this isnightly business report" with sue herera and bill griffeth. >> deal reached. president trump says a two-year debt ceiling agreement is done, lifting a c that's been hanging over wall st>>et. record settlement. equifax will pay hundreds of millions of dollars to end multiple investigations, but h does the fine much bite? >> king of the box office. disneyomates again. can anything stop it? thosetories and much more tonight on "nightly business report" for monday, july the 22nd. good evening, everyone, and welcome. stocks begin a bigarnings wee with slight gains, but the focus was on .washingt late tonight president trump said a two-year deal to increase

the debt limitas been reached. that over a default on u.s. and removes a dark cloud hanging over wall street. raising the debt ceiling allows the u.s. to pay its bills. it's not raised, the u.s. defaults, which economists say coul trigger chaos in the global markets. contessa brewer joins us gnow. d evening, sue. yeah, it appears we may have a deal on the debt ceiling standoff. late tonight president trump tweeted i am pleased to announce that a deal has bee struck with senator majority leader mitch mcconnell, senatorad minority chuck schumer, speaker of the house nancy pelosi and house minority leader kevin mccarthy on a two-year budget and debt eiling with no poison pills. the president goeon, this was a real compromise in order to give another big victory to our great military and the negotiating has been intense, whetherd it sho considered military or nonmilitary funding which by law must remain equal. speaker pelosi had wanted a

two-year deal and reportly w negotiating last minute from a delayed delta flight working to get is agreement beforehe house leaves for august recess at the end of the week. both houses still hav to vote on the deal. it's largelyoxpected t pass. bill, sue. >> thank you, contessa. ornd b the u.s./china trade negotiations resume, one of the major sticking points to a deal was discussed in washington today. various tech executives gathered at the white house to discuss mi the adnistration's ban on huawei, the chinese telecom companyhat finds itself at the center of the trade negotiations. americans rely on huawei componence. they are ced it will affect their ability to compete and roll out the next wireless technology called 5g. back in may, president trump banned huawei from doing business with u.s. companies, but since then some of thosens restrictave been eased. the ftc will reportedly announce its b$5lion

settlement with facebook as soon as this week. as we've reported that deal would settle user privacy claims against the company and also create an internalsi ovt board. equifax has agreed to a record settlement with federal and state regulators to pay for its massive data breach of two yearsago that affected nearly 150 million americans. hathat sents of the credit rerting agency fractionally higher today. kayla tausche has the details. >> reporter: in the biggest payout for a data breach yet, equifax will pay regulators, states and consumers up to $700 million in fines and reimbur reimbursements after account and financial information for 147 million consumers were exposed. under the terms of the deal, equifax will pay $100 million to the consumer financial protectionbureau $175 million to state attorneys general and up to $125 million in customer payouts for the time and money spent monitoring their credit to

make sure their information wasn't being sold. estimating how much those grievances cost is more art than science, accding to the federal trade commission's privacy chief. >> it'o very difficult tell because it's very difficult to ce of a particular incid identity threat back to a particular threat. >> please repeat after me. >> reporter: on capol hill in march, the ceo who took the job after the breach expressed remorse. >> there were controls in place. they clearly weren't strong enough. >> reporter: today he said the controls are stronger but the industry i on alert. >> we get attacked every day and they will continue. it's a wei that's attacked on every american company. >> reporter: asked why no executives wn e namede settlement, ftc chairman joseph simon said they weren't at fault. >> tre needs to be specific involvement. that's what we're looking for. >> reporter: consumers who may have bn impacted will be able to apply for relief shortly afr the court approves the

settleme settlement. maryland's attorney general said it'sd not just adults that n monitoring but kids too, whose information is even more i've to cyber criminals. i'm kayla tausche in washington. s how did federal regulators come up with thattt ment number for equifax and does it benefit consumers? joining us is the former deputy director at the consumer financial protection bureau, a now he is currently managing director at a venture capital firm. to have you with us, raj, wesome. >> thaor having me. >> what about this so-called formula that's used to come up with numbers like this, and also the number of consumers involved in this particular case. what did you think of theth numr they came up with for equifax? >> it felt a little light t me but it's a complicated process in a negotiated settlement like is. what really drives where a settlement like this comes out is how strong is the government's case in the first place a how many customers are implicated.

