♪ this is 9mm business reportith sue herera and bill griffeth. >> trade tensions flare. optimi fades around the u.s. chinese talks, d before ghegon a to begin. alive and well, despite all of the market challenges, we'll talk to one strategist who says don't bet ainst ts bull. rising risks how oyster reeves are protects coast of real estate from erosion and storm surge. those stories and more tonight r tuesday, october 8th. welcome, investors would love to see an end to the trade war between the u.s. and china. but experts say it's likely you're going to have to wait.

stocks fell sharply today as tensions between the world's two largest economies escalated, days before critical high-level talks begin and higher tariff rates are scheduled to take effect. here are closing numbers. the dow jones industrial average 3130134 points to 26164. the nasdaq was down 132 and the s&p 500 lid 45. we begin at the new york stock exchange and bob pisani. >> another tough day of trading. stocks falling off as optimism falters around the u.s. china trade deal. but ending near the sessionhe lolo. so once again the market are beholden to negotiations. stock startedower on news the u.s. would add more chinese companies to the export blacklist, then falling further on the word that trump administration was considering ways to limit u.s. investments in china like cutting down on investments made by u.s. pension

funds. predictably that put pressure on the usual cyclical names, banks and materials and retailers. been pap and it's taken a toll op chip makers, all getting between 30 to 60% of revenues fromhina. around 3:00 p.m. eastern time the mararts took a turn south, on news the.s. department of state would impose visa restrictions on chinese officials linked to the detention of muslims in china. supposedly. the market is increasingly coming to believe a trade deal, even 80% deal most of the way might be unlikely this year. and that means lower growth may carry over into 2020. finally brexit frce oh could add to nervousness. some are concerned the european union will not end with a deem. they said a brexit deal is impossible following a phone call between boris john and the german chancellor. the two slides side are slated

to reach consensus by october 31st. en far they say any extension of the deadline sun likely. for nightly business report, bob pisani. now even before those visa restrictions were put in place. china made it clear it's not happy with the tone coming from the u.s. right now. eunice yuan in beijing for us tonight. ♪ >> reporter: china's message tr the u.s. today, butt out of domestic affairs. at the regular press briefing the foreign minutesy criticized th commerce department for wlak lifting entities o the ground of violates the rights of the uyghurs. the ministry hinted it c cld retaliat saying beijing would take firm and rest lose measures to protect sovereignty. many companiespa like hype visi oppose t ban blocking critical

components. the u.s. decision will complicate talks for later this woke. the commerce ministry confirmed the vice premiere will be in washington for high-level discussions thursday and fetus with his u.s. counterparents. the trade secretary and treasury secretary. the prospect for deal appearim after subsidies taken off the table. analysts are skeptical about a major deal this week and some the two sides might only ree to meet again in chile and apex summit in november. for nightly business are the where the eunice yuan beigen just as talks between u.s. and chf are recognition so are discussions between the united kingdom and european krrnts parts on kbreks it. the uk prime minister wants to leech the up union with or would you a deal. villa marks in luxembourg

tonight. ♪ >> reporter: it was a phone conversation that cascaasd a currency. the british pound weakened sharply tuesday after the german kmanls laid down red lines with her british counterpart. angela merkel has been on the job 14 years boris johnson not 11 weeks. while the political challenges may force the two leaders to talk together, the british side today said positions remain far too far apart. last week johnson representatives arrived in brussels a new road map to guide britain out of the eu. it asked the europeans to change the current stance on customs checks currently unchecked and legally invisible borrin between the ireland and uk. but sfar brussels refused to budge. and in westminster that's raced the parliamentary pressure for the probes brexit. >> it's time to move to the eu

to move. if it does there is a chance to leave with a new deal. hover, if the eu does not move, this govnment is prepared to leave without a deal on the 31st. on days like this when no deal looks more likely, traders tend to sell the pound to calm concerns. in partial but still scathing analysis released tueay shows that leaving without the deal would desperately damage the uk economy and balloon british debt to a 50 high pressure year high. and in neighboring island, the new budget out tuesday used no deal brexit as the baseline jufrpgs. the irish government may have to borrow to spoerpt business f2 profits suffer as anticipated. tomorrow when moecht of the finance misters gather for monthly meetings in it member state luxembourg each will be too well aware what the no dell conclusion brexit for the faltering economy. diplomats say the outline agreement for should be skehed befefe the leaders meet

