♪ >> announcer: this is "nightly businesseport" with bill griffeth and sue herera. changes at the top. united airlines ceo surprises investors. cing he will step down after guiding the cpany through some turbulent times. controversial drug, biogenl es new information on the experimental alzheimer's treatment and the results are complicated process. changing the the nfl set it to file a petition with the supreme court appear could change the economics of how you watch football. those stories and more tonight on "nightly business report" for thursday, december 5th. and w do bid you good evening, everybody, and welcome. there is a letteredship change tonight at one of the biggest airlin in the country. united c oscar munoz is going to step down after more than

four years in that position. he oversaw one of thein stry's biggest turn arounds. it's still ongoing. he alsoou navigated t some challenges, including cost pressures, labor deals and pr crisis. shares of united fell a fraction today but the stock up about 60% since munoz took over in 2015. phil lebeau has more on the transition and the man will be the next chief executive at united air. >> oscar munill soon exit the pilot seat at united executive kmarm and turn over the ceo job to the president of united scott kirby,ho has been with the airline three years. in a message to employees, munoz says this is the tht rhyme t make the switch. >> this is the meant to be a amless transition until may of 2020 scott and i will continue in the same roles doing the same thing you've seen us do before. specifically from my perspective

on customer culture around our tantly for y employees. >> munoz can smile now but when a pasranger wased off the united plane, the airline became the post-er boy for bad service. add in a route structure sorely in need of upgrade and you see why it trailed competitors in every key metric. enter scott kirby. who laid out a strategy for t unit add flights, especially in the hub cities. those additional flights have made united more efficient and more profitable since the start of 2018. in his message to united workers, kirby said he airline can rise to even greater levels. >> we have ang incredibly str position and incrediblyright future ahead. d personally'm excited to spend evene more tut with all of you listening to you, sharing your enthusias for the future and together building the best airline in h thetory of aviation. >> shareholders like what they have seen from united. the sto easily outperforming shares of other airlines in the

last two years. oof that munoz has united on the right flight path after a turbulent start to his tenure. united may be doing better. s but it'sll facing a number of challenges. including bringing back the 737 max, which has been grounded since march. those planes are set to return to united's fleet this spring. right before scott kirby is echeduled toe ceo. phil lebeau "nightlrtbusiness re chicago. a choppy day of trading on wall street. esocks finished little changed irs looked ahead to tomorrow's employment report and triedo make sse of the latest headlines on trade which we'll get to later in the program.the dow jones industriae was up 28 points to 27677. the nasdaq andhe s&p 500 both rose 4. there wasrama in vienna austria where opec members met earlier today. the oil cartel was widely increase productiots.intain or and then make the announcement

ring the traditional press tconference. one of that happened. the meeting did not end when and the press conference was abruptly cancelled. brian sullivan filed this report from vienna. >> reporter: it has been a day of surprises here in vienna, austria, at opec headquarters where it was supposed to be a relative quick binnual meeting where they contended cuts of $2.1 million barrels a day. past 10:00 p.m. local time, the ministers are inside the headquarters and they just cancelled the press conference. normally where they make a deal th put out a short statement, sit in front of about 20 oh journalists and answer questions. the press conference not happening tonight. according to our sources there are still multiple issues at play and it's possible what was suppos to be an eas opec meeting cou be bleeding into day 2 when russia gets involved with what they traditionally call the opec plus friday. a day of firsts here. first meeting with the new

energy minister of saudi arabia and a day of surprises whereas of right now past 10:00 p.m., ns dealeen made and the price of oil and the oil markets are watcng the meeting a lot more closely now than they were before. brayen sullivan for "nightly business report," vienna, austria. and for those invested energy stocks, it has been a rough road for quite some time. bob pisani looks at the troubled sector and what might comxt. >> it's been a tough year and brults last ten years for energy stocks. call it the lofts decades are decade for energy investon especiallye context of the broader market. the s&p up 180% in 10 years. in positives barely territory up a measly is 6% the far in a way the worst performing in the s&p. consumer d cretionary technology, health care all up 200 to 300%. ten years ago exxonmobil was the in the s&p 500. largest company market cap 32 billion, since

