welcome to "nightly business report." stocks rebound from yesterday'sosses as the wild ups and downs of ae marketco inue. british lawmakers vote to delay leaving t e.u.again. why investors need to care about what's going on across the pond. >> andnd branchless banks. w digital startups are taking on the big banks and grabbing valuable customers in the process. all of these stories and much more tonight on "nightly business report" for ts 78wednesday, september 4th. weo a bid you good evening. cat stevens called it a wild world andrl that's whatnvestors have been focused on these days. today they look to areas where

global risks have been key, places like hong kong and the u.k. we'll have more on those in a moment. in the end they felt it was safe to wadee back into th market after the selloff. stocks rose recoverg most o the day'sf losses with the dow p 237 points.y nasdaq climbed102. the s&p added 31. seema mody starts us off from the new york stock exchange. >> reporter: stocks rallied llowing evening tensions in hong kong plus data out of the fed beige book. carrie lam recused the controversial extradition bill. activity picked up in the mth ugust while one data point doesn't make a trend, economists say it isn encouraging sign at the moment. dow closing up tripl digitsin er yesterday's losses. comcast, i, even coca-cola hitting new highs in today's rebound in today's oil prices

added to the positive ne. wti crude up by more than 4%.ll traders are s concerned about the longer term risk of a larger trade war and tariffs eating into corporate ofits. investors will be watching for the august adp numbe o tomorrow morning with who gets a first look at the monthly job support. seema mody fornightly business report." in its beige book the federal reserve found the economy growingt a modest pace. a weak spot was manufacturing and that's just the latestut finding of the industrialnd sector. steve liesman tells us what it al means. reporter: the latest data shows the sector is whether consumers can hold uphe u.s. economy. >> everything we see shows the u.s. consumers are there. they're beginning to pass through. the tariffs and into consur prices. we haven't seen that wlesale yet. thth section. >> so what's behind the factory

slowdown. china and the u.s. it's specifically in manufacturing sectors. factories have trouble finding w enoughkers and also the dollar is strong making the u.s. exports me expensive relative to their foreign competitors. chad, chief economist of the national association of manufacturers says the manufacturing sector is contracting in large part becal of slowing glo growth and uncertainty on the trade front. what m mufacturers need mt now is more clarity on trade. another possible factor, the slowdown in boeing plane production from the issues surrounding the 737 max. it's unclear how that cog d be impactthe national data and it's unlikelyhat it's only just domestic. it's up0 companies.

much of ts happening is how anyway and how much can and foould be linked to the trade war. "nightly business report," i'm steve liesman. in thlondon, iwas a day of high drama as british lawmakers voted to once aga delay that country's exit from the european union. the move is a blow to the nation's new prime minister it cuts the chances of axi bt without an economic d in place. willem marks is i london for us tonight. >> order! increasingly famillow for the new british prime minister.e >> the ayes toright, 329. the nos to the left, 300. parliamentary confrontation for boris johnson. >> so the ayes hyee it. the ayes have it. by a separate vote and five

defeats that his government is in power but not really in control. lastk w johnson threatened to suspend parliament and for the second day running parliament has pushed back. opposition lawmakers have been successful so far in their efforts to pclude the possibility next month of a no deal brexit. it's an outcome the bank of england, corporate leaders and th country's finance leaders past and present acknowledged could prove costl for the u.k. economy. >> i understand that thet uncertaintyround brexit is challenging, but this is in our democracy.tion in trust in the end, a strong economy ban on built on the foundation of a successl democracy. > reporter: the prime minister is long insisting that he must retain the abilityo exit without a settlement so that might force his european counterparts to offer fresh concessions in a new brexit deal.

