♪ >> announc: this is "nightly business report" with sue herera and bill griffeth. ♪ we lee responsor our airplanes. we are responsible. >> boeingeo apologizes and admits the m companye mistakes, as he was skewered by lawmakers onhe crashes involving the 737 max. raising guidance. merck and pfizer beat expectations and boost outl aks even political pressure on the industry ramps up. "halftime report," earnings season enters the second half. and some surprising trends emerge. those stories and much morni tot on nightly business report for tuesday, october 29th. good evening, eve and welcome. bill has the evening off. boeing ceo ttified for the

first time on its troubled 737 max. one year to the day of the lion air crash. the hearing was heated and pressed by lawmakers, ceo dennis muilenburg admitted to making mistakes as he explained decisions behind the development of the aircraft and how the compy is ultimatel trying to fix the plane. phil lebeau in "wealthtrack" >> boeing ceo dennis muilenburg told theeeommerce commi safety is central to the mission but as senators asked about the flawed flight control system at the heart of two 737 max crashes it was clear many weren't buying muilenburg's position. >> those pilots never had a chance. these loved ones never had a chance. they were in flying coffins. >> if you'd have told this committee and told me half truths over and over again. >> i would walk before i was to get on the 737 max. i would walk.th e is no way. >> and to preempt. >> muilenburg repeatedly toldna

rs boeing is putting si greater emp on safety and oversight by but the recently release of emails and messages suggesting they may have misled regulato has ted cruz questioning the leader. >> the buck stops with you. did you read the document? and how did your team not put it in front much you, run in with their hair on fire, saying we got a real problem here? >> watching theearing in person, relatives of some of those killed in max crashes. still raw with anger and pain. >> and i feel that he kept beating around the bush. he had to answer questions unequivocally. he needs to tell us why mcas was installed in the37 max. >> people who arerusted to put our children to be on the plane, failed us miserably.

andur lives d not move on. >> the biggest question for senators is boeing too cozy with regulators who certified the max. >> the has the balance gonelloo far toing industry to lice itself. >> senator, i don't know can characterize it that way. my sense is that we all vermont same objective.an we all the safest industry possible. that'sur objective. for muileurg this is the first of two hearings o capitol hill.n he testifies front of the house next. defending the max and his plan to get the plane back in the air by the he said of the yea ph lebeau, "nightly business report," washington, d.c. >> despite the rough day for boeing's ceo, the stock rose more than 2% in the session. are up about 4%. year shares merck and pfir were the o top performing stocks on the dow today. thanks to earnings tt topped

wamz estimates and outlooks stronger than expected. the solid results cam despite increasing pressure on drug prices from washington. meg tyrell has more. >> reporter: the country's two biggest drug companies both exceeding wall street expect aches in the third quarter. merck's outperformance dven by key trueda drawing sales more than $3 billion fiedser helped by the breastnc ca drug and vaccine preb nar 13. the action stocks rose on resultsut the dates tell a different story. >> merck, the stock good f a mber of years now, essentially on key trueda having a big leadl sizae lead in immunoon college. >> pfizer has hasn't covered dwr the deal wi mylan. >> pfizer tk a hit when you strip outri ge >> a bigger question for the ininstry and investors is political pressure on the pce medicine. there is intense congressional

focus and the industry is a favorite punchg bag on the campaign trail. >> whether the pharmaceutical n andtry whose corrupt greed is killing people today. >> particularly for candidates like bernmy sanders and elizabeth warren. as warpen has rein ris 199police. health care stocks underperform according to a analysis. predominating theme in the street looks atab elh warren as anti-m and a. tti-competitive with resp to the deals we see in the market. >> the focus on drugg prices his home with company executives. merck told analyst says it exncctsasing pricer pressure in 2020. and pfizer ceo in ate telephone iew noted t impact on the reputation process. it'sd he said but lost in buckets saying it's a big problemeeding resved. for "nightly business report," meg tyrell. >> fellow dow component johnson

o ashnson said it found best foss in the baby powder flagged by the fd prompting call. 15 tests conducted of t bottle by a third party lab. additional tests on samples frot the l that was recalled also found n asbestos. that the sent the stock high err initial aours trading. those results from merck and pfizer that were not eugh to the s&p 500 did touch a new record but fell back to finish lower. at the close, the dow jones industrial average fell 19 points to 27071. the nasdaq down 49. and the s&p 500 slipped 2. so> and now that we're halfway into earnings s some trends emerge. bob pisani has more from the new york stock exchange. we reached the halfway mark on earnings season it's oft o the case there is good news and badews. is going strong.he u and that's been the key to keeping the market up. coupled with fading recession