johnson next week. the head of the european council donald tusk will hoeft the meeting but today he acccced johnson of trying to win a blame game in case the talks break down. meanwhile they said the downing street merkel while was a dog whistle designed to provoke racist resensement to german. >> and sparked racist attacks. >> britain's the negotiating retire ricks and currency may have been driven in a more negative direction but tonight three years on, the fal distinction for brexit style remains uncertain. for nightly business where report vil an marksks in luxembourg. >> mnwhile in separate speeches today, the leader of worldank and of the international monetary fund both warned of a weakening global economic outlook. world bank president david malpass said groepgt slowing because of the the recession and brexit and uncertainty. another said the global economy

is a schronized slowdown. both organizations hold handle eating meetings in washington next week frmts and then there is the fed. for afo short while today commes from fed chairman jerome powell helped cut market losses in half. though short lived it's a minder how pau p the central bank can be. steve repliesman tells us what the chairman said and why it's important to investors. fed chairma jerome powell seven times tuesday said interestate policy whether they go up or down depends on n the data. the economic datat is. he added the economy is e in go shape overall despite some troubles on the horizon. being sbajters cmo a strong labor market with solid job gains, unemployment at hal century low a rising prime age labor force participation. but there are risks to the favorable outlook. principlely from global developments. the growth around much of the world has weakened over the past year and a half, and unceainties trade around trade brexit and other issues pose

risks to the outlook. >> what's it mean for the outlook for rates? powell did appear mostly nurmt out the late october meeting. markets took the comments as affirming expectations for another rate cut. jp morga writing in a commentary after the speech if the fed ldership wanted to pushback op market expectations of a an ease later in the month the powell would have csenn languages wochbt have called out downside risk. the central bank will begin in his increasing the size of the balance sheet reversesinghe policy last year where theyy reduce the sbal sheet. >> growth of the about a sheet for reserve management purposes shut shouldn't be cuffed large scale purchase preps after the deployed financial crisis. neither the repeat textle issues more treasury bills we are contemplating to resolve should materially alter monetary

policy. >> informs a major opportunity for powell to change market expectations for the late october meeting. and he seems to have chose. not to do so it looks like another 25 basis points rate could you tell is on the way it right around halloween. for nightly business report, steve liesman. from the fed to warnings of a weakening global economy to the ongoing trade war between the u.s. and china there is brexit, market is not without challenges right now. but our guest tonigig says the bull market is still alive and well. we welcome back our friend jeff saut the mechanic strategy tri. >> always a pleasure. >> the economy slowing downop taking a toll on earnings. tariffs in place taking a toll on earnings. whatat power the bull market. >> i think it's earnings. you ow, steve liesman and miep deer friend arthur carbon are

the two kamg voices on wall street. you know about this i lived in d.c. ac. long time and still we connected in d.c. there is not a trade deal with china in the near term. earning haves slowed but they are going to reaccelerate getting into 2020. the economy is not going into a recession. gdp growth is going to below about 2, 2.25%. that's the mother's mill more a decent stock market. and people i'll telling you i'm speaking not just to portfolio managers but individual investors and they're not just cautious. they're scared to death and that is not the wayot secretary laro bull markets d. >> we are however hearing from companies that have reported their earnings in this past quarter appear some that are starting to report now that the ck of a trade deal, the tariffs, and the dollar are all having an impact. what makes you think that companies will be able to overcome the headwinds? >> because i think the economy is going to reaccelerate, sue.

and i think if you use ed ward dennys estimates he isround 177, 178. my wk shows it's arndt 19 put a 19 merng multiple on 177, $178 you are talking about 3,200. and i would remind c nabz. >> on the s&p you're talng about. >> yes i would remind cnbc for three weeks at the end of september i admonished that our monthly model calling the august low were telling you to be cautious in the first part of october. >>t's a market stocks, thou , i think you've told me many times before not a stock market who will power us higher which sectors do you like right now, jeff. >> wall street will always -- 5 a years of looking at 45.5. excuse me 49 years my dwosh i'm getting old -- in this business, the the investors will always pay up for true growth.

