this is "nightly business with tyler mathisen and sue herera. getting together. will today's big merger in the semiconductor industry kick off a bigger wave of consolidation. e future of cancer therapy and why scientists at a high-tech lab say the future is almost here. catch 22. which comes first, saving for your retirement or your kids' education and how can you save for one without jeopardizing the other. all of that and more tonight on "nightly busin" for thursday may, 28th. good evening. everyone. i'm sharon epperson in tonight for sue herera. >> and i'm tyler mathisen. welcome, everyone. it is the biggest deal ever in the semiconductor industry and it is being driven by the increasing need for speed. for people to be connected fast

to the internet wherever and whenever they are choose. the price to buy broad com, $37 billion, a deal we reported deeply in the works last night. the combined company will have technology from smartphones to tablets, modems data centers as well. shares of broad com fell 1.5% and that f% rise y on speculation a deal was near. avago shares closed higher by a faction. bertha has the story on the deal and the flurry of activity in the sector. >> it is a record setting semiconductor deal. avago is paying $37 billion to acquire rival broad com which makes wi-fi chips for samsung and apple phones and internet

modems and cable tv boxes. >> you are combining one of the best engineering teams in all of technology and i'm referring to broad com with arguably the best management team in the semiconductor industry. fg avago has a terrific traffic record around acquisitions over the past couple of years. >> if they are so strong why merge. analysts say demand for chips has slowed particularly in the pc and corporate enterprise markets, leaving too many players without enough growth. >> it is an in sanely competitive supply market. we talked about companies like avago and broad com but there are so many companies that we've never heard of that are successful suppliers. >> the result is a wave of consolidations. anx broad semi for $11 million and intel is in the hunt for

acquisition and avago will now become the third largest u.s. chip maker after the deal for broad com closes although the headquarters is in singapore. >> it gives them a huge advantage against other semiconductor companies in terms of making acquisitions and to kick out more cash flow. >> analysts say oovrg's aggressive move will require others to look for deals as well. expect more acquisitions ahead. bertha coombs "nightly business new york. there have already been $110 billion worth of tech deals this year. according to rich peterson of s&p capital iq tech deals will pass $170 billion, topping the dotcom frenzy of 1999. and now the stocks on concerns over greece and the debt. and more on that in a moment.

and chinese stocks plunge 6%. by the close, the dow jones phoenix fell to 18,126 and the nasdaq declined eight and the s&p 500 dropped 2 points. and home sales hitting lowest level in nine years. the national association of realtors based on previously owned home contracts rose in aep. and unemployment benefits rose by 7,000 and the number is at levels consistent with the strengthening labor markets. th nation's productivity data may have the same probes in the gdp. over a three year period first quarter runs a full percentage point below the average for the economy. there was acknowledged problems

for the first quarter gdp and plans to make fixes. >> the seven wealthiest nations, the topic not on the agenda that is getting all of the attention there. steve sedgewick has more from dresden, germany. here on day two of the g-7 financial ministers and central bankers meeting in dresden, germany. the unofficial talk was still about greece. we had lagarde dashing market hopes that a quick deal with greece will be done saying there is an awful lot of work to do between creditors and greece to get a deal on the table. i spoke academic who said that o think that greece would le is being optimistic because that is unchartered territory and it is about getting growth back

into the economy and the meeting was moderately pessimistic and where one view such as the g-7 would be in a long-term slowdown in terms of growth and never see the more dynamic levels of the past decade or so. other key issues include tax evasion, stopping corporates moving profits from one country to north and also mark carney the governor of the bank of england is due to give a report and code of conduct for financial sector companies. steve sedgewick in dresden for "nightly busines teva pharmaceutical will settle abt trust charges. the ftc said one of the subsidiaries blocked a popular sleeping pill. it is considered a victory for the government in the campaign against a drug industry practice nobody as pay for -- known as

pay for delay. >> we estimated that the pay for delay deals cost taxpayers billions of dollars into inflated prescriptio drug prices. >> and the settlement was a record for the agency. >> tyler, the year's biggest cancer research conference begins tomorrow in chicago where the latest advances in treatment will be discussed. one of the hot topics is the cancer therapy of the future. meg tirrell has more from inside a facility in morris plains new jersey. >> it sounds like science fiction. a new way to treat cancer that involves removing a patient's cells, equipping them in a lab with super powers and returning them to hunt and kill tumor cells. known as car t, it may be close to becoming a reality, showing in early clinical trials to help patients with leukemia that stopped responding to other

treatments. tests in other cancers and immune disorders and diseases will be treated. we don't know if it is thousands of patients or tens of thousands of patients or in best case scenario many years out it is even more. it is a whole new field of medicine very exciting. >> head of nev art is pharmaceutical bringing it to market. car t is a form of immunotherapy. nev art is said it requires a whole different manufacturing process, melding a lab with a manufacturing plant. the swiss drug maker is ramping up what it said would be the first of its kind in morris plains new jersey. patients cells go through a gu journey, tracks from the hospital where they are treated to the facility similar to air traffic control. they arrive on ice, dry ice that is.