fierce for 2020. overalls third quarter earni down less than analyst expececd at the start of the month. basically flat. thbad news is everyone was banking on a fourth quarter bounce in earngs a little bit better. butt earnings estimates coming down from the fourth quarter too. basicallyren half from w they were a month ago. just look at the cyclical groups. thesere the economically sensitive groups like energy, industrials materials. estimates f those sectors coming down overr the lt few weeks. big global e eosure. industrials were expected to grow 4% now d dn 2%. for the fourth quarter. niece areba g manufacturing slowdown issues, particularly china. but the bottom lines the markets continue to position noy for kind of full on-on recession but slower growth in 2020. d that's why theic sole estimates keep dropping.wi low global growth and no ression expected in 2020, the ngle biggest moverf the markets remains the u.s.-china trade wars followed by the federal reserving decision op interest rates.

for nightly business report, bob pisani at the new york sck exchange. federal reserve pl policy meeting with the decision on interest rates due out tomorrow. ahead of that decision the cnbc fed survey of fund managers found that nearly 80% believe the central bank will lower rates tomorrow, making it the third cut of the year. 63% believe the fed will pause for the rem of the year. and on average, respondents believe the next cut will come february. three new reports today point to modest gains inhe housing market thanks to lower mortgage rates. pending home sales, a gauge of purchased contracts sigigd rose a second straight month up 1.5%. a separate report showing home prices nationally gained 3.2 peppers in the year ending in august. and the number of americansho own a home grew. the home ownership rateea ind to 64.8% in the third quarter. as bob pisani mentioned the

u.s.-mctde war remains the single biggest indicator for the market tonight signs of progress frmgt the u.s trade represent etch office says it might extend the tariff suspensions on $34 nese on worth much c goods.the spupgss are set to exn december 28th. companies have from november 1st to the 30th to pitch why products should be exemptfogain another year. about 1,000 products including cell phones and s stainlessel excluded from a 25% tariff imposed the previous july. the exclusion would be welcomed by bjing. china has been demanding to get all additional tariffs lifted and over the weekend beijing confirmed that some portions of the agreements had been cleated day state tv featured a commentaried saiding t tru pruch remarks that the keel could be ahead of t summit is realist iks but not guaranteed

tensions are there.in foreigntryriticized the fcc for the decision to hold a vote on november 19th to designate chinese tech giants huawei and cte as national curity risks. the designation would block u.s. companies from tapping an $8.5 billion-dollar fund to buy gear from huawei and ctz echlt as they look to billed build out infrastructure in rural america zte hasn't commented bajaway criticized saying banning specific the vendorsdo based op country origin will not protect the u.s. telecom networks huawei argues the only ones hurt will be the u.s.viompanies s the under served for nightly business report eunice yuan. still ahead as fires flair so does frus tracing with ta utilities. > fire doesn't care if you ae rich or poor and some of the wealthiest neighborhemain evacuated for the utility companies, it may be aay of reckoning.

that's coming up next. ♪ ♪ firetlighters bg the blazes in california. and it's getting complicated. more losing p and strong winds are expected toan the flames. jane wells is in brentwood tonight. >> rorter: here is los angeles, they're expecting some of the worst winds inte years this we can. and firefighters continue to use onew technology tools better predict the fire's path and a to through appangered residents

10,000 residences, well over 20,000 people in a matter of an hour. haven't had anybodninged here fortunately. >> and new construction techniques are paying oh off. on a stret where poolt of older homes were destroyed. this houseuilt to better withstand pyres is untouched. take a look at this at the back firefighters stopped the flames racing up hssl to pro flying emersbers has no affect effect and i checked on the ren. 820 oh a month but as home owners remain evaated and worried. we have the first inkling how the utilities companies are impacted. getty. today edison international reported earnings of $1.50 a