then, it's fallen to the 13th largest firm in the index about 290 billios but tha also largely a result of exxon's longstanding chain oe buybacks over years. what about 2020? om argue with supermajor oil behemoth by the chevron abthe bp, royal dutch shells exxons of the world offer good dividend yields or maybe anttctive entry point. bp and royal dutch for example looking especially cheap but that's mostly a minority view. the majorits majority and i will believe supply will are grow in the oil business likely up 2 or 3% next year with demand unlikely to be up that much. so the bottom the market is going to remain oversupplied about oil and that' the biggest pressure on oil and oil stocks. for "nightly business report," i'mobisani at the new york stock exchange. >> in other news biogen presented detailed data on the rest you are absentingedpe mental treatment for alzheimer's, a diaz for which

there is no cure. that's why the highly anticipated presentation today got attention. but in the end analysts had a hard time parsing the new information. meg yrrell hasmore. >> dwefrlg new medicines is hard more any disease but the track record is particularly bad for alzheimer's. it's been about 50 and 16 years more than a decade since we had a new trement approved for alzheimer's. >> the word for the first drug potentially slowing down the loss of memory and ability to function coming with alzheimer's was greeted with excitement by in the medal community and wamz. biogen made news in october when armed with new data said it's medicine may work. alzheimer's today presenting the information for the first time at a scientific conference. afterwards panltt panelis sharon cohe weighed in on what they might mean for patients. >> you're talking about people at a mildis stage ofse still being able to work, bank shop, travel, enjoy leisure activities

for longer. >> but there is a lot of skepticism about the drugs cause the resul of the two clinical trials are anything but straightforward. >> one study really worked reallyell when you look at the data there was a clear dissociation of the curve. pmean thece bo do did one and the active arm did another that wasositive then the other study which is called engaged, which didn't ectly work. and that remains complicate zplood biogen stock rosas the company plans file for regulatory approval early next year. thatecill put theion in the hands of the fda. with more than 5 million americans lifl with alzheimer's thosen the research community are hopeful t renewed focus may spur momentu acrosshe space. today there are over 130 ongoing clinical trials in alzheimer's and dementia research testing a riety of approaches and i think that's one of the things we have seen in the last feist five years is a diversion fieks of therograms going

forward. >> progress couldn't come soon enough. l time toook at the upgrades and downgrades today. nike upgraded to buy from utral at goldman sachs. the analyst says china will be a key driver and expects a stirp accele in earnings growth. the price target is $112. the stock up 2% to 95.79. facebook was upgraded to buy from mold at stifle nicholas. the analyst cites the growth tlook and solid ft. iftd htdls fundamenith be gaining a fraction to 199.23. >> qeas upgraded at morgan stanley citing the leadership position at the company as online head replies retailer price target, $30. shares rose to 24.33. and apple's price targeto raised$300 from 250 at citi. the analyst is betting ones stronger snd profits for the tech giant this holiday se hon. the fir a buy rating on the

stock by the way. that stock up more than 1% to 265@58. still ahead, a new tax proposal that raises trillions of dollars from another democratic hopeful. ♪ ♪ general motors is korea's lg cams to build batteries for electric cars.ni the com investing up about 2.3 billion-dollar for a joint vent yur. it's a factory located near loerdstown ohio. sd executives from both companies it's an investment in the future. >> general motors believes in an

all electric future. is is a critically important part to make sure we have high-quality, reliable electric vehicles te also affordable. >> according to gm, the is expected to create 1,1 new bs in that area. the treasury secretary said day that trade talks with china are on track but that they are not bound by any specific deadline. steve mnuchin said the northbounders have been actively working toward a deal. in the meantime dow jes is reporting that the value of china's farm purchases from the u.s. still remains one of the main sticking points. and today fresh numbers on trade were released preponderate the dicit fell to about $46 billion a 16-monthec low. omists say the dip is due in large part to dip in imports from china. new orders for u.s. made goods rebounded in october and factory orders rose 0.3% thanks to increase in demand for machinery

and transportation equipment. and the number of americansli for unemployment benefits fell 10,000 to 203,000 returning to a nea 50-year low. wellhen it comes to the economy, taxes obviously pay a big -- play a big role both corporate and individual. for the democratic presidential candidates. joe biden is the latest now to propose his own plan. robert franke has details. >> reporter: joe biden releasing plans for over $3 trillion in tax increases in the next decade to pay for health care, clima a chan education plans, about half coming from the wethy and half from new corporate taxes. on the business side he proposes a new minim corporate tax that's aimed at companies like amazon and netflix that are profitable but pay no federal income taxes. now the t would be 15% on businesses with more than $100 million in net income. the cpaign estimates raising about 400 billion in revenue

over ten years. now whi many say it's unfair for corporate giants like ibm or fedex to pay no federal incomex others say the minimum tax could hurt investment. >> eve tim we have seen corporate taxes go up around the we see workers, the growth in worker wages go down. and that's what i fear would come under the proposal. >> now biden a to wants raise the corporate tax rate to 28% from the current21%. and he would double the minimum tax rate on the overseas income of u.s.-based lemultiannab hoping to raise $200 billion like ireland and bermuda, those helping companies lower taxes. biden's biggest taxes come from the wealthy rai tng the rate back to 39.6%. and the biggest tax of all is the one on capital gains. now he proposes to tax capital ins at the same rate as ordinary iome for those lucky enou to make more than 1

million a year. that means if you sell a stock you wod pay a tax rate of 39.6% instead of current rate of 20%. that would raise over $80 oh billion over ten years. biden hopes to highlight his more moderate spending with the tax plans of eliza th warren and bernie sanders which are more than 10 timer. lar if a democrat gets elected they're going to try to raise taxes and they're going to try to raise them on the high end. t really isow, t going to be the case no matter who wins. and now we have whole continuum of plans. >> biden did include one small gift to the wealthy, eliminati the $10,000 cap on state and local tax deductions. r "nightly business report," i'm robert franke. sage therapeutics loses more than half of the value. that's we are m begin theket focus with the biotech company releasing disappointing results on experimental depression drug. the company also said the treatment failed to perform

bett than a place bo in reducing depression after 15 days. still sage maintains that drug does have promise. but the shares plummeted by 59% today to 60.18. dollar general raised the full-year profit forecast after topping earnings expect iksations. the discount the chain reported the best quarterly same store les inearly five years. citing a better selection of products and redesigned stores. the stock rose 1% to 155.10 p. but a different sto tor for michael's the craft retailer reporting a decline in comparable store sales and lowered guidance for the holiday season, the company also recorded aon $30 mil impairment charge which affected its profitability. and the sto dropped b 15% to $6.08. kroger missed wall street profit and renew estimates amid incr fsed competitionm wal-mart and amazon. the company is also divesting

investment in the upstart natural food chain lucky food market which it purchased in 2017. the largest supermarket chain in the u.s. has been investing heavily in the digital operations in an effort to grow online sales and improve delivery. the stock fell 3% to 26.80. brown forman reported better th expected profit and sales in the recent quarter. but trimmed the operating income growth outlook. the alcoholak beverage cited the current economic environment in certain emerging maets. the stock fell 6% to 63.57. tiffany rorted earnings and revenue that fell short of analyst expectations. e luxury retailer cited soft lower spending by foreign d to tourists, offsetting 10% growth in mainland chf. toughny recently agreed to sell to lvmh for $16 billion. the stock down a fraction. the merger between vooian ce

cbs closed. the two media companies are united after a decade apart. the new company expected to focus on content as rivals like disney abapple and amazon ramp up their own streaming and original shows. the shares rose a fractn to 40.86. there's been a lot of news in the sports business lately. as we reported last 19 hedge fund billi steven cohen is in talks to buy a controlling stakes in the new york mets. there are reports that the yes network home of the new york yankees may stream games on amazon. the nfl is expected to file a h the supreme court that could alter the way the league sells the broadcast rightsts to games and change the way you watch those games. > and the hig court's decision means billions of dollars are at stake. drew grant with the morad centaw for sports at villanova. joining us to talk about that. welcome, andrew ne to see. >> you good to be with you sue

and bill. >> currently they pool the telecast rights to lived games collectively negotiate the licensing and other details. if this goesefore the supreme court, how might that structure change? and whatacould the i be? >> if it does change -- and we haveit a ninth cirpinion basically saying direct tv could be a violaton. if t changes we have a whole new world potentially with the nfl. there are a couple of hoops you have to jumphrgh beyond the legalities. because the nfl has a system set up to support everyone, where it's clectively poole television as you know process. every game you watch on tv is a that could change. >> i mean in major league baseball each team can sell their own rights. the same in the nba. i'm an nfl owner why wouldn't i want to sell the local rights to my games?'t woulou make more money doing it that way than national level f. the leag >> the league will tell you

differently. they say you are only as good as the weakest link. the fact they can pool the rights together is creating the massive media deals with espn, fo cbs, nbc, et cetera. they would tell you differently. nowil a maverick owner say, you know, what if this decision goes the which we talked about i'm just going o and do it? i'm going to sell -- pick a team, the dls cowboys to the local regional cowboys network and make that individual money rather than 1/32nd of everyoneless but the article 10 in the nfl by laws saying you don't infringe on other rights and you support everyone else.er that's ano hoop the owner has to jurp through perhaps suing the nfl to do so. >> what's t impact on consumers? say the scenario that you loud indeed happens. you have a maverick own who decides to go against article 10 and go out appear sell their own howat going to play out?

s rights. >> you know, i think what youh reference w major league baseball, with basketball, with hockey, all the people watching who watch those games think about it. w youch a local network. you wind chill the local regional sports network. wh you watch an nfl game you watch nbc, abc, or espn, much different. if it were to go the way of the other sports it would be much more localized which would serve a fan base o your local team. but as we know and as nfl will tell you every tim you talk to them, the nfl is a national sport. >> right. >> it's not a regional sport.he so nfl will tell that you that will not serve fan's interests better than the current way. >>ndrew brandt with villanova. >> and coming up, california legalized recreational marijuan thars ago. so why aren't any cpanies compliant? ♪

♪ ♪ ♪ ♪ ♪> here is a look at what to wind chill for tomorrow. the government releases monthly employment report. estimates are for the creation of 187,000 jobs in november. consumer sentiment and wholesale trade will also offer some hints into the health of the economy.e and t-mo law firms the nationwide 5g network and that's what to watch for on friday. finally tonight as we mentioned recreational marijuana was legalized in california three year ago. t it turns out a maze of rules and regulations imposed on that

growing industry and in that state makes doing business there very difficult. jane wel a is in leles for us tonight. california's green rush q h note panned out. going legal in the marijuana industry has turnbe out to a lot harder and moresi exp than people expected. just ask melissa ietheridge. took two years for us to get ouranufacturing lic in santa cruz county. we are the only one there. this is santa cruz. >> etheridge sales marijuana lped and healed her during comb chemo and for years she has been tryinet to a legal license t start her own farms. >> what's happening in i california a tragedy. >>he is working with julie croc et of mlg. in one of the growth areas of the budding industry. complian >> is anyone ccapliant in foia? >> i don't believe that they are. i -- i have yet toe- i het to conduct an audit of a single facility that 100% checks a

the boxes. >> that's because california's rules are so strict and complex. for example, unthe law you cannot give out free samples. that techically would include sales people handing out samples at trade shows to buyers. an everyone does that. >> the only compliant way to get e samples in the hands of the sales reps is to have your richys go to a retailer and buy >> with all the legal cannabis licenses and businesses popping up, the state expected that it could raise about $1.0 billion in cannabis taxes. has it gottennywhere near tthat? what's doing? raising taxes. >> the way that taxes have inflated the pces and made the industry unable to compete with a wildly successful illicit market is demoralizing for the operators who are licensed and trng to do it compliantly. >> in the end, melissatheridge thinks going legal will win out. >> there is no gifting up on mis. this is like -- i always talk

about how it's like my music career. it took me five years to get signed, you know to a major record label. >> she learned to be patient then. and scheel be patient now. for "nightly business report" jane wells, los angeles. and that's "nightly business report" for font. m sue herera. thanks for watching. and we want to remind you this is the time of year for public television station seeks your report. >> i'm bill griffeth. thank you for that support. have a great evening. see you tomorrow. ♪ ♪

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