bu as his own government has so with how bad a disorderly ails departure will be for the u.k., his opponents in westminster have denied him that negotiating tool. as of right now since he's lost hisaramentary majority, they dcan alsoy him the power to call a fresh tiel. >> they have loudly and repeatedly insisted they will not allow a new national election until the current legislation to block no deal has become legally binding. >> let ts bill pass and gain royal a scent, then we anlection so w do not crash european union. exit from the reporter: based on the existing parliamentary schedule that meansn election could be called early next week to take place midway throughext month. critics say johnson would campaign on a promise to mak brexit still happen by halloween but he'd need to frighten a new high risk approach as this one

no longer seems scared. for "nightly business report," i i'm willem marlondon. bill stone joins us now to talk moreut this latest move to delay brittain's exit from the european union and what could it mean for the u.s. and u.s. investors. he is the chief investment offir at avalon investment and advisory. nice to have you with us. welcome. >> thanks. >> certainly this is still unfolding and there are many more steps that have to tave place, but it seems to me that simply increases the uncertainty for global markets. >> i think theood news is it does help in one aspect. it makes it less likely because of the votes that were taken today that brittain leaves without a deal so, you know, obably still leaves but seems more likely that we end up with a deal ahead, which all other things being equal does make for actually less and we're seeing some of that reflected in the financial markets. n a greenspan today said something he said before.

he said it's only a matter of time before the u.s. see they are seeing in parts of the europeanunion, especially in germany. depending on how brexi goes here, do you think that's inevitable depending on how things are going? yeah, i would disagree. i don't think t's necessarily it inle i view brexits just another, you know, geopolitical risk sitting out there. we don't really know how bad it would get or what the, you know, major implications would be , in fact, the crashed out of the european union without a deal, we just know it's a probably not good thing. even just them sitting out there and not knowi is badenough. you think about it, what corporation is going to make a big decision to, say, b a big new plant in the u.k. without knowing really, youknow, who to build the trade with. those all weigh out. it's the same kind of costs that sit there with the tariffs ath u.s. giant. >> so does that make our market more attracteleive to not

only the u.k. and the new government and the e.u. has still mentioned it. germany is negative. >> certainly when you look at the global economy, the u.s.wi while s is stillooking good really, i have to say. it's broke around 2%. 19 in terms of gdp and yes we're slowing into it. themer still remains resilient. consumers benefitrom that. the fact that europe is much more exposed to some of the slowdown in china does mak our companies, you know, again, if you think about the more more attractive.ted companies that being said, obviously there's a lot of companies that do aes lot of bus in the u.s. and can't completely throw out europe. >> on that note billstone. thank you very much. >> thank you. >> avalon investment and advisory. the feder trade commission

today issued a record fe ogainst google's youtube site ttle allegations that it used ildren'sat without parents' consent. ylan mui hashe story. >> reporter: will pay money to say that youtube violated the law to ptect children. under the agreement google will pay $136 million to the ftc and $34 million to the new york attorney general's office. in addition, youtube must set p aor system content creators to designate their videos designed for kids. the ftc saidhis is theirst time they're required to do that and ensure >> this case sends strong messages to third parties like youtube, cnnel owners andhe business community as a a whole. for youtube and other third parties like it that serve ads, they can't market their ability to get child viewersn the one

hand and disavow knowledge that children are usinger theirce on the other. >> reporter: in a statement youtube's ceo said responsibility is the company's number one priority. starting in four months youtube will assume any user watching kids' content is actuallyte child. that means getting rid of targeted personalized ads and disabling features like content. the two democratic commissione at the ftc voted against the settlement. they argue the dollar aheunt is too it should have been in the billions, not the millions. youtube's practices and the ge commitment to google cannot be easily enfoed. meanwhile, consumer advocates worry that the business model is mang money by advertising to kids and it will remain intact. >> weeed to see if they move all of that children's content off of the mai youtube site or if they're putting it also on the youtube kids' app. as long as that's still on them youtube site, children are going to have their data collected, they're going to get

inappropriate links, inappropriate content. >> reporter: the ftc pointed ouh google's $170 million penalty is the largest ever collected under the privacy law. fo "nightly business report," i'm ylan mui in what are the implications of that fine by the ftc? julia boorstin takes a tok. >>oday i am pleased to announce that google and youtube have agreed to pay $170 miteion. >> repor youtube ceo writing that the ftc settlement marks a big change. today's challes wil us to better protect kids and families on youtube and this is just the beginning. we'll continue working with lawmakers. youtube will stop collecting data from kids unless their parents all it limiting personalized ads on kids'ds content. youte will use technology to identify videoseo targeting kid to identify those that creators don't flag themselves. e sentencing commissioners say this doesn't go far enough. analysts say it will improve the