share adjusted. the miss of street expectations but the company says par of the reason was wildfire mitt galgs expenses. and the future remains unclear. more intentional blackouts expected especially in northern california where pg&e turned the power back only to warn many customers it might go off again. the gornor hasrdered an investigation flew weather the shut office are excessive and punishable especially if customers are charged for power they don't pave. >>e hasot been in the position before. we would like them to consider reimbursements and we're going to be forceleful in advancing that. >> despite the outages pg&e wire which wereot turn off may be responsible for as many as three fires this woke. the stock continuing continuing to slide and analysts suspend add rating and target price for the fmpany wondering the value could go to zero. who will buy it out of bankruptcy. >> i want as many people biddinb

for the assets of pacific gasas and electric as possible i couldn't be morecl r. >> potential buyers will get a report next week when they report earnings but a lot of wind and fire danica between now and then.lt more f business report," brentwood, california. strikes at the generality nerate motors alter theut oak look. demand for pickup trucks and ed suvs. but the auto maker says the 40-day strike eliminated most of the cash flow for the year and shaved nearly $3 billion from the full-yr bottom line. shares rose more than 4% to $38.21. conocophilips posted better than expected earnings and revenue thanks t higher shale production. which lessened the impactf lower crude prices and higher exploration costs. announced it wouldunveiling o a 10-year capital plan next month. shares rose 5% to 57.09. after the bell, aen results

topped estimate as the biotech said the innovative medicines delivered double digitrowth they raised full-year guidance. shares rose e llowing the news and close the regulation up to 208.99. after the bell, electronic arts beat on revenue thanks to continued s aong skrurpg live services growing of the apex legend game as well as the ea sportits. shares were volatile after hours but closed the regular session down more than 2% to 94.41. democratic presidential candidatat bernie sanders has a .we heek neek vision for the american econo he sat down with john harwood for a wide ranging interview.hn asked the senator calling himself a democratic socialist if it's his goal not to have private corporations. >> no, it's not my intention. >> ok. >> what isy intention, though is to make sure that workers

have representation on those larg corporations. so we say tt instead oft j being a target machine what ybout giving that worker power and responsibiln terms of the shaping of the corporation. >> many you hum. >> on yourorporate accountability plan you on wall street reform you say you want to end the two two big sales. >> three essentially low pressure when in owlhen wall street drove this country into the worst economic recession in modern history, as a result of that, wall street has saved tens and tens of billions of dollars in fines for in re illegal active im, it was a wn't a mistake. lierybody makes a mistake. they were s subprime mortgages how many of these executives went to jail as a result of. the activi >> i don't think any. >> right. and that's that's why the american people are disgusted

with what goes on in washington, d.c. i'll give you another exaxale. pharmaceutical industry, not onlyee ,hey are corrupt engaged in collusion and inside fixiin in price f right now states attorneys general are mounting a massive lawsuit against the opioid manufacturers. and what they are saying is ese guys knew exactly what therapy doing. how do we define, describe theh or of the fossil fuel industry? let's take a look. for a very long time exxonmobils the executives there and other fossil fuel industries knew that the product they were producing wasaung climate change and in fact helping to destroyhis planet. what i'm saying here is we need as aation to d something we have never done before. executives who have so mu s power that we're tired of your greed and we are tired of your

corruption. >> if you require that 45% of the board be workers, if you require more distribution of -- required distributionf profits workers, if you ban stock buybacks, do you accept that that would hav a slowing effect on economic growth? >> it's not good enough just to look at ecomic growth. in the last 45 years despite unbelievabow , and real inflation, the arage worker is re no bart off than 45 years ago. half the people todayyc lichaj ck to paycheck. >> the growth is the wrong measurement. >> of course it's wrong. what the question is is the economy working for the people here? is itin working for oy americans? that's -- that's the criteria. >> wld it be your intention to appoint democratic socialists to big. >> you're going a little bit too

crazy on the word here. >> okay. >> i will appoi people who believe in the working class and the working families ofhis country who are prepared to stand up to the incredibly powerful corporate interests that today dominate our ecomic and politicalife. so when i talk about democratic socialism, you want to talk about what it means. let's be clear what it means let's not get people overly nervous about it. whatat it means is health care is a human right, not a radical idea.ea we are the only major country on earth that doesn't allow that reality to take place.ve i few mimesrom canada. you end up in the hospital with a major procedure you know what you pay when you leave? zero, not a nicol. and they spend 50% of on health care as we jdo. >>n asked senator sandbers miss health following the heart attack. the senator says he is doi

