this is "nightly business report" with sue herera and bill griffeth. ♪ tariff stocks take off on the hopes that new duties on mexican imports will not go into effect on monday asrinally threatened. >> business as usual. bmw opens its first mexican plant even as tensions between the two countries remn far from resolve. >> antitrust trouble. amazon isoming under scrutiny and its prime membership program could be one of the reasons those stories and much more tonight on "nightly business report" for this thursday, june 6th. good evening, everyone, and welcome. stocks extended their gains for the third straight ofy on report possible delay in implementing tariffs on all

mexican imrts. the mexican ambassador described a second day of talks as, quote, very good. negotiators are working to hash out a deal to address the flow of undocumented migrants to the united states. 5% tariffs on all mexican re imports set to go into effect on monday and even the hope of a delay is enough to boost investor psychology and send stocks higher. thees dow jndustrial average was up 181 points to 21,720. the nasdaq was up 40 and the s&p 500dded 17. but the delay is not official and this evening the white house said it plans to move forward with those tariffs at this tim and that has border towns preparing for the worst and hoping for the best. contessa brewer is on the border in texas tonight. imported ar the u.s. $352 billion worth of goods from mexico and 10% of it came across he far international bridg

behind me according to the u.s. census numbers. on this side is mcallen, texas, a center for international trade distribution. across the border is reynosa, fu of maquiladoras that manufacture exports. >> the maquila operations have on their local economy and the jobs that areot created only in mexico, but on the u.s. side and it's an importa link that ties the two areas together. more importantly, ties the two countries together. >> across the border, whirlpool, panasonic, alpine audio, blaan & decker and others and a lot of these companies are blaming china tariffs for increased materials costs and now they're facing an additional 5% tariff on their mexicd manufactu goods starting monday. >> the industries most affected, cars and car part,omputer equipment, electronics, oils, precision equipme and

vegetables. this bridge is the totiport in the for avocados. >> we used to sendca as across the united states to walmarts and safeway and it accounts for nearlyf 10% what we consume. the company looking to absorb e 5% tariffs through cost efficiencies, but any higher -- >> it wasn't just to open dialogues with retailers to make sure that they understand that these costs at the end cannot be absorbed solely by ourompany. sooner or later they'll affect the prices. >> it wouldean fewer avocado buyers and fewer leaders in texas worry howo manage the uncertainty and the impact on the local economy. >> i tell our folks it's a b ta iness. >> already, bridge operators are puing back and so are the customs brockers. they sent a letter to president bush explaining theyon't have the mechanisms in place for collectingr enforcing the

tariffs in time for monday. contessa brewer, nightly business report. autos are one of the biggest exports into the united states from mexico. despite the threat, most companies are not changing their plants and that inclusbmw which just opened a new plah sout of the border to build new cars bound for the u.s. phil lebeau is there tonight. j >> an hour before dawn in sanis potosi in mexico, they're in the plant. building the flagship car for 40 markets around the wld including the u.s. even with the border tax looming, bmw is not changing production plans. >> we will keep our plans and we will see how far it goes, but at this point inime we would not see any reason to change our

plans. >> the bmw 3 series built in mexico will be sold in the u.s. as ws other markets around the world. right now there is no plan to ship these cars to the u.s., but starting next week it could cost bmw lnsd of dollars more per vehicle to ship them north of theboard. it is unclear how much the dog of the 3 series for mexico could change if the border tariff kicks in. the average price of a vehicle from mexico would increase $1700 8500a 5% ndtariff, up to higher if the border tax rises to 25%. >> we'axg american consumers and american companies in order to punish mexico for not doing enough about asylum seekers. so there's no logic to this. >> the tariff impact is unknown because helpeds of autoparts and components a made in mexico. in fact, more than a third of all parts and vehicles sold in the u.s. come from south of the

bord and figuring out their exact impact is still unknown. many ithe auto dustry, they see this tightening down on the u. market as potentially temporary and tied only to the occupant of the white house. >> a tariff showdown that could change where cars in the u.s. come from and how much they cost. phil lebeau, nightly business report, san luis potosi, mexico. >> there are a lot of uncertains faith the autht industry r now in addition to the tariff issues in china mexico and elsewhere, was there a new repo out today reporting that average vehicle prices are at all-time highs. t wiy go even higher if more tariffs are imposed and what would that do to aut sales which would seem to be leveling off. joining us to talkbout this is jennifer crab executive analyst at coxch automotive w provides various services to the 40,000 deal are ships t across country. thanks for joining us tonight.

