earnings. target e,pr $32. that stock rose about 1% today to $25.76. morgan stanley was upgraded to buy from neutral at .ci the analyst says that the increase in market volatility can lead to higher trading revenue throughout the year. price target now $48 and shares rose a fraction to $41.74. nike was dograded to neutral from outperform at baird. the analyst cites concern that th stock's valuation might not

be sustainable. the price target is $i don82. shares were slightly lower at $76.59. oracle was downgraded to equal weight from overweight. thenalyst cites competition in oracle's database business and also in its cloud offerings. the price target is $55. the stock was off just a fraction to $47.78. barclays also cutting its ting on we's to equal weight from overweight. the analyst cites macro uncertainty and industry trends. the price target is $105. the stock was down slightly to $97.03. still ahead,ak we'llyou to a boefrder town where a lot business is getting done.

don't look now, but oil prices have been i midst of a sharp about-face. prices roseinnce a today after saudi arabia reassured the market that its oil production and exports will continue to decline. optimism about the u.s./china trade talks have also been helping to lift that market. oil stled above $52 today. just since the low achieved on decembth, prices have risen nearly 15%. earnings season gets under way inex earnest week. a few reports have already trickled in, but one thing is clear, guidance for 2019 will be the big focus for investors. bob pisani is at the new york

stock exchange. >> earnings season officially kicks off next week. good news is a lot ofad news has been priced into the market. we saw that yesterday when samsung dropped 1.5%. lennar missed earnings and revenue estimates. the stock is up. you might expect it to be down but it was up 10%. it's not clear how much negative news the markets can handle before again turning down. a lot of the damage to the global economy has already been done. one economist seesn earnings recession still this year. early fourth quarter earnings are mostly beating. no surprise there. it's theuidance that matters, though. of the 20 companies that reported, 90% have beaten expectations but 70% had their expectations cut by analysts after they reported. where are they coming from? there's negative comments from apple, samsung andon mi they cut the profit growth forecast for the tech secto in

half. oil prices dropped like a stone in the fourth quarter. no surprise. estimates foril companies' profit growth were slashed dramatically. it's clear earnings are slowi down, but how much? some believe earnings groh could be flattish in 2019. others thing in te m single digits. even if there's no earnings growth, the market valuations still aren't crazy. well, that's comforting. i'm bob pisani at the new york stock exchange. a buzzkill for constellation brands, and that's where we begin tonight's market focus. m theer of corona beer lowered its profit outlook after rerting a sharp decline i earnings. the company also said wine and spirits sales wnde soft it expects that weakness to continue. constellation also cited higher expenses rel ied to $4 billion investment in cannabis company canopygrowth. shares plunged 12% today to $150.94. skywork solutions lord its

quarterly sales and profit targets. the chip maker cited weakness among its biggest smartphone customers. investors have been focused on the outlooks issued by smartphone suppliers after samsung estimated a sharp decline in profit and applewe d its quarterly sales forecast. shares of skyworks rose 4% to $67.69. chesapeake energy plans to lower its capital expenditures this year. the shale oil driller will also reduce its rig count by 20% to anverage of about 14 rigs. the company said fourth quarter output will forecasts.p that sent the small cap stock higher by more than it closed at $2.76. t-mobile said it added about 1 milli net newhone subscribers in the fourth quarter, easily exceeding w estimates, whie about 850,000. the company cites competitive wireless plans and trade- offers. this follows verizon's strong quarterlyubscriber numbers we

told you about yesterday. the shares were down a tic to $67.72. after the bell, bed bath and beyond beat earnings expectations by a penny. 'shead of schedule on stemming declines in itser ing profit. it expects 2019's earnings similarity t2018 and analysts were expecting worse. the stock initially rose in the afours and also ended the regular day up 4% to $12.26. also out after the home, kb home topped profit estimates even as total revenue fell in the quarte the home builder also gave a rosy outlook for the year, saying it expects to build more homes this year than initially planned. investory liked what t heard and sent the shares initially higher in the after hours. shareshelso fin the regular day up 4% to $21.98. certainly the southern border is the talk of and wall street and main street