well. into the aad a peek digital future of money and entertainment. ♪ ♪ ♪ ♪ ♪ ♪> the ncaa will allow athletes to cash in on fame. the organ oationan did not prove specifics but the decision follows the passage of pennsylvania california law which makes it easier for college athleteste in that stat to profit from their name, image

and likeness. beginning in 2023. masterr card reported bette than expected earnings and revenue as more businesses and consumers made online purchases. but master card and itsal r visa and paypal may soon be facing new competiti when i comes to the digital pments business. dedra bosa reports on the future of money from las vegas. >> what are uber ebay andok facebo doing at a fincial services conferen. >> uber is a logogtics company. >> ebay is an ee comme company. >> upper back eyer is a text. >> facebook is a social medi platform. >> they're also increasing taking payments and financial services into theirwn hands. and all along with apple, microsoft, pinterest and others ainge o attending money 2020 an annual event briing together thousands of founders investors and leaders and banking and technology to discuss the future of money. uber announced uber money, a new division pushing deep near financial services which

includes a digital wallet and upgraded depepebit and credit cards. >> if we could do it it fastest we bring the idea of cash to the digital world. >> ebay laid out the strategy to bring the payments process in-house to better serve the platform's merchant. >> we're grounded in creating better experiences for buyers and sellers. and control the payment experience. >> facebook hill of libra defended the company mission to reshape global finance with the cryptocurrency. >> any will trust us because we will provi value, make strong commitments and be very, very good at t sticking commitments for long periods of time. >> taking more control of the paymenprocess, can allow companies to cut costs and generate new r renue streams. but pushing deeper into the space won't be easy. and few can companies do it aloneere at mon 2020, partnerships they are key. and thousan of participants from banks, investment firms and

so-called finish tek.lo financial tech start upare ready to facility it. the amazon is bringing bill payment to alexa. a.m. launched the first credit cardlier with goldman sachs and master card. ay is wuchg working with dutch finn at the aek strike. and the target salesforcend door dash. abound but technology laboration companies get better at managing financial servicescan be a threat to the traditional bankin system. for nightly business report, dedra labosavegas. >> ant entertainment industry digital future is coming into focus. warner media is expected to offer details of the hbo maxam stg service. later this week, apple tv plus will launch folewed a couf weeks later by disney plus. as julia boorstin reports, each is trying to set themselves

apart from the rest. >>hbo max sun veiling the pricing. apple tv plus lawmakers friday and disney plus launches in two weeks. and then the incumbent netflix. the key to understanding the company'so ammunition one the streaming wars is the fyre power of content defined with how much they p charge. disns cartridging $7 a month and apple five dars dollars aonth for streaming service. both lessxpensive than expected .. the price tag of hbo max service is in the spotlight. >> the big challenge for at&t pring power of hbo max is hbo is already a proposal yum to other services. disney plus law firng at 6.99. apple p tvs at 5.99 and slight if hbo is premium to hbo now that makes it more difficult to addbe subsc. >> they will give to 10 million

subscribers and we can expect a free trial to get consumers hooked. all of streaming services looking for allies distribution partners to give theea a start building the subscriber base. disney pittnering wh verizon gichg 50 million subzureks access for a year. hoping that many will sign on themselves when the year is up. >> contein is that's the way for these services like verizon like differentiate.&t to because the wireless creators are equal. so content is a place to differentiate. >> apple tv plus. >> meanwhile apple, offering a week free for tv plus, isn't partnering with a mobile carrier. but rathehe leveraging popularity of its zpss to get consumers hooked. it's giving away a year fre to anyone buying a device. and one analyst estimates over 200 million iphones alone will sell in. the next ye for nightly business report, i'm

julia boorpts 199los angeles. >> before we go let's take a final look at thedays's numbers on wall street. the dow fell 19 pointso 27 t 071. the nasdaq was down 49. and the&p00 slipped 2 after touching a new high during the trading sessi>. nd that is nightly business report fors tonight. i'm sue herera. thanks fors. joining have a great evening. we'll see you again tomorrow. ♪ ♪ ♪ ♪ ♪

woman: this is "bbc world news america." is made possible by... the freeman foundaon; by judy and peter blum-kovler foundation, pursuing solutions forne america's neglectes; and by cutions to this pbs station thank you.