>> announcer: this is "nightly business report" with sue herera and bill griffeth.de t truce. the s&p 500 closes at a record after the u.s. and china ratchet back trade tensions and resume talks. so what's next? semi chsurge. stocks benefit from the easing of trade tensions and rally strongly. so where does the group go from here? and refi time? mogage rates are plunging and many americans are taking the refinance. why now might be ad goo opportunity. all those stories and more tonight on "nightly business report" for monday, july 1st. good evening, everyone. welcome. it was a record close on wall street following what you could call a trade truce. over the weekend at the g-20

summit in japan, the u.s. and china agreed to hold off on levying more tariffs in an effort to get trade talks going again. prheident trump also said u.s. would relax restrictions on american companies sellingts prod to chinese telecom giant huawei. as a result, stock got an initial lift. while the gains were more tha halved, it was still a record day. the dow rose 170 points. the nasdaq helped by the chip stocks rose about 85 and the s&p 500 climbed 22 to are rd, its sixth so far this year. we have two reports on trade starting with kayla tausche in washington. >> reporter: after a six-week standoff, president trump and president xi brokered afi ceas in 80 minutes. trump agreed to relax a ban on huawei in exchange for ina's buying more farm goods and there will be no new taceffs. the t has no deadline, which

means present trump cannd it whenever talks fall through or keep it going, telling reporters he's in no rush. >> so we're making a deal with china, or we're attempting. if we don't, we have a tremendous ripe field of tremendous moneyld that we coming into our country. i'm not rushed. i told him that i want to get the deal right. >> reporter: multi national companies are relieved tensions have eased but have more questions than answers about what comes next. >> what's the timeline for these honegotiations. serious are both sides at coming to a resolution? what happens if they can't reace an ant on these issues because that $300 billion list of tariffs is otill looming there, it's just put on hold for the moment. >> reporter: the issues that sank talksst in may arl outstanding. china's hard-liners don't seem any easier to sway and hawks in washington are not happy the white house is bargaining with a company seen as a national security risk. t at leastee republicans slamming the decision and one,

florida senat marco rubio, suggesting he'll introduce a bill to reverse it. with so manng compe forces, future sales for huawei vendors are still in qution. >> is this going to be part of an end game trade deal,r is this something that he's going to reserve as a national security issue? >> reporter: in aka, the president wouldn't commit. >> huawei is very much in play in terms of our country and in terms of intelligence and the intelligence community. we're not making it a big subject. we'll sav that forlater. >> reporter: when later is isn't clear. asked when a new round of talks could take place, the office u th. trade representative and the treasury department said they had no scheduling announcements. i'm kayla tausche in washington. and now to china, with a look at howce the trade is playing out there. eunice yoon is in beijing. >> reporter: the chinese are generally relieved with the outcome but uscaut in official statements and media reports they are pleased with

the delay of new tariffs, that there is no deadlin for negotiations, and they're especially happy that hometown tech champ huawe gets a reprieve. in addition, the chinese side has been left with an impression that president trump has agreed to beijing's preconditions for a trade deal, what are described re asts three red lines. lifting all the imposed tariffse realistic purchases of u.s. goods and balanced text in the final deal. reat's because president trump, according to the n ministry, agreed to move forward on the basis of, quote, equality and mutual redeect. ite the fresh direction, there's still apprehension that a trade agreement will get done. sources close to the trade talks on the chinese side have noticed that predent trump is already under pressure from congress and the national security community to maintain his original tough position on huawei. one other interesting development here, the chinese pres r are notorting china's agreement to buy more american farm products or that the u.s.

has not reduced the current tariffs. that shows how sensitivehe leadership is to appearing weak or that it's giving in to u.s. pressure. an indication of just how challenging the domestic political environment here is, for beijing to make even further, serious compromises. i'm eunice yoon in beijing. let's turn now to the chief economic advisor at allianz. always great to see you.u thank r joining us tonight. >> thank you, bill. >> what in your view is the message otothe u.s. market right now when you bear in mind that long-term treasury yields are close totw year lows and now following the osaka summit we still have tariffs, 25% tariff for the foreseeable future. why areige at an all-time right now? >> three reasons. one is the truce. i like calling it the cease-fire. things won't get any worse. second, the huawei news was a surprise to the market, so that

