. this is "nightly busine wit sue stumpf out. late news tonight, wells fargo's ceo retires effective immediat in the wake of the big fake account scandal. >> soon-ish. that's when some fed policymake think interest should rise. today we learned about the depth of the divide. >> aging and innovation. older america are tech-savvy have unique needs and disposable incomes to boot and startups are taking notice. those stories and more tonight on "nightly bu for wednesday, october the 1 good evening, everyone. a big story develops late today. wells fargo's embattled ceo, john stumpf, is retiring, stepping down as chairman and

ceo, the move effective taking over the top job at the big bank is current wells fargo president, tim sloan. the big shakeup at one of the nation's biggest banks follows the high-profile fake accounts scandal. wh the bank is alleged to have opened as many as 2 million bank and credit card accounts that may not have been authoriz wells farg paid a $185 million settleme to address the charges, but has since faced public outrage, and an angry congress. shar rose in after-hours trading on the news. dominic chu is following the wells fargo s for us this evening. dom, good to see you. how much of a surprise was this announceme >> this announcement may have come as a surprise to some people, but given what's been happenin with stumpf, with chief executive john stumpf and appearance he' made on capitol hill, the grilling, the questions he has taken over these practices that have perhaps showe some of the

fraudule type activs that some of their bankers had been a part of, allegedly, in this whole process. it doesn't come as a surprise to very many with regard to whether or n somebody had to go, and in this case here, it was the person really at the top, the chairman and ceo, john stumpf. and, of course, guys, this is something where he is not getting any kind of a golden pae package, not getting a severance package. he'll collect his retirement bene from the company. but still, tiler, a very interestg developmen >> that was going to be my question. this has cost him his job, will it cost him money and will it calm the outrage? >> again, it's already cost him some money. they have clawed back certain parts of his compensation. total compensation. they made an appoint, a spokespers wells fargo, to say that john stumpf will not be the recipient of any golden pair chutes, also normal retirement benefits that any employee or executive the would be entitled to. there is going to be about a six-month lag before he can really capitalize on retirement

benefits. that a normal waiting period for those goi through the retirement process. and that's the reason why, perhaps, a lot of people say this is maybe the best outcome, if you want to say that, for both the company and for john stumpf. it's been a smooth transition. there was not an oust type situation. -- it appears as though through the statements they kind of agrd to this. and in the statements, guys, they both said the new nonexecuti chairman, this guy, steven sanger, as well as outgoing chairma and ceo, john stumpf, both said they believe that new leadership is required at thitime, given where the company stands. >> what do we know about his replacemen from inside the company. and there were those calling for someone from outside the company. in other words, a real change in leadershipd ce in culture, perhaps. >> sloan -- tim sloan is going to be the new ceo. he is a 29-year veteran. he led basically every major banking unit at wg. there ar who would say that he is probably the best

person to take over as the ceo of this particular company, because he knows the operations there, the deepest. he's been the head of pretty much every single major banking unit there, and for that reason, perhaps some analysts will say this is perhaps a good, good appointment to that ceo level, guys. >> dominic, thank you very much. dominic chu, reporting. a peek behind the curtain, a peek behind the fed's closed doors today when the central bank released minutes of its meeting last month, consider crucial not only to the u.s. economy, but to the global one, as well. central bank policymakers laid the ground work to raise the short term interest rates relatively soon. the point of contention has to do with timing. some want to hike rates sooner rather t later. others want to wait. and as hampton pearson reports, it reflects the deepening divide within the world's most powerful cent >> minutes from the september federal meeting showed the decision not to raise interest rates was a close cal

but a majority argued for a delay, citing inflation well below the fed's 2% target with few signs of wage press and slack in the labor market. proceeding cautiously, the majority argument, could promote the doves have the argument with the data behind them. slow growth, nonexistent inflation, the consumer under precious with declining income, negative busin investment. but the minutes showed d divisions. the centers warn waiting too long could pose risk to economic expansion, tighten labor markets and damage the fed's credibilit they don't have any bullets left in their chamber. a recession coming and they don't know that unconventional monetary polic is the way to combat that recession. >> the september decision produced three rare dissents. regional bank president esther george of kansas city and eric