for eachs, one of those custom how severe is the damage? and how bad is the conduct? i think in a ce like this, it seemed to me that some of the factors went a couple of different ways. on the one hand it was a huge breach, 0 million plus customers affected. there's no doubt that equifax did some pretty basic stuff wrong when it comes to data security. on the other hand i would be surprised if there were equifax executives sitting around thinkingmeet's put con data at risk. that's unlikely. the fact of the matter is thety sad rea is that there have been so many breaches, take your pick,arget and sachs and the federal government's own office of personnel management, it's hard to trace any particular fraud back to any particular breach and that's what makes lculating this stuff kind of art. >> of the $700 million, $425 million to reparations for consumers but they have to provt there was actual financial damage done for them to get the mone. ba

how do you prove that? and how much do you think anybody shouldge expect t from this? >> it's no picnic to prove these things, which is why it is i think that some of the early coverage talking about how some consumers could get up to $20,000 each feels a little misleading. just the math is, if there are 140 million people all of them are getting $20,000. that would be $2.8 trillion or 4,00times as much as the $700 million we're talking about.l consumers wee some benefit for sur by virtue of having credit monitoring. that's something people should be doing anyway. i would not get carried away with the sheer magnitude of monetary relief for customers j because it't math. there's not that much to go around. >> you mentioned some of the previous brehes as well. does that not make it more complicated for consumers to f prove tt that if their data was stolen that it was company's fault and not, say, the previous hacks at other retailers?

>> i think it would be really, really hard. if it was easier to do, it would be easier f the them to do than any customer. that's why the reason of proving individualary relief for individual consumers feels like a paperwork t burden way far to make a big difference. >> raj, thanks so muchor joining us. >> thank you for having me. a little later in our program tonight, a look at some some pharmaceutical companies are doing to shield themselves from potential legal liabilities related to the opioid crisis. as we mentioned, stocks rosl htly to start this earnings heavy week. investors are also bracing a for number of fresh economic reports, which should shetlight on w the federal reserve may do when it meets next week. that coming upretty quickly. do the dowve industrialge rose 17 points, the nasdaq added 57 and the s&p 500 was up 8. but if you look at where thes moneylowing right now, an interesting trend is taking shape.

mike santoli found it out for us. >> are investors paying too high a price for the promise of certainty in the markets right now? what with global growth faltering and central bank policy shifting fast, investors haveushed into areas they believe offer a more predictable ride. these include bonds, the supposedly boring stable companies, and the dominant growth companies in technology. some quarter trillion dollars of fresh cash has gone intoond funds this year. the shares of consumer staples and other slow-growth dividend-paying blue chips are up even more than the s&p 500's 19% gain d toe and amazon and long-term with their growth outlook have powered large cap indexes higher by 24% this year. on the losing side are cheap stocks and banking, transportation andal pharmas that need the economy to quicken or policy shadows to lift.

the powerful preference for in perceived certy right now is understandable given slowing growth and mixed messages about fed policy.s ther always a chance these trends could go too far. a s iilar trend 2016 after l the president election, for instance. it's tough to know if a similar turn-anger around is on the way and it's possible toov pay for even what seems to be a sure thing. for "nightly busii'ss report," mike santoli. two major credit rating agencies are cutting their outlook for boeing. the reason, concerns about the 737 max. and tha weighed on the stock price in today's session. phil lebeau has more. >> four months after the faa grounded the 737 max, credit firms are raising concerns about how long it will take to get th planes backe air. moody's and fitch both cut thein outlooks for b from stable o negative, citing issues

surrounding the 737 max, including the possibility of delays in returning it to service. fitch says the 737 max situation of theduce much financial cushion boeing has at the current "a" raeting. boeing recent low reaffirmed its production schedule as well as its assumption the max will be flying again in the fourth quarter. what remains unclear is wanther testin approval of software, as well as pilot training for the max, will actually happen this fall. over the last four months, airlines like southwes repeatedly set dates they expected to resumelying the max, only to push them back as boeing ran into issues fing theplane. just last week boeing said issues with the 737 max will lower the company's q2ng ear by at least $5 billion. that impact plus what's next for the max wl be a focus analysts have for boeing executives after

they report q2 earning wednesday morning. phil lebeau, "nightly business report," chicago. tim to take aook at some of today's upgrades and downgrades. we begin with microntech. they were upgraded from buy to neutral with the analyst citing a positive outlook for global memory chip demand and the potential for better pricing in the thirdte qu the price target,6. qualcomm was downgraded to sector perform from outperform at rbc capital. rbc said it cannot recommend this stock until the ftc's antitrust ruling is complete and the outlook becomes clearer. price target $79. the shares rose 1% to 5.. apple's price target was raised to $247 from31 at morgan stanley. the analyst says the stock is attrtive ahead of its earnings. that report is due out next tuesday. ating does remain overweight. the stock was up more than 2%

