>> this is "nightly business report" with bill griffith and sue herera. >> d.c. drama. infrastructure costs break down and that has some wondering if a key deal on th debt ceiling might be harder to reach. >> bright spot. target hits the bull's-eye with its online sales even as rival retailers flounder. hollywood backlash. georgia has come a production powerhouse, but now a loss of who's who is threatening to boycot s thatte. those stories and more tonight on "nightly business report" for may 22nd. >> we do bid you a good evening, everybody. welcome. fixing the crumbli infrastructure was the one issue that virtuallily everyone in washington could agree on, b t today latest round of

infrastructure talks crumbled. a meeting at th white house between president trump and democratic leaders ended before it began. the get together was supposed to be the second official sitdown on that issue. first, as you recall, ended with an unofficial agreement to spend $2 trillion,ut the president says that's off the table. >> i dant to infrastructure. i want to do it more than you want to do it. i'd be really good at that. that's what i do, but you know what? you can't do it under the circumstances. >> the circumstances he's referring to are the investeations being led by house democrats, speaker pelosi expressed her disappointment at today's development. >> for some reason, maybe it was lack of confidence on his part that he reall couldn't match the greatness of the challenge that we have. he just took a pass. eamon javers is following the

story for us from the white house tonight. eamon, one wall street trader said that investors want to see infrastructure improvements go, and many of those infrastructure am provements fell. >> those investors will not see in astructure spending washington any time soon after today's meeting, bill. it was thathat wha set the president off today is nancy pelosi going on television earlier today just about an hour or so before the meeting was set to happen a accusing the president of engaging in a cover up because he wasto refusin comply with subpoenas and information and documents that house democrats want and that, aides tell me is that the president decided he simply uldn't work with them and suggested in a hastilyalled rose garden session that he wasn't going to work with democrat includi the legislation, infrastructure and you can either investigate a you can either investigate me or youan can legislate and you

do both at the same time and the president saying ultimately washington will come to something of a halt here. >> eamon, you mentioned that investigate versus legislate. what does that mean in particular for the debt ceiling and the budget? they're critical to the economy and also to wall street. >> we spentryome timeg to figure that out because the president didn't specifically say whichs negotiatie's walking away from and which he's going to continue. a senior administration official texted me late this afternoon and said that the president is not walking away from negotiations around government spending and the debt ceiling. that's anmportant one for wall street and the senior administration official saying those are must-passnd items not included in the president walking away fromia negons at the white house, and the white house is not saying what isncluded and what he's walking away from today and he ibvery v and audibly walked away and if they can patch up this relationship any time soon. eamon javers at the white house.

thanks, eamon. >> you bet. >> also in issn washington, it shed some light on two critical issues for the market, inflation and interest rates. steve liesman has the details. >> minut of the fed's april-may meeting show the central bank is ready patient with its policy of patients when figuring o what to do next with interest rates and the open market committee says the patient approach is appropriate for some time and it's the first time they characterize the time period arou their patient's language. committee members believe the most likely outcome is a continued economic expansion. strong labor markets and inflation rising back towards its 2% target and inflation running below that target and the question is whether officials are concerned enough to cut rates. the answer in the minutes, not yet, but maybe soon. some officials say the downside risk has increased and several said they're worried that ifin ation doesn't head back up in coming quarters they're worried that average americans

will start to doubt the fed really means it when it said the fed wants 2% inflation. the implication, if inflation doesn't rise 2%, the fed could well be thinking about a rate cut perhaps around the endf the year. all that said, there's a small wing of the committee that worrs about the other side. they said if the economy evolves as they expect they can see on the economy, the general view is that growth would slow this year from th3% pace of 2018, but a better first quarter meant that it wouldn't slow as much as originally thought. the meeting took plac before esident trump imposed new tariffs on china, so it won't be until the nex meeting in june before markets will get a full view of how the tariffs will change the committee's outlook on growth, inflation and rates. for ightly business report." i'm steve liesman in washington. >> a declineoc in tec and the semiconductor sector in particular weighed on the broader market and the industrial average droed a hundred points to 25,776.