platform over time. >> young kids continue to flock platform. we'll see what happens. we think ultimately going forward the complnce oversight will actua iy makell a safer platform and actually probably bring more peoe into the system knowing that this issue is broken, they're undersc tiny. in some ways it can be a modesti tail. >> wikipedia is making a shift to push people overh to youtube kids for which they're launching a $100 million content fund. the ftc's action and t fine and restrictions won't have anyo impact one and alphabet which are so big that$170 million is just a rounding error. a >> this isn juggernaut. it's a minor headwind. we think it will pass quickly. advertisers pulled backd quickl at the beginning of the year. they'll resume spend on the platform. we think google has full control of the situation now andnd that ultimately this will be a speed bump. >> rorter: the question now is

whether content creats will shy away. we'll s how much the investment in kids' content counters declining ad revenue. i'm julia boorstin los angeles for "nightly business report." up next, can the consumer keep the econo afloat? you'll hear w ot somef the top retail ceos think. some of the themes this year have been the strength and resilience of the american consumer and how retailers would fair with those new tariffs. some of the biggest retail ceos

got together today in new york to discuss and courtney ragan was there. >> reporter: dpite fears of recession andta uncty around tariffs, most ceos here at the goldman sachs globa retailing conference in new york city agreed that the u.s. consumer is strong for now. lowe's ceo said the broader mao environment supports spending and not just for things homeners have to fix when there's an issue like a leaky roof but even in the moree discretionary categories, items like patio furnitur >> we fee very confident tha those discretionary categories are holding up reallyls well to lehat give us confidence that the consumer feels good about their economic situation. reporr: also tay tapestry and coach announced there will be a new ceo. the u.s. consumer is still quite strong despite the company

struggling to grow sales cently. tariffs are a big uncertainty for retailers, especiallyll if e overall effects crimps consumer spen and confidence. >> there's higher costs passed on to consumers, does that mean landlords and more royalties coming in for us because revenue will be higher? or does that mean less shopping and revenue is lower? i think it's too early to >> reporter: while it's been a lot of hard work a taken a lot of negotiations, a lot of people have figured out wayso mitigate the tariff >>impact. relatively small percentage are facing price increases from the vendors as they've been able toia neg better deals. >> william so home in ma ceo

said it has a number of mitigation strategies in place but where it has raised prices it may have more pricing power than it realized. while the u.s. consumer is strong, thet uncertainty t comes with the tariff policy makes theure very hard to for "nightly business report," i'm courtney ragan in new york city. jetblue comes down on its guidance and that's where we begin fnight's marketus with toc airline cutting its revenue forecasts due to th expected demand for its flight, light booking to puerto rico and the impact of hurrane dorian. shares slid more than 4% today to 6.. truck and automotive engine maker viar beat its estimates saying thanks to an increasese in demand. the company did say it anticipates fewer truck orders next year as the freight industry weakens.os it to $24.78.

women's handerag m vera bradley missed but it did bst a revenue beat after they talked about a challenging retl shares fell more thanha 19% tod to .56. arts and crafts retailer michael's painted a solid quarter topping analyst's expectations. the company saw a spike ints compable store sales to help combat the closure of its pat catan stores. shares jumped to about 12% to just about $6.26. americand eagle s a late start and unseasonable weather led to same store sales growth it fell 11% to 14 point $38. and chat app slack topped reven growth in the paid customer use. slack saw increased competition

in thendustry from micicsoft and it gave weak guidance. that caused the shares to volatile in after hours trading but they did closese thelo regu session up 8% to $3$307. so-called challenger banks. these are the digital banking startups. re all the rage for venture capitals. with vc mngey pou in, they are the fastest growing part of the financial technology sector. they are attracting the millennial and gen az they are doing it all without a single branch. moree bosa has >> reporter: challenger banks are still a new concept for many. >> do u know what a challenger bank is? >> no, i do not. >> i don't know. >> i'm not familiariaith a challenger bank. >> i don't know. hat's strang i don't know. >> never heard of it. >> reporter: they're alternative banks fith feee online checking accounts. chime, one of the biggest