these days. at the busiest checkpoint between the u.s. and mexico small business owners are keeping a close eye on the decision coming out of our nation's capital. aditi roy is in san ysidro, california, for us tonight. >> repter: it's austling weekday in san ysidro, california, a stone's thr away from the mexican border. despite the government shutdown, customs and border protection officials are still manning the san ysidro checkpoint and people are crossing over as usual. it's the busiest i crossingthe western hemisphere, with 90,000 intoand pedestrians comin the u.s. every day through the checkpoint. these shop owners rely heavily on those mexican residents crossing over to the u.s. to buy clothes, shoes or perfume, contributingo the nearly $700 million in sales generated in san ysidro every year. >> well r depend on cross-border consumers. our retail dustry, o tourism industry depends on this

cross-boer consumer. >> reporter: business leaders say since president trump started talking about building a wall, delays at the crossing have increased and now with the presidentorcefully calling on congress to approve the nearly $6 billion needed to help pay for the barrier, business leaders are worried it will affect the local economy. >> business doesn't like uncertainty. and the border closures recently have caused -- created uncertainty. uncertainty translates into discouraging trade and travel. and when you disurage trade and travel, you see a direct . onomic impa >> reporter: one report says a delay of 45 minutes per crossing costs san diego county nearly $1.3 billion i lost business income per year. oast fall, the san ysi crossing was shut down for more than five hours after a dispute between border patrol and migrants, costing a whole day's worth of commerce for many locaa mercs and consumers. they include lu wong who owns

her own clothing and shoe stores tijuana. she buys her merchandise in the u.s. and the closure last fall was a big setback. >> your busins has gone down? >> yeah, yeah, too much. >> why? >> because of t security. >> reporter: fewer than ten border ay, customs an protection officials have erected eight border wall prototypes. as they grapple over whether they will turn into reality, orthisr town watches and waits. the president is scheduled to visit the border for "nightly business report," i'm aditi roy, san ysidro, california. coming up, splitting up. it is not often the world'sle richest man for divorce.

here's what we're watching for tomorrow. the president will be viting the southern border and disputes over funding for construction of a wall will be discussed. federal reserve chair jerle powell warticipate in a question and answer session at the economic club of washington. overnight we'll get new economic data out of china specifically on inflation. that's what we're watching for toyota is recalling more in the illion vehicle u.s. to replace a potentially deadlyakata rbag. the airbag inflater could exple with too much force and eject shrapnel. that recall applies to mtiple toyota, scion and lexus models from 2010 to 2017. a dropn mortgage rates encouraged more potential home buyers to apply for a in the first week of the new year. the mortgage bankers asaociation total application volume

rose 23.5% last c weekpared to the week before. 9% hough volume is now down compared to the same time last year. but as we've been reporting, the partial government shutdown could prevent some of those mortgage applications from actually closing. well, if you're in the mark for a skyscraper, manhattan's chrysler building is reportedly up for. sa "the wall street journal" says the owners,n abu dhabi government fund and new york developer are working with a commercial real estate firm to try to attract a buyer. the abu dhabi groupaid $800 million for its 90% stake back in 2008, and that's an amount some real estate ighestors say be difficult to fetch. >> maybe not for this next guy. >> true. amazon ceo and founder jeff bezos and his wife mackenzie are getting a divorce.iv when ace involves the world's richest man and the most valuable public company,co it d go down as one of the most expensive splits in history.

here's robert frank. >> jeff bezos announced on twitter today that he and his mackenzie, years, were getting a divorce. he said they had been separated and decid to continue our shared lives as friends. the question ishi what t could mean for amazont the mos valuable company in the world. it would most likely file in seattle where they live. washington is a community prop wty state,ch means that all property and debt acquired during h marriag to be divided equitiably which usually means half. bezos founded amazon in 1994, a year after they were married, so his 16% stake is currently valued at around $130 billion. she could legally be entitled to half of that, or around $65 billion. bezos suggests this wa amicable and won't result in a public court fight. he tweeted, quote, we see wonderful futures ahes, as

pare friends and partners. now, seattle divorce attorneys tell me the bezos probably already have a settlement that riwas done inte and there's no reason for make it public. for "nightly business report," i'm robert frank. before we go, here's a look at the fin numbers on wall street today. the dow rose 91 points to 23,879. the nasdaq added 60, and the 500 was up 10. that will do it for us tonight nightly business report." i'm sue herera. thanks for joining us >> i'm bill griffeth. have aev great ing, everybody. we'll see you tomorrow.

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