before being sorted to isolate the right ones for the procedure. manipulated to better detact and fight cancer and then multiplied to pack a powerful punch when they return to the patient. >>ster illity is so key. they must suit up with multiple layers of cloeting. i have multiple layers of boots and pants under these pants and suit coat head covering goggles sand a mask -- and a mask. >> novartis can work on 48 differens at the same time and each one kept separate and monitored 24 hours a day. researchers think of each set of cells as an extension of the treated. it is tailored to each patient and it is a unique process. we think of it as a patient, not a bag of cell. these are patients with no other options and this is their last option and so we take it

seriously. and other companies are taking it seriously. juneau therapeutics said in february it signed a lease for a manufacturing facility in washington state, expected to be up and running early next year. the therapies must still go through vigorous safety testing. if all goes well the first product could reach the market in 2017. for "nightly business report," i'm meg tirrell in morris plains new jersey. >> still ahead, the big risks are taking to prop up their depleted pension plans. sare taking to prop up tare t pare takitare teare taking to p sare taking to are taking to prop up more now on that massive global bribery scandal hitting the biggest sport in the world,

soccer. the president of the governing body spoke at the annual congress for fifa first remarks since soccer officials were arrested yesterday. we have the latest from zurich switzerland. fifa's 65th annual congress kicked off as planned today, despite a storm of controversy facing fifa and soccer. that means the presidential vote will take place on friday despite opposition. earlier today the head afa outlined how he tried and failed to convince the president blatter to step down. >> i said you have to stand down. and he said his strategy was to bring all of t congresses to convince them to work for him and he will say look at the democracy, the democracy of the

most number [ inaudible ]. >> speaking at the opening ceremony the president outlined his views on the accusations th have arisen over the last 48 hours. >> we will incorporate, with all corporates to make sure anyone involved in wrongdoing from top to bottom is discovered and punished. there can be no place for corruption of any kind. >> criticism for fifa has come not just from the world of football but also from their sponsors. we've comments from the likes of nike coca-cola, budweiser and visa willing to withdraw sponsorship if things don't change soon. one person expressing support for the president blatter was russian president putin who feld the d.o.j. indictment was a sign of the u.s. trying to reach

beyond its borders and potentially trying to stop the president blatter from being re-elected. fo "nightly business rep wilford frost in zurich. abercrombie and fitch loss was wider than expected but shares surge and we begin with the market focus. they miss on the top and bottom line but expect sales trends to improve through the year. since the departure of mike jeffries in december they have made an effort to reinvent itself by limiting to local central focus. express also offer the investors an up beat forecast. profit more than doubled in the first quarter as they scaled back promotions and sales rose more than experted -- experted. earning guidance topped consensus, closing at $17.41. cosco out with a mixed report. revenue and same-store sales

missed forecast and hurt by lower gas loan polices -- gasoline prices and off a fraction to 21 had the $46. and go pro, the action camera maker will develop quad copt ore drone cameras which they except to be out in the first half of next year and making camera mounts for the virtual reality market. ceo nick woodman said the new gadgets are a big opportunity for the company and investors seem to agree sending shares up 6.5% to finish at $56.81. > tomorrow is may 29th, 5-29 day, and choosing whether to put savings in a 529 college saving or a retirement account is a tough choice for some parents. how do you save without hurting your own footbl security financial security. here is what some say you should do. >> it can be tough to juggle.

save forge college and retirement at the same time. many parents don't think they can save for both. and some are expecting to delay retirement saving to cover college bills. >> i think parents should fund college education period. i mean if they have not set up a college education fund for their children before they retire and their children are going to college, then yes, i think they should use their retire fund. >> more than half of parents in a t. rowe price vur v.a. would rather dip into retirement than have their children take out student loans. but there are other alternatives. you think parents need to think about which school is best for kids. if you have a student that is a high achiever it might be worth it to send them to a certain school but going to an in state college or something affordable

could be a compromise if you haven't saved up much to put for education. when it comes on where to save many use 401(k) or workplace retirement and some use a 529 plan. but more thanain quarter of parents don't know what a 529 plan is. financial adviser laura lions cole urges family members to contribute to a 529 to grow tax-free and the money can be withdrawn tax-free for higher education expenses. >> if you open up a 529 now you can say grandma, grandpa, when the holidays roll around contribute toward junior's college fund. that is smart for young parents to do. >> and then keep 401(k) and others for retirement saving. >> it is important not to tap into retirement for college. can you take out student loans but you can't take out retirement loans to you need the money later on.