digil only banks, is addinin more customers each month than wells fargo and citi bank and it doesn't have a single physical branch. >> actually going into a bank br ch and getting a lollipop and asking abouthe weather and s knowing thae person that you've seen for decades is something that, you know, is more likely my mom to do than my son. >> branchless banks are taking on wall street stalwarts by capturing a younger datographic ave grown up with smart phones. >> access information quickly, make transactikls qu especially if you're a business owner that needs to make, you know, quick transactions. >> i use banking online,a bank f amero check my transactions and all of that. >> i noticed that things clear faster, checks clear faster, you're able to access funds sooner. >> big traditional players aren monto mixed success. goldman sachs launched the online consumer bank markets in 2016 and this year teemed up with apple on its first credit card. jpmorgan rolled out fin, the

digital only bank in 2018 only to close it a year later. >> i think if you look at the way big banks are structured, they're pretty well designed to serve the needs of th top say 25% of america who have really large balances and a they want give credit products, investment services and that. when you go below that and talk to general mainstream, everyday americans, there's so much fee income that's generated by the banks. >> fees lead to profits, something that mt challenger banksme don't yet have't buildi profitable business their t next hurdle and it's not easily done with checking and savings accounts. online only banks rely on established partner banks tld ustomer deposits. that's added costs. the challenger banks mov into lending and other businesses set to further disrupt the banking landscape. the question is, will the bs baatch up? "nightly business report," deidrebo , san francisco. coming up, poche goes

electric >> how much power does it it goes from 0 to 60 in 2.6 seconds and, believe me, you feel it. whew! there we go! . here are some of the stories in t news that we're keeping an eye on. hurricane dorian is a category 2 storm off the coast of florida d it's expected to move dangerously close to georgia and the carolinas over the next two and in orthern bahamas eys. where dorian sat for the better part of two days pictures are emerging of entire neighborhoods under water, includi my airport trunways,s hampering

the relief efforts. in hong kong chief executive carrie lam said the government will formally withdraw the ex sadition bill thatrked months of protests but sheai the government would not accept other demands s it is unclear if just pulling the bill at this point will be enough to appease the protesters. and in iran, president rouhani said starting friday it will begin working on centrifuges to speed up enriching uranium a part of scaling back its nuclear iran continues rachet up the pressure ahead of a deadl de for european nations to come up with aolution for iran to sell its oil abroad. elsewhere, the national transportation safety board said today that driver error and tesla'suto pilot design were the probable cause of a model s crasng into a pked fire truck on a california highway back in january of 2018. the safety board which kritd sized tesla's auto pilot after a

fatal 2016 crash in florida said e stem's design permitted the california driver to disengage in the driving task before crashing earlier this week. earlier this week thentsb said the auto pilot system allowed the driver to keep his hands off the wheel for the majority of the 14 minutes of that trip. the ntsb is looking into two other fatal crashes involving auto pilot use. a >> seven years after it rolled out its model s, tesla remainea ther in electric vehicles. in the u.s. selling nearly2/ of all evs since 2015 but now a ne c luxuryar may be the first true threat to tesla's a' dominance.re il lebeau from niagara falls. >> reporter: in front of a spectacular backdrop, porsche is hoping its first all electc car willake asplash. >> we wanted to showte what we n accessibility doesn't mean

sacrifice. >> reporter: with simultaneous reals inermany and china, porsche is sending a message. this isus not another car. going 0 to 60 in 2.6 seconds. wahoo! >> reporter: the python is designed to handle and perform like a true luxur sports car. we experienced firsthand during a test ride. >> oh, it's got the power. ge reporter: the big question, will the tycon win over evuyers and the model s? >> i would say the tycon is a big threat to the model s. it's a porsche, it's probably going ook great. the performance is probably going to be fantastic and the model s is old. it was aas great design. pretty long in tooth at this poin and they're a consumer base tha wants to buy the latest and greatest. >> reporter: the tycon isn't cheap starting at $150,000, a priceye ride porsxecutives

believe buyers will want. >> personally i can tell you c that the car is overwhelming. driving it is more than what i asked for. now let's seehat consumers say about it. sale lat this year marking theo start of the ev era at porsche. phil lebeau, "nightly business report," na ago gra falls ontario. before we go, a final look at the day on walstreet. yesterday's declines became today's gains with the dow up 237 points. nasdaq climbed 102. the s&p added 31. that's it for us tonight. i'm sue herera. thanks for joining us. >>ill griffeth. see you tomorrow.

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