today to $207.22. and separately, late today, "the wall street journal" reported that app is in talks to buy intel's wireless chip business. sent shares of intel initially higher in after-hours trading this still ahead, china's answer to the nasdaq has a crazy first day. ts is a critical week for johnson & johnson as thes compay fa thousands of lawsuits related to its ta-based baby products. during a hearing that is expected to last more than a week, a trial judge in trenton, w jersey, began evaluating the

scientific evidence presented by plaintiffs whoim c the products caused their cancer. j & j has asked the judge to exclude from any future trials the opinions of 22 experts retained by plaintiffs. the plaintiffs' lawyers have asd the judge to deny that request, arguing that their experts are qualified. the judge's decision will determine the future of rough 12,000 cases that have all been consolidated to expedite the process. new information recently surfacedbout the opioi epidemic. a drug enforcement database now shows 76 billion oxycodone and hydrocodone pills floodedit.s. comms between 2006 and 2012. that database is a key part of a massive legal case in federal court in cleveland where a judge is pushing for a settlement. some experts say i could top $100 billion. meg terrell has thery s of one drug company'so strategy shield itself from potential

liabilities. >> reporter: it's a uk based hdrug maker w u.s. operations based in missouri. it's best s known fling hp axar l. it's t largest manufacture of oxycodone and hydrocodone pills. as a federal judge in ohio pushes for an opioid settlement, that could spell billionsf dollars. >> you can actually get to a bare case scenario that's in cess of billion. that's not our base case scenario, that's a worst ce scenario. >>eporter: they have a pla that would shield its main business from those potential liabilities. it aims t spin out its generic drug division which means oxycodone and hydrocodone goa i ew company. with it should go any potential liabilities from sling opioids. >> with regards to the risks and liabilities, again, i think we've been very clear since we

announced our intent tospin, is that risks and liabili follow the assets. >> reporter: they note they have been considering how toep sate the two businesses for years and doesn't cite the liabilities as a driving factor. the company declined to comment for this story directing us to public documents. it wouldn't be the first company to try to benefit from a sale or spen-off of a business. in 2014 a consumer giants product spun out its pharmaceuticals unit. earlier this year, they agreed to an almost $1 spok.5 billion settlement. but the company wasn't named when the justice department indicted them and so an analyst calls that a win. >> when you look at the way that has kind of resolved, at least for reckit, one could argue that

strategically it made a lot of sense. now on the legal side they have a settlementnd they can now move on and o foctheir business. >> reporter: they aim to complete the spinout before the year. th the trial in cleveland if it doesn't reach a settlement is set to begin in tober. i'm meg terrell for "nightly business report." vail resorts heads east. that's where we begin tonight's market focus. the s operator is buying peak resorts for $11 a share or $260 million. the move adds 17 more ski areas in the northeast, parts of the ohio valley and missouri. the stock rose more than to $235.27. p halliburtonted better-than-expected earnings but saw a drop in revenue. growth in its international business helped the results of the oil field services company but its north american unit sales slumped. shares rose more than 9% to $23.74. microsoft is investing a i billion dollao a startup called open a.i. which was

created by tesla's elon musk. both companies are going t collaborate to bring advanced technologies and artifial intelligence to microsoft's azure cloud platrm, and microsoft in turn is going to become open a.i.'s exclusive cloud provider. microsoft rose more than 1% in today's trade to $148.33. after the bell whirlpool beat expectations thanks to strongri north an sales. the appliance maker also raised its full-year guidance. shares were volatile in the after-hours trading to say the least. th closed the regular session up a fraction to $148.35. ch> a's new stock exchange had a wild opening day. stocks doubled, tripled and somo than quadrupled in value. the exchange is china's answer to the nasdaq, and there are a few reasons why it launched right now. you kn eunice yoon is in shanghai.