the nasdaq was down 34. s th lost eight. the semiconductor maker qualcomm was down10 more than today after a judgeha ruled tt it laws and nti-trust that is what put that group at the center of today's tech decline. debosa has more from toronto. >> its chipf powered many othe world's smartphones from samsung to apple while its extensive patent portfolio covers many of the technology used in the devices. >> now the entire business model is being challenged and a federal judge rulin i thathas abused its position to harmet coion for cell phone makers and it's a decision that could also shake up thein smartphonestry. >> what that's going to do is that's going to benefit only the larger hand tmakers. so the smaller handset makers and we'll have a lotr har time and this actually is going to lowerompetition for decreased competition for the handset

makers because it makes their life a lot more difficult. >> meanwhile, some industry experts say the government is sending mixed signals challenging qualcomm's market power while at the same time trying to ensure that the u.s. next the forefront of th generation of technologies from 5g to artificial intelligence. >> t administration has figured out what itants to do and certainly at the core of this is the belief that u.s. companies should be taking the le that companies like qualcomm should be spearheading our effort. it argues that the cellular market is healthy and competitive and says it will seek an expedited appeal. for "nightly business report" i'm deidre bossa, torto, canada. >> what will happen to qualcomm's legal settlement with apple that saw apple pay qualcomm $4.5 billion. the answer is still beunclear use that deal is independent, but he does describe the deal as rockolid.

>> now to those simmering trade tensions with china which also weighed on the broader market. today's concern stems from a port on the south china morning post which said china may rethink its entire economic relationship from the u.s. and is considering dropping natural gas purposes. >> add to that, comments today fromrereasury sry steve mnuchin who said he has not yet scheduled a trip to beijing during trade negotiations. mnuchin washe also asked about impact of tariffs on the prices that consumers pay for things like baby products. >> i can tell you i am monitoring the situation vy carefully. i was on the phone with the cfo of walmart which is obviously one of the biggest sellers of the items that you've describ asspecifically, understand from walmart what things source from other areas and wham they can't, and i would say we haven't made any

decisions yet and we will be especially sensitive to the cons oer items. er retailers are trying to figure out how to get around the 25%an tahrive home depot is opening a sourcing office from vietnam and urban outfitters is cutting its exposure to china and they're working to mitigate the impact of those teararives. >> the tariffs is had no impact on target's bottom line it beat wall street sales and profitpe ations thanks to more modern stores and a revamped gives strategy and that the stock a pop making target a bright spot in an industry that's struggling. rachel solomon has more. >> target is prousdingmers more delivery options and it's paying off in a big way including a 42% increase in online growth? you will leverage store with an online business and it's a tough model to compete with and for target, this is a bull's-eye quarter and this validates everything that the company said

it was going do a couple of years ago >> target executives say more than half of its digital growth was drin by same-day deliveryon ops like in-store or curbside pickup and the program shift which offers same-day delivery for a fee of $99 per year. >> our ability to offer the same-day services which is the high-level sanction is a result of the strategy to puttores at the center. in fact, our store handle 80% of the first quarter digital volume inclung all of our same-day options combined with the digital ownership directly stores. >> using stores at fulfillment centers might not t be new target and the shipping wars have ramped up. in the last month the world's biggest retair walmart and e-commerce giant amazon have announced plans to offer next-day delivery. the competition is fierce ond the resthe retailers share one common wry.

>> we're concerned about tariffs. >> they wereble to push back on suppliers. they were able to maybe modesy make some tweaks to their portfolio of product approach. the next 25%, the consumer will ve to feel that in some way or another. i don't think there's enough in a supply chain to absorb that hit without it going to the consumer. >> despite the uncertainty of trade talks ther retai maintains its outlook for the full year, expecting profits to be right on target. >> for "nightly business report," i'm rahel solomon. amazon hosted its annual shareholder meeting and it tried to head off on how it uses ticial recogni software and aditi roys seattle. >> outside amazon shareg lder meetin seattle, groups of protesters are s oaking outn everything from the tech jint's impact on homelessness to its carbon footprint. >> we're using the amazon web services technologies to help

foss fuel companies expand and extract oil more quickly and that is obviously very much at odds with being a climate leader. >> inside the meeting where cameras weren't allowed, ceo jeff bezos answered questions from shareholders on issues including climate change among the most closely watched issues debated, amazon's view is the facial recognition technology and shareholders voted against bethls propon the company's recognition program and one would have prohibited the government from selling software to government aemss and another would have led to an independent review of the program. shareholders we spoke to were split. >> we certainly support the folks who are pushing forward the two proposals on the recognition system. it's a huge concern and it's company that has so much reach and so much data and being able to surveil in that way. >> i need to know more about it, t i'm not adamantly opposed.