so technology is probably at the top of the list. i still like financials. it's not been a good place to be for a while. but i like energy, particularly the mid-stream master limited partnerships. where i don't l le is where everybody crowded into utilities and consumer state your names. >> always good to see you,yo je. thanks for joining us. >> pleasure. >> you bet. if the fed wants to hit its inflation target it may have to wait. the price businesses received for goods and services unexpectedly fell in september. posting the biggestigecline in eight months. according to labor depare pror down 0.3% from the previous month in part because of pullback in trade services. but there is apparently inflation in the price of some drugs. accordin to a new report out today, seven prominent medicines saw price increases above the rate of medical inflation costing americans an additional $5 billion the last o years. the study concluded knowledge of

the price hikes had been adequately justified. companies make the seven drugs have criticized the report for not factoring in the value of the drugs, and the lives saved. still ahead, a trip to coal couny. president trump's promises to save the u.s. coa industry are running in a road block. called the free market. i'm scott kohn in gillette wyoming, the heart of coal country. wel see how they're coming up on "nightly business report" . for several years now the so-called minimalual generals has been the folk of retailers and marketers because of its size and buy are power but as

they age, attention is now turning to the next generation referred to as aga z. according to piper jahfari's annual survey of teenagers this group spends less, about $2,300 on average annually. s lowest spending level since 2011. but it's what they are spending on that interests investors and retailers. for males in that tegory, food comes first. clothing is second. video games third. females clothing then food then personal questionnaire care. when it comes to restaurants, chic filla number one with millennials followed by starcks and chipotle. nike raemsd top t apparel brand for nine years followed by american eagle outfit iris and adidas. when it comes to watching videos teens choose youtube over netflix the first time ever. dominos did not have the quarter that many hoped for. the company reported weaker than expected third quarter earnings andenue.

that sent the stock initially lower but then later in the day the ceo said the company would repurchase, sr. 1 billion in shares, giving the shares a li. kate rodgers has more on the quarter and domino's strategy. >> a tough quarter for domino as, the world's larges company by retail sales facing pressure from emerging players. they cite competition from third party delivery companies like uber eats and post theates making it easier for ordering food. ma of the competitors have deemed up with the outside delivery brands. but domino's went to different direction. bleefrpg the long running strategy is handing the delivees in-house instead. >> we've had a strong and profitableelivery business for many years. unlike other restaurant brands, we don't haveo zid to get in or not or try to figure out which of the third party aggregators is going to be the winner at the end of the shakeout. we're focused on building-

continuing to bbld the delivery business with the franchisees and doing it profitably for them. that means doing it on our own. >> t brand is in a midst of an expansion plan to open stores close to one another in order to shorten delivery times process. and capitalize on the carryout market which analyst at guggenheim say represes a bigger opportunity than the delivery. >> it's about getting stores closer to the commerce. the number one criteria when consumers cha choose is convenienc we billion-dollaring building more units and get closer >> and the move they called the move proactive and no react rave reactive opinion maintaining a shakeout is coming to the delivery industry. one message was clear. domino isn't letting a rough quarter change the game plan. bogey delivery as almost cut in half. that's where we begin to want's market focus with the world's

largest plane maker say going delivered 302 planes this year. do 47fers from theame period last year. and trails air abus delivery of 5070 aircraft. bogey said today that last month it booked the first order for a 737 max plane since april. the orderas for a single plane. bogey did not identify the buyer. shares fell a fraction to 374.10. >> chemical producer celine ease could end up a break up of the company. blooooerg reports the company is working with a financial adviser and that the review is in early stages. hairs fell more than 1% to 117.85. hell ellen of troys including brawn and vix had strong sales helping the them top estimates. they raised full-year outlook. but shares fell nearly 3% to

154.60. late tonight a pennsylnia jury said johnson & johnson must pay $8 billion in punitive damages. the trial was related to the restrictive of male bast growth linked to risperadol a psychiatric drug, the stock falling in initial after hours trading. president trump's promises to save the u.s. coal industry are proving to be no match for the free market. natural gas and wd energy are now both cheaper sources of pow and that's creating some big challenges in coal country. scott kohn reports from the biggest coal producing state, wyoming. >> repepter: in the heart of wyoming's coal-rich powder i have basin gillette bills itsell as the energy capital of the nation, which made more sense a few years ago. >> at one point we were serving 40% of the nation's needsf energy. it has declined.