>> reporter: china unveiled its own version of the nasdaq today. it is meant to lure listings away from new york and hong kong here to shanghai. 140 cnese startups making everything from lasers to solar cells have applied for the board with 25 going public today. it's seen as a big step toward pital market reform here and solves two big problems for chinesestartups. the ipo rules have been so strict that companies that don't make money choose to go to the nasdaq and venture capitalists who have been scared of investing in chinese tech now see a clear way to get tir money out. chinese firms that l t on the star don't need to prove that they make profits. the government plays a small role in the ipo approval process and stocks are traded more n freely. forevestors can buy in on a restrted basis. i spoke to the chairman of one r stp who said he hoped more foreign investors would eventually take part to professionalize the exchange.

for now most international fund ma say they are steering clear with the stock pricesti s vo most of the stocks ended higher by 140%. one other reason thatstartups are looking toward shanghai, the chairman said it could be easier to l wt herh trade tensions so high with the united states. for "nightly business report," i'mon eunice n shanghai. and coming up, disney dondnates the box office this may just be the beginning. disney set not one record this weekend but two, and that helped lift the stock, which is already up more than 25% so far is year. as julia boorstin reports,

disney's best days may be yet to come. >> reporter: king of theof box ce, disney's "lion king" remake opening with $185 million at the domestic box office. that's a july record,he second largest opening of the year.e on the top ten openings of all time. if you consider it an animated fihe, this is largest animated opening ever. these records are all the mor impressive considering the film's negative reviews. it scored just over a 50% critics rating onotten tomatoes. the genius of what disney has done actually i they are going for these films that are review-proof. you've got "lion king, " "aladdin," "toy story." people want to see them regardless of whathe reviews say. andisney hit a second record. "avengers end game" topped "avatar" to the bigst box offi worldwide.

"lion king's massive opening numbers further builds box office dominance. the studio is responsible for over a third of domestic ticket sas this year, dwarfing warner brothers and universal in second and third place with about 14% each. >>y dis is just blotting out the sun for all the others studio and everybody else is punching up right r now. eporter: and disney has three other films that are expected to be huge this year. one in october, "frozen 2" in november and then "star wars, rise of skywalker" in december. but this weekend's win could also help rival stuos by getting audiences back in eaters. with sony's "once upon a time hollywood" openinghis friday and "hobbs and shaw" the following friday. disney is poised to dominate the box office for yea to come. at comic-con this weekend it unveiled five marvel movies debuting empty next two yearer

with ano five marvel movies set to launch on disney plus in that same time period, we'll see how disney a uses the superhero power to drive subscribers to its new streaming service launching in november. i'm julia boorstin i los geles. let's turn to david haeger to talk about sney's dominance at the box office an where it goes from here, senior equity analyst at edward jones. thanks for joining us tonight. >> thank you. >> what ana jugg. you know, julia is pointing out that they have a slate of more marvel movies coming out the next few years, more "star wars" movies, some of the cessics theyringing back. are there any weaknesses in the right now tha you can see? >> certainly from the studio point of view, t company looks poised for a very strong rest of the year with theupcoming movies still to go. obviously so far have been pretty much blowing all the other studios out of the water. but certainly the studio businessan be tough in terms

of, you know, when it gets to be next year, how do you repeat that success and continue to show growth. and so t certainlyt will be a challenge as we move into 20an see what disney can pull off next at the box ofce. >> obviously they have a huge slate, as bill pointed out. but if you had to pick a major disney,or for especially now that they have combined with those fox assets, would it be a netflix? who would it be? >> it depends on which ptht of business you're talking about. we see netflix, it certainly is a large competitor. somewhat aompetitor in their traditional media business, where unfortunately we're seeing losses of paid tv subscribers which is impacting that part of the business, and so that sort of- and disney has got to tap into that strong vault ofha content they have with the disney plus service that will be rolling out in november. disney will then be looking to g

start drivingwth from recurring revenue from the disney plus service and really tap into that strong content that they have thgot. >> i strength of the studios enough to cover some of the potential weaknesses elsewhere in the business? for ample, it's a good time to be starting a streaming service that might be losing money for a few years while you've got a studio that's making a the money right now, right? >> right. that's one of the nice things disney has is they have multiple ofers they can pull in terms driving growth in the interim. even the traditional media businesses are notin s revenue declines. there's flat to modest growth and a good cash flo generator. and then the parks business is seeing very consistent growth as disney invests a lot in the parks and you're rolling out new attr tions. the n"star wars" attraction at disneynd has been very successful. and finally, those parts of the business i thinkan help support the investment that will

be needed for disney plus. >> walt disney is out there smiling somewhere, that's for sure. than joining us tonight. >> thank you. and before we go here's a look at the day's final numbers from wall ereet. ow rose 17 points to 27,171. the nasdaq added 5 and the s&p 500 was up 8. and that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. >> i'ml bgriffeth. welcome back, by the way. >> thanks, it's great to be back. >> have a great evening. see you tomorrow

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