>> from civil liberties groups like the aclu. >> i think there does seem to be a recognition that the tech companies need to be held to a better standard because they haven't been. >> amazon says its facial recognition technology is, quote, a powerful tool for business purposes and just as importantly for law enforcement and government agencies, adding new technology shod not be banned or condemned because of its potential it's not just amazon and other tech companies including facebook, twitter and alphabet alsore face shaholder proposals. the trend marks an inflexion point for all companies. > responsible investing has become so prevalent that i think you will aee itoss companies of all market capitalizations, small, mid and large. >> lawmakers are taking notice, as well. the house just held a hearing on facial recognition techndogy ust last week, san

francisco used facial recognition technogy at city agencies. for "nightly business report," i'mditi roy, seattle, washington >> time toake a look at some of today's upgrades and downgrades.eu anr busch was added to the new best idea list at guggenheis securi the analyst cites growth outlook and the strong the price target $103 and the stock rose to $82.62. expedia was downgraded to hold from buy to argus. the analyst cites slow bookingg th at the vrbo it. it had market and technology upgrade and shares fell a fraction to 116.71 and activision blizzard was downgraded from equal weight to overweight at stephens and it is analyst has near-term risk amid reportse issues with the popular call of duty franchise. the price target is $52. the stock was down more than 1% to $42.91. still ahead, theso-called hollywood of the south has a

growing headache. ♪ ♪ >> the european union hasla ched an investigation into google's privacy practices. whether the google advertising data breaches that block's rules. this comes as many tech companies face heightened regulatory scrutiny around the worlas >> georgiabecome a hollywood production powerhouse thanks to generous tax incentives and now many in the entertainment industry are to leave because of a new controversial law. here's julia boorstin.

>> georgia has become one of tht biggroduction hubs in the♪ ♪ ♪ >> but now its new law banning abortion after a heartbeat is detected is sparking boycotts fromld hollywood that c put the business at risk. the tax credit drew over 450 omlm project last year drawing a $5.5 billion cing impact according to the georgia governor's office. recent projects include amc's "the walking dead," netflix's "ozarks" andy' dis"black nthe panther" and infinite war. >> you don't think about the smaller cities all over georgia that ae to rural settings and farmland and other areat film producers love to shoot. so it's diffused impact throughout the state. >> but now a number of hollywood

producers and stars say they won't work in w georgiah a new law, pressuring the state to repeal it. just this week a new amazon show as well as a lion's gate movie starring kristen wiig canceled shoots set to start in georgea. alyssa milano drawing support from a ran of hollywood names including john stamos, dan cheadle. and it's complicated. the motion pictures on association of america and film studio argue that taking work from locals doesn't effectively fight the state's laws and just hurts workers.l jordan p and j.j. abrams among others pledging to donate fayeight anti-abortion bill in court. >> there are sdios built and sound stages and editing bays and the infrastructure built over the last year or so, they're saying don't abandon georaua. donate tos and political campaigns, but don't just leave the state.

stay aow fight. >> california lawmaker is offering tax breaks to productions terelowith states with restrictive abortion ban looking to use georgia's law to lure back to hollywood's home state. for nightly business report i'm julia boorstin in los angeles. lowe's slashes its forecast and that's where we begin with tonight's forecast and it's -year forecast with the profit margin pressures and same-store sales were above analyst expectations and it outpaced rival home depot. shares of lowe's fell nearly 12o today 97.94. >> vf corpte pbetter than expected earnings due to strong demand for its north facecl hing line and its fans footwear, but the apparel maker company issued full-yearid ce that was below expectations and that stock was down 2%o as a result 90.33. advanced autoparts beat

expectations with itst results as same-store sales rose and the autoparts retailer reaffirmed its-y fullr guidance and shares rose 3% to 166.29. >> brazilian kos met eshgs maker natura which owns the body shop now avon in a merger rallied at $1.5 million and creates theworld's largest cosmetics company and it ends avon's run as 130 years as an independent company. avon spiked after hours following the news and rose 9% in anticipation of the deal closing at $3.49. semiconductor maker beat earnings andst revenhe mas and the company issuedbe guidan w expectations because of what it called a large ommunications company, end quote. despite the forecast analog devices rose 1.5% to 101.44.