rosengren fro boston wanted the fed to raise rates at that meeting. the central bank will wait until its last meeting of the year in december before raising rates, the next meeting in early november comes just one week tifore the presidential for "nightly busine" i'm hampton pearson in the president of the new york fed says the american economy is on track to expand at a moderate pace for at least five years. speaking at the business council of new york state, dudley said the best way to do this is to -- use general it will interest rate hikes >> i think we're at a point where the economic expansion has plenty of room to run. inflation is a little bit lower target rather th above our i t we can be quite gentle as we go, in terms of gradually removing monetary i think this economic expansion can last a good while longer. >> mr. dudley also said there is still slack in the labor market, and that is one of the reasons why the central bank has been

patient, some would say too patient, in raising interes the number of job openings hit an eight-month low in august that. decline can be largely attribut to a drop in openings for professional and business servic pos. the number of people who quit their jobs remain mostly unchanged. this latest report from the labo does add to recent evidence that the pace of hiring may be slowing just a bit. on wall street, stocks struggled for direction, most of the day, and closed mixed after the release of the fed minutes. utilities and real estate. when said and done, the dow jones industrial average rose 15 points to 18.144. nasdaq lost 7. the s&p 500 added 2. from moscow today, an epic shocker. russian preside vladimi denied that his government was behind the hacking of the democrat party's e-mails. speaking at a busins forum, putin said "trying to influence the american election is not in russia's interest."

geoff cutme h more from the russian this is the first time the russian presi has seriously addressed allegations that moscow has been interfering in the u.s. presidential election process. he was here in moscow, attending a financial forum. and i took the opportunity to ask him directly about allegations that he had been involved in state-sponsored hacking of e-mails in the united . a claim he categorically denied. >> what we are observing, certai hackers have released certain information about how unseemingl mrs. clinton's headquar have been behaving during the election campaign. they have been supporting one party candida at the expen and then this issue started, this was done in the interests of russia. there is nothing there that is

in russia's >> reporte the president talking about how he felt russia had been d into the u.s. election by both hillary clinton and donald trump as a of trying to bolster support in and he said it wasn't ap for either can't candidate do have done that. he also made the point he is finding it increasingly difficult to have any sort of dialogue with the current administra given hillary clinton's position in the obama government, it looks as though post the election, if hillary clinton does indeed become president, it is going to be increasingly difficult to unwind the tense relationsh that currently exists between moscow and this is geoff cutmore for "nightlyes i

pennsylvaa is divided, and the battle is on for its 20 electoral votes. heating up. while hillary as an eight-point lea in most recent polls in the state, donald trump is stealing support in what used to be democratic country. coal country. those coal-mining counties out west. contessa brewe reports tonight from waynesburg, pen >> reporte jim popler is passionate about his '54 chevy and about coal mining. four generations of coal minors in his family. >> why would you shut down a coal mine that makes so much money, in this area? >> reporte emerald mine closed last year. laying off close to 300 workers. it's a trend nationwide. in the last five years, 30,000 coal jobs gone. the percentage of electricity generated by coal, down to 31%.

a 14% drop. at the debate this week, trump used hillary's own words against her. >> hillary cli wants to put all the miners out of business. his message is simple. >> coal, clean coal, clean coal. we're bringin it back. big league. >> i'm a democrat, but i'm not voting f. >> reporte why? >> because she came right out and said, she's going to shut us down. trump said he's going to come and help the coal miners. >> clinton supporters say she and president obama deserve the blame. >> it's been the switch from power plants going from coal to natural gas that has cut into the indust. >> clinton may not need the pennsylv coal counties. in the big cities, she is seeing a surge of >> she not only has very good plans for revitalizing our energy sector, but a way to transiti from the coal heavy producti in western pennsylvan to new renewable energy sources. >> hillary clinton's proposing a $30 billion plan for

job retraining and other benefits for coal miners. she's working with pennsylvania senator bob casey on a big to support miners with black lung disease. all that, yet the miners are not persuaded. >> you're talking political bull crap again. >>ep retired coal miner, bruce black senior feels burned by political promises. his buddies are laid-off coal workers who now work at peer counselo at the local career center, offering other out of work miners job retraining and replacemen new jobs pay just a fraction of what coal mining did. >> more jobs out there that pay good money. there is not around this area. we have guys that got their 401(k) already to stay afloat. >> dave got an offer to return to coal mining. the fact that you decided to give up $70,000 of income when you got called back to stay here at this job, is that an indication you think a job in coal mining is a gamble? >> i do.