now it's probably in the0s, 25, something like that. >> just this year two mining companies with operations in gillette declared bankruptcy temporarily throw 600 people por 3% of the county workforce out of work at once. coal productio statewide down 30% in five years. >> definitely a time that wyoming has to think about its future, what the future of coal is. >> never mind the promises by the president. >>oal is coming back. clean coal is coming back. >> this hi econocs. electricity from natural gas costs as little as half of power from coal. thank thanks to technology like fracturing. wind energy, abundant can cost less. >> that's making coal fires plants like this an endangered species in many of the country. the equivalent of 25 power plants retired or converted to natural gas last year alone. >> with demand in th u.s. dwindling companies in wyoming

and other western states have been seeking to export coal overseas. blocked so far by west coast states on environment grounds. >> we are actively looking at what a lawsuit would look like. >> in the meantime, they're trying to turn the economics to their advantage. inviting research tors set up shop in the shadow of gillette's dry fork power pnt to study carbon capture ws to mar coal cost effective and environment llly friend will i. >> is there a way to use the co2 into an asset. >> but that could be yeerps away. the challenges are here and now. wyoming's budget, its economy and identity are at stake. for nightly business report, scott kohn, gillette, wiem. >> mink coming up, little oysters are being used for a big task. to help protect coast real estate from intense storms. ♪

♪ there is a surprising new weapon in the battle to preserve our shores from rising sea levels and increasingly severe storms diana olick has theck details i the continuing series on the rising risks to real estate. ♪ >> reporter: at manhattan's iconic grammer c. tavern where the men you celebrated locally sourced sustainable food, something transformationable is going on in the trash. >> grammer c tavern is one of 70

new york area restaurants adopting the wholly eaten half shells to repopulate the oyster reeves in new york hereby harbor. >> when i learned more about the teek technique they had me hooked. >> they are natural barriers protecting shorelines from ee rose rising tides and increasingly severe storm surge. they knock down the height and force of wes. but they have been decimated by a century of overharvests and worsening water quality. >> we have soon almost 807% of oiters in estuaries worldwide. >> antonio recording, a scientific studies the oyster reef growth. he says the best way to ptect the real estate from theffects of climate change is stog back to nature. >> the goal is cope people safe and property inaccurate ptact. and sometimes making the vironment more natural and learning from the way the environment was before we developed it, thoeps withh the

best techniques. >> oyster reeves are being rehabd from massachusetts to texas, in projects by universities, local municipality was, the u.s. navy and air force. >> this is the oyster hatchery of new york harbor school where is we grow oift zbleers this is one of the most aitiousus ambitious. this is table to farm with 3.5 million annual budget funded in part by sta and federal grants from superstorm sandy. collecting 10,000 0 unds of discarded restaurant shells per week,ringings them to governor island to cure a year then puts them in a hatchery where they w spawn oyster larvae. >> you see the baby oiters once the sandy happened and the aftermath we raeltzed how valuable the oysysrs could be. new york harbor used to have over 200,000 acres of after reef protecting the shoreline. the popation is virtually

exinstinct. >> o>> natural barriers to storm surge are gone. >> correct. >> and you're telling me this big poil of oyster shes is going to save us. >> i don't know save us but should he. >> the goal is to place 1 billion live oiters across 100 acres of reef by 203 bag by bag. in order to receive federal funding projects like billion after had to prove that not only were they they making the shorelines more resilient but creating social resilience bringing even the largest communities together to protect their own real estate. >> we want to engage communities everywhere. because that's how you get longstanding change, rightht if the community and the people living there and work there are active involved in protecting the local environment. >> we are luck to live and work in new york city where whave access to some of the freshest and best widest varieties of

species anywhere in the world but that comes with responsibility of choices. >> f nightly business report. and before we go anoer look at the final numbers from wall street. the dow fell 313 points to 26164. the nasdaq dn 13 and the s&p 500 lididlid 45. that's nightly business report tonight. >> i'm bill griffeth have a great evening. see you tomorrow 3 . ♪ ♪ ♪ ♪

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