burrella which makes chips for images and processing video took a hit because of the hit with united states and china and a morgan stanley analyst put out a note saying the compa which was the surveillance technology firms may be blacklisted from buyingt products and dropped 11% to $39.20. we often talk about the private sector space rac going on in the u.s. led by companies like spacex and blue origin. a number of start-ups are also going up in china. ng ice yun is in bei tonight. >> the tech war isn't only limited in planet earth. china wants to become a leader in the fin frontier. the china made in 2025 tech government it encouraged more private investment in space activity, a realmhat is largely dominated by the military. that sparked wavef space start-ups like the one i'm at

now. this is linkpace. the company's founders say they're creating a link to space and building a reusable rocket that can travel to space multiple times to bring the cost of space flight down. f they've carried out two tests for a rocket that they believe will be commercially availabl asarly as next year and a rocket that can reach orbit pitting thems gainst playke spacex. >> our two weeks filled a voice fo us and for china. there are only a few space firms such as spacex and origin are working on reusable profits. >> the ultimate plan would be to launch shoe-box sized satellites the way spacex and other they can, to be the internet of things and with theen governm support. l you ofnchpad for a fee, and can swap rearch with the

policies. it doesn't get directly from the government and i does get most of vrts money is from private bcs and i'm eunice yun in b.c. >> coming up, a mega mansion with a major price tag and a look i ide. >> here's wt we're watching for tomorrow and we'll find out ow many new homes were sold in april. the faa will convene a summit of global aviation regulatorto regard t status of the boeing 737 max and we'll get more retail earnings, best buy and b.j.'s wholesale are on tap for

tomorrow. ford is ready to deploy robot, the automaker, along with its partner agility robotics aims to put a robot in self-driving vans to deliver mail. these robotsould arrive at fur doorstep as early as next year. irm timetable won't bebl rch d until more res is done >> bell air, california, is known for its pricey real estate and one pminent doctor has taken the mega mangs trend to a whole new level ande s say it's building a training boom into a bubble. >> as a plastic surgeon to the stars, dr. raj has worked on everyone fm kim kardashian to jennifer aniston, but his latest project a 34,000 square foot mansion in bel air hasrtn unn future. he built the home in hopes of flipping it for a big profit. >> the beauty of architecture is like the beauty of the face or the human and being so using

that, that's what started me to want to create a house. >> but as it grew in size and caught, canodi has struggled to find lenders and investors. his real estate friends told him he'd made a big mistake. >> he said you are way out o your league. it became more and more challenging and for me, if i have a visioan i to fulfill that. >> when it was finished, he listed it for $180 million, but irke many high-end communities today, bel a has an oversupply of mansions, man built on specs or speculations to sell. prices and sales are falling and the modern white mansions have become the empty white elephantt housing market. there are over a dozen homes for sale in l.a. for over $100 million and the spec home built right next t canodius was asking $250 million and got a $100 million price cut and the pricest has had to drop

by dozens of millions and 100 million and that's aeady a disappointment and it was originally overreaching and this market we're entering is going to shake all of that out. >> canodia beams like a proud h father a toured the home's exotic gardens, three kitchen, eight bedrooms and state of the artym and spa and infinity pool overlooking the best views in is still for sale. he would consider offers of over the $120 million and he will rent it for their 1.5 million a month and if all else fails he hopes to live there himself if he can affo it. >> this is all in like all in with a million. sometimes you learn as you go along, andyes, it could be a mistake, but in my heart al in my s i think it will all work out.ly >> for "nigusiness report other i'm robert frank in bel

air, los angeles. >> before we go let's take a look f at theal numbers on wall street. the dow jones industrial average dropped to 100..77. >> and the s&p 500ht lost e and that is "nightly businessfo report tonight. iechl s i'm sue herera. >> i'm bill griffith. have a good evening. we'll see you tomorrow. ♪ ♪

>> this is "bbc world news america." >> funding of this presentation is made possible by the freeman foundation, and judy and peter blum-kovler foundation, rsuing solutions for america's neglected needs. >> wow, that is unbelievab. ♪ >> i'm flying! ♪