i mean, for some people, you have no option. it's a big gamble, not only for we don't know how long it's going to stay or how long it's going to last. you don't know what's going to happen after this election. >> and at the end of the day, for this grandpa with coal mining in his blood, a vote for trump means a vote for the future of his grandson. for "nightly busine" contessa brewer, waynesburg, still ahead, why the transpor sector may be in for a bumpy ride this earnin ♪ samsung sees its profit forecast go up in smoke, cutting it by a third.

the company says its preliminary third quar guidance reflects the financial impact of its recall of its galaxy note 7 smartpho and the increased likeliho custo will seek a refund for the full price of the device and not just an exchange. yesterday, samsung said it would halt production entirely of that particular smartphone. > csx reported better than expected earnings, helped by cost cuts. but the nation's number three railroad operator was hit by a decline in revenue and volume. csx earned 48 cents a share, that was 3 cents better than estimates. revenue fell 8% to $2.7 billion. and the ceo says he's always looking for ways to save in order to offset lower commodity prices. >> restructure some of the coal fields. we had to close down some operations unfortunately, especiale coa area. we have a number of our dedicated emp who are furloughed. what we're doing, we're running longer trains,

consolidg trains and turning over every stone where we can find any possible savings. >> as for the stock, it rose initially in after-hours trading. >> earni weakness is widely ex across the transporta sector this quarter. and as morgan brennen explains in our sector spotlight tonight, they're bracing for a potentiall very bumpy ride. >> r earnings weakness expected to again play out for much of the transport sector as a slump in industrial produc weighs on freight demand. th focus will be on volumes and pricing. >> for both the trucking and railroads, we're seeing lower volume and lower pricing and it's really simple. when you're -- selling less and getting paid less for what you are selling, it's going to put pressure on your earnings, it's going to put pressure on your rl stocks, including csx, union pacific have jumped by double digit percentas this year as

investors bet the worst volume declines he alr happened. but results will be telling. donald bratton warns pricing power could b weaker than currently bel and that could result in significant contractn in those stocks' valuation. it's been a rough ride for trucking this year, as well. growth, carriers liked with warner enterprises and knight transpor expec t. but some bright spots do exist. >> we continue to be very, very positive on shares of fedex. u.s. u.p.s. continue to be positive on ch robinson, echo, xpo, global logistics, for the basic reason they participa in, a., e-commerce, which is growing. still growing gangbusters, and b., they participate in the freight marke without using they're not victim of lower asset utilization.

in fact, their margins get better in times like these. >> as companies report, other topics sure to arise including layoffs which have already been taking place at many rail and truc carriers. hongin and early commentary abou the impact of hurricane coming into today's results, csx had already disclosed signific flooding, washouts power disruptions on parts of its network from that storm. for "nightly businereport," i' morgan brennan. stanley black & decker adds to its tool box. that's where we begin tonight's market focus. the tool ask storage company for nearly $2 billion. stanley will add power tool brands irwin and lennox to its portfolio. newell, which also owns yankee candle and sharpie markers will use the money to trim debt. up nearly 3%. shares of newell rose 2%.

humana lowered its rating on some medicare plans. the company said the reduced rating on plans that enroll more than 1 million people does not mirror how businesses actually perform. and as a result, humana plans to ask the government to reassess its rating. separately the company also raised its quarterly and yearly outlook. were off to 168.44. telecom equipment company, ericson, said third quarter profit would be almost entirely wiped out. ericson said a big drop in its core mobile net working business, as we restructg fees, were to blame. the company also said it may implement add cost cuts. shares plunged 20% to $5.55. sprint said it will sell and then leaseback some of its wireless airways to raise $3.5 billion. the company values its wireless spectrum at more than $16 billion. sprint made similar moves back in november and april. shares unchanged on the day at

