♪ >> announcer: this is "nightly business report" with bill watching washington. a deal has been reached for a new nafta agreement. and that could have implications for trade negotiations with china. fighting fraud. aare look inside a secret s.e.c. room with the sole purpose ofrocting individual investors. >> mall rats. why the digital teen generation may be the o that saves shopping centers. those stories and more ton on "nightly business report" for tuesday, december 10th. and we do bid you good evening, everybody and welcome. onceag n, wall street's attention was on washington, because of new developments on trade. which as you well know has been a major focus for investors. early in the day there were

reports that u.s. and chinese trade negotiators were looking to delay the new round of tariffs set to take effect on sunday. that wasdown played by the white house. then a little later, theon administra and democratic lawmakers said they reached a deal to move forward on a trade agreement witexo and canada, replacing the north american free trade agreement with what is known as theusmca. a milestone that was more than a year in the makg. kayla tausche reports for us tonight from our nation's capitol. >> in mexic city today, a feelingf deja vu. north american negotiators gathering to celebrate a revised mca, more than a year after leaders from t u.s., mexico and canada signed the original nafta replacement. since then, house democrats and the white house have been negotiating behind closed doors, make the deal more enforceable and palatable to organizeds labor. >> t a day we've all been working to. >> house speaker nancy pelosi

announcing the agreement immediately after rolling out articles of impeachment. and was asked if president trump was unfit for office, why sign his signature deal? >> i would say we came a long way from what he originally proposed. what he originally proposed. and there are some people who said why make it look li he has a victory? well we are declaring victory for the american worker. >> the revised agreement h been many businessim ications. regular compliance of the deal's labor, wage and environmental provisions and removing prections for brand name drugs againstr generics. fo knows reasons, the deal will have outsized impact on the auto acd phatical industries. tom donohue from the u.s. chamber of commerce said the certainty will be a good thing. >> nobody will be 1% happy but if you look at jobs, economic growth, geopolitical common interest and nationalsafety, it's time to vote for this bill.

>> pelosi said the house vote would take place next week. senate majority leaderse r doubts the senate could vote before the impeachmental tn january. even so both sides of pennsylvania avenue hnl it as a or the u.s. economy. more "nightly business report," kayla tausche in washington. >> the agreement between house democrats and the white house pop a new nafta deal came amid quichement proceedings erasing early market gains. today house democrats took an historic step unveiling t articles of impeachment again president donald trump charging him with abuse of pow and obstruction of congress. >> we do not take this action ghtly. but we have taken an oath to defend the and unlike president trump we understand that our du first foremost is to protect the constitution andte to p the interests of the american people. that is why we mustak this

solemn step today. >> but house republicans disagree andefended the president. >> so, no it's not difficult to defend the president because this president did n impeachable. it's hard to defend democrats and how they r thi house and what they're doing inside the majority. that's the difficulty that i have. >> between the articles of impeachment and developments ono trade,s barely budged. the dow jones industrial average fell 27 points to 27881, the nasdaq down 5 and the s&p 500 slid 3. so what should we make of the market's lack of reaction to th news out of washington today? joining us tonight talk about that, kris contoso chief investmentis strat at river front investment group thank you for come back. >> thanks for having me. >> noeal response, when you consider trade has jeen one for wall street and now they've got a deal on the new nafta here. but no response.

what do you? >> well, you know, on nafta 2, i woulday the market generally priced this lron jamesly because in mexico a canada this has been agreed to a long time. injury that the market ug rightfully t this was one of the few places in american politics where a compromise could be reached at this point. and you heard it earlier in your program, bothinides are cla victory. there was enough -- there was enough in it for both sides to get to a dell. i think t markets had accurately sussed that out ahead of time that wase. the c now is it a good thing for the global economy, u.s. economy, mexican economy, in all fronts i yes.k the answer is but i think that's been largely priced into the really strong market rally we have seen in the u st few months. >> do ink also the market is counting if we can reach this agreement perhaps i bodes well for trade agreements with china? >>'smm. thn excellent question. i'd like to say yes. but i think the answer i more complicated than that.t

remember t nafta op the face of it, canada, mexico a the u.s. are all pretty close allies once you strip away politicot w have a in common including a continent. the trade deal between the u.s. andhina to me is really a -- it's a proxy war for something muchnd deeper more ideological. so i think that trade -- trade disputes with china are just a much more complicated situation. and likely to with us a lot longer than the dispute over nafta 2. >> let me go backo the new nafta. how should investors play thist if all? how would you advise playing it? who is the winner here thatou can invest in? >> sure. i'm one of the people that feels that global trade with lack of restrictions or barriers tends to be a win slb win/win for everyone. because as yo reduce the trade frictions that'senerally speaking an contributor to growth.

the answer here is it's good for global stocks and u.s. multinationalsarticularly some in more cyclical industries which he been left outf the stock market rally the last 5 to 7 years. it's also good at the marginor emerging markets of which mico is part of that index. and this i think relieves a big headwind for the mican market and also for canada it's positive. for all ahree nations i vie win/win. >> chris contoso with river front investment group. thanks for joining us. >> my pleasure. >> also in "wealthtrac house speaker pelosi said there will not be a government shutdown. she expects that lawmakers will be able to funder the f government into next year. the deadline to pass the spending bills is december 20th. to the economy now, and a new report that sd that worker productivity fell by the most in nearly four years i the third quarter. according to the labor department, non-farm productivity ez measuring hourly

output perorr fell at 2% rate pap and growth in the labor t.sts was not as strong as initially tha suggesting inphrasing does remain tame. as several reports show a rise in confidence among small busiss owners who s they are investing hiring and increasing worker pay. it was day 1 of a two-day meeting of federal reserve policy mak ws. marketsely expect the central bank to hold interest rates steady making the announcement foam. for hints about what the fed might be do next year. we have steve liesen to survey the experts. >> like a bear in the wint. fed officials look about to descend in hibernation. 100% of th spon to the december rates.ed survey see no change in week but all the way to june his 2020. even then, just 48 hers of the 3 respondents including fund managers, strategist and economists forecast a cut.

but the averages mask a big underlying debate about the outlook for growth that depends on what happened with the trade war. the averages s 2% growth in 2020 some see it rising as high asd 3% some see the economy contracting half a pint. otectionism and groebl economic weakness are far in a way the biggest threats that respondents see facing the u.s. economic expansion. kathy bosianic writes the risk to the inflation is downside appear the deal to fewer rates cuts remain open. but another wriepts the u.s. is ending 2019 with faster gchd and faster productivity and lower hours worked and lower inflation than start of the year. the same likely to be true in. 2020 67% belief that holiday spending this year will be above average and the chaps of recession in the next year fello 26% from 34% om in the prior surved

hat's what it would take to awaken the fed to action. absent a unexpecteddown turn in the economy and run away growth look for the fed toibnate through the winter and maybe into the mere. for "nightly business report, steve liesman. time to look at some of the upgrades and downphrased grades. all all downgrades. netflix downgraded at need many, the giant is at risk of losing millions of subscribers next year due to increased competition. the fm ha no price target on the stock. separately by the way, netflix said that so far more than 26 million subscribers haor watched dire martin scorsese's picture the irishman b financed netflix. the company expects the number to grow to 40 million viewers in the first 28 days after release the stock fell to 293.12. jp morgan downgraded to market perform at from

outperform. the citing the valuation o 37% gain for the tok this year. price target sub $135. the stock closed just under that price at 134.50. >> csx downgraded to neutral from buy at citi citinghood headwinds to earning growth. the stock feg 1 cent. the kmoermg downgraded to sell from neutral ats. goldman sa the analy cites the valuation after outperforming the peerst over the pwo years. the price target is $140. shares fell a fraction to $171.36. >> still ahead malrats are back ord could save shopping centers s.ile creating onities for

a bit of positive f news boeing today. the aerospace companyaid the november orders showed some demand for the trole 737max. but it wasn't all good. as phil lebeau reports boeing's commercial airplane business is on track for the worst year in more than a decade. >> for the t firste since regulators grounded the 737 max lastmarch, boeing has booked sizable orders for the trouble plane. in november, the company had two orders for a total of h0, 737 maxsping the business post a slight gain in orders st though the order book is negative for the year. but the bigger issue for boeing is the drop inie deliv this year. at 345, the aviation giant is on pace for the fewesteleries

since 2008. because the company has barred from delivering max models until recertified by the fa. a. while boeing targets recertification by the end of the year. th head of the fflt a. a says he won't kmiet to a time frame. it may not be dlerd to fly in until mid-or lart late january. >> steve dickson is testifying on capitol hill about how the faa handled the max and the hearing likely to raise more questions than answers. and unlikely to answer thepo mo ant question, when the max will fly again. phil lebeau, "nightly business report," washington. >> every investor wants to be otected from fraud. but very rarely do we get a look inside the s.e.c.'s enforcement cent. and a secret room where information isollected and protected. that is until now. bob pisani takes us on a tour. >> a lot of people have been to

the s.e.c., but almost no one has ever been in here, this is the forensic laboratory for the s.e.c. this is t room wre the s.e.c. conducts investigations that they have seized.omputers s in a gigantic room about 4,000 square feet and completely lined in copper look at the copper on the ceiling on all four sides. to prevent radio frequents from coming in attempting to wipe data off phones. niece are computers t used anltz the data he extracted from phones and computers. it's amazing the information that can be retrieved. these are phones broken or thrown into a river. get the data yet the data can be extracted. there is ray audio investigation room where they can remove extranz noises from cell phone conversations and aye people using voits print matching. >> the air conditioner must be turned off. >> much of the technology wasno even available five to ten years ago. >> technology is getting

sophisticated on both sides. >> the chairman jay clayton madc protting investors from fraud sisters and scammers a top he a simple message to the scammers. >> i want badctors we are looking at them and finding them. >> for "nightly business report," bob pisani at s.e.c. headquarters in washington. bit may be facing scrutiny.it that's where we begin the market focus tonight. according to reports the $2 billion purchase will be reviewed by the department of justice. the federal trade commission also wants the authority to the concern is that owning fit the bit would give the google division to access to more customer private data. shares fell slightly today. exxonmobil has won a legal victory in a long running climate change fraud case. argued the companydown played financial risks it faced from possible climate regulation but the judge hearing the case ruled the ag failed to prove. flori

the judge, though, did not excuse the company from anyun acbility for global warming. exxonmobil hailed the ruling and said that the trial stemmed from aaseless veg. the stock fell a fraion to 69.06. auto son reported better thap expected earningsle and past revenue estimates marking five quarters ofouble-digit growth for the company process the. the cmercial sale division, the auto parts rae tiller said gross margins are improving sending up the stock 7% to 1250 even. >> a disappointing quarter for design areerands. hoe retailer formerly known as dsw reported quarterly earnings missing analyst expectations. the company cut the outlook for e year and said it expects 2019 comparable sales growth to be ft comparedith the previous guidance of low single digit growth. shares dropped 16% to $14.23. there are reports tonight that new yorkur life ice is

negotiating with cigna to acquire the non-health benefit unit. according to the "wall street journal" a keel could be valued at about $6 b. potential buyers also include met life and sun life. financi shares of cigna fell so did met but sun life was higher in today's session. and late today, discount retailer oly's reported better than expected earnings and revenue. the company said the interim ceo, a company veteran will take ver the role on a permanent basis.the stock rose sharply in initial after hours trading after rising a i fractiothe regular session to 60.30. game stop c the outlook following worse than expected third quarter result the video game retail are reported a quarterly loss. expectations had been for a prophet. the ceo blamedun an ess present dented decline in declining console sal a consumers wait to buy the next hardware. of gaming the stock dropped in after hour trading after rising in the

regular session close at 651. it's no secret the nation's malls are ailing right now. most experimenting with various waysget customers in the doors. nowewhere is a strategy. it has a lot to do with teenager diana olick in philadelphia tonight for us. if millennials killed malls teenagers wilrevoif them. that according to new research from cbre a according to major reits like preet which opened this $400 million project fashion district in downtown philadelphia. cbre says 81% of teens prefer shopping? stores and gen z spending increased to $143 billion this year. teens influence60 billion in spending. >> they are huge fans of what's known c asck and collect. click online and pick it up in the store so they ca get the tangible experience, the social experience and then the key is that they are buying more.

>> so teen foot traffic is the new rent. fashion district has one of only three possibleup canditopias in the nation. amusement park upon a sugar rush with a marsh mallow pit. movie theater, bowling aly and teen apparel stores. >> we have done redevelopments ovo the past threeve years. and we're seeing upticks in the c in the mid-to high single digits. yes, but that's n to suggest every mall is a winner. that would be foolish to say right now. i mean, people have said that 40% of the malls in the coury are obsolete and i've sold off 50% i don't want to own. >> preeet is investing in investing more hoping to change the concept of a mall and see explosives new growth. for "ghtly business report," diana olick in philadelphia.

som which are of the real estate investment trusts helpg to change the mall concept? alex fitzgerald manager of the consumer retail practice at a.t. carney joins to us discussni it. to have you with us tonight. >> thank you for having me. >> you say the mall is not dead. it's just evolving. and diana gave use instances of that. but who is on the forefront of transforming tal m? >> you know, we see names like simon and brookfield. trying these new experiential offerings aimed at the younger ee vochlg consumer. >> do you buy the notn -- i have to say i'm skeptical about the notion that teenagers are going to go back tthe malls for shopping experience. i mean,ou know, it's all about online and we know that target and wal-mart like to have people shop online and then pick up in thetore. but are teenagers going to the malls for that shopping

experience necessarily in. >> yes, this is a great piece. and actually a common misconception. what we are seeing in a.t. carney research supporting this as wellt' is less about digital or instore and more about the seamls experience tween the two. you are seeing a lot of the click and collect gain traction. maybe the purchases are happening online. actually the store isyi p a more important role. actually, gen z's are showing a preference to stores more than millennials did. so there is some truth to t resurgence of stores. but it's not just stores it's a digita store together. >> do you -- do you buy the notion that once the tn orhe consumer for that matter gets to the mall to pickr up whate they've clicked on that they actually do spend more in. i do. so -- and think this is as we -- thevidence supports this, the data supports it but also myopersonal experience

suppts it. nothing like i theulse buy once you are in the store. and the key is really for the rtonc t theinkug consumers are store and tempted to brouz annual buy. >> we should emphasize again you felt like simon properties and brookfield with the real estate investment trusts on the >> yes, and i would say there are a number of interestingme expes happening now and that's what they are and should be, right? it's what are those a the so of assets-light investments that can bee m in order to test and learn through the reacting to. >>ia. >> and how can we expose them to more of. >> i want to kw what a mar be mallow pit is. >> don't we all. hav to go to the mall. >> i guess. >> thanks for joining us, ax appreciatet.

>> thank you. coming up solid gold, a famous watch up for auction. you will not believe how much it could fetch. ♪ ♪ here a lack at what to watch tomorrow. as we mentioned federal reserve policy makers decide on interest rates and hold a press conference to address monetary policy and the economy. the consumer price index will tell investorsf inflation pressures are building in the economy. and the head of the a.a. will stify in front of a house panel on the certification of the 7 max. that is what to wind chill for on wednesday. > finally tonight one of the most famous watches in the

sports world could bec oe of the most expensive ever auctioned. robert franke has the story of an icoc rolex. >> jack nicklaus's goldex r mes up for auction at a sale hells by phillips in association with box and rousseau. they say it could be the more pensive watch at auction if it could surpass the $17.8 million that paul in 2018. now this has almost myth cal status among watchle cors and golf fans. >> this is worth more than i am. >> for more than 50 years it was the only watch he wore. on his wrist wein he recved 12 of championship he menta ttions. 8and aside froajmor when he act played almost every photograph of the golden bear includes his golden rolle pch which he got as a the gift from rex in 1967. >> i didn't take off with aon watch but it came on as soon as i came

course. it came back on me. every time i'm with a terrify every time i travel i have a picture with bhee with the watch. >> all the proceeds go to his charity, the nicklaus children's health care foundation. nicklaus said he hopes his favorite watch will help buy health care for countless kids who can't afraid it. >> to me, i miss this one. but i know it's going to do for good than on my wrist. >> the collectible and secondhand watch market are top $16 billion at the auction houses and marketplaces like watch walk and watch finder attract a bered of you buyers. also sellingill be marlin brando's stainless steel rolex which he wore in apocalypseow. bidding starts in the six figures. sold by brando's daughr who is

also giving the proceeds to charity. for "nightly business report," >> and we'll keeou posted on what they bring. before we go here is a lookin a the numbers from wall street. the dow fell 27 points to 2781. the nasdaq down 5. s&p 500 slid 3. and that is "nightly business report" tonight i'm sue herera thanks for joining us. >> i'm bill griffeth. have a great evening. see you tomorrow ♪ ♪ ♪ ♪

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