suggested an easing of tension that goes beyond the headline of the cee-fire. and thirdly, it keeps the fed in play. meaning that because the uncertaintyasn't been fundamental elicited, the fed is nlikely to cut july. so the markets like the cease-fire because calms things down without taking away the fed rate cut. >> are you surprised, though, at the lack of volatility that we've had just recently anyway? i'd say about three months ago, every time we got a trade headline we were either up 100 points or down 100 points. we've seen a lot less of that. >> we ve, because there's been a major pivot on the part of central s.ba the four major central banks have all indicated that they're going stimulate more. and markets hav been conditioned to respect liquidity from central banks. so the more the central banks are willing to decouple the

markets from the underlying fundamentals, the mor the market does that for them. so it doesn't really surprise and what also doesn't surprise me is economists aren't that w excited about happened over the weekend. they tell you the basic uncertainty isn't gone. companies are not going to investased on a truce. they want a peace deal, and hasn't come yet. >> what can you point to in our economy a that warrant cut by the federal reserve in july, when you beain mind tha just last week jerome powell t said th fed's monetary policy will not be based on what he called short-term political interests. what is it that's going to prompt a cut do you think next month or this month? >> ift ou looke u.s. on a stand-alone, it's very hard to find reouoning. if look at the u.s. in the context of a weak global economy, then this notion of an insurance cut comes up, bill. but l me just warn people

watching, the h market gone way beyond an insurance cut. the market is pricing in four cuts in the next four months. thatot insurance, that's a signal there's something really wrong with the econyoy. >> and d see that? do you see inherent risks in the economy that might warrantarhat thet is expecting? >> i don think that the economy itself will warrant what the market is expecting, unless youssume there's going to be a major policy mistake or a major marketaccident. the economy is still in a good place. yes, it's not as strong as it was a year ago, but it is still signicantly moving forward and m the rest itself f of the world. >> you're one who likes to take the global picturef things and try and make sense of it as a whole. so we' got the geopolitical concerns in the middle east that are pushing oil prices higher. we've got those yields here in the uniead states that are two-year lows. we have the brexit mess going on in europe right now. the trade tensions between the

u.s. and china. where are we globay right now? are we seeing a meaningful o you wn economically think? >> yes, we are. in europe in particular. something thaas flown below the radar screen today is what happened in germany. german 10-year yields ended at minus 36asis points. almost minus 100%. wh because the manufacturing data that came out overnight, they were horrible, bill, absolutely horrible. and i worry about europe. i worry about slow speed economies in europe. at's what's keeping our yields down. i'm all with your, introducti go and refinance because you're really getting a gift from europe at this point in terms of downward pressure on our o yields. >> indeed. again, thanks for joining us tonight, mohammed. >> thank yos we mentioned, the big winner of the day, chip stocks.

the sector rallied on the huawei news. the semi conductor index rising more than n2% o the day. josh lipton has more. ew chip investors had been expecting good at the g-20 summit and they got it. presidentrump and chinese president xi jinping agreed over e weekend to proceed with negotiations. both sides said they didn't plan to levy newga tariffsst each other's products right now. >> we had a greatin me we will beontinuing to negotiate. chipat's welcome news for companies because china is a key market for them, as well as an important link in their supply chains. the smh, an etf that tracks the chs rose in today's trade and that's after surging higher in ne, its best month since september 2010. president trump also suggested that he would lift the ban on u.s. companies selling equipment

to chinese tech giant huawei in cases that don't involve u.s. national security. analysts say that could benefit chip companies that count huawei as anor int customer. >> from a high level we think this benefits semi cap equipment. we don't think that will be deemed as a national security sk. that wil be applied products and at sml. secondly this benefits micron. they can ship as many chips as they would like toth em. we think that will improve sales. >> but steve says thewe huai announcement was unclear for nvidiahip companies like and amd. while he thinks those companies ultimately trade sahigher, h their products do represent potential national security risks. as a sector, t where do semis head from here? analysts note that the second halfs of the year a typically strong one for chips, but they point out if chip stocks are

going to keep posting gains, investors need to see continued signs ode progress. for "nightly business report," i'm josh lipton in san francisc and there was also this news out of the semi conductor sector. chip equipment maker applied materials is buying kokasai electric for a little over $2 billion. the japanese firm makes wireless equipment. that sent shares higher by nearly 2% today. and while the chip secsr rallying on the temporary truce, intellectual property is still key sticking point between the u.s. and china, and it's not just the chip companies that are vulnerable. joining us to discuss that and is stands to win or lose timothy lesko, principal at grtite investm advisers. good to see you, tim, welcome back. >> thanks for having me. >> youe the case that we need to cast a broader net, if you will, or aider net, that all companies that have intellectual property are at risk. >> yeah, basically, you know,