$6.78. cyber security company, fort net shares g whacked after it cut earnings in sales forecast for the quarter. late yesterday, the company said the outlook was a result of customer spending more time making purchasing decisions. fort net is expected to report results october 27th. shares were off 10% to 30.66. amazon announced today a streaming on-demand music service that cracks the standard $10 a month barrier. analysts are now adjusting their price targets on the company to over $1,000 a share, and global head of internet and media research at cantor fitzgerald. nice to have you here. welcome. thanks for having me. >> one of the reasons you made the move is you say that e-commer is reaching a tipping point in amazon is the biggest benefi what do you mean by a tipping point? >> right. if you look at growth rates in e-commerce over the last nine

months relative to, say, the first nine months of 2015, what you'll see is the year on year growth actually acceled to the mid teens relative to high single digits in the prior year. so that's a very, very substantia move, and because amazon is by far the largest player in the u.s., maybe not in china, but certainly in the u.s., and across europe, we think amazon is by far the best position to grow, because of that accele. and, in fact, if you look at even amazon's results in the last three quarters, we have seen a hint of accelerating top-line growth for the retail business, even putting aside the ews business, which everybody is excited about. >> how profitable are they? do we really know? >> well, we have a better idea today than we had maybe a year ago, before they broke out aws. we know that aws, that's the cloud business, is generating 25 to 30% incremental margin. that's very good, even better than what most people in the

street thought. that's partly why the stock rallied on that news. but if you strip that out and just look at the retail business, last quarter, the u.s. retail business was running maybe 5, 6% operating margin or incremenl margin. the international business was still break-even. but remember, international is still very early, just doubled down, spending $2 billion in the next couple years. so think of aws as the most profitable retail, u.s. being decently profitable. and with scale, should get a lot more profitable and internatiol s very much in investment mod right now. >> on that note, nice to have you here. justin squally with cantor fitzgerald whe startups and sen converge, it creates a very lucrativ ♪

toyota is recalling 340,000 redesign prius sedans worldwide. ne 100,000 in the u.s. it comes after reports of a potentiall deadly parking brake defect. th model years in question are 2016 and 2017. they are looki into reports of crashes, injurie and deaths. you may not think of baby boomers or seniors as cutting-ed technology, but a number of seniors are expected to spike over the next decade, the 50-plus crowd, they're young, is a hugely powerful economic force. and as aditi roy reports, that company is working to keep senior >> how is your day going?

>> reporte maxine duncan's grand daughter is far away. but the two are virtually face-t >> i talked to rachel and melanie, and they're coming down maxine is talking to her granddaughter through this robot, created by a startup called omni labs. >> it's really fun. it's fun to do. because you can see her, see her facial expressions. and she's a wonderful granddaugh and so i enjoy seeing her. >> rep the company is partnerih hom care assistance, one of the largest providers of in-home care to bring robots into the homes of seniors, and it's launching the partnersp in the bay area. the robots are controlled remotely and can be accessed any time by family members or caregive to chat with their olde loved ones or check in on them. >> they can take a walk together. they go cook together. they can watch tv together. these are the things that we want to enable. >> it's part of a pilot program. omni labs hopes will eventually expand across the country.

the company says seniors will have to pay an out of pocket monthly subscription fee for the robots, but hasn't disclosed the amount. not the only tech company targeting the 50-plus demographi aging 2.0 conference in san frano this week, startups and seniors are convergi to find innovative solutions. it's a lucrative proposition with the aarp estimating the 50-plus crowd accounts for more than $7.5 trillion in annual economic activ in the u.s. tech companies, small and large, are taking like google. jennifer haroon, an executive with the self-driving car program, is speaking at the conferen about the way seniors could stand to gain from autonomo cars. >> it turns out here in the u.s., about 4 out of 5 seniors live in more suburban, rural communitie many, unfortunat don't have public transporta when they do have to those car keys, it can be really

isolating. and we think self-driving cars can help expand their world, even if they can't physically >> another source of buzz at the conference, t mini drones. the flying gadgets are the brain child of a professor at the unf illinois and can be ud for household tasks like bringing medications to you. it's still a few years from going to market, but with the number of seniors expected to grow, 50% over the next 15 years, he is confident there will be a demand for these autonomo drones. >> we can have a slightly bigger drone that can go grab a glass of water or reach under the table to grab a fallen object or get something from the second floor, like a book from a shelf. and other tasks. >> getting seniors to adopt next-generation technolo can b daunting. one pew research report shows thseniors' use of the internet goes down 20% after the age of 7 a5.

but once they're online, they become dai users. the companies we're talking to here are hopeful that once ex pokesed, this demographic will embrace new technology. aditi roy, san francisco." >> the robots are coming. and they're here to help you. >> the rise of the machines. that although did do it for "nightly tonight. i'm sue herera. thanks for joining us. >> and i'm tyler mathisen. thank yo from me, as well. we'll see you back here

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