>> thanks for having me. >> you're watching the mexico tariff threats very carefully, aren aren't you >> i would say right now it's the number one issue. i'm in detroit and it's the nuer one issue with automakers and parts suppliers. >> why? because it's so significant. if tariffs go up 5% to 25% by october, the implications are tremendous. the price of vehicles will rise and when prices rise typically sales fall. what are you hearing fm the suppliers that you talk to and the dealerships that you service? re their concerns? >> their concerns are that prices will rise, that customers will b put o by the higher prices, and we're at this point in the cycle, and this is a cyclical industry where we're coming off the peak a are already dipping a little bit and we anticipate that will

continue. i think the fear is that this will make it aore precipitous drop than anticipated. as we just mentioned that report out today with prices that have hit an all-time high, that goes for auto loans at the same time and we're seeing this migration now from new cars to used cars, and that's having an impact in the industry right now, isn't it? >> right. so the prices of vehicles are creasing and so are auto loan rates. r high and a nine-y for the consumer that monthly payment is what's so important and whet rises to a level that they don't feel they can afford, unfortunately, they have other options ahere is a very vibrant use color market. >> what if they don't come into a deal and the tariffs do go into effect and how long ifarhey in effect, how long before we start to see that impact on prices? >> i would think fairly quickly. automakers are reaoryed about their bottom lines and so

they are -- i would expect they don't absorb at all, that they will pass it along to consumers, so it could be pretty>> quickly. ichelle crabs with cox automotive. ning us tonight. >> thank you. >> meantime, there appears to be no movement on trade rations between the u.s. and china but there is some movement in relations between chi and russia as the president of those twori count meet. jeff cutler reports tonight from st. petersburg. mixing between chinese and russian presidents used to be full of symbolismnd very little substance, but there are signs with this mting tha things could be changing. the chinese and the rsians now find themselves on the same side diplomatically when it comes to their relationship with president trump and washington right now. they both have issues that unite them. with ssia, it's the ongoing

sanctions and of course, china the ongoing trade war. but beyond the diplomacy we have theic come integrationnd it's been some years since russia nnounced its pivot east and increasingly at this event here in st. petersburg, deals are being signedween the two countries and in a very obvious snub to e united states and the white house, one of the biggest deals down here is between huawei and the russian telecom company mts. so tomorrow at the st. petersburg forum, the keynote, ventill behe two presidents taking to the stage to once againow express united they i are their common view of america. this is jeff cutmore at the st. petersburg international economic forum in st. petersburg, russia. >> and investor tension now

turns to the job marke a new report out today showed the number of americans filing applications for unemployment benefits was unchanged last weeu esting that the labor market does remain on solid footing, but a sepate report signaled the job creation could be slowing. outplacement firm challenger, gray & christmas said they had 70% mor layoffs in may than compared to april and the vernment releases its monthly employment report which had 148,000 jobs and an unemployment rate of 3.6%. >> it is time to take a look at me of today's upgrades and downgrades. advanced microdevices is fro equal weight to underweight at morgan stanley. the analyst says the is in a position to gain market share. the stock surpassed that, and clothing today at 31.82 and united continental was upgraded to buy from neutral at goldman sachs. the analyst says the stock is set to rebound in the second

half of th year and the price target is $108. the stock rose 1% to 82.96. >> whirlpool was upgraded fro overweight to sector weight at key bank and the analyst focused on the u.s. market as well as the recovery in the european mofitgins and the price target now $150 and shares rose to 2% from 128.17. travelers was downgraded to market perform at outperform at keith,rewette and woods after the run-up so far this year. price target $153, that stock fell a fraction to 159 even. still ahead, the fcc says americans are united against robocalls and today that agency moved to do something about it. ♪ ♪

the fcc moved to crack down on robocalls. the agency voted to block suspicious calls by default. they also let some companies to block the option to block any number that's not pre-approved. >> the one thing in the country today that unites republicans and democrat,al lib and conservatives, socialists and libertarians,ia veget and carnivore, ohio state and michigan fans it is that they are sick and tired of being bombarded by unwanted robocalls. my message to the american people today is simple. we hear you and we are on your. si >> the fcc chairman also said that today's vote will make it easier foronsumers to benefit from robocall blocking programs. googl parental fabbet is buying a big data start-up

called looker for more than $2.5 million. the deal willre ie its cloud services offerings. it is google's largest deal back in bought nes 2014. >> as we've been reporting apple s investing heavily in its services business, but that's also the very thing that government regulators could after as part of a potential antitrust probe. josh lipton has more. apple is putting a lot of focus on its faster growing,gh er margin services business which includes everything from the app store to apple music, but can some ofhose very services now come into the crosshairs of the u.s. gosornment? me question whether apple is using anticompetitive tactics. take spotify's complaint. apple competes with stify with the streaming service and aside the rules that govern the app store. some critics including u.s.

presidential candidates suggest that violates the law. >> my view on this it's a little like baseball. you c be an umpire, a platform or you can own teams. that's fine, but you can't be an umpire and on one of the teams that fits in the game. the w monopolisl make fewer monopoly profits. boo hoo. >> apple rejects this argument and notes that it actually approved and distributed 200 app updates on spotify's behalf. some have questions about another apple service, too, apple news plus, a new service that brings together hundreds of magazines, newspapers and publishers. the problem that we're concerned otth is that publishers are giving the opportunity to negotiate and are not able to negotiate together and are --

are being exploited and their own subscriptionervices being undermined by a news plus that gives them an option to participate or not and if they t participaty get a very small portion of the revenue and apple has all of the power in this situation. >>ut other leg experts say that would actually be a tough case to make because the content isn't exclusive to apple, thereby reducing legal risk for the company. for ightly business report," i'm josh lipton, san francisco. apple is not the onl company vulnerable to antitrust. experts point to amazon which contls half of all online retail in the u.s. in addition to being the world'sge l cloud provider. deirdre bossa takes a closer look at it. >> amazon isonfident that by focusing on the consumer it will pass any anti-trust scrutiny with flying colors. >> we're just focused on

customers ande're trying to invent things that customers will love and we think that's ourrimary job >> but that drive to deliver the lowest prices is combined with a willingness and to create hard ball competition and on top of that, amazon is creating the private label products from diapers, to a electroni bed sheets. critics argue that amazon can use the data it collectss a platform from third party sellers which would allow it to unfairly compete. >> the fact is that they've had access to data that they've used which we have given them voluntarily at no cost and they've been able to use that t data effectively bring down prices and be more economic than anyone else who competes with them. amon is using revenues from its other businesses, to bundle an subsidize free video or music services, how can other

companies that have to make a profit compete? amazon has been famously secretive about the number of memberships it may have to open up its books to prove it doesn't need to use unfair tactics to stifle competition. for "nightly business report" deirdre bosa, s >> strong quarterly results for sienna lights a fire and that's ehere we begin tonight's market focus. etwork equipmentmaker reported better than expected earnings and revenue thanks to what the company called improving industry dynamics as well asha growing market and competitive advantages. the stock soared more than 26% at 45.49. arts and crafts retailer chael's matched earnings estimates and revenue in same-store sales fell short. the drop in net sales was primarily because of the closings of its pat catan and aaron brothers stores. michael's gave weak full-year guidance and shares fell 12% to

8.18. siegmund jewelers which owns z kay'es and jared and it saw a decline in same-store sales due to a drop in transaction and currency volatility and it narrowed the full-year guidance and it is down to 19.18. >> j.m. smucker m reporteded results and it beat profit estimates and fell short on revenue and that wasue to a stronger dollar and lower prices for its cofe and peanut butter brand. the food conglomerate gave a tter than expected full year earnings outlook and shares fell 2% t 132.37 today. anthem said it will buy beacon health which is the nation's largest behavioral health organization and the deal fits its strategy to diversify health care services including patients withomplex a chronic conditions. financial terms were not disclosed, though. anthem shares were up a fraction to 7.50. after the bell, beyond meat

reported its first earnings since going public. the company topped both earnings and revenue expectations. net sales also grew more th expected. the stock initially rose in after-hours tonight, butt did close the regular session down 3% to $99.50. there was some side court drama at last night's n finals game. a fan was ejected, but it wasn't just anyfan. it was a prominent venture capitalist and a part owner of the golden state warriors who was booted after he pushed raptors player kyle lowery. the man has been identified as ormer sequoia capital managing partner mark stephens. late today the number banned stephens for one year and fined him $500 u00. comi dog food even humans may love. >> you're looking at the hottest trend in the pet care industry. premium dog food ingredients that each you can eat. i'm frank collins. i'll have that story coming up

on "nightly business report." ♪ ♪ we all know that pet owners will spend just abouton anythin heir furry friends especially when it comes to keeping them healthy and the fastest growing segment of thetr pet food iy is made of stuffca humann eat. frank holland is in new york tonight. ♪ ♪ >> t lsooks like a kitchen that you would see in any restaurant, but these culinary creations are for canines. ol>> the mack ronny for you. >> it is the fastest growing trend in pet care, using human-grade ingredients to create fresh pet food. it's only about 2% of the $30 billion u.s. pet food industry, but sales have increased 70%

since 2015. >> right now you're still very much in the early infancy of this offering? >> consumer awareness is starting to build and it's still fairly low a retailers love this product? this is the fresh pet food kitchen as part of a partnersh withust food for dogs. >> the idea is that it's local. everybody likes localan we to eat local. we want to eat fresh and it's no different for dogs, probably better.it tastes >> petco stops selling food with trtificial ingredients l month which will reduce annual revenues by $100 million, but it's a hit the company is willing to te. >> t driver was our consumer and they said we're confused. ha of our guests are confused on what pet food they should feed their pets. >> the move and the fresh dog fot is p of the overall strategy for petco. they're hoping that this product will increase customer traffice and r the average purchase by mid-single gits.

>> we'll outpace the market. >> you are talking 20, 30, 40% growth. >> fresh pet is reporting strone sas growth last quarter and itsompetitors are private companies and fresh dog food is more expensive than dry kibble. >> what makes it unique and different is thatof somhe guys that go online they make food in a kitchen that youe not allowed to visit and you can't see the food, et cetera. we'retr about ansparency. >> 91% of americans see their pets as a member of their family. according to a 2018 study from ubs, more and more of those pet parents are willing to pay premium. for "nightly business report," frank holland, new york city >> and finally tonight, world war iier vs and world leaders marked the 75th anniversary of d-day today. president trump, french president mack ron aron and hea

ate gathered in normandy in fran gathered. more than 150,000 allied troops stormed the coastline in northwest france leading to nazi germany's defeat a year later in may 1945.e >> before w go, a final look at the day's numbers on wall street. the dow re 181 points and the nasdaq was up 40 and the s&p 500 added 17. and that is "nightly business report" for tonight. m sue herera. thanks for watching. we'd like to remind you this is the time of year the public television station seeks your support. >> i'm bill griffith. thank you very much for that support. have a great evening. see you tomorrow. ♪ ♪

woman: this is "bbc world news america." is made le by... the freeman foundation; y and peter blum-kovler foundation, pursuing solutioec for america's ned needs; and by contributions to this pbs station from viewers like you. ank you. laura: this is "bbc world news america." reporting from washington, i am laura trevelyan. ♪