chinrse manufactuave been copying american goods, whether they be technology good whether they be consumer goods for decades. one of the this that w failed to put into place would be some sort of recourse. that when our goods are either copied or intellectual property stolen, there's no court system for us to go t in china to get a remedy. that's really what these negotiations are looking for. we really haven't seen any sign of that yet. >> but thee chinese hade clear, tim, they are not going to change their laws to chae ho they go after intellectual properse. in that are we realistically going to get a change in how ourp relations is with the chinese as relates to ip theft? >> i think we will. i think that they see uss a very valuable market. we see them as a long-term trading partne and so i think the hope is, is there becomes some remedy, a whether it' chinese law that is changed or whether they're willing to live by world trade

organization rules or general agreements on tariffs and trade where we have mutual ground to air these grievances in the future. >> what companies would be on your watch listhat are perhaps most vulnerable between the situation between the u.s. andc a as it stands now? >> i think we're on the cusp of the great moveoward automation. everything that's going to be on mated is going to rely fifth generation cellular technology as well as a lot of otherie technol that are either developed here and made in china or in some cases developed in china. so companies likeog 's wamo division, apple if they're developing a car. you have to think that everybody wants to get involved in the winfrastructure associateh that automation. if there are a lot of tariff battles and intellectual property ba some of that technology will be slower and slower to bring to market. so it really casts a wide shadow over the entire indury. >> on that note, thanks, tim, good to see you.

>> thanks for having me. and coming up,eh peekd the curtain of big money cdono. rles koch is one of the most powerful names in conservative apolitics, we get an inside look at his exclusive retreat for business leaders, donors and politicians, coming up next. opec has agreed to extend production cuts by nine months. the deal must now be b approve non-opec allies tomorrow. domestic crude crossed $60 a bael earlier in the day b closed just below that mark brian sullivan has more fr vi vienna.

o reporter: it was a long day here atpec headquarters but in the end it did end with two pieces of bigmbnews. one, the group has agreed 1. extend production cuts of million barrels of oil per day by nine months. that's longer than expected a takes the group into 2020. they are trying to counter the weight of growing u.s. shale output as opec has lost a little bit of its market power. but the second piece of news is designed to counter that e group has signed a long-term deal of cooperation with russia. russia is not a member of opec but has been criticized lately for maybe placing too big of a role on itself t on a group to which it does t belong. but opec agreeing that they would agree to cooperate with a russia-led coalition which gives opec about 11 million barrels per day more. that wasn't all the drama. first off, around the criticism that opec had bece perhaps too close to russia, in fact the saudi oil minister in the media

scrum had to acknowledge the fact tha every opec member still matters. >> we are very respectful of every member country. ahe fact of the matter is saudi arabia and russire the largest producers and we are delivering the largest cuts. for us to agree first and then to discuss our w agreementh our colleagues from other countries i think only helps reach the unanimous consensus that we're seeking. >> reporter: ofourse thether overarching piece of news was iran, upset with opec with lack of support against u. oil sanctions. we asked what would it take to get iran back to the table with the united states. >> if united states administration wants to change that environment between two countries, firstly should lift

all sanctions put against iranian oil and other then they would see significant change in the environment and then we mn doy things. >> reporter: a lot there and a lot of background noise as well. effectively what he said was we uld need totop our blockade of iranian oil exports to have any hope of iran coming back to the table. either way, opec got iran to the table. they signed that long-term deal. tomorrow russia makes its presence felt literally and oguratively. could be another h inside and outside here in vienna. for "nightly business report," i'm brian sullivan, vienna, fstria. more problem boeing and that's where we begin tonight's market focus with the dartment of justice reportedly subpoenaing records at boeing's 737 dream production planting. prosecutors are looking io boeing's records due to allegations of subpar work at that assembly planting.

the stock fell more than 2% to $356.46. enesee was sold for neay $6.5 billion in cash. that deal makes the railroad operator a priva company at a time when the industry looks to switch to running fewer and nger trains with tighter schedules. the shares rose nearly 9% tay on that news at $108.85. wynn shares rose after the gambling authority sd gaming revenue came in better than expected last month, rising nearly 6%. this comes as the chinese economy was weakened from the trade war tariffs. wynn shares rose 6% to $121.35. coty looks to restructure after acquiring brands from procter & gamble nearly three years ago. the four-year plan hopes to

increase revenue while also keeping up with rivals in the beauty cosmeticsindustry. shares fell more than 13% to $11.59. south bend, indiana, mayor pete buttigieg's campaign sayse presidential hopeful has raised nearly $25 million in the last thr months fro almost 300,000 donors. that is likely to be among the highest amounts raised by any of the demsratic candidan the second quarter. and home depot co-founder bernie marcus tells the atlanta journal constitutann that he to give up to 90% of his fortune to charity when he dies. it's estimated his net worth is between roughly $4.5 and $6 billion. he is also a big political donor, having been a top donor to president trump's run in 2016. he tells the paper he will contribute to his re-election bid. the koch name is among the most influenti when it comes to political fund-raising. today one of the koch brother brought together big-money donors to discuss where to put

their moneyn our highly politicized world. ylan mui has more. >> reporter: out in colorado in the foothills of the cheyemoe tains, hundreds of wealthy donors and business leaders are gathered for a earee-day re led by billionaire charles koch. it's an exclusive event. cameras aren't typically allowed. who attends is kept strictly private. but we got some rare access to understand the evolution of one of the most powerful forces in conservative politics. here's a video donors saw at the start of the summit. >> we're in the midst of athhift could be even more transformative than the invention of the printing press or the industrial revolution. it means the future is one of unlimited possibilities. but it's also disrupting key institutions of our societ >> reportech's political and philanthropic network has had to change its strategy ever

since president trump was elected. they didn't support him in 2016 and are sitting outhis race as well. charles koch told donors that he's willing to workcross the political spectrum to advance specific causes. free trade, free speech, immigration and the economy. >> just imagine what the country would be like if we had many, many more people with this philosophy. if we had millions more who were dedicated to uniting with anybody to dori t. that's been my lifetime goal. >> reporter: it's a philosophy tthat helpedhe network build a coalition obl reans, democrats and even celebrities to pass criminam justice r last year. and now it's bringing in unlikely new partne, like former nfl mvp shawn alexander. he learned about the koch network through friends, and they helped put him in touch with a nonprofit that employs teenagers who have been in jail >> we all are in agreement that

if we have the same values, same vision and that we can complement each other, then we can actually get together and do something special. one by with many parts. so sometimes if you're good at being a knee and i'm thecalf, it literally makes us run faster together. >> reporter: alexander wants to bring cafe momentum to every nfl city in the country. it's an approach the network calls bottom up social entrepreneurship, and they say that's the path toward healing the nation's divisions. for "nightly business report," i'm ylan mui i colorado springs. coming up, with mortgage rates fall g, is now the right time to refinance?

finally tonight, homeowners take note.e now could a great opportunity to refinance your mortgage. diana olick h some surprising new numbers. >> mortgage rates have been on a roller c but now they are sitting at the bottom of the track and that's a bigor opportunityecause rowers. the average rate on the 30-year fixed hit a low at 3.73%. it was around 5% a year ago. at today's rate just over 8 million borrowers can refinance and lnter theirest rates by at least 75 basis points. that's the largest group sin 2016, according to black knight. it's also a jump of more than 6 million eligible borrowers since last november. how much can t average borrower save? about $266 per month. most borrowers tend to refinance

afterer s years, but those who took out their mortgages last year could benefit most, about 1.5 million ofthem. not surprise morioage applicns to refinance were up last week according to the mortgage bankersn. associat while refinancing can lower monthly payments, it's also an opportunit to take cash out of your home, but very few people are doing that. home equity levels areri very hh t now, but borrowers took out just 4 billion collectively. that was the lowest amount in four years an less than 1% of what was available. today's borrowers seem more conservative, which makes sense given what happened the last time homeownerssi started their homes like atms. i'm diana olick in washingtone and befe go, let's take a look at what was a winning day on wall street and in some cases a record day. the dow rose 117 points to ,717. th nasdaq rose about 85 and the

s&p 500 climbed to a record. >> welcome back, by the way. we misse you last week. >> thank you very much. >> remember the days when summertime would arrive and the ma et would slowdown? >> would slow down. no, they're gone. >> it doesn't happen anymore. >> which iso why you have join us every night. >> exactly. >> that does it tonight on nbr. i'm sue herera, thanks for joining us. >> i'm briill griffeth. have a great evening. see you tomorrow.

woman: this is "bbc world news america." is made possible by... the freeman foundation; by judy and peter blum-kovler foundation, uing solutions for america's neglected needs; and by contributions to this pbs station from viewers like you. thank you. nada: this is "bbc world news america." reporting from washington, i am nada tawfik.