>> but research shows many parents are willing to delay retirement to pay for college. there are ways to save for both. several financial advisers you contribute to the the work fund first up to the employer match and then save for the 529 plan. >> some states want to borrow money to fix the pension problems and some are facing shortfalls in the public pension and forcing them to come up with alternatives and sometimes risky solutions to fund their problems. mary williams walsh wrote about this today. mary welcome. good to have you with us. this sounds like a risky business. you have a doubt, a hole that you owe to your pension people your pension plan and so what do you do you borrow more to fill that hole? >> yeah. it is a little bit surprising to see this going on now especially because detroit was bankrupt

last year and it had this type of debt outstanding. it was the first thing they defaulted on. there is quite a bit of risk there and people may not know about it. >> and not only might they default on the debt they take out a bond a municipality or a state floats a bond at say 4% and they are paying an arounditiage where they taye they -- they will make 4% or on the borrowed money and what if that doesn't work. >> a lot of time it doesn't work. the bonds are a fixed payment you have to make according to a schedule you moom issed -- promised to make and you put the money into the stock market and that goes up and down. and sometimes you are in the money and everything is great and when the market goes down you have a shortage and you have to deal with that because you have to pay the bond holders and the retirees. so there is two kinds of the debt you have to pay now. >> there are not many left but the wrooe tiries relying on

their pension, what does this mean for them? >> well yeah, the people waiting for their pensions this is a serious promise the government is making to them and you can't just tell people yeah yeah when you retire we'll pay you this money and when they do retire tell them sorry we didn't have it after all. you can't do that. you have to pay it. so probably rather than making the bond deals, if there isn't enough money for your pension plan look at it carefully and figure out what went wrong because they are supposed to be funded. >> they supposed to be funded. the alternative, if there is a hole there and they can't make good on their obligations, under funding and failure to pay are two different things but what are their alternatives? raise taxes which is political suicide? >> that is one alternative. you're right. places like illinois and chicago are talking about that right now. they have been told you have to pay this. there is not enough money there and so one of the things they

are going to do is maybe raise taxes. >> you have to raise taxes or find it from cutting some other program or some other expenditure right, i mean that is the only alternative. >> cutting another expenditure. and they just had a court tell them they can't cut the benefits. mary williams walsh, great story today in "the new york >> coming up california is seemingly running out of water and so why is some of it so cheap? jane wells has the story next. here is what to watch tomorrow second read on first

quarte product which is the broadest measure of economic activity in the u.s. and on the data front, consumer sentiment and that is what is on the agenda for friday. jp morgan chase will cut more than 5,000 jobs by next year to crim expenses according to the "wall street j the most recent phase of layoffs, the bank moves to emphasize technology and rely less on human bank tellers but it could askts the business units not just the retail branches. >> ride sharing companies like uber and lyft are used to getting resifrt ant but a new rule in the big apple is dealing not the compa driving but the apps and that has silicon valley in an uproar. call it new york tech. kate rogers has more. [ chanting ] >> today in new york city, the taxi and limousine commission held a hearing on proposed regulation over app based transportation companies

including uber lyft and get. the tlc are looking to regulate passenger app modification to protect consumers just as it does with yellow cabs and limos. >> that is not software and source code or any advanced programming that we a transportation regulator, are ill equipped to evaluate. we are primarily concerned with the passenger and driver facing screens to ensure that important safety and transparency rules are being followed. >> they say it is an overstep as they don't have new york specific apps and that means updates to the international apps which take place every few weeks would have to go through a new york city regulatory body. and the tech community, including facee signed a letter to the mayor de blasio are concerned about the precedent this may set going forward. the concern is this creates an unworkable standard and a

chilling precedent for new york. >> and other cities like portland have found success. but right now there is a midst of an experiment like uber and lyft. >> and one of the deals with uber and lyft they will supply us with a rich vein of data they haven't been made to cities and we will keep that confidential but it will tell us what is happening out there. >> tlc is considering testimony and will reconvene on june 18th. until then for these drivers, it is business as usual, apps and all. for "nightly business report," i'm kate rogers. what is water worth? drought stricken california it is worth a lot. you would never guess by the price of it because it is so cheap. we have more from oroville california. you looking at what is being called the cheapest water in the

country, and it is in ca how can that be? >> we have an abundance of stored water. >> here in this pocket in a state seemingly running out of water, the south fudger water agency has more water than it needs to service 7,000 customers near the town of oroville. it was built as part of a hydroelectric plant and that is sold to pg&e and subsidizing the cost to residents and about 750 gallons that customers use they pay 42 sts. >> how much do you pay for water? >> about $22 a month and i have three teenagers and my husband and i and we raise 4-h animals. >> i think we are fortunate to live in this part of the state. >> and not everybody is so lucky. nearby lake oroville is depleted and only south feather has the

rights to stuff. >> i think it is wrong. let's even it out a little bit. >> here is the difference. those at south feather thought ahead and built reservoirs when you can do that up stream with senior water rights they are first in line for the water. >> our recognize voir were built four our purposes and we are not obligated to anydown we believe the constitution defends our water rights and we'll defend those vigorously. >> and with cuts they have been ordered to reduce water usage 36%, even though any water saved will stay in the reservoir for their own customers but at the same time there is still enough cheap clean water that mike glaze is pitching oroville as a oasis for business. oroville has been identified as probably the best place in the state of california for biomass industrial generation. >> that makes power from water.

and oro is spanish for water and now something perhaps something more precious can revive its fortunes. jane wells, oroville california. and that is "nightly business for tonight. i'm sharon eps, thank you for watching. and i'm tyler mathisen. thanks from me as well. have a great evening, everybody. and we'll see you right back